Fidelity ASIAN VALUES PLC
Half Yearly Report for the six months ended 31 January 2026
HIGHLIGHTS
During the six-month period ended 31 January 2026, Fidelity Asian Values PLC reported an ordinary share price total return of +15.2% and a Net Asset Value (NAV) return of +10.9%.
The benchmark index, the MSCI All Country Asia ex Japan Small Cap Index, produced a total return of +8.9% over the same timeframe.
Taiwan Semiconductor Manufacturing Company (“TSMC”) was the largest contributor to performance.
Underweight exposure to India, stock selection in Hong Kong and China, and exposure to copper and gold mining also contributed positively during the review period
Contact
For further information please contact:
George Bayer
Company Secretary
0207 961 4240
INVESTMENT OBJECTIVE AND OVERVIEW
The Company’s objective is to achieve long-term capital growth principally from the stock markets of the Asian Region excluding Japan.
The Portfolio Manager, Nitin Bajaj, assisted by the Co-Portfolio Manager, Ajinkya Dhavale, aims to generate outperformance mainly through a fundamentals-driven bottom-up security selection approach within the Asia Pacific ex Japan smaller companies universe. The focus is on investing in smaller companies because they tend to be less well researched, which leads to greater valuation anomalies. The Portfolio Managers’ fundamental analysis involves the evaluation of various factors including, but not limited to, stock valuation, financial strength, cash flows, companies’ competitive advantages, business prospects and earnings potential. Their style is tilted towards value and a two to three year investment horizon.
Clare Brady, Chairman,
Fidelity Asian Values PLC
At a Glance
Six months ended 31 January 2026
Share Price total return
1,2
+15.2%
(31 January 2025: +4.1%)
Net Asset Value (“NAV”) per
Share total return
1,2
+10.9%
(31 January 2025: +3.2%)
Comparative Index total return
1,3
+8.9%
(31 January 2025: -2.1%)
1
Calculated on the basis that dividends paid to shareholders are reinvested in the Company at the ex-dividend date.
2
Alternative Performance Measures. See Glossary of Terms.
3
MSCI All Country Asia ex Japan Small Cap Index (net) total return (in sterling terms).
TOTAL RETURN PERFORMANCE (%)
1
Share price
NAV per ordinary share
Comparative Index2
1 year ended 31 January 2026
+29.4
+20.8
+19.1
3 years ended 31 January 2026
+32.4
+29.8
+37.6
5 years ended 31 January 2026
+73.2
+69.4
+56.0
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1
Calculated on the basis that dividends paid to shareholders are reinvested in the Company at the ex-dividend date.
2
MSCI All Country Asia ex Japan Small Cap Index (net) total return (in sterling terms).
Sources: Fidelity and Datastream.
Past performance is not a guide to future returns.
Financial Highlights
Assets
31 January 2026
31 July 2025
Gross Asset Exposure1
£524.9m
£470.2m
Net Market Exposure1
£445.6m
£416.6m
Shareholdersʼ Funds
£414.3m
£402.7m
NAV per Share1,2
649.52p
604.69p
Gross Gearing1,2
26.7%
16.8%
Net Gearing1,2
7.5%
3.4%
Share Price and Discount Data
Share Price at the period end
628.00p
564.00p
Share Price: period high3
628.00p
566.00p
Share Price: period low3
556.00p
454.00p
Discount to NAV per Share at period end1,2
3.3%
6.7%
Discount: period high3
8.1%
14.5%
Discount: period low3
2.5%
6.7%
Results for the six months ended 31 January
2026
2025
Revenue Return per Share1,2
9.37p
7.88p
Capital Return per Share1,2
54.37p
8.71p
Total Return per Share1,2
63.74p
16.59p
1
See Glossary of Terms.
2
Alternative Performance Measures. See Glossary of Terms.
3
For the six month period to 31 January 2026 and for the year ended 31 July 2025.
SUMMARY OF THE KEY ASPECTS OF THE INVESTMENT POLICY
The Company invests in securities of companies which the Portfolio Managers consider have fundamental value that has not been recognised by the market.
The Company invests principally in the Asian Region excluding Japan and the Portfolio Managers favour small and medium-sized companies. There are no restrictions in terms of size or industry of companies included in the portfolio and investments can be made in unlisted securities.
The Company may also invest into other transferable securities, collective investment schemes, money market instruments, cash and deposits and is also able to use derivatives for efficient portfolio management and investment purposes.
The Company operates a variable management fee arrangement which is calculated by reference to its performance against the Benchmark Index.
Portfolio Managers’ Half-Yearly Review
Performance Review
Over the six-month period ended 31 January 2026, the Company’s share price total return was +15.2%. The Company delivered a net asset value (“NAV”) total return of +10.9%. Over the same period, the Comparative Index, the MSCI All Country Asia ex Japan Small Cap Index (net) total return (in sterling terms), returned +8.9%.
Table 1: Company’s Share Price, NAV and Comparative Index total returns (as at 31 January 2026)
Share Price total return per annum1 (%)
NAV total return per annum1 (%)
Comparative Index total return per annum1 (%)
Tenure (since 30 Jun 2015)
+10.8
+9.7
+9.9
5 Years
+11.6
+11.1
+9.3
3 Years
+9.8
+9.1
+11.2
1 Year
+29.4
+20.8
+19.1
6 Months
+15.2
+10.9
+8.9
1
Only the data over 12 months is annualised.
Source: Fidelity International.
Before turning to performance attribution, it is worth revisiting our investment process. It is simple. We invest in good businesses run by management teams we trust. We buy them only when the price offers a comfortable margin of safety. We rely on Fidelity’s deep fundamental research to help protect the downside and, over time, to outperform the Comparative Index. Our portfolio construction is Index-agnostic. Although we measure performance and risk in the context of country and sector weights, they are not at the forefront of our minds when selecting positions for the Company. Our exposures are simply the result of the businesses we choose to own. Even a single holding can make us “overweight” a country or sector by the size of that position. This approach often leads us to take contrarian positions, as undervalued businesses are more likely to be found in sectors or geographies that are out of favour.
Consistent with this philosophy, a significant portion of the Company’s portfolio is currently invested in China and Indonesia. Exposure to India and Taiwan is substantially lower than that of the Index. From a sector perspective, we found attractive opportunities in gold and copper miners, classified as materials, as well as in consumer companies. In contrast, we have much lower exposure to areas of the market that are currently in favour and consequently not at attractive valuations, such as technology hardware.
We found fewer opportunities in India, due to high valuations. This contributed positively during the period under review. Stock selection in Chinese and Hong Kong equities also added to performance. Our Chinese holdings remain focused on consumer goods, materials, industrials, and real estate. In addition, our holdings in gold and copper miners proved rewarding, as their shares tracked rising commodity prices.
Our positioning in Taiwan and Indonesia detracted from performance in this period. In Taiwan, excluding the investment in
Taiwan Semiconductor Manufacturing Company (TSMC)
,
the Company maintained limited exposure. AI-driven momentum pushed hardware stocks to peak valuations that offered limited margin of safety. Our Indonesian holdings lagged the broader Indonesian market, which had a strong year, and this weighed on relative performance. We have largely maintained our positions and remain confident in our preferred Indonesian holdings, given their attractive medium- to long-term prospects.
