Fidelity Japan A

Large cap stock picking fund supported by a well resourced Tokyo team.

  • 411.60p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • -
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 3.50% 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 1.50%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 1.75%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 0.00%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 13 December 2019, fund data last updated 30 November 2009

The fund aims to outperform the Japanese stockmarket - the TOPIX index (largest companies listed on the Tokyo Stock Exchange) and therefore generally invests in large Japanese companies. To achieve this it follows the house philosophy in that all stocks are selected on the basis of in depth analysis at the company level, however, the manager is also aware of the global economic climate and how this might affect certain sectors or industries. The fund also benefits from a large team of analysts based in Tokyo.

Fund summary

Sector Japan
Structure OEIC
Launched October, 1981
Size £48m
Yield 0.00%
Charging basis Income
Dividends paid Acc units only

Charges

Standard initial charge 3.50%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.50%
Ongoing charges figure 1.75%

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Investment process

The manager analyses a company in its own right, and therefore does not follow themes or industry trends. However, he is aware of the economic climate and how this might affect the type of companies he is interested in. Ideas are typically generated from Fidelity's team of some 30 analysts based in Tokyo. Companies selected are usually leaders in their industry (often with a niche), have strong pricing power, generate good cash levels and have strong balance sheers. Additionally companies must manage their business with the interest of shareholders in mind. Valuation is also very important and the manager looks for stocks with attractive valuations measured against their historical average and future growth as well as both domestic and international same-sector peers.

June Yon-Kim inherited the management of this fund from Robert Rowland in April 2011. June Yon-Kim was already the manager of the Fidelity FAST Japan fund which he runs from Tokyo and so far over his career his performance has been reasonable if somewhat volatile. Adding value in the Japanse market has been extremely hard during the last couple of decades and as such, we favour manages with long and established track records. Our favoured fund is the five star rated GLG Japan Core Alpha.

Manager research

Average monthly relative returns

  • 14/15 0.00%
  • 15/16 0.00%
  • 16/17 0.00%
  • 17/18 0.05%
  • 18/19 -8.15%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career -3.90%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Takuya Furuta

Furuta joined Fidelity in 2008. He has been a Portfolio Manager since November 2015 for Japanese Equities. Prior to this role he was an Analyst in the Japanese Equity Research team. Before joining Fidelity he was a Systems Engineer at NTT Data from 2000-2006. He graduated from University of Tokyo, Japan and also received MBA from The Wharton School, University of Pennsylvania, USA.

Track record

The track record of Takuya Furuta in managing mutual funds in this sector is still too short for us to draw any meaningful conclusions and so our assessment is based largely on qualitative aspects.

Periods of worst performance

Absolute -14.00% (September 2018 - December 2018)
Relative -100.00% (January 2018 - February 2019)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Top 10 holdings

Data accurate as at 31 July 2019

5.072% Recruit Hldgs Co Ltd
4.9017% Keyence Corp
4.8466% Tokio Marine Hldgs Inc
4.3819% Nof Corp
4.0195% Itochu Corp
3.7021% Smc Corp
3.5624% Koito Manufacturing Co
3.2514% Obic
3.1367% Nidec Corp
2.9369% Relo Holdings Inc
Source: Trustnet

Sector breakdown

Electronic & Electrical Equipment 19.00%
Communications 14.00%
Services 13.00%
Machinery 10.00%
Others 9.00%
Wholesale 9.00%
Chemicals 8.00%
Insurance 5.00%
Retail 4.00%
Construction 4.00%

Portfolio

The portfolio is usually made up of approximately 60 to 110 stocks, with a high concentration in the top 20 holdings.

Constraints

There are no specific restrictions on the relative sector weights or the individual stock holdings.

Key Investor Information

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