Fidelity Asian Values Share Discussion Threads

[cordwainer] 02/11/2018 14:11

subscription exercise deadline coming up 27 Nov, effective 14 Dec.

[cordwainer] 10/10/2018 11:04

It's only down to make my sub shares not worth converting on the exercise date. Will head up again after that.

[the oak tree] 20/7/2018 17:57

Hi Matchmade, think you have the wrong thread. This is FAS not FASS.

[matchmade] 21/3/2018 21:50

FYI, FASS has just been recommended by Money Observer, due to the multibag potential over the next year and nine months.

The current spread on FASS is crazy though - 23p to buy and 16p to sell - so there's a substantial initial loss to grin and bear with.

[topvest] 09/2/2018 19:13

Well this is one of the investment trusts that has been on my watch list for a while. I've bought some today. 10% off. Hoped for a better buy price, but happy to hold very long term. Quite impressed by the fund manager here. May buy some warrants as well on weakness next week.

[nimbo1] 08/11/2017 15:34

bought a few more sub 380. good value on offer here now with nav making progress, asian equities doing well and discount higher than it has been for a while.

[kenmitch] 21/10/2017 16:08

cordwainer.

If optimistic about prospects for share price it makes no sense exercising even if share price is above £4. Far far better to stick with the subs for much more upside.

eg. If FAS can go up 20% at any time between now and expiry date the subs will more than double.

[cordwainer] 19/10/2017 21:05

Over the past week, the share price has headed down and the NAV has gone up. People have started receiving their postal forms for exercising their subscription shares but the ords should be comfortably above £4 for anyone to consider that, imho. Aside from that, the current discount on the ords looks attractive and could narrow again after 30th November exercise date.

[cordwainer] 27/6/2017 02:59

NAV has been underperforming and money market / cash has increased to 16.5%, apparently due to reducing India allocation.

I've just reduced my FAS holding by about one sixth.

On 16 June I supplemented my FAS with a relatively small stake in Aberdeen New India IT (ANII) which had a discount of nearly 10% which seems to be reducing, on the belief that FAS's caution there is a bit overdone.

India is certainly not cheap right now but the macro situation looks good for earnings to catch up within 2 years. I doubt a significant 'buying opportunity' will present itself with the implementation and impact of the new standardised Goods & Services Tax because the market is looking further ahead to its benefits.

In the meantime, interest in the equity market from India's retail investors is growing, with inflation having dropped to 2% and interest rate cuts likely, and bond yields sliding back towards pre-demonetisation levels.

Any fear of Trump trade restrictions to the Asia region have all but dissolved with his administration, and his agenda, mired in the tar pit of US politics.

[nimbo1] 20/4/2017 16:44

Agree with that, but Im holding here - a high proportion is in the SIPP so have a 30yr view. Closer to home trusts like BRSC doing well over the last 6 months - still on 15% discounts.

[cordwainer] 14/4/2017 00:00

Not so long ago this was around 15% discount and now the discount is virtually disappeared. The Asia ex Japan index itself has also had a good run up of about +16%. Maybe the easy money will no longer be found here in the near term.

[kenmitch] 03/4/2017 20:48

I've invested in warrants since their heyday in the 1980s and 1990s when there were hundreds of them, and also posted on them mainly on Mike Walters subscription website. The following might help.

1. Warrants and subscription shares are identical except in name. Warrants can't go in to ISAs but subscription shares can.

2. I've rarely exercised a warrant or sub share early. i.e if bullish on the underlying investment it's usually best just to hold the warrant in preference to the share as upside is so much larger. So a much smaller stake can give a much higher reward.

e.g If FAS can go to £5 (i.e share price rise by around 25%) by final expiry in autumn 2019 then FASS are going to be worth north of £1. That's nearly 3 times the current FASS price.

So £1000 invested in FASS if that target share price is reached will give £2000 profit.

£5000 invested in the share will give only a £1250 profit.

So far more profit for far lower outlay and only £1000 risked instead of £5000,. Leaves the other £4k for other investments.

So why exercise on the earlier exercise dates in 2017 and 2018?

£5 share price target by late 2019 might be too ambitious. Depends on markets between now and then. otoh the share has risen over 70p since last December. In unlikely event of current pace of gains continuing FASS would multi bag.

Once thinking the share is likely to fall just sell out of FASS just the same as if holding the share. BUT since there are very few warrants and sub shares left now, it's best to sell on an up day or no change day for the share price. You'll get a better price then and often inside the spread. It can be hard to sell in size on a down day.