Table 2: Country Attribution over 6 months to 31 January 2026
Average weight (%)
Cumulative returns (%)
Contribution to relative returns (%)
Company (%)
Index (%)
Relative (%)
Stock selection
Market selection
Total
India
+11.1
+28.6
-17.5
-13.8
+1.6
+4.3
+5.9
Others
+12.6
0.0
+12.6
-
+3.5
0.0
+3.5
China + Hong Kong
+39.4
+18.1
+21.3
+3.8
+3.1
-0.9
+2.3
Singapore
+3.3
+5.4
-2.1
+11.3
+0.7
0.0
+0.7
Malaysia
+0.3
+3.2
-2.9
+12.4
+0.1
-0.1
0.0
Philippines
+1.5
+1.0
+0.6
-3.0
+0.3
0.0
+0.2
Thailand
+3.2
+2.8
+0.5
+0.5
-0.2
-0.1
-0.2
Korea (South)
+11.1
+15.4
-4.3
+24.3
-0.9
-0.6
-1.4
Indonesia
+18.1
+2.5
+15.5
+28.0
-6.2
+3.2
-3.1
Taiwan
+5.6
+23.0
-17.4
+33.9
-1.7
-4.0
-5.7
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Total Primary Assets
106.2
100.0
6.2
8.9
0.3
1.9
2.2
Cash & others
-6.2
0.0
-6.2
0.0
0.0
0.0
-0.2
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Total
100.0
100.0
0.0
8.9
0.0
0.0
2.0
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Source: Fidelity International, 31 January 2026. Company = Fidelity Asian Values PLC. Index = MSCI All Country Asia ex Japan. Small Cap Index (net) total return (in sterling terms). Total assets may exceed 100% where derivatives/gearing are used; ‘Cash & others’ reflects net cash/derivative exposures.
Table 3: Top 5 Contributors and Detractors over six months to 31 January 2026
Top 5 Contributors
Order
Security
Average Active Weight1 (%)
Gain/Loss (%)
Contribution to Portfolio Returns (%)
1
Taiwan Semiconductor Manufacturing (TSMC)
+5.2
+40.2
+1.5
2
NAC Kazatomprom
+1.7
+90.1
+1.2
3
Chow Sang Sang
+0.8
+67.1
+0.8
4
Perseus Mining
+1.3
+89.7
+0.8
5
Samsung Electronics
+1.4
+59.9
+0.7
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Total
+5.0
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1
Active weight is portfolio weight minus benchmark weight.
Source: Fidelity International, 31 January 2026.
Top 5 Detractors
Order
Security
Average Active Weight1 (%)
Gain/Loss (%)
Contribution to Portfolio Returns (%)
1
Short Position – name withheld
-0.8
+570.3
-1.9
2
Winbond Electronics
-0.4
+577.4
-0.8
3
Indofood CBP Sukses Makmur
+2.1
-23.2
-0.8
4
Phison Electronics
-0.4
+312.7
-0.7
5
Short Position – name withheld
-1.1
+84.4
-0.7
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Total
-4.9
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1
Active weight is portfolio weight minus benchmark weight.
Source: Fidelity International, 31 January 2026.
Taiwan Semiconductor Manufacturing Company (TSMC)
was the largest contributor during the review period. It is the world’s leading semiconductor foundry and remains at the forefront of advanced chip manufacturing. Its scale and research capabilities, along with long-standing partnerships with companies such as Apple, Nvidia and AMD, underpin its competitive strength. The business requires significant capital and technical expertise. These factors create high barriers to entry and cement its role in global chip production.
NAC
Kazatomprom
, the world’s largest uranium producer with high-quality mines in Kazakhstan, also contributed positively. It is the lowest-cost producer in a market where demand is rising, and supply is expected to remain tight.
Chow Sang Sang
benefited from stronger gold prices. The Hong Kong-listed jeweller has established brand recognition across Hong Kong and Mainland China. We took some profits in several of these holdings as share prices increased.
In contrast, our lack of exposure to AI-driven technology hardware names such as
Winbond Electronics
and
Phison Electronics
in Taiwan weighed
on relative returns. Not owning an Asian semiconductor company
until mid-October
2025 reduced relative performance by 0.8%, and our subsequent short position in the same company
further pressured returns as its share price
rose in the environment discussed earlier. Our short position in a semiconductor packaging company
also proved detrimental.
Indofood CBP Sukses Makmur
, the leading instant noodles producer, was another detractor and contributed to the underperformance of the portfolio’s Indonesian holdings relative to the broader Indonesian market. The company holds leading positions across Indonesia, the Middle East, Africa and South-eastern Europe through its flagship Indomie brand. The brand enjoys strong consumer recognition and provides important differentiation in what is otherwise a
highly competitive category. This brand strength allows the company to deliver solid results and defend its market position. We continue to hold the position.
Investment strategy and outlook
We prepared this commentary before recent geopolitical developments in the Middle East, which have contributed to a sharp increase in market volatility and materially changed the macroeconomic and geopolitical backdrop. As a result, the near-term outlook is now more uncertain. However, periods of disruption can also create opportunities to invest in high quality businesses at attractive valuations.
We continue to look for stock selection opportunities across the region. In China, the market has re-rated, driven by a narrow group of high-dividend and thematic stocks. Headline valuations look stretched. However, our holdings still offer healthy returns and adequate margin of safety. In Korea, earnings growth has been largely AI-driven. However, weak governance and poor capital allocation continue to weigh on return on equity. Policy efforts to improve governance are encouraging, but valuations have already re-rated, and we have started to take some money off the table. In India, valuations remain high, although we are beginning to see selective pockets of opportunity. Indonesia continues to offer established companies with durable franchises and solid balance sheets at attractive margins of safety. We do not believe the MSCI’s recent move to demand improved ownership transparency signals economic weakness. Instead, this may present an opportunity for regulators to improve transparency and market structure, which we view as positive over the long-term.
Overall, the average valuation of our reference index, the MSCI AC Asia ex Japan Small Cap Index, is now above its long-term average. Relative to its own history, the Index no longer looks ‘cheap’. However, this headline number masks a wide gap between value and growth stocks.
The chart in the Half-yearly Report illustrates the elevated gap in price to earnings multiples between Asian ex Japan small cap growth and value stocks over the past decade. Small cap value stocks continue to trade at a meaningful discount.
A similar valuation gap can be seen between our portfolio and the broader market. The Company’s price-to-earnings (P/E) ratio is 10.4x, compared with 17.8x for the MSCI All Country Asia ex Japan Small Cap Index. Our focus on high-quality businesses is reflected in the portfolio’s higher return on equity (ROE) of 17.8%, compared with the index ROE of 10.2%. We believe this difference reflects the strength of Fidelity’s research platform. It allows us to identify good businesses that are still overlooked and attractively valued.
We remain confident in our positioning. We own strong companies at a meaningful discount to market valuations. This disciplined approach has delivered results over the past decade, and we believe it is well placed to continue doing so over the next three to five years.
Nitin Bajaj
Ajinkya Dhavale
Portfolio Manager
Co-Portfolio Manager
27 March 2026
Twenty Largest Holdings
as at 31 January 2026
The Asset Exposures shown below measure exposure to market price movements as a result of owning shares, corporate bonds and derivative instruments. The Fair Value is the realisable value of the portfolio as reported in the Balance Sheet. Where the Company holds shares and corporate bonds, the Asset Exposure and Fair Value will be the same. For derivative instruments, Asset Exposure is the market value of the underlying asset to which the Company is exposed, while the Fair Value reflects the mark-to-market on the contract since it was opened, and is based on how much the share price of the underlying asset has moved.
Asset Exposure
Fair Value
£’000
%1
£’000
Exposures – shares unless otherwise stated
Taiwan Semiconductor Manufacturing Company Semiconductors & Semiconductor Equipment
Total exposures after the netting of index hedging
524,896
126.7
401,214
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Gross Asset Exposure2
524,896
126.7
Portfolio Fair Value3
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401,214
Net current assets (excluding derivative assets and liabilities)
13,052
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Total Shareholders’ Funds/Net Assets
414,266
=========
1
Asset Exposure is expressed as a percentage of Total Shareholders’ Funds.
