Page 24 - DIY Investor Magazine | Issue 30

The trust is fully focused on owning quality businesses at attractive prices. The aggregate data and individual holdings of the trust continue to reflect this philosophy. We own a set of businesses which make superior return on equity to the market but are available at much cheaper valuations.
LESSONS FROM LAST 25 YEARS.
Studying the history of the trust over last 25 years has been instructive with a few clear lessons:
• Economy: Asia has witnessed a miracle over the past 25
years, with China leading the way. The key was unleashing the power of capitalism to raise productivity levels in China. There are still four big population centres of India, Indonesia, the Philippines and Vietnam with an opportunity to raise productivity levels significantly over the next 20 years.
• Markets: Markets go up and down - often by a lot. Since launch, the share price of the fund has had a drawdown of more than 10% on 15 occasions, of which four times it fell more than 25%.
Find out more about Fidelity Asian Values PLC here >
Important information
The world and investor behavior are not forecastable and
often emotional.
• Emotions: Although significant decline has been an
opportunity to buy, doing so when being scared is very difficult. Similarly selling over-hyped stocks when they are doing well can be equally as difficult. It is important to emotionally detach yourself. Be fearful when others are greedy, be greedy when others are fearful.
For us, the most important lesson of this period has been that to preserve capital, one has to avoid speculative excesses. As equity investors, we will not be able to avoid the volatility of stock markets but by avoiding ‘hot areas’ and inferior businesses we can avoid permanent loss of capital.
Owning good businesses run by honest people and owning them at attractive prices gives us the best chance to accomplish this. The board, the portfolio manager and Fidelity’s research team are focused on making sure that we stay true to this.
The value of investments and the income from them can go down as well as up, so you may get back less than you invest.
Past performance is not a reliable indicator of future returns. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser. Investors should note that the views expressed may no longer be current and may have already been acted upon. Investments in small and emerging markets can be more volatile than other more developed markets. Changes in currency exchange rates may affect the value of investments in overseas markets. The trust can use financial derivative instruments for investment purposes, which may expose them to a higher degree of risk and can cause investments
to experience larger than average price fluctuations. The shares in the investment trust are listed on the London Stock Exchange and their price is affected by supply and demand. The investment trust can gain additional exposure to the market, known as gearing, potentially increasing volatility. Investments in smaller companies can carry a higher risk because their share prices may be more volatile than those of larger companies. Reference to specific securities should not be construed as a recommendation to buy or sell these securities and is included for the purposes of illustration only. The latest annual reports and factsheets can be obtained from our website at www.fidelity.co.uk/its or by calling 0800 41 41 10. The full prospectus may also be obtained from Fidelity. The Alternative Investment Fund Manager (AIFM) of Fidelity Investment Trusts is FIL Investment Services (UK) Limited. Issued by Financial Administration Services Limited, authorised and regulated by the Financial Conduct Authority. Fidelity, Fidelity International, the Fidelity International logo and F symbol are trademarks of FIL Limited.
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DIY Investor Magazine | Sept 2021 24