Fidelity Japan Smaller Companies A

Invests in small and medium-sized companies. Managed by a large locally based team.

  • 352.60p
    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.

  • 0.30%
    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 18 September 2020, fund data last updated 07 May 2004

A pure stockpicking fund which has a bias to smaller co's adapting and benefiting from changes in the Japanese economy. Fidelity have huge resources in Japan and thus the fund benefits from a wide analysis of stocks. Despite performing well within the peer group, the portfolio has difficulty in consistently outperforming the benchmark.

Fund summary

Sector Japan
Structure OEIC
Launched April, 1984
Size £92m
Yield 0.30%
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%

Allocation

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Investment process

The fund is managed with the aim of providing long term capital appreciation from a portfolio primarily composed of Japanese equities. The portfolio will usually have a bias towards medium sized and smaller companies and is described by Fidelity as their more aggressive fund investing in Japan. The manager does not invest on an industry or sector basis, but analyses a company in its own right. Companies selected are usually leaders in their industry (often with a niche), who manage their business with the interest of shareholders in mind. Attractive long term growth prospects and solid management are prerequisites.

Manager research

Average monthly relative returns

  • 15/16 -0.30%
  • 16/17 -0.02%
  • 17/18 0.11%
  • 18/19 -4.18%
  • 19/20 0.89%

Bestinvest MRI

  • 3 years -1.06%
  • 5 years -0.70%
  • Career -0.32%
  • 3 years 24.50%
  • 5 years 23.60%
  • Career 26.10%

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

Jun Tano

Tano started his career as equity analyst at Meiji Life insurance company in 1986. He was a portfolio manager at Meiji Yasuda Life Insurance Group between 1989 and 2000. He has experience in managing Japanese as well as non-Japanese equities mainly for Japanese domestic pension plan sponsors. Tano received an MBA from the Wharton School, a BA from Yokohama National University and he is a CFA chartholder.

Track record

Jun Tano has 14.4 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.32%. During the worst period of relative performance (from April 2006 - February 2019) there was a decline of 60% relative to the index. The worst absolute loss has been 47%.

Periods of worst performance

Absolute -47.00% (April 2006 - October 2008)
Relative -60.00% (April 2006 - 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 30 June 2020

5.1% Misumi Group Inc
4.8% Daifuku Co
3.6% Shimadzu Corp
3.1% Azbil Corp
3% Disco Corp
3% Nippon Shinyaku Co
3% Olympus Corp
2.8% Makita Corp
2.8% Pan Pacific Intl Hldgs Corp
2.6% Shimano Inc
Source: Trustnet

Sector breakdown

Electronic & Electrical Equipment 26.00%
Machinery 20.00%
Precision Instruments 8.00%
Others 8.00%
Retail 8.00%
Pharmaceuticals 6.00%
Wholesale 6.00%
Construction 4.00%
Communications 4.00%
Chemicals 3.00%

Portfolio

Typically the fund is made up of around 90-130 stocks and is invested across all sectors.

Constraints

There are no constraints placed upon the manager by the group.

Key Investor Information

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