Fidelity International is the biggest equity fund in Japan. For quite some time, it has been betting on technology companies and their help to boost the nation’s stock market in the upcoming 2020.
2019 has been quite successful for the Fidelity International. The company has been actively investing in electronics and machinery makers stocks. Its 2019 yearly fund now reached 3.7 billion. For now, the equity fund expects 2020 to be another solid year. As the techno stocks are progressively going up. For example, the Nikkei 225 Stock Average rising an additional 5% from current levels.
Also, the fund has managed to stay ahead of the annual gains of Japan’s equity benchmarks most of the year.
Huge leap forward after last year’s loss
Head of equities Japan at Fidelity International, Takashi Maruyama, has stated that in 2020 Nikkei aims to reach 25,000. Maruyama believes that demand for smartphones and other communication devices will benefit business for parts manufacturers. He says that there’s a massive opportunity in 5G-related stocks. The key, as Maruyama says, is discovering new G-related stocks that marketers have not yet interacted with or traded. They must search for new opportunities to explore the new technological potential.
However, the company does not exclude non-digital technologies. For example, it still supports companies such as Shimano Inc., which makes products for fishing, bicycling, and rowing.
Japan Growth Fund is improving
Fidelity has enormous faith in Japan’s technology stocks and that faith got tested this year. The trade war tension between China and the U.S. have significantly change the economic exchange of these countries. The political event has damped earnings of semiconductor-related companies and electronic part manufacturers.
The fund also follows modern ecological tendencies and expects the company’s development of environmentally friendly boilers to attract demand from China and developing Asian countries.