Monthly Factsheet

Fidelity Asian Values plc (LEI: 54930094CXNYINSNOQ96) has published its monthly factsheet as at 30 November 2025; the latest factsheet is available on the company website and copies have been submitted to the UK Listing Authority for inspection on the National Storage Mechanism. The notice (dated 23 December 2025) provides availability and filing information only and contains no performance, NAV or earnings figures — investors should consult the factsheet itself for holdings and performance metrics.

Analysis

Market structure: The factsheet publication itself is neutral but highlights an active Asian value vehicle (Fidelity Asian Values plc) at a time when flows favor passive EM indices. Winners are active value managers and Asian small‑cap/value stocks (financials, domestics, select cyclicals) if discounts narrow; losers would be crowded growth/tech names in China/HK during any rotation. Cross‑asset: a rotation into Asian value typically strengthens regional FX (INR, IDR) and compresses high‑beta commodity hedges; safe‑haven bonds could rally if policy shocks occur.

Risk assessment: Tail risks are asymmetric — a China regulatory tightening or capital controls could trigger >15% downside in China‑exposed holdings within weeks; currency shocks (CNY/HKD move >8% in 3 months) would materially hurt GBP‑listed trusts. Short‑term (days–weeks) risks center on discount volatility around NAV updates; medium (3–6 months) on macro/policy; long‑term (12+ months) on earnings recovery and manager alpha persistence. Hidden dependencies include trust gearing, concentrated country exposure, and market maker liquidity.

Trade implications: Direct plays favor buying the UK‑listed Fidelity Asian Values trust on discount expansion (>6%) with a 6–12 month horizon; pair trades: long India (INDA) vs short China large cap (FXI) to capture rotation; use 3–6 month protective puts on FXI to cap regulatory tail risk. Sector rotation: overweight Asian banks/energy and underweight internet advertising and consumer durables until China evidence of demand reacceleration emerges.

Contrarian angles: Consensus underprices active trust arbitrage — forced sellers can widen discounts to 8–12% creating buying windows; historical parallels (2016 China easing) show outsized recovery once policy shifts. Beware liquidity: NAV discounts can persist, so size positions to a 2–4% portfolio allocation and expect 3–12 month holding periods rather than immediate mean reversion.

Key Decisions for Investors

• Establish a 2–4% long position in Fidelity Asian Values plc (UK‑listed Asian equity trust) if market price implies a discount to the latest NAV ≥6%; target a 6–12 month holding period and a 12% TP on narrowing discount; apply stop‑loss if discount widens to ≥12% or trust reports negative gearing changes.
• Initiate a relative‑value pair: long 3% iShares MSCI India ETF (INDA) and short 3% iShares China Large‑Cap ETF (FXI) for 3–9 months to capture Asia‑ex‑China rotation; close/rebalance if spread moves >5% in either direction or India macro prints weaken for two consecutive months.
• Purchase 3–6 month downside protection on China exposure: buy FXI puts (at‑the‑money) financed by selling lower‑strike puts (put‑spread) sized to hedge 2–3% portfolio China risk; budget cost ≤1% portfolio notional to limit tail‑risk exposure.
• Reduce passive broad EM ETF weight by 1–2% within 30 days and reallocate into active Asian value exposures (Fidelity Asian Values or concentrated Asia small‑cap funds) to exploit potential discount capture and manager stock‑picking over 6–12 months.