Fidelity Funds - Japan Equity ESG Fund A-JPY

The Fidelity Funds - Japan Equity ESG Fund (A-JPY) seeks long-term capital growth by investing primarily in equity securities of Japanese companies while applying an ESG (Environmental, Social, and Governance) integration approach to identify companies best positioned for sustainable long-term growth.

Investment Objective

The fund invests in Japanese equities with an ESG overlay, combining Japan’s world-class corporate sector with responsible investing principles. Japan has made significant progress in ESG adoption, particularly in corporate governance, following the introduction of the Stewardship Code and Corporate Governance Code.

Japan’s ESG Evolution

Japan has undergone a transformation in corporate governance over the past decade:

• Governance reform: Tokyo Stock Exchange and government pressure for companies to improve capital efficiency and ROE
• Board diversity: Increasing female directors and independent directors
• Shareholder returns: Growing focus on dividends and share buybacks
• Environmental commitments: Japan’s carbon neutrality by 2050 goal driving corporate sustainability efforts

Investment Universe

Japan’s equity market (the Nikkei 225 and TOPIX) includes world-leading companies in automotive (Toyota, Honda), electronics (Sony, Panasonic), technology (SoftBank, Keyence), and financial services (Mitsubishi UFJ, Tokio Marine).

Currency

Denominated in JPY (Japanese Yen), eliminating currency costs for Japanese yen investors.

Risk Considerations

Currency risk (JPY can be volatile), Japan-specific economic risks (deflationary pressures, aging demographics), and the ongoing evolution of ESG standards in Japan compared to Western markets.

Risk & Return Metrics

Share class: A-ACC-USD (hedged) | ISIN: LU0997586945 | Data: yfinance (1004 trading days, annualised at 252 days/year)

Metric	Daily	Annualised
Expected Return	0.0724%	20.01%
Risk (Std Dev)	1.1910%	18.91%

Metric	Value
First NAV	15.8500
Last NAV	30.5000
Total Return (period)	92.43%