2
Gross Asset Exposure comprises market exposure to investments of £405,444,000 plus market exposure to derivative instruments of £119,452,000.
3
Portfolio Fair Value comprises investments of £405,444,000 plus derivative assets of £5,161,000 less derivative liabilities of £9,391,000.
Interim Management Report and Directors’ Responsibility Statement
Board Composition
The Board comprises five non-executive Directors and there have been no changes to the Board in the period under review. The current group of Directors’ tenures range from two to six years and the Directors have a good mix of skills and a diverse set of relevant backgrounds.
Discount Management and Share Repurchases
The discount to NAV ranged during the period between 2.5% at its narrowest and 8.1% at its widest, finishing the end of the reporting period at 3.3%. In the six-month reporting period, the Company repurchased 2,816,450 shares (3.9% of the issued share capital) for cancellation, at a cost of £16,501,000. The Company also cancelled 822,911 shares from treasury on 2 October 2025. Since the end of the six month reporting period to the latest practicable date of this report, 126,965 shares have been repurchased for cancellation as part of the Company’s active and ongoing discount management strategy. The primary purpose of share buybacks is to limit discount volatility, and at the AGM on 26 November 2025 the Board received shareholder approval to renew the annual authority to repurchase up to 14.99% or to allot up to 10% of the shares in issue.
The timing of repurchases of shares are made at the discretion of the Broker, within guidelines set by the Board and considering market conditions at the time. Shares will only be repurchased in the market at prices below the prevailing NAV per share, thereby resulting in an accretive enhancement to the NAV per share. Shares previously repurchased into Treasury will only be reissued at NAV per share or at a premium to NAV per share.
Principal Risks and Uncertainties
The Board, with the assistance of the Manager (FIL Investment Services (UK) Limited), has developed a risk matrix which, as part of the risk management and internal controls process, identifies the key existing and emerging risks and uncertainties faced by the Company.
The Board considers that the principal risks and uncertainties faced by the Company fall into the following risk categories: economic, political and market; competition and marketplace threats impacting business growth; changes in legislation, taxation or regulation; level of discount to net asset value; investment performance (including the use of derivatives and gearing); cybercrime and information security; business continuity and crisis management; operational; and key person. Information on each of these risks is given in the Strategic Report section of the Annual Report on pages 23 to 27 for the year ended 31 July 2025 which can be found on the Company’s pages on the Manager’s website at
www.fidelity.co.uk/asianvalues
.
There continue to be increased geopolitical risks facing the Company, including political and trade tensions globally, trade sanctions and a challenging regulatory environment hindering foreign investment. Global economic uncertainty is raised by the recent Middle East conflict injecting fresh volatility into global markets and oil prices, the ongoing war in Ukraine, tensions between South Korea and North Korea, South China Sea dispute and implications of China-Taiwan relations. The Board and the Manager remain vigilant in monitoring such risks.
In recent months, there have been developments around the proposed Consumer Composite Investments (CCI) investment cost disclosure. The developments have been encouraging and should help investors. On the other hand, the Pension Schemes Bill, as currently proposed, excludes investment trusts and there is a risk that if adopted this could divert demand away from investment trusts.
The investment company sector has suffered from significant discounts for an extended period and this has allowed for some activist managers to take a more aggressive approach. The Board is aware of these risks and continues to actively monitor and take action to manage the Company's discount, as discussed earlier in this report.
Climate change continues to be a key emerging risk confronting asset managers and their investors. Globally, climate change effects are already being experienced in the form of a changing pattern of weather events. Climate change can potentially impact the operations of investee companies, their supply chains and their customers. Additional risks may also arise from increased regulations, costs and net-zero programmes which can all impact investment returns. The Board notes that the Manager has integrated ESG considerations into the Company’s investment process. The Board will continue to monitor how this may impact the Company as a risk on investment valuations and potentially affect shareholder returns.
The Board and the Manager are also monitoring the emerging risks and rewards posed by the rapid advancement of artificial intelligence (AI) and technology and how this may threaten the Company’s activities and its potential impact on the portfolio and investee companies. AI can provide asset managers powerful tools, such as enhancing data analysis risk management, trading strategies, operational efficiency and client servicing, all of which can lead to better investment outcomes and more efficient operations. However, with these advances in computer power that will impact society, there are risks from its increasing use and manipulation with the potential to harm, including a heightened threat to cybersecurity.
Other emerging risks may continue to evolve from unforeseen geopolitical and economic events.
Investors should be prepared for market fluctuations and remember that holding shares in the Company should be considered to be a long-term investment. Risks are mitigated by the investment trust structure of the Company which means that the Portfolio Managers are not required to trade to meet investor redemptions. Therefore, investments in the Company’s portfolio can be held over a longer-time horizon.
The Manager has appropriate business continuity and operational resilience plans in place to ensure the continued provision of services. This includes investment team key activities, including those of portfolio managers, analysts and trading/support functions. The Manager reviews its operational resilience strategies on an ongoing basis and continues to take all reasonable steps in meeting its regulatory obligations, assess its ability to continue operating and the steps it needs to take to serve and support its clients, including the Board.
The Company’s other third-party service providers also have similar measures in place to ensure that business disruption is kept to a minimum.
Transactions with the Manager and Related Parties
The Manager has delegated the Company’s portfolio management of assets and company secretariat services to FIL Investments International. Transactions with the Manager and related party transactions with the Directors are disclosed in Note 13 to the Financial Statements.
Going Concern Statement
The Directors have considered the Company’s investment objective, risk management policies, liquidity risk, credit risk, capital management policies and procedures, the nature of its portfolio and its expenditure and cash flow projections. The Directors, having considered the liquidity of the Company’s portfolio of investments (being mainly securities which are readily realisable) and the projected income and expenditure, are satisfied that the Company is financially sound and has adequate resources to meet all of its liabilities and ongoing expenses and can continue in operational existence for a period of at least twelve months from the date of this Half-Yearly Report.
This conclusion also takes into account the Board’s assessment of the ongoing risks as outlined on the previous pages.
The Company’s Articles of Association require that a continuation resolution be proposed at the forthcoming Annual General Meeting to be held in November. In the event that such resolution is not passed, the Directors would be required to formulate proposals to be put to shareholders for the reconstruction, reorganisation or winding up of the Company.
The Directors have assessed the likelihood of the continuation resolution being passed, taking account of shareholder engagement to date, the Company’s long-term performance and the views of major shareholders. While there can be no certainty as to the outcome of the vote, the Directors have no reason to believe that the resolution will not be passed.
Accordingly, the Directors consider it appropriate to adopt the going concern basis of accounting in preparing the Company’s Financial Statements.
Directors’ Responsibility Statement
The Disclosure Guidance and Transparency Rules (“DTR”) of the Financial Conduct Authority require the Directors to confirm their responsibilities in relation to the preparation and publication of the Interim Management Report and Financial Statements.
The Directors confirm to the best of their knowledge that:
a)
the condensed set of Financial Statements contained within the Half-Yearly Report has been prepared in accordance with the Financial Reporting Council’s Standard FRS 104: Interim Financial Reporting; and
b)
the Portfolio Managers’ Half-Yearly Review and the Interim Management Report include a fair review of the information required by DTR 4.2.7R and 4.2.8R.
The Half-Yearly Report has not been audited or reviewed by the Company’s Independent Auditor.
The Half-Yearly Report was approved by the Board on 27 March 2026 and the above responsibility statement was signed on its behalf by Clare Brady, Chairman.