I hold FASS (only a modest profit so far) and also UEMS (which also looks good and is a quality Trust investing mainly in Emerging Markets Utilities) and the risky short dated PCFS (Polar Finance sub shares). UEMS is even better value than FASS and is trading at a small discount. See posts on ADVFN UEM thread for more on that one.

[nimbo1] 03/4/2017 11:27

looking frothy now - discount closing as market now knows the manager here is excellent and the sector is in favour, its been tipped quite a lot. I wont sell any even though I can't see it going much higher. Hopefully I am wrong. 10% of my PF here and it will be higher later this year assuming all good with the subscription shares. Good long term hold.

[nimbo1] 29/3/2017 16:10

thanks for the comments. So reading up more there you can exercise the subscriptions shares something like 25 days before the set date - so around November time. Obviously if things remain the same we'll all be dipping our hands in our pockets. This trust is now in my forever pf.

[cordwainer] 23/3/2017 00:03

nimbo I'm also new to subscription shares in the same way and I agree with your example; but for precision I'd say that in order for a buyer of FASS to see an immediate paper benefit on conversion, FAS would need to be at least 404.75p ON THE LAST BUSINESS DAY OF NOVEMBER 2017 (or 2018 or 2019 at higher prices), + add on a small premium to cover any dealing costs of buying FASS in the first place + not sure but, probably add some other estimable premium to account for the dilution effect of conversion.

but of course all you and I need to bother about (existing FAS holders given FASS at issue)is that FAS > 370.75 for conversion in 2017, or > 381.75 (2018) or > 392.75 (2019)

Maybe even if FAS were to be a tad less than 404.75p some FASS buyers may think it still worth converting because: after the first conversion date the time risk of holding FASS bounces back up and therefore puts downward pressure on FASS; and FAS pays a modest dividend and isn't time limited while aiming for capital appreciation anyway and 5 times less leveraged.

Of course someone could also potentially gain or lose by selling FASS (anytime before end Nov 2019) instead of exercising/converting it.

[nimbo1] 22/3/2017 10:59

I own some FASS as was given them in subscription share issue.

I am still not entirely sure how FASS works.

Owning one FASS share gives you the right to buy 1 FAS share at the subscription price, the first round is 370p. But at the moment the subscription shares are 34p to buy...

So the share price would need to be at 404 for me to benefit from buying more subscription and then exercising if I purchased more today....so you are basically gambling on the future price at a point in time.

Please correct me if I am wrong.

[kenmitch] 21/3/2017 16:53

nimbo1

FASS also well worth buying. Now very good value.

[nimbo1] 21/3/2017 15:08

Well this is 10% of my holdings now after the recent strong run. I expect volatility at some point but will be holding this for 30 years +.

[cordwainer] 20/3/2017 16:43

Sharp narrowing of discount lately, FASS well in the money. The NAV needs to catch up though, and most markets aren't cheap. Expect some consolidation.

[cordwainer] 12/1/2017 23:53

2.75p (less than 1%) off the subscription price

[nimbo1] 06/1/2017 12:43

Good purchase : ). FAS and HFEL both done v well over 12 months. Between them they now account for 20% of my portfolio. I won't be selling because long term I want exposure. I have just sold all my US stuff following the trump bump and £ fall.

[cordwainer] 04/1/2017 16:33

I more than doubled my holding of FAS on 27 Oct just to get more bonus FASS. Trimming FAS back a bit now as its making me very overweight Asia but hopeful that it won't all get 'Trumped' upon.
Now on smallest discount in 5 years.
Maybe latest fad of rotating from growth to value styles having some effect.
Also, some HK/China stocks (esp. TMT's and consumer) have gotten too cheap because of the herd running away from depreciating yuan and Trump's anti-china rhetoric.

[nimbo1] 04/1/2017 15:54

Great rise here - well done FAS. Looks like the Herd (probably wealth managers) have suddenly noticed the manager grew the NAV during a flat market and his value picks in growth countries are now paying off. Doubled the divi in the space of 12 months. Has grown into my largest holding. Maybe FASS will be worth something after all...

[cordwainer] 14/12/2016 22:37

Appeared by the 12th Dec on Fidelity Fundsnetwork. Obviously out-of-the-money and very illiquid right now but you'll need to be quite pessimistic if you can't see the FAS share price making at least 11 / 12 / 17%+ within the next 1 / 2 / 3 years. Surely being overweight India can't be bad beyond the postnatal blues of demonetisation & GST ?

[mozy123] 08/12/2016 15:38

Nothing here! Still.....