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FIDELITY JAPANESE VALUES PLC.
Investment Review
May 2012Shinji Higaki Portfolio Manager
This information does not constitute investment advice and should not be used as the basis of any investment decision, nor should it be treated as a recommendation for any investment. The value of investments can go down as well as up and you may get back
less than you invest. Investments in overseas markets can be subject to currency fluctuations and will effect the value of your investments.
© FIL Investments (Japan) Limited
Contents
2
1 Performance Review
2 Investment Strategy
3 Market Environment in Japan
4 Appendix – Portfolio Positioning and others
© FIL Investments (Japan) Limited3
Performance as at 31 March 2012
Source: FIL Limited, data as of 31/03/12Currency: GBP. Basis: bid to bid with net income reinvested. Performance does not include an initial charge.
Cumulative Performance Since Inception
Past performance is not a guide to what might happen in the future.
68.6
59.9
84.1
0
40
80
120
160
200
Mar-94
Mar-95
Mar-96
Mar-97
Mar-98
Mar-99
Mar-00
Mar-01
Mar-02
Mar-03
Mar-04
Mar-05
Mar-06
Mar-07
Mar-08
Mar-09
Mar-10
Mar-11
Mar-12
NAV Share Price Russell/Nomura Mid Small Cap Index
(indexed to 100 as at 15/03/94)
2.3
-2.5
-0.1
13.2
4.3
-0.7
0.9
7.5
-1.9 -1.7 -1.1
5.7
-6.0
-3.0
0.0
3.0
6.0
9.0
12.0
15.0
3 Months Cumulative 6 Months Cumulative 1 Year Cumulative 3 Years Annualised
Fund Russell/Nomura Mid Small Cap Index Relative%
Performance Snapshot as at 31 March 2012
© FIL Investments (Japan) Limited
5 Year Performance Comparison
Cumulative Returns (%) as at 30 April 2012 3 Months 6 Months 1 Year Since Launch
NAV 1.13 0.97 2.37 -31.55Share Price 0.93 -3.58 1.16 -40.15Russell/Nomura Mid Small Cap Index -2.14 1.47 0.82 1.00TOPIX -1.27 2.14 -1.43 -40.27
Annual Performance over the Past 5 Years
Returns (%) over 12 months to: 30-Apr-2012 30-Apr-2011 30-Apr-2010 30-Apr-2009 30-Apr-2008
NAV 2.37 -2.87 38.14 -23.50 -15.70Share Price 1.16 -3.39 35.58 -24.88 -23.32Russell/Nomura Mid Small Cap Index 0.83 -7.93 24.04 -5.37 -10.54TOPIX -1.43 -8.31 19.30 -12.35 -7.87
40
60
80
100
120A
pr-
07
Jul-0
7
Oct
-07
Jan
-08
Apr
-08
Jul-
08
Oct
-08
Jan-
09
Apr
-09
Jul-
09
Oct
-09
Jan-
10
Apr
-10
Jul-1
0
Oct
-10
Jan-
11
Ap
r-11
Jul-1
1
Oct
-11
Jan
-12
Ap
r-12
NAV Share Price Russell/Nomura Mid Small Cap Index TOPIX
(in
dexe
d t
o 1
00
as
at
30/0
4/2
007
)
Past performance is not a guide to what might happen in the future.Source: FIL Limited, 30 April 2012 *Launch date is 15 March 1994; Net returns in GBP terms; Benchmark: TSE Second Section Index linked with Russell/Nomura Mid Small Cap Index
© FIL Investments (Japan) Limited5
Source: FIL Limited, data as of 31/03/12
Stock selection struggled, but currency gains and dividend income partially offset the negative impact over the last 12 months
Performance Attribution Summary
Performance Summary in GBP as at 31 March 2012
2.3% Net Asset Value Per Share (£) -0.1%
2.9% Share Price (£) -1.1%
4.3% Russell/Nomura Mid-Small Cap Index (£) 0.9%
-9.1% Currency (£/¥) 1.0%
% change (3 months) Performance Summary % change (12 months)
Performance Attribution SummaryChange in Pence Change in Pence
(3 months to 31/03/12) (12 months to 31/03/12)9.40 Index -0.090.76 Index Income 1.34
-3.26 Stock Selection -0.86-6.74 Currency 0.701.46 Gearing -0.020.00 Share Repurchases -0.20
-0.13 Other -0.961.49 Change in NAV (£) -0.092.3% Change in NAV (% ) -0.1%
Attribution Summary
Past performance is not a guide to what might happen in the future.
