Half-yearly Report
FIDELITY ASIAN VALUES PLC
HALF-YEARLY REPORT AND ADDITIONAL DISCLOSURES
TO THE PRELIMINARY RESULTS FOR THE SIX MONTHS ENDED 31 JANUARY 2010
Further to the disclosure of the Company's half-yearly report for the six
months ended 31 January 2010 by way of an announcement dated 15 March 2010, in
accordance with the Disclosure and Transparency Rules ("the Rules") 4.2 and
6.3.5 this announcement contains the text of the announcement dated 15 March
2010 together with detail on the availability of the printed form of the report
in compliance with the Rules.
The Company's half-yearly report for the six months ended 31 January 2010 has
been filed with the UK Listing Authority Document Disclosure team and will
shortly be available for inspection at the UK Listing Authority's Document
Viewing Facility which is situated at:
Financial Services Authority
25 The North Colonnade
Canary Wharf
London
E14 5HS
Tel: 020 7676 1000
(Documents will usually be available for inspection within six normal business
hours of this notice being given).
The half-yearly report will shortly be available on the Company's website at
www.fidelity.co.uk/its
Rebecca Tyerman, FIL Investments International, Company Secretary - 01737 837
758
25 March 2010
Fidelity Asian Values PLC
Preliminary announcement of unaudited half-yearlyresults for the six months
ended 31 January 2010
Contents
Investment Objective
Summary of Results
Half-Yearly Report
Responsibility Statement
Twenty Largest Investments
Financial Statements
Investor Information
Directory
Warning to Shareholders - "Boiler Room" Scams
Investment Objective
The investment objective of the Company is to achieve long term capital growth
through investment principally in the stock markets of the Asian Region
(excluding Japan).
Performance - total return (includes reinvested income%)
Six months to 31 January From launch 13 June 1996
2010 to 31 January 2010
Net asset value ("NAV") +14.5 +84.1
Share price +12.1 +73.8
MSCI All Countries +8.2 +31.6
(Combined) Far East Free ex
Japan Index - sterling
adjusted
Standardised performance (on a total return basis %)
Year to 31 Year to 31 Year to 31 Year to 31 Year t o
/01/06 /01/07 /01/08 /01/09
31/01/10
NAV per share +43.9 +8.7 +19.4 -31.6 +72.7
Share Price +43.6 +6.7 +20.8 -28.5 +68.3
Sources: Fidelity and Datastream
Past performance is not a guide to future returns
Summary of Results
31 January 2010 31 July 2009 % change
Assets
Total assets employed (1) £104.9m £98.7m +6.3
Shareholders' funds £104.9m £92.1m +13.9
Borrowings as % of shareholders' funds nil 7.1%
Borrowings less cash as % of nil 6.7%
shareholders' funds
NAV per share 172.06p 151.18p +13.8
Stockmarket data
MSCI All Countries (Combined) Far East 263.34 245.00 +7.5
Free ex Japan Index (2)
Share price period end 158.50p 142.25p +11.4
high 183.75p 142.25p
low 135.00p 71.00p
Discount to NAV period end 7.88% 5.91%
high 9.06% 17.79%
low 2.76% 1.23%
Returns for the six months to 31 2010 2009
January
Capital return/(loss) per ordinary 21.72p (29.66p)
share
Capital + revenue return/(loss) per 21.88p (28.89p)
ordinary share
Total returns (3) for the six months 2010 2009
to 31 January
NAV +14.5% -23.4%
Share price +12.1% -19.7%
MSCI All Countries (Combined) Far East +8.2% -20.5%
Free ex Japan Index (2)
1 Total assets less current liabilities. For the prior year this excluded the
fixed term loan of £6.6m (repaid on 25 September 2009)
2 total return index, sterling adjusted
3 includes reinvested income
HALF-YEARLY REPORT AS AT 31 JANUARY 2010
PERFORMANCE
For the six months to 31 January 2010, Fidelity Asian Values' net asset value
registered double-digit returns and significantly outperformed its benchmark.