Income Statement
for the six months ended 31 January 2026
Six months ended 31 January 2026 unaudited
Six months ended 31 January 2025 unaudited
Year ended 31 July 2025 audited
Notes
Revenue £’000
Capital £’000
Total £’000
Revenue £’000
Capital £’000
Total £’000
Revenue £’000
Capital £’000
Total £’000
Gains on investments
–
44,445
44,445
–
4,641
4,641
–
21,141
21,141
(Losses)/gains on derivative instruments
–
(6,411)
(6,411)
–
2,952
2,952
–
12,024
12,024
Income
4
7,592
–
7,592
7,237
–
7,237
19,419
–
19,419
Investment management fees
5
(356)
(665)
(1,021)
(345)
(1,360)
(1,705)
(673)
(2,577)
(3,250)
Other expenses
(466)
(16)
(482)
(487)
(6)
(493)
(963)
(6)
(969)
Foreign exchange (losses)/gains
–
(1,012)
(1,012)
–
308
308
–
(761)
(761)
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-------------
-------------
-------------
-------------
-------------
-------------
-------------
-------------
Net return on ordinary activities before finance costs and taxation
6,770
36,341
43,111
6,405
6,535
12,940
17,783
29,821
47,604
Finance costs
6
(282)
(845)
(1,127)
(280)
(838)
(1,118)
(688)
(2,065)
(2,753)
-------------
-------------
-------------
-------------
-------------
-------------
-------------
-------------
-------------
Net return on ordinary activities before taxation
6,488
35,496
41,984
6,125
5,697
11,822
17,095
27,756
44,851
Taxation on return on ordinary activities
7
(429)
(357)
(786)
(591)
415
(176)
(1,563)
85
(1,478)
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-------------
-------------
-------------
-------------
-------------
-------------
-------------
-------------
Net return on ordinary activities after taxation for the period
6,059
35,139
41,198
5,534
6,112
11,646
15,532
27,841
43,373
-------------
-------------
-------------
-------------
-------------
-------------
-------------
-------------
-------------
Return per share
8
9.37p
54.37p
63.74p
7.88p
8.71p
16.59p
22.51p
40.34p
62.85p
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========
========
========
========
========
The Company does not have any other comprehensive income. Accordingly, the net return on ordinary activities after taxation for the period is also the total comprehensive income for the period and no separate Statement of Comprehensive Income has been presented.
The total column of this statement represents the Income Statement of the Company. The revenue and capital columns are supplementary and presented for information purposes as recommended by the Statement of Recommended Practice issued by the AIC.
No operations were acquired or discontinued in the period and all items in the above statement derive from continuing operations.
Statement of Changes in Equity
for the six months ended 31 January 2026
Notes
Share capital £’000
Share premium account £’000
Capital redemption reserve £’000
Other non-distributable reserve £’000
Capital reserve £’000
Revenue reserve £’000
Total shareholders’ funds £’000
Six months ended 31 January 2026 (unaudited)
Total shareholders’ funds at 31 July 2025
18,895
50,501
3,197
7,367
302,519
20,229
402,708
Net return on ordinary activities after taxation for the period
–
–
–
–
35,139
6,059
41,198
Repurchase of shares for cancellation
11
(704)
–
704
–
(16,501)
–
(16,501)
Cancellation of shares from Treasury
11
(206)
–
206
–
–
–
–
Dividend paid to shareholders
9
–
–
–
–
–
(13,139)
(13,139)
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---------------
---------------
---------------
---------------
---------------
---------------
Total shareholders’ funds at 31 January 2026
17,985
50,501
4,107
7,367
321,157
13,149
414,266
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=========
=========
=========
=========
=========
Six months ended 31 January 2025 (unaudited)
Total shareholders’ funds at 31 July 2024
18,895
50,501
3,197
7,367
297,210
14,844
392,014
Net return on ordinary activities after taxation for the period
–
–
–
–
6,112
5,534
11,646
Repurchase of shares
11
–
–
–
–
(7,550)
–
(7,550)
Dividend paid to shareholders
9
–
–
–
–
–
(10,147)
(10,147)
---------------
---------------
---------------
---------------
---------------
---------------
---------------
Total shareholders’ funds at 31 January 2025
18,895
50,501
3,197
7,367
295,772
10,231
385,963
=========
=========
=========
=========
=========
=========
=========
Year ended 31 July 2025 (audited)
Total shareholders’ funds at 31 July 2024
18,895
50,501
3,197
7,367
297,210
14,844
392,014
Net return on ordinary activities after taxation for the year
–
–
–
–
27,841
15,532
43,373
Repurchase of shares
11
–
–
–
–
(22,532)
–
(22,532)
Dividend paid to shareholders
9
–
–
–
–
–
(10,147)
(10,147)
---------------
---------------
---------------
---------------
---------------
---------------
---------------
Total shareholders’ funds at 31 July 2025
18,895
50,501
3,197
7,367
302,519
20,229
402,708
=========
=========
=========
=========
=========
=========
=========
Balance Sheet
as at 31 January 2026
Company number 3183919
Notes
31 January 2026 unaudited £’000
31 July 2025 audited £’000
31 January 2025 unaudited £’000
Fixed assets
Investments
10
405,444
377,051
371,447
---------------
---------------
---------------
Current assets
Derivative instruments
10
5,161
2,278
1,473
Debtors
1,086
1,839
1,394
Amounts held at futures clearing houses and brokers
9,943
2,674
3,419
Cash and cash equivalents
5,142
25,407
10,546
---------------
---------------
---------------
21,332
32,198
16,832
Current liabilities
Derivative instruments
10
(9,391)
(2,045)
(717)
Other creditors
(3,119)
(4,494)
(1,599)
Bank overdraft
–
(2)
–
(12,510)
(6,541)
(2,316)
---------------
---------------
---------------
Net current assets
8,822
25,657
14,516
---------------
---------------
---------------
Net assets
414,266
402,708
385,963
---------------
---------------
---------------
Capital and reserves
Share capital
11
17,985
18,895
18,895
Share premium account
50,501
50,501
50,501
Capital redemption reserve
4,107
3,197
3,197
Other non-distributable reserve
7,367
7,367
7,367
Capital reserve
321,157
302,519
295,772
Revenue reserve
13,149
20,229
10,231
Total shareholders’ funds
414,266
402,708
385,963
---------------
---------------
---------------
Net asset value per share
12
649.52p
604.69p
554.89p
=========
=========
=========
Notes to the Financial Statements
1 Principal Activity
Fidelity Asian Values PLC is an Investment Company incorporated in England and Wales that is listed on the London Stock Exchange. The Company’s registration number is 3183919, and its registered office is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey KT20 6RP. The Company has been approved by HM Revenue & Customs as an Investment Trust under Section 1158 of the Corporation Tax Act 2010 and intends to conduct its affairs so as to continue to be approved.
2 Publication of Non-statutory Accounts
The Financial Statements in this Half-Yearly Report have not been audited or reviewed by the Company’s Independent Auditor and do not constitute statutory accounts as defined in section 434 of the Companies Act 2006 (the “Act”). The financial information for the year ended 31 July 2025 is extracted from the latest published Financial Statements of the Company. Those Financial Statements were delivered to the Registrar of Companies and included the Independent Auditor’s Report which was unqualified and did not contain a statement under either section 498(2) or 498(3) of the Act.