© FIL Investments (Japan) Limited6
Try to generate alpha through stock selection
Source: FIL Limited; Data as of 31/03/12
Relative Performance Attribution Summary 12-month Relative Performance Attribution for the Ungeared Portfolio
as at 31 March 2012Quarterly Relative Performance Attribution for
the Ungeared Portfolio
(1,000) (500) 0 500 1,000
Q2 12*
Q1 12
Q4 11
Q3 11
Q2 11
Q1 11
Q4 10
Q3 10
Q2 10
Q1 10
Q4 09
Q3 09
Q2 09
Q1 09
Stock Selection Sector Selection
basis points
Source: FIL Limited; *Quarter to Date as of 20/04/12
(150) (100) (50) 0 50 100 150
Monotaro
Fast Retailing
Maruwa
Shin-Kobe Electric Machinery
Nuflare Technology
NPC
Elpida Memory
Asahi Diamond Industrial
Osaka Titanium Technology
Cyber Agent
Top 5 & Bottom 5 Stocksbasis points
(180) (120) (60) 0 60 120 180
Retail Trade (underweight)
Glass & Ceramics
Electric Power & Gas (underweight)
Chemicals
Rubber Products
Real Estate (underweight)
Nonferrous Metals (underweight)
Electrical Machinery
Transport Equipment
Machinery
Top 5 & Bottom 5 Sectors
Stock Selection
Sector Allocation
basis points
Past performance is not a guide to what might happen in the future.
© FIL Investments (Japan) Limited
Contents
7
1 Performance Review
2 Investment Strategy
3 Market Environment in Japan
4 Appendix – Portfolio Positioning and others
© FIL Investments (Japan) Limited8
Portfolio Construction
High-conviction approach
Sector allocation is a result of stock selection
Stock Selection
Focus on companies with strong earnings growth
– Internet services
– Factory automation equipment makers benefiting from Chinese capital expenditures
– Global niche players: auto parts
Current Investment Strategy
© FIL Investments (Japan) Limited
3455
38924467
4494
4625 4864
5787
7258
68157065
76828299
72958063
9127
10505
9078
10398
11662
12423
11477
12271
12748
0
2000
4000
6000
8000
10000
12000
14000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY2006 FY2007 FY2008 FY2009 FY2010 FY2011
('000 views)
9
Internet services and infrastructure providers in new business:– M3 – operator of medical internet portal– Kakaku.com - beneficiary of growing on-line consumer services– Bit-Isle - data storage service provider– GMO Payment Gateway – online account settlement services
Source: company data as of 31/03/2012
Continued growth in internet services and infrastructures provide investment opportunities in new business areas
Source: company data as of 31/12/2011; Japanese fiscal year (April - March)
Kakaku.com – Monthly Page Views and Usersm3.com – Number of Emails Read by Doctors
Current Stock Selection Theme: Internet Service
-
10
20
30
40
50
60
70
80
90
-
200.0
400.0
600.0
800.0
1,000.0
1,200.0
1,400.0
1,600.0
1,800.0
2,000.0
Apr-05
Aug-05
Dec-05
Apr-06
Aug-06
Dec-06
Apr-07
Aug-07
Dec-07
Apr-08
Aug-08
Dec-08
Apr-09
Aug-09
Dec-09
Apr-10
Aug-10
Dec-10
Apr-11
Aug-11
Dec-11
Page View (LHS)
Users (RHS)
Page View (million)
Monthly Users (10'000)
Reference to specific securities should not be construed as a recommendation to buy or sell these securities, but is included for the purposes of illustration only. Investors should also note that the views expressed may no longer be current and may have already been acted upon by Fidelity.