The Company returned 14.5%, compared with 8.2% for the benchmark MSCI All
Countries (Combined) Far East Free ex Japan Index. (All figures in sterling
terms and on a total return basis.)
The discount at which the ordinary shares traded to the net asset value of the
Company widened to 7.9% at the period end from 5.9% six months ago.
MARKETS
The stock markets in the Far East ex Japan region advanced over the six-month
review period. Investors gained confidence, as credit markets began to thaw and
the outlook for Asia and the world economy improved. Concurrently, positive
earnings at a number of regional companies led to an upward revision in
projections. The G20's commitment to ongoing policy stimulus and rising
commodity prices in light of expectations of higher demand drove share prices
higher. Technology and consumer discretionary firms extended gains supported by
domestic demand for their products. Performance was, however, subdued in
December in the aftermath of the Dubai world debt concerns and as investors
locked in returns for year end. Most major markets in the region withstood
negative returns in January due to renewed concerns over the pace of global
recovery. Monetary tightening in China, increased risk of Greek debt default
and fears about curbs on US banks dampened sentiment. Broadly, stocks in the
region underperformed average returns in global and emerging markets.
Macroeconomic data for the quarter ending December 2009 suggested a broadening
of the sources of growth from public investment to include consumption, private
capital spending and a steady recovery in exports. The Chinese Government's
decision to extend subsidy programmes for automobiles and home appliance
purchases in rural areas boosted sales of electronic and other technology
products. The benefits of these trends spilled to other parts of the region;
Korea saw its exports rising significantly, thanks mainly to demand from China.
Upbeat manufacturing output data in Korea, Taiwan, China and Singapore and the
uptrend in the Chinese Purchasing Managers' Index confirmed a continued
positive momentum in industrial activity. Improved consumer confidence, a
result of more jobs, translated into higher spending in the region even as
inflation edged higher, albeit from low levels.
PORTFOLIO REVIEW
The portfolio's significant overweight allocation to the information technology
sector strongly contributed to the Company's returns over the review period.
Notably, shares in Hon Hai Precision and Samsung SDI, electronic manufacturers
of consumer electronics components and LCD panels, respectively, grew amid
rising demand for inventory as growth returned to developed markets. A
non-benchmark exposure to BYD Electronics increased in value while an
overweight exposure to the parent BYD Company also boosted returns as the
latter profited from market share gains in its automobiles and electronic
components divisions. Limited exposure to Chinese property names proved
beneficial, as investors were generally under the perception that the
Government may adopt policies to cool the market. Limited exposure to banks in
the country proved rewarding, as they succumbed to concerns about slowdown in
lending growth. The strategy to remain underweight in telecommunications and
utilities also proved rewarding. The consumer discretionary exposure held the
Company in good stead. In particular, the holding in Hong Kong-listed
merchandise trader and distributor Li & Fung proved beneficial as improvement
in US retail sales and new contracts for the company boosted its share price.
However, certain fashion brands including China Dongxiang Group and Esprit
Holdings were out of favour due to valuation concerns. Meanwhile, materials
were the only sector that detracted marginally. No exposure to certain
chemicals and steel companies eroded gains as their stocks rose amid improving
industrial activity. The Manager selectively increased allocation to the sector
over the period while maintaining an underweight position at the aggregate
sector level.
The portfolio continues to focus on stocks benefiting from the economic
recovery in the region. However, the Manager is aware that the recent surge in
share prices has taken valuations to mid-cycle levels. Consequently, he
rebalanced the portfolio and reduced exposure to sectors where valuations had
met their target. In particular, he trimmed the overweight position in consumer
discretionary and diversified financials and increased the underweight position
in materials. Conversely, the exposure to shares in the consumer staples and
banking sectors, where growth opportunities outweigh valuations was increased.
The allocation to banks focused on the retail sector was increased. The Manager
added Hang Seng Bank, a subsidiary of HSBC, in view of its quality assets and
strong market position. He believes that the bank is under-owned and reasonably
valued. Malaysian banks, including Malayan Banking and CIMB, were also bought,
partly financed by trimming holdings in real estate names and Singapore banks.