3 Accounting Policies
(i) Basis of Preparation
The Company prepares its Financial Statements on a going concern basis and in accordance with UK Generally Accepted Accounting Practice (“UK GAAP”) and FRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland, issued by the Financial Reporting Council. The Financial Statements are also prepared in accordance with the Statement of Recommended Practice: Financial Statements of Investment Trust Companies and Venture Capital Trusts (“SORP”) issued by the Association of Investment Companies (“AIC”) in July 2022. FRS 104: Interim Financial Reporting has also been applied in preparing this condensed set of Financial Statements. The accounting policies followed are consistent with those disclosed in the Company’s Annual Report and Financial Statements for the year ended 31 July 2025.
(ii) Going Concern
The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for a period of at least twelve months from the date of approval of these Financial Statements. Accordingly, the Directors consider it appropriate to adopt the going concern basis of accounting in preparing these Financial Statements. This conclusion also takes into account the Directors’ assessment of the risks faced by the Company as detailed in the Interim Management Report.
4 Income
Six months ended 31 January 2026 unaudited £’000
Six months ended 31 January 2025 unaudited £’000
Year ended 31 July 2025 audited £’000
Investment income
Overseas dividends
5,903
5,531
15,258
Overseas scrip dividends
45
40
40
Interest on securities
130
302
625
---------------
---------------
---------------
6,078
5,873
15,923
Derivative income
Dividends received on long CFDs
1,108
889
2,529
Interest received on CFDs
218
216
360
---------------
---------------
---------------
1,326
1,105
2,889
Other interest
Interest received on bank deposits, collateral and money market funds
188
259
607
---------------
---------------
---------------
Total income
7,592
7,237
19,419
=========
=========
=========
No special dividends have been recognised in capital during the period (six months ended 31 January 2025: £nil and year ended 31 July 2025: £nil).
5 Investment Management Fees
Revenue £’000
Capital £’000
Total £’000
Six months ended 31 January 2026 (unaudited)
Investment management fees – base
356
1,069
1,425
Investment management fees – variable1
–
(404)
(404)
---------------
---------------
---------------
356
665
1,021
Six months ended 31 January 2025 (unaudited)
Investment management fees – base
345
1,036
1,381
Investment management fees – variable1
–
324
324
---------------
---------------
---------------
345
1,360
1,705
Year ended 31 July 2025 (audited)
Investment management fees – base
673
2,020
2,693
Investment management fees – variable1
–
557
557
---------------
---------------
---------------
673
2,577
3,250
=========
=========
=========
1
For the calculation of the variable management fee, the Company’s NAV return was compared to the Benchmark Index return on a rolling three year basis.
FIL Investment Services (UK) Limited is the Company’s Alternative Investment Fund Manager and has delegated portfolio management to FIL Investments International (“FII”). Both companies are Fidelity group companies.
FII charges base investment management fees at an annual rate of 0.70% of net assets. In addition, there is +/- 0.20% variation fee based on the Company’s NAV per share performance relative to the Company’s Benchmark Index which is charged/credited to capital. Fees are payable monthly in arrears and are calculated on a daily basis.
The base management fees have been allocated 75% to capital reserve in accordance with the Company’s accounting policies.
6 Finance Costs
Revenue £’000
Capital £’000
Total £’000
Six months ended 31 January 2026 (unaudited)
Interest paid on bank deposits
5
15
20
Interest paid on CFDs
273
818
1,091
Dividends paid on short CFDs
4
12
16
---------------
---------------
---------------
282
845
1,127
=========
=========
=========
Six months ended 31 January 2025 (unaudited)
Interest paid on bank deposits
–
1
1
Interest paid on CFDs
261
782
1,043
Dividends paid on short CFDs
19
55
74
---------------
---------------
---------------
280
838
1,118
=========
=========
=========
Year ended 31 July 2025 (audited)
Interest paid on bank deposits
7
22
29
Interest paid on CFDs
447
1,340
1,787
Dividends paid on short CFDs
234
703
937
---------------
---------------
---------------
688
2,065
2,753
=========
=========
=========
Finance costs have been allocated 75% to capital in accordance with the Company’s accounting policies.
7 Taxation on Return on Ordinary Activities
Six months ended 31 January 2026 unaudited £’000
Six months ended 31 January 2025 unaudited £’000
Year ended 31 July 2025 audited £’000
Revenue – taxation on overseas dividends
429
591
1,563
Capital – Indian capital gains tax
357
(415)
(85)
---------------
---------------
---------------
Total taxation charge for the period
786
176
1,478
=========
=========
=========
8 Return per Share
Six months ended 31 January 2026 unaudited
Six months ended 31 January 2025 unaudited
Year ended 31 July 2025 audited
Revenue return per share
9.37p
7.88p
22.51p
Capital return per share
54.37p
8.71p
40.34p
---------------
---------------
---------------
Total return per share
63.74p
16.59p
62.85p
=========
=========
=========
The return per share is based on the net return on ordinary activities after taxation for the period divided by the weighted average number of shares held outside of Treasury during the period, as shown below:
£’000
£’000
£’000
Net revenue return on ordinary activities after taxation
6,059
5,534
15,532
Net capital return on ordinary activities after taxation
35,139
6,112
27,841
---------------
---------------
---------------
Net total return on ordinary activities after taxation
41,198
11,646
43,373
=========
=========
=========
Number
Number
Number
Weighted average number of shares held outside of Treasury
64,631,243
70,197,994
69,010,726
=========
=========
=========
9 Dividends Paid to Shareholders
Six months ended 31 January 2026 unaudited £’000
Six months ended 31 January 2025 unaudited £’000
Year ended 31 July 2025 audited £’000
Dividend paid
Dividend of 20.5 pence per share paid for the year ended 31 July 2025
13,139
–
–
Dividend of 14.5 pence per share paid for the year ended 31 July 2024
–
10,147
10,147
---------------
---------------
---------------
13,139
10,147
10,147
=========
=========
=========
No dividend has been declared in respect of the six months ended 31 January 2026 (six months ended 31 January 2025: £nil).
10 Fair Value Hierarchy
The Company is required to disclose the fair value hierarchy that classifies its financial instruments measured at fair value at one of three levels, according to the relative reliability of the inputs used to estimate the fair values.
Classification
Input
Level 1
Valued using quoted prices in active markets for identical assets
Level 2
Valued by reference to inputs other than quoted prices included in level 1 that are observable (i.e. developed using market data) for the asset or liability, either directly or indirectly
Level 3
Valued by reference to valuation techniques using inputs that are not based on observable market data
Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the fair value measurement of the relevant asset. The valuation techniques used by the Company are as disclosed in the Company’s Annual Report for the year ended 31 July 2025 (Accounting Policies Notes 2 (k) and 2 (l) on pages 58 and 59). The table below sets out the Company’s fair value hierarchy:
31 January 2026 (unaudited)
Level 1 £’000
Level 2 £’000
Level 3 £’000
Total £’000
Financial assets at fair value through profit or loss
Investments
397,556
1,940
5,948
405,444
Derivative instrument assets
91
5,070
–
5,161
---------------
---------------
---------------
---------------
397,647
7,010
5,948
410,605
Financial liabilities at fair value through profit or loss
Derivative instrument liabilities
(931)
(8,460)
–
(9,391)
---------------
---------------
---------------
---------------
31 July 2025 (audited)
Level 1 £’000
Level 2 £’000
Level 3 £’000
Total £’000
Financial assets at fair value through profit or loss
Investments
366,943
4,774
5,334
377,051
Derivative instrument assets
124
2,154
–
2,278
---------------
---------------
---------------
---------------
367,067
6,928
5,334
379,329
Financial liabilities at fair value through profit or loss
Derivative instrument liabilities
(157)
(1,888)
–
(2,045)
---------------
---------------
---------------
---------------
31 January 2025 (unaudited)
Level 1 £’000
Level 2 £’000
Level 3 £’000
Total £’000
Financial assets at fair value through profit or loss
Investments
355,263
11,581
4,603
371,447
Derivative instrument assets
12
1,461
–
1,473
---------------
---------------
---------------
---------------
355,275
13,042
4,603
372,920
Financial liabilities at fair value through profit or loss
Derivative instrument liabilities
(118)
(599)
–
(717)
---------------
---------------
---------------
---------------
The increase in level 3 investments relates to revaluing ByteDance and shares purchased in Fireside Ventures Investment Fund IV, an unlisted security, during the six months ended 31 January 2026. As part of the transaction the Company has committed a capital investment of $5,000,000.