© FIL Investments (Japan) Limited
-100%
-50%
0%
50%
100%
150%
200%
250%
300%
0
1,000
2,000
3,000
4,000
5,000
6,000orders (LHS) % Chg. YoY (RHS)
(¥ million)
10
0
200
400
600
800
1,000
1,200
1,400
1994
199
5
199
6
199
7
199
8
199
9
200
0
200
1
200
2
200
3
200
4
200
5
200
6
200
7
200
8
200
9
201
0
2011
(f)
0
5
10
15
20
25
30
35
40
45
50Beijing Minimum Monthly Wage (LHS)YoY (RHS)
(RMB) (%)
Japanese manufacturers of FA equipment parts benefiting from Chinese demand
– Sanyo Denki - servo motors for robots– Harmonic Drive Systems – precise motion control components– SMC – pneumatic equipment– Fanuc – CNC equipment, industrial robotics, machine tools * CNC: computer numeric control
Source: Ministry of Human Resources and Social Security, data as of 31/3/2011 (annual data)
Labour shortage and wage increases likely to accelerate factory automation in China
Source: company data, FIL Limited, data as of 11/04/2012
Harmonic Drive Systems – Order GrowthChina – Monthly Wage
Stock Selection Theme: Factory Automation (FA) Equipment Makers
© FIL Investments (Japan) Limited
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
2008 2009 2010 2011 2012E 2013E 2014E 2015E 2016E
Middle East AfricaSouth America Central/Easten Europe and RussiaWesturn Europe Asia/PacificNorth America
('000 units)
11
Niche auto parts makers benefiting from long-term growth in emerging markets– Takata: Seat belts and airbags => Safety– JSP: Polystyrene materials for auto parts => Lightweight vehicle production– Nifco: Plastic fasteners => Lightweight vehicle production– Sekisui Chemical: Interlayer films for laminated glass => Lightweight vehicle production
Source: FOURIN, Automotive Yearbook, Mizuho SecuritiesData as of 11/01/2012
Global New Automobile Sales Forecast
Production normalised after impact of earthquake and Thai floodsNo change to the long-term growth story
Source: Toyota – company data, FIL Limited, data as of 25/04/2012
Current Stock Selection Theme: Niche Global Players
Toyota Monthly Daily Production Plan vs Actual Production
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Jan-08
Apr-08
Jul-08
Oct-08
Jan-09
Apr-09
Jul-09
Oct-09
Jan-10
Apr-10
Jul-10
Oct-10
Jan-11
Apr-11
Jul-11
Oct-11
Jan-12
Apr-12
Jul-12
-3M Plan -2M Plan -1M Plan Actual Production(units)
© FIL Investments (Japan) Limited
Contents
12
1 Performance Review
2 Investment Strategy
3 Market Environment in Japan
4 Appendix – Portfolio Positioning and others
© FIL Investments (Japan) Limited
Japan – Market Environment Summary
Near-term market sentiment driven by macroeconomic newsflow, but investors’ focus should eventually revert to individual company fundamentals and earnings over the mid-term
Global investors returning to Japan. However, buying levels remain below previous peaks, suggesting further potential upside.
Corporate earnings in Japan are on a clear recovery trend; potential upward revisions to management’s earnings guidance for FY2011/12
13
Japan remains a stock picker’s marketDespite macro headwinds, Corporate Japan’s earnings recovery is on track
© FIL Investments (Japan) Limited
Overseas Investors Turned Net Buyers of Japanese Equities from Early 2012
Source: Bloomberg, data as of 06/04/12
For the year to date, foreign investors have bought more than ¥2trn of Japanese stocks, which equates to almost 70% of the amount sold in 2H 2011
14
700
750
800
850
900
950
1000
1050
-400
-300
-200
-100
0
100
200
300
400
500Jan
-09
Mar-09
May-09
Jul-09
Sep-09
Nov-09
Jan-10
Mar-10
May-10
Jul-10
Sep-10
Nov-10
Jan-11
Mar-11
May-11
Jul-11
Sep-11
Nov-11
Jan-12
Mar-12
(Index)(¥ billion)
Overseas Investors & TOPIX
Net Transactions by Foreign Investors (4-week moving average)
TOPIX (rhs)
