Stock Analysis & Valuation Fidelity Asian Values PLC (FAS.L)

• Previous Close: £628.00
• Sector Valuation Confidence Level: High

Valuation method	Value, £	Upside, %
Artificial intelligence (AI)	234.15	-63
Intrinsic value (DCF)	211.18	-66
Graham-Dodd Method	6.29	-99
Graham Formula	4.38	-99

Strategic Investment Analysis

Company Overview

Fidelity Asian Values PLC (LSE: FAS.L) is a UK-domiciled closed-ended equity mutual fund specializing in Asian markets, excluding Japan. Managed by FIL Investment Services (UK) Limited, the fund employs a bottom-up stock-picking strategy to invest across all market capitalizations and sectors in Asia. It benchmarks its performance against the MSCI All Countries Far East ex Japan Index, offering investors exposure to high-growth Asian equities. With a focus on fundamental analysis, the fund targets long-term capital appreciation, leveraging Fidelity’s extensive regional expertise. As part of the Fidelity Investments network, it benefits from strong research capabilities and a disciplined investment approach. The fund’s diversified portfolio appeals to investors seeking Asia-centric growth opportunities outside Japan, making it a compelling option in the asset management sector.

Investment Summary

Fidelity Asian Values PLC presents an attractive investment opportunity for those seeking exposure to Asia’s dynamic equity markets. The fund’s disciplined bottom-up approach, combined with Fidelity’s robust research infrastructure, enhances its potential for alpha generation. However, risks include regional volatility, currency fluctuations, and geopolitical uncertainties in Asia. The fund’s low beta (0.379) suggests relative stability, but its performance remains tied to emerging market dynamics. With a dividend yield supported by a £14.5 per share payout, income-seeking investors may find it appealing. The fund’s £341.8M market cap and solid net income (£11.7M) reflect stability, but its reliance on Asian growth warrants caution amid macroeconomic headwinds.

Competitive Analysis

Fidelity Asian Values PLC differentiates itself through its focused Asian ex-Japan mandate and Fidelity’s deep regional expertise. Its bottom-up stock selection contrasts with passive or broader emerging market funds, offering active management in a high-growth region. The fund’s benchmark alignment with MSCI All Countries Far East ex Japan ensures transparency, while its diversified sector approach mitigates concentration risk. Competitors often lack Fidelity’s granular research capabilities or charge higher fees for similar strategies. However, the fund faces competition from both Asia-focused active funds and low-cost ETFs tracking similar indices. Its closed-ended structure provides liquidity management advantages but may trade at discounts/premiums to NAV. Performance hinges on the managers’ ability to outperform in a crowded space where local and global asset managers vie for dominance.

Major Competitors

• Aberdeen Asian Income Fund Limited (AAIF.L): Aberdeen Asian Income Fund focuses on high-dividend Asian equities, offering yield-seeking investors an alternative to Fidelity’s growth-oriented approach. Its strength lies in Aberdeen Standard Investments’ regional income expertise, but it may lag in capital appreciation during growth cycles. The fund’s narrower income focus contrasts with Fidelity’s broader sector diversification.
• Pacific Assets Trust PLC (PAX.L): Pacific Assets Trust invests across Asia-Pacific, including Japan, providing broader regional exposure than Fidelity’s ex-Japan mandate. Managed by Stewart Investors, it emphasizes sustainable investing, which may appeal to ESG-focused investors. However, its inclusion of Japan dilutes pure Asian growth exposure compared to Fidelity Asian Values.
• JPMorgan Asian Investment Trust PLC (JAI.L): JPMorgan’s trust competes directly with Fidelity’s Asian ex-Japan strategy, leveraging JPMorgan’s extensive on-the-ground research. Its performance has been strong historically, but fees are higher. The trust’s larger AUM provides scale advantages but may limit agility in smaller-cap opportunities where Fidelity excels.
• Scottish Oriental Smaller Companies Trust PLC (SST.L): This trust specializes in Asian smaller caps, offering higher growth potential but with elevated volatility compared to Fidelity’s all-cap approach. Its niche focus attracts risk-tolerant investors, but its concentrated portfolio lacks the diversification of Fidelity’s broader strategy.