Monthly Factsheet as at 31 December 2025

Fidelity Asian Values PLC has published its monthly factsheet as at 31 December 2025 (LEI: 54930094CXNYINSNOQ96); the document is available on the company website and copies have been submitted to the UK Listing Authority. The factsheet will be posted to the National Storage Mechanism and is typically accessible within two business days; notice dated 23 January 2026.

Analysis

Market structure: The monthly factsheet release for Fidelity Asian Values PLC (LON:FAS) is a liquidity and information event that favors investors and managers who can arbitrage closed‑end discounts; if the trust trades with a discount persistently >6–8% it creates buying power for activists/repurchases and benefits value/SMID Asia exposures. Winners are active value managers and contrarian buyers of Asian cyclical banks, commodities and domestically oriented consumer names; losers are low‑turnover passive large‑cap growth ETFs if flows rotate away. Cross‑asset: a rotation into Asian value typically tightens EM credit spreads by 15–50bp, lifts industrial commodities +2–5% and strengthens regional FX (CNH/INR) by ~1–3% versus USD in 1–3 months.

Risk assessment: Tail risks include a China regulatory shock or major property default that can knock an Asian value trust NAV by >15% within weeks, and UK market technicals that can widen trust discounts beyond 12% during liquidity stress. Immediate (days) risk is discount volatility around the factsheet; short term (weeks–months) is PBOC policy or PMI surprises; long term is structural outflows from UK retail/ETF competition. Hidden dependencies: manager fee structure, swing pricing limits, and sterling moves versus portfolio currencies can amplify returns or losses.

Trade implications: Direct play: conditional long LON:FAS via 2–3% portfolio position when discount ≥6% and trailing 12‑month NAV outperformance >0%; target 8–12% IRR over 3–9 months, exit if discount narrows <2% or underperform by 400bp in 3 months. Pair trade: long FAS vs short iShares MSCI EM Asia ex Japan (AAXJ) to capture value vs growth rotation, size 1:1 delta, target spread convergence 400–600bp over 3–6 months. Options: buy 3‑month 10% OTM put spread on AAXJ to cap downside at a cost ≤1% of portfolio as tail hedging.

Contrarian angles: Consensus underestimates persistence of UK retail discounting—discounts can remain >8% for 6–12 months even with improving NAV, creating asymmetric entry points for patient buyers. Reaction could be underdone for cyclical Asian financials where book value recovery lags macro rebound; historical parallels: post‑China stimulus rotations (2016, 2019) saw ~6–9 month mean reversion in discounts. Unintended consequence: aggressive buybacks by the trust could draw activist attention or concentrate liquidity risk—use discount thresholds and NAV performance guards when sizing positions.

Key Decisions for Investors

• Establish a 2–3% portfolio long position in Fidelity Asian Values PLC (LON:FAS) only if the share discount to NAV is ≥6% and trailing 12‑month NAV is ≥0%; target 8–12% gross return over 3–9 months, set stop‑loss to cut exposure if discount widens to >15% or if 3‑month NAV underperforms MSCI AC Asia ex‑Japan by >400bp.
• Implement a relative value pair: long LON:FAS vs short iShares MSCI EM Asia ex Japan (AAXJ) 1:1 delta‑adjusted to capture value/growth rotation; target 400–600bp spread convergence within 3–6 months, close trade if adverse move exceeds 1000bp or within 30 days of major China policy events.
• Purchase a 3‑month put spread on AAXJ (buy 10% OTM put, sell 20% OTM) sized to cap downside to ~3% of portfolio value and costing ≤1% of portfolio as a tail hedge against a China/regulatory shock in the next 90 days.
• Hedge 50–75% of unhedged CNH/CNY and INR exposure in Asian equity holdings via 3‑month FX forwards or options if USD strength >2% materializes over 1–3 months; unwind hedges when regional FX recovers >3% or when PBOC signals durable easing.
• Monitor specific catalysts over the next 30–60 days: PBOC rate/MLF decisions, China large‑property default headlines, and the next FAS monthly factsheet NAV disclosure; reduce/exit positions if any of these produce NAV shocks >8% or regulatory fines/constraints on major holdings exceeding GBP 50m aggregate impact.