© FIL Investments (Japan) Limited
-12
-10
-8
-6
-4
-2
0
2
4
6
8
10
12
14
16
-60.0%
-40.0%
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
Jan-98 Jan-00 Jan-02 Jan-04 Jan-06 Jan-08 Jan-10 Jan-12
OECD leading index versus TOPIX
TOPIX (year-on-year % change; left hand scale)
OECD + Major Six Composite Leading Indicator
Liquidity-driven Global Recovery Gaining Traction
TOPIX in JPYSource: OECD, Bloomberg. Data as of 31/03/12
As a global cyclical play, Japan is benefiting from a more stable external environment & yen reversal
TOPIX in JPY Source: Bloomberg. Data as of 06/04/2012
15
600
800
1,000
1,200
1,400
1,600
1,800
2,000
70
80
90
100
110
120
130
Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12
Dollar-yen rate versus TOPIX
Dollar-yen rate (left hand scale)¥/$ rate 52-week moving average (left hand scale)TOPIX (right hand scale)
© FIL Investments (Japan) Limited
Source: Bloomberg, data as of 31/03/12
Global Market Performance in US$ since 1998
Long-term Trends in Global Equity Markets
Developed equity markets when measured in US$ have been highly correlated for over a decade
50
100
150
200
250
Dec-97
Jun-98
Dec-98
Jun-99
Dec-99
Jun-00
Dec-00
Jun-01
Dec-01
Jun-02
Dec-02
Jun-03
Dec-03
Jun-04
Dec-04
Jun-05
Dec-05
Jun-06
Dec-06
Jun-07
Dec-07
Jun-08
Dec-08
Jun-09
Dec-09
Jun-10
Dec-10
Jun-11
Dec-11
TOPIX (US$) S&P500 (US$) FTSE100 (US$) Stoxx Europe 600 (US$)
(Indexed to 100 as at 31 Dec. 97)
16
Past performance is not a guide to the future. Returns may increase or decrease as a result of currency fluctuations.
© FIL Investments (Japan) Limited
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
5.50
6.00
6.50
7.00
7.50
8.00
600
800
1,000
1,200
1,400
1,600
1,800
2,000 Jan
-95Jul
-95Jan
-96Jul
-96Jan
-97Jul
-97Jan
-98Jul
-98Jan
-99Jul
-99Jan
-00Jul
-00Jan
-01Jul
-01Jan
-02Jul
-02Jan
-03Jul
-03Jan
-04Jul
-04Jan
-05Jul
-05Jan
-06Jul
-06Jan
-07Jul
-07Jan
-08Jul
-08Jan
-09Jul
-09Jan
-10Jul
-10Jan
-11Jul
-11Jan
-12
TOPIX (lhs) US 10Y Govt Bond Yield (rhs)
(%)(TOPIX)
Source: Bloomberg, Data as of 31/03/12
TOPIX in JPY vs. US Long Bond Yield
Mr. Bond Travels with Equities
TOPIX correlation with US 10-year yields remains strong
17
Past performance is not a guide to the future. Returns may increase or decrease as a result of currency fluctuations.
© FIL Investments (Japan) Limited
0
3,000
6,000
9,000
12,000
15,000
18,00060
110
160
210
260
310
360
Mar-71
Jul-72
Nov-73
Mar-75
Jul-76
Nov-77
Mar-79
Jul-80
Nov-81
Mar-83
Jul-84
Nov-85
Mar-87
Jul-88
Nov-89
Mar-91
Jul-92
Nov-93
Mar-95
Jul-96
Nov-97
Mar-99
Jul-00
Nov-01
Mar-03
Jul-04
Nov-05
Mar-07
Jul-08
Nov-09
Mar-11
¥/US$ (lhs, inverted) Total RP (all industries)
(¥/$, inverted)(Corporate Recurring Profits ,
¥ billion)
Total Corporate Profits & the Yen
-80
-60
-40
-20
0
20
40
Jan-05
Apr-05
Jun-05
Sep-05
Dec-05
Mar-06
May-06
Aug-06
Nov-06
Feb-07
Apr-07
Jul-07
Oct-07
Jan-08
Mar-08
Jun-08
Sep-08
Dec-08
Feb-09
May-09
Aug-09
Nov-09
Jan-10
Apr-10
Jul-10
Oct-10
Dec-10
Mar-11
Jun-11
Sep-11
Nov-11
Feb-12
(%)TOPIX Earnings Revision Index (RI)(Fiscal Year 2011 & Fiscal Year 2012)
Current FY RI (4-week total) Next FY RI (4-week total)
Periods of Yen Strength Not an Obstacle to Corp. Profits
Source: Ministry of Finance, Bloomberg. Data as of 31/12/2011
Stronger yen has gone hand-in-hand with higher corporate profits & prospects for earnings rebound in FY12 improving
Source: DIR, Bloomberg. Data as of 31/03/12
18
© FIL Investments (Japan) Limited
Japanese Market Valuations at Historical Lows
TOPIX CAPER(Cyclically-Adjusted Price-to-Earnings Ratio)
TOPIX Price-to-Book Ratio
Note: Monthly from 01/85 through 03/12. Latest data point as of 31/03/12. CAPER: market cap / average operating profit for the past 5 fiscal years.