11 Share Capital
31 January 2026 unaudited
31 July 2025 audited
31 January 2025 unaudited
Number of shares
Nominal value £’000
Number of shares
Nominal value £’000
Number of shares
Nominal value £’000
Issued, allotted and fully paid Ordinary shares of 25 pence (the “shares”) each held outside of Treasury
Beginning of the period
66,597,059
16,650
71,060,556
17,766
71,060,556
17,766
Shares repurchased for cancellation
(2,816,450)
(704)
–
–
–
–
Shares repurchased into Treasury
–
–
(4,463,497)
(1,116)
(1,503,615)
(376)
---------------
---------------
---------------
---------------
---------------
---------------
End of the period
63,780,609
15,946
66,597,059
16,650
69,556,941
17,390
=========
=========
=========
=========
=========
=========
Shares held in Treasury1
Beginning of the period
8,983,830
2,245
4,520,333
1,129
4,520,333
1,129
Shares repurchased into Treasury
–
–
4,463,497
1,116
1,503,615
376
Shares cancelled from Treasury
(822,911)
(206)
–
–
–
–
End of the period
8,160,919
2,039
8,983,830
2,245
6,023,948
1,505
---------------
---------------
---------------
---------------
---------------
---------------
Total share capital
17,985
18,895
18,895
=========
=========
=========
=========
=========
=========
1
Shares held in Treasury carry no rights to vote, to receive a dividend or to participate in a winding up of the Company.
As part of its active discount management strategy, the Company repurchases its shares in the market as explained in the Interim Management Report. Up to 31 July 2025, shares repurchased were held in Treasury allowing them to be reissued in the future at a discount to NAV. From 1 August 2025, to ensure that the number of shares held in Treasury did not become excessive, some shares held in Treasury at the start of the period were cancelled, and any shares repurchased from that date were also cancelled rather than held in Treasury.
During the six months ended 31 January 2026, 2,816,450 shares were repurchased for cancellation at a cost of £16,501,000 and additionally 822,911 shares held in Treasury at the start of the were cancelled.
During the six months ended 31 January 2025, 1,503,615 shares were repurchased into Treasury at a cost of £7,550,000 and during the full year ended 31 July 2025, 4,463,497 shares were repurchased into Treasury at a cost of £22,532,000.
12 Net Asset Value per Share
The calculation of the net asset value per share is based on the total shareholders’ funds divided by the number of shares held outside of Treasury.
31 January 2026 unaudited
31 July 2025 audited
31 January 2025 unaudited
Total shareholders’ funds
£414,266,000
£402,708,000
£385,963,000
Shares held outside of Treasury at the period end
63,780,609
66,597,059
69,556,941
---------------
---------------
---------------
Net asset value per share
649.52p
604.69p
554.89p
=========
=========
=========
It is the Company’s policy that shares held in Treasury will only be reissued at net asset value per share or at a premium to net asset value per share and, therefore, shares held in Treasury have no dilutive effect.
13 Transactions with the Manager and Related Parties
FIL Investment Services (UK) Limited is the Company’s Alternative Investment Fund Manager and has delegated portfolio management to FIL Investments International (“FII”). Both companies are Fidelity group companies.
Details of the current fee arrangements are given in Note 5.
During the period, the following expenses were payable to FII:
Six months ended 31 January 2026 unaudited £’000
Six months ended 31 January 2025 unaudited £’000
Year ended 31 July 2025 audited £’000
Investment management fees
1,021
1,705
3,250
Secretarial and administration fees
38
38
75
Marketing services1
93
93
181
=========
=========
=========
1
Marketing services includes costs paid to FII to reimburse it for third party costs it has incurred on behalf of the Company in providing marketing services.
At the Balance sheet date, the following balances payable to Fidelity were accrued and included in other creditors:
Six months ended 31 January 2026 unaudited £’000
Year ended 31 July 2025 audited £’000
Six months ended 31 January 2025 unaudited £’000
Investment management fees
168
217
289
Secretarial and administration fees
13
44
6
Marketing services
–
–
106
=========
=========
=========
At the date of this report, the Board consisted of five non-executive Directors (as shown below) all of whom are considered to be independent by the Board. None of the Directors has a service contract with the Company.
The annual fee structure from 1 August 2025 is as follows:
1 August 2025 £
Chairman
47,500
Chairman of the Audit Committee
39,500
Senior Independent Director
34,500
Director
32,500
=========
Directors’ Shareholdings:
31 January 2026 unaudited
Clare Brady
13,073
Hussein Barma
2,500
Lucy Costa Duarte
3,800
Sally Macdonald
2,734
Matthew Sutherland
27,859
=========
Shareholder Information
Investing in Fidelity Asian Values PLC
Fidelity Asian Values PLC is a company listed on the London Stock Exchange and you can buy its shares through a platform, stockbroker, share shop or bank. Fidelity also offers a range of options, so that you may invest in a way that is best for you. Details of how to invest and the latest Key Information Document can be found on the Company’s pages of the Manager’s website at
www.fidelity.co.uk/asianvalues
CONTACT INFORMATION
Shareholders and Fidelity Platform Investors should contact the appropriate administrator using the contact details given below and in the next column. Links to the websites of major platforms can be found online at
www.fidelity.co.uk/its
Shareholders on the main share register
Contact MUFG Corporate Markets, Registrar to Fidelity Asian Values PLC, Central Square, 29 Wellington Street, Leeds LS1 4DL.
Email:
shareholderenquiries@cm.mpms.mufg.com
Telephone:
+44 (0) 371 664 0300
(calls are charged at the standard geographic rate and will vary by provider. Calls outside the United Kingdom will be charged at the applicable international rate. Lines are open 9:00 – 17:30, Monday to Friday, excluding public holidays in England and Wales).
Details of individual shareholdings and other information can also be obtained online from the Registrar’s Investor Centre at
https://uk.investorcentre.mpms.mufg.com/
. Shareholders are able to manage their shareholding online by registering for the Investor Centre, a free and secure online access service. Facilities include:
Account Enquiry
– Shareholders can access their personal shareholding, including share transaction history, dividend payment history and obtain an up-to-date shareholding valuation.
Amendment of Standing Data
– Shareholders can change their registered postal address and add, change or delete dividend mandate instructions. Shareholders can also download forms such as change of address, stock transfer and dividend mandate forms as well as buy and sell shares in the Company.
Should you have any queries in respect of the Shareholder Portal, contact the helpline on
+44 (0) 371 664 0300
(calls are charged at the standard geographic rate and will vary by provider. Calls outside the United Kingdom will be charged at the applicable international rate. Lines are open 9:00 – 17:30, Monday to Friday, excluding public holidays in England and Wales).
Fidelity Platform Investors
Contact Fidelity, using the freephone numbers given below, or in writing to: UK Customer Service, Fidelity, PO Box 391, Tadworth KT20 9FU.
Website:
www.fidelity.co.uk
Private investors:
call free on
0800 41 41 10
, 9:00 – 18:00 Monday to Saturday.
