29th Mar 2019 12:13
LONDON (Alliance News) - Fidelity Japan Trust PLC on Friday said it underperformed its benchmark after its net asset value per share dropped 15%.
For 2018, the company's NAV per share fell to 138.77 pence from 164.10p, underperforming the firm's benchmark, the Reference Index, which returned a negative 8.3%.
This was due to market sentiment deteriorating rapidly in the final three months of the year, after a good performance up until September, the company explained.
However, looking ahead, since the end of the year, "performance has been positive".
The NAV per share return was 9.1% versus the Reference Index return at 1.6%.
"In the absence of a global recession, Japanese companies should continue to deliver moderate earnings growth in the mid to upper single digit range," the company said.
It continued: "Macroeconomic fundamentals remain stable in Japan and the stock market has rebounded from the fourth quarter sell-off. However, markets generally remain susceptible to the effects of trade frictions on the global economy and slowing growth in China and Europe."
Fidelity Japan Trust shares were trading up 1.2% at 137.06p each.
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Fidelity Japan Trust