PBR: based on reported Book Price Per Share.
Source: Nomura Securities
Valuations remain supportive, with both earnings & asset based metrics at historical lows
-
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
Jan-85
Jun-86
Nov-87
Apr-89
Sep-90
Feb-92
Jul-93
Dec-94
May-96
Oct-97
Mar-99
Aug-00
Jan-02
Jun-03
Nov-04
Apr-06
Sep-07
Feb-09
Jul-10
Dec-11
(x)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
Jan-85
Jun-86
Nov-87
Apr-89
Sep-90
Feb-92
Jul-93
Dec-94
May-96
Oct-97
Mar-99
Aug-00
Jan-02
Jun-03
Nov-04
Apr-06
Sep-07
Feb-09
Jul-10
Dec-11
(x)
19
© FIL Investments (Japan) Limited
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
0
2
4
6
8
10
12
3/01 3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12E 3/13E
Share buybacks & dividends by Japanese companies
Buyback (lhs) Dividends (lhs) Shareholders Return/Shareholders' Equity (rhs)
(Y tn) (%)
Abundant cashflow fuelling gains in shareholder returns
Source: Company data, GS Global. Data as of 31/12/2011Note: Based on 1,490 Tokyo Stock Exchange First Section non-financials with consolidated data available since March, 2006
Despite a series of shocks in 2011, corporate Japan continued to improve shareholder returns
20
© FIL Investments (Japan) Limited
FCF Yield PBR 2008 PB EV/EBITDA ROE 10-year
(x,%) FY12E FY13E FY12E FY13E FY13E FY12E Trough FY12E FY12E Bond Yield
Japan 50% 14% 15 13.1 6.5% 1.0 0.9 6.4 6.9% 1.0%
US 3% 7% 14.1 13.3 6.3% 2.3 1.5 7.6 17.5% 2.4%
Europe -1% 12% 11.5 10.3 7.2% 0.9 1.0 6.6 8.2% 2.4%
Asia ex. Japan 14% 15% 11.8 10.5 4.3% 1.6 1.2 6.5 14.5% -
EPS Growth PER
Global Valuation Comparison
Source: Goldman Sachs Global ResearchData as of 15/03/*12 for Europe and as of 19/03/12 for the rest.
While not quite as compelling as last year, valuations remain supportive of the Japanese market overall
Note: Japanese universe is TSE1. US universe is S&P500. European universe is GS covered firms which are part of DJ Stoxx 600 (excluding financials). EV/Sales and EV/EBITDA excludes financials. P/E for US is based on GS Global ECS Research operating EPS forecasts, and P/E for Europe is on a pre-amortization basis. Asia excluding Japan universe is MSCI US$ basis market index (local currency) and is based on FactSet and I/B/E/S estimates.
21
Acronyms in the table:EPS (Earnings Per Share); PER (Price to Earnings Ratio); FCF (Free Cash Flow); PBR (Price to Book Ratio); PB (Price to Book multiple); EV/EBITDA (Enterprise Value to Earnings Before Interest, Taxes, Depreciation and Amortization); ROE (Return on Equity); FY (Fiscal Year); E (Estimate)
© FIL Investments (Japan) Limited
0
50
100
150
200
250
Dec-91
Aug-92
Apr-93
Dec-93
Aug-94
Apr-95
Dec-95
Aug-96
Apr-97
Dec-97
Aug-98
Apr-99
Dec-99
Aug-00
Apr-01
Dec-01
Aug-02
Apr-03
Dec-03
Aug-04
Apr-05
Dec-05
Aug-06
Apr-07
Dec-07
Aug-08
Apr-09
Dec-09
Aug-10
Apr-11
Dec-11
TSE2 JASDAQ TOPIX Small Russell/Nomura Mid Small Cap Index(Indexed
to 100 as at 31 Dec. 91)
22
Source: Bloomberg. Data as of 31/03/2012
Small-cap indices relative to TOPIX (price index)
Past performance is not a guide to what might happen in the future.