Financial advisers:
call free on
0800 41 41 81
, 8:00 – 18:00, Monday to Friday.
General Enquiries
General enquiries should be made to the Secretary, at the Company’s registered office: FIL Investments International, Investment Trusts, Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey KT20 6RP.
Telephone:
0207 961 4240
Email:
investmenttrusts@fil.com
Website:
www.fidelity.co.uk/its
If you hold Fidelity Asian Values PLC shares in an account provided by Fidelity International, you will receive a report every six months detailing all of your transactions and the value of your shares.
ShareGift
You may donate your shares to charity free of charge through ShareGift. Further details are available at
www.sharegift.org.uk
.
FINANCIAL CALENDAR 2026
31 January 2026
Half-Year Period End
March 2026
Announcement of the Half-Yearly Results
April 2026
Publication of the Half-Yearly Report
31 July 2026
Financial Year End
October 2026
Publication of the Annual Report
November 2026
Annual General Meeting
December 2026
Payment of the Annual Dividend
Directory
Board of Directors
Clare Brady (Chairman)
Hussein Barma (Chairman of the Audit Committee)
Lucy Costa Duarte
Sally Macdonald (Chairman of the Management Engagement Committee)
Matthew Sutherland (Senior Independent Director)
Alternative Investment Fund Manager (AIFM/the Manager)
FIL Investment Services (UK) Limited
Beech Gate
Millfield Lane
Lower Kingswood
Tadworth
Surrey
KT20 6RP
Investment Manager, Secretary and Registered Office
FIL Investments International
Beech Gate
Millfield Lane
Lower Kingswood
Tadworth
Surrey
KT20 6RP
Email:
investmenttrusts@fil.com
Banker and Custodian
JPMorgan Chase Bank (London Branch)
125 London Wall
London
EC2Y 5AJ
Depositary
J.P. Morgan Europe Limited
25 Bank Street
London
E14 5JP
Financial Adviser and Stockbroker
Jefferies International Limited
100 Bishopsgate
London
EC2N 4JL
Independent Auditor
PricewaterhouseCoopers LLP
7 More London Riverside
London
SE1 2RT
Lawyer
Simmons & Simmons LLP
1 Ropemaker Street
London
EC2Y 9SS
Registrar
MUFG Corporate Markets
Central Square
29 Wellington Street
Leeds
LS1 4DL
Data Protection
General Data Protection Regulation (“GDPR”)
What personal data is collected and how is it used
The Company is an investment trust which is a public limited company and has certain regulatory obligations such as the requirement to send documents to its shareholders, for example, the Annual Report and other documents that relate to meetings of the Company. The Company will, therefore, collect shareholders’ personal data such as names, addresses and identification numbers or investor codes and will use this personal data to fulfil its statutory obligations.
Any personal data collected will be kept securely on computer systems and in some circumstances on paper. Personal information is kept secure in line with Fidelity’s Information Security policies and standards. If you are unhappy with how we have used your personal data, you can complain by contacting the UK Data Protection Officer at Fidelity International, Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey KT20 6RP.
Sharing personal data
In order to assist the Company in meeting its statutory requirements, the Company delegates certain duties around the processing of this data to its third party service providers, such as the Company’s Registrar and Printers. The Company has appointed Fidelity to undertake marketing activities for the Company and their privacy statement can be found on the Company website at
https://investment-trusts.fidelity.co.uk/security-privacy/
The Company’s agreements with the third party service providers have been updated to be compliant with GDPR requirements. The Company confirms to its shareholders that their data will not be shared with any third party for any other purpose, such as for marketing purposes. In some circumstances, it may be necessary to transfer shareholders’ personal data across national borders to Fidelity Group entities operating in the European Economic Area (“EEA”). Where this does occur, the European standard of protections will be applied to the personal data that is processed. Where personal data is transferred within the Fidelity group but outside of the EEA, that data will subsequently receive the same degree of protection as it would in the EEA.
Retention period
Personal data will be kept for as long as is necessary for these purposes and no longer than legally permitted to do so.
Requesting access, making changes to personal data and other important information
Shareholders can access the information that the Company holds about them or ask for it to be corrected or deleted by contacting Fidelity’s UK Data Protection Officer, Fidelity International, Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey KT20 6RP.
Fair treatment of investors
The legal and regulatory regime to which the Company and the Directors are subject ensures the fair treatment of investors. The UK Listing Rules require that the Company treats all shareholders of the same class of shares equally. In particular, the Directors have certain statutory duties under the Companies Act 2006 with which they must comply. These include a duty upon each Director to act in the way she or he considers, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole.
Glossary of Terms
AAF Report
A report prepared in accordance with the Audit and Assurance Faculty guidance issued by the Institute of Chartered Accountants in England and Wales.
ADR (American Depositary Receipt)
A negotiable certificate issued by a US bank representing a specified number of shares in a foreign stock that is traded on a US Exchange.
AIC
The Association of Investment Companies (“
AIC
”). The Company is a member of the
AIC
.
AIF
Alternative Investment Fund (“
AIF
”). The Company is an
AIF
.
AIFM
Alternative Investment Fund Manager (“
AIFM
”). The Board has appointed FIL Investment Services (UK) Limited to act as the Company’s
AIFM
(the
Manager
).
AIFMD
The Alternative Investment Fund Managers Directive (“
AIFMD
”) is a European Union Directive implemented on 22 July 2014.
Alternative Performance Measures
The Company uses the following
Alternative Performance Measures
which are all defined in this Glossary:
•
Discount/Premium;
•
Gearing;
•
Net Asset Value (NAV) per Ordinary Share;
•
Ongoing Charges Ratio;
•
Revenue, Capital and Total Returns; and
•
Total Return Performance (Net Asset Value Total Return and Ordinary Share Price Total Return).
Asset Exposure
The value of an underlying security or instrument to which the Company is exposed, whether through direct or indirect investment (including the economic value of the exposure in the underlying asset of
derivatives
).
Benchmark Index
The MSCI All Country Asia ex Japan Small Cap Index (net) total return (in sterling terms). This is used to calculate the Company’s Variable Management Fee, in accordance with the European Benchmark Directive.
Capital Gains Tax (CGT)
The tax that may be payable if shares are sold at a profit.
Collateral
Asset provided as security for the unrealised gain or loss under a
contract for difference
.
Comparative Index
The MSCI All Country Asia ex Japan Small Cap Index (net) total return (in sterling terms) against which the performance of the Company is measured.
Contract For Difference (CFD)
A
contract for difference
is a
derivative
. It is a contract between the Company and an investment house at the end of which the parties exchange the difference between the opening price and the closing price of an underlying asset of the specified financial instrument. It does not involve the Company buying or selling the underlying asset, only agreeing to receive or pay the movement in its share price. A
contract for difference
allows the Company to gain access to the movement in the share price by depositing a small amount of cash known as
collateral
. The Company may reason that the asset price will rise, by buying (“long” position) or fall, by selling (“short” position). If the Company holds long positions, dividends are received and interest is paid. If the Company holds short positions, dividends are paid and interest is received.
Corporation Tax
The tax the Company may have to pay on its profits for a year. As an investment trust, the Company is exempt from
corporation tax
on its capital gains and does not pay tax on any UK dividends. It can also offset expenses against any taxable income and consequently it is tax efficient for the Company.
Custodian
An entity that holds (as intermediary) the Company’s assets, arranges the settlement of transactions and administers income, proxy voting and corporate actions. The Company’s
Custodian
is JPMorgan Chase Bank.
Depositary
An entity that oversees the custody, cash arrangements and other AIFM responsibilities of the Company. J.P.Morgan Europe Limited act as the Company’s
Depositary
.