Small Cap Outperformance Relative to TOPIX (in JPY)
Small cap stocks have outperformed the market average over the long-term
© FIL Investments (Japan) Limited23
Undervalued Small Cap Stocks
Source: FIL, FACTSET. Data as of 31/03/2013
Price to Earnings Ratiobased on 12-month forward Earnings Per Share
Price to Book Ratio
Small cap stocks are cheaper than large cap stocks
12.9 13.6
12.2
0
5
10
15
20
25
30
35
Jul-03
May-04
Mar-05
Jan-06
Nov-06
Sep-07
Jul-08
May-09
Mar-10
Jan-11
Nov-11
TOPIXRussell/Nomura Mid Small Cap IndexRussell/Nomura Small Cap Index
(X)
1.05 1.02 0.83
0.0
0.5
1.0
1.5
2.0
2.5
3.0
Jul-03
May-04
Mar-05
Jan-06
Nov-06
Sep-07
Jul-08
May-09
Mar-10
Jan-11
Nov-11
TOPIXRussell/Nomura Mid Small Cap IndexRussell/Nomura Small Cap Index
(X)
© FIL Investments (Japan) Limited24
Large investment universe with over 2000 names – a plethora of growth opportunities
Currently ignored and unloved – opportunities to unlock hidden value
The market cycle suggests that small cap stocks could return to favour
The Case for Investing in Japanese Mid/Small Cap Stocks
Stock selection strategy should be best suited to uncover both growth and value opportunities in the Japanese small cap market
© FIL Investments (Japan) Limited
Contents
25
1 Performance Review
2 Investment Strategy
3 Market Environment in Japan
© FIL Investments (Japan) Limited26
Source: FIL Limited, data as of 31/03/2012
Top holdings are those securities in which the latest percentage of find's total assets are invested. They do not include FX forwards and deposits. A full list of holdings, including derivatives, can be found in the fund's annual and/or semi-annual report and accounts.
Top 10 Holdings & Portfolio Concentration
TOP10 Holdings % Portfolio% Russell/Nomura
Mid Small Cap IndexM3 (CFD) 3.8 0.1Takata (CFD) 3.7 0.1Sekisui Chemical (CFD) 3.4 0.3Maruwa 3.2 0.0Kakaku.Com (CFD) 2.9 0.1GMO Payment Gateway 2.7 0.0Bit-Isle 2.5 0.0Cyber Agent 2.3 0.1Hitachi High-Technologies 2.0 0.1Hitachi Chemical 1.9 0.1Total 28.5 0.9
Portfolio Concentration (%) PortfolioRussell/Nomura Mid
Small Cap IndexTop 10 Concentration 28.5 7.2Top 20 Concentration 45.4 13.0Top 30 Concentration 57.7 18.3
No. of Holdings PortfolioRussell/Nomura Mid
Small Cap Index96 1335
© FIL Investments (Japan) Limited
(10.00)
(5.00)
0.00
5.00
10.00
15.00
20.00 Services
Chemicals
Information & Communication
Glass & Ceramics Rubber Products
Transport Equipment Precision Instruments Electric Power & Gas
Nonferrous Metals
Real Estate
Textiles & Apparel
Insurance
Metal Products
Machinery
Other Financing Business
Iron & Steel
Mining
Fishing, Agriculture, & Forestry
Wholesale Trade
Warehousing & Harbour Transportation Service
Other Products
Air Transportation Oil & Coal Products
Pulp & Paper
Marine Transportation
Securities
Retail Trade
Pharmaceuticals
Electrical Appliances Land Transportation
Foods
Construction
Banks
Portfolio (%)
Russell/Nomura Mid Small Cap Index (%)
Relative Weights vs. Russell/Nomura Mid Small Cap Index (%)
%
27
Source: FIL Limited, portfolio data on a rescaled basis, as of 31/03/12
Sector Distribution Relative to the Index
Holdings can vary from those in the index quoted. For this reason the comparison index is used for reference only.
© FIL Investments (Japan) Limited28
Size Band Distribution
Source: FIL Limited, portfolio data on a rescaled basis, as of 31/03/2012
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
LARGE > JPY 500 Billion
MEDIUM > JPY 100 Billion
SMALL <= JPY 50 Billion
Equity Portfolio RN Mid Small Cap Index%
© FIL Investments (Japan) Limited29
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