Derivatives
Financial instruments (such as
futures
,
options
and
contracts for difference
) whose value is derived from the value of an underlying asset.
Diluted Net Asset Value per Share
The
diluted net asset value per share
reflects what the
net asset value per share
would have been if all the rights attached to any outstanding subscription shares had been exercised at a particular date. A dilution occurs when the exercise price of the subscription share rights is less than the
net asset value per share
.
Discount
If the share price of the Company is lower than the
net asset value per share
, the Company is said to be trading at a
discount
. The
discount
is shown as a percentage of the
net asset value per share
.
Equity Linked Notes (ELNS)
Debt instruments whose return on investment is linked to specific equities or equity markets. The return on
equity linked notes
may be determined by an equity index, a basket of equities, or a single equity.
Fair Value
The
fair value
is the best estimate of the value of the investments, including derivatives, at a point in time and this is measured as:
•
Listed investments
– valued at bid prices or last market prices, where available, otherwise at published price quotations;
•
Unlisted investments
– valued using an appropriate valuation technique in the absence of an active market;
•
Contracts for difference
– valued as the difference between the settlement price of the contract and the value of the underlying shares in the contract (unrealised gains or losses);
•
Futures and options
– valued at the quoted trade price for the contract; and
•
Forward currency contracts
– valued at the appropriate quoted forward foreign exchange rate ruling at the Balance Sheet date.
Fidelity International (Fidelity)
FIL Limited and its subsidiary group companies including FIL Investment Services (UK) Limited and FIL Investments International which act as
AIFM
, Secretary and
Investment Manager
.
Forward Currency Contract
An agreement to buy or sell a currency at a specified future date and at a pre-agreed price.
Future
An agreement to buy or sell a fixed amount of an asset at a fixed future date and at a fixed price.
Gearing
The economic exposure of the portfolio to its underlying assets in excess of total net assets. It represents the additional exposure to the market above
Shareholders’ Funds
. The Company uses two measures of
gearing
(
Gross Gearing
and
Net Gearing
).
Gross Assets
Net Assets
plus borrowings. The Company does not have any borrowings.
Gross Asset Exposure
The value of the portfolio to which the Company is exposed, whether through direct or indirect investment (including the economic value of the exposure in the underlying asset of the
derivatives
but excluding
forward currency
contracts
). It is the sum total of all
Asset Exposures
.
Gross Gearing
The amount by which
Gross Asset Exposure
exceeds of
Shareholders’ Funds
expressed as a percentage of
Shareholders’ Funds
.
Growth Stocks
Companies which are considered to have the potential to outperform the overall market over time because of their future potential.
Hedging
A strategy aimed at minimising or eliminating the risk or loss through adverse movements normally involving taking a position in a
derivative
such as a
future
or an
option
.
Independent Valuer
Kroll who provide an objective and independent assessment on the value of unlisted and hard to price assets using sophisticated valuation methodologies.
Initial Public Offering (IPO)
An
initial public offering
(“IPO”) is the first sale of stock by a private company to the public.
IPOs
are often issued by smaller, younger companies seeking the capital to expand, but can also be done by large privately owned companies looking to become publicly traded.
Investment Manager
FIL Investments International.
Manager
FIL Investment Services (UK) Limited is the appointed
Manager
under the
AIFMD
. It has delegated the investment management of the Company to the
Investment Manager
.
Net Assets or Net Asset Value (NAV)
Sometimes also described as “
Shareholders’ Funds
”,
net assets
represent the total value of the Company’s assets less the total value of its liabilities. For valuation purposes it is common to express the
net asset value
on a per share basis.
Net Asset Value per Share
The
net asset value
divided by the number of shares in issue.
Net Gearing
The amount by which
Net Market Exposure
in excess of
Shareholders’ Funds
expresses as a percentage of
Shareholders’ Funds
.
Net Market Exposure
Net Market Exposure
is the total of all long exposures, less short exposures and less exposures hedging the portfolio.
Ongoing Charges Ratio (excluding variable management fee)
Total operational expense (excluding finance costs and taxation) incurred by the Company as a percentage of average
net asset values
for the reporting year.
Option
An
option
is a contract which gives the right but not the obligation to buy or sell an underlying asset at an agreed price on or before an agreed date.
Options
may be calls (buy) or puts (sell) and are used to gain or reduce exposure to the underlying asset on a conditional basis.
Portfolio Managers
Nitin Bajaj, Portfolio Manager, and Ajinkya Dhavale, Co-Portfolio Manager, are responsible for managing the Company’s assets.
Pre-Emption Rights
Section 561 of the Companies Act 2006 provides that a company offering a new issue of shares must first make an offer of these shares, on the same or more favourable terms, in proportion to the nominal value held to existing shareholders. At each Annual General Meeting, the Board seeks shareholder approval to disapply
pre-emption rights
provision, up to 10% of the Company’s issued share capital.
Premium
If the share price of the Company is higher than the
net asset value per share
, the Company’s shares are said to be trading at a
premium
. The
premium
is shown as a percentage of the
net asset value per share
.
Price to Book Ratio
The
Price to Book Ratio
(also known as P/B ratio) is a measure of valuing a company’s share price versus its book value.
Price to Earnings Ratio
The
Price to Earnings Ratio
(also known as P/E ratio) is a measure of valuing a company’s share price versus its earnings.
Registrar
An entity that manages the Company’s shareholder register. The Company’s
Registrar
is MUFG Corporate Markets.
Reserves
•
Share premium account
represents the amount by which the proceeds from the issue of shares or the issue of shares on the exercise of rights attached to subscription shares, exceeded the nominal value of those shares. It is not distributable by way of dividends and cannot be used to fund share repurchases.
•
Capital redemption reserve
maintains the equity share capital of the Company and represents the nominal value of shares repurchased and cancelled. It is not distributable by way of dividends and it cannot be used to fund share repurchases.
•
Other non-distributable reserve
represents amounts transferred from the warrant reserve in prior years with High Court approval. It is not distributable by way of dividends and it cannot be used to fund share repurchases.
•
Capital reserve
represents realised gains or losses on investments and derivatives sold, unrealised increases and decreases in the fair value of investments and derivatives held and other income and costs recognised in the capital column of the Income Statement. It is distributable by way of dividends. It can be used to fund share repurchases.
•
Revenue reserve
represents retained revenue surpluses recognised through the revenue column of the Income Statement. It is distributable by way of dividends.
Return
The return generated in a given period from investments:
•
Revenue Return
– reflects the dividends and interest from investments and other income net of expenses, finance costs and taxation;
•
Capital Return
– reflects the return on capital, excluding any revenue return; and
•
Total Return
– reflects the aggregate of revenue and capital returns.
Return on Equity
Return on Equity
(ROE) is a measure of the return on a company’s stock. The higher the percentage, the more income the company is generating and adding to shareholder value.
Share or shares
The ordinary shares of 25p each in the capital of the Company.
Shareholders’ Funds
Shareholders’ funds
are also described as “
net asset value
” and represent the total value of the Company’s assets less the total value of its liabilities as shown in the balance sheet.
Total Return Performance
The
return
on the share price or
net asset value per share
taking into account the rise and fall of share prices and the dividends paid to shareholders. Any dividends received by the shareholder are assumed to have been reinvested in additional shares (for share price total return) or the Company’s assets (for
net asset value
total return).
Treasury Shares
Shares of the Company that have been repurchased by the Company and not cancelled but held in Treasury. These shares do not pay dividends, have no voting rights and are excluded from the
net asset value per share
calculation.
Value Stocks
Usually companies that are currently trading below what they are really worth and will thus theoretically provide a superior future return.
END