The positive stance towards the technology sector was maintained; a position
was established in Baidu, a Google equivalent with a dominant share in the
Chinese market. The firm is finding support from the local Government, which
feels that it is easier to control and censor a local player. Within materials,
the Manager bought Chinese gold mining company Zhaojin Mining and Korean steel
major POSCO which benefits from a low cost production base and significant
technological advantages. Meanwhile, the Manager sold a position in clothing
retailer Esprit because its sales in the US and Europe remain subdued. The
holding Techtronic Industries, a manufacturer of electrical power tools and
vacuum cleaners, was trimmed due to a slower-than-expected recovery of its US
business. Over 70% of the firm's sales come from the US. The holdings in Korean
construction and engineering companies including Doosan Heavy and electronic
equipment manufacturers were offloaded as they lack any near term catalyst for
gains.
OUTLOOK FOR THE REGION
Increasing evidence of a durable recovery has prompted GDP growth forecasts to
be revised upwards in the region. The pick-up in economic conditions would be
supported by a growing population that would consume more and add to the
region's labour force. It is encouraging to note that employment and exports
have started showing signs of an improvement. The western economies also seem
to be on a recovery path. The Manager is positive about a multi-year recovery
for the region, but stock markets could be volatile in the near term due to
valuation concerns. Overall, supportive equity market conditions in Asia are
likely to persist in 2010. That said, bottom-up stock selection and
sector-specific thematic intelligence are expected to be more important
elements of portfolio management in the year ahead compared with 2009.
PRINCIPAL RISKS AND UNCERTAINTIES
The Board believes that the principal risks and uncertainties faced by the
Company continue to fall in the following categories; market risks, performance
risks, income-dividend risks, share price risks, gearing risks and control
systems risks. Information on each of these is given in the Business Review
section of the Annual Report for the year ended 31 July 2009.
DIRECTORATE
At the Annual General Meeting held on 7 December 2009, the Chairman Sir Victor
Garland announced his intention to retire from the Board with effect from the
June 2010 Board meeting. He explained that the Board is taking this opportunity
to refresh membership. With effect from 1 January 2010 Mrs Kate Bolsover and Mr
Philip Smiley were appointed Directors of the Company. Following Sir Robin
McLaren's retirement from the Board from the close of the 2009 Annual General
Meeting, Mr Hugh Bolland was appointed Senior Independent Director.
GEARING
On 3 February 2010, the Company entered into a revolving credit facility with
ING Bank N.V.for an amount up to US$15,000,000. It is the Company's intention
that the proceeds of the loan will be invested in a manner consistent with the
Company's investment objective. As at the date of the Half-Yearly report there
has been no draw down under this credit facility.
SUBSCRIPTION SHARES
At a General Meeting held on 4 March 2010, a bonus issue of one subscription
share for every five ordinary shares held by qualifying shareholders was
authorised, together with the adoption of new Articles of Association for the
Company.
Each subscription share gives the holder the right, but not the obligation, to
subscribe for one ordinary share at the end of each month from the end of May
2010 until the end of May 2013 inclusive. Each subscription share may only be
exercised once. The exercise price is 191.00 pence per share. A total of
12,188,212 subscription shares were allotted on 5 March 2010. The subscription
shares were listed and dealings commenced on these shares on 8 March 2010.
By order of the Board
FIL Investments International
12 March 2010
Responsibility Statement
The Directors confirm to the best of their knowledge that:
a) the condensed set of financial statements contained within the Half-Yearly
financial report has been prepared in accordance with the UK Accounting
Standards Board's Statement `Half-Yearly Financial Reports';
b) the Half-Yearly report narrative on pages 3 to 6 (constituting the interim
management report) includes a fair review of the information required by Rule
4.2.7R of the FSA's Disclosure and Transparency Rules and their impact on the
condensed set of financial statements and a description of the principal risks
and uncertainties for the remaining six months of the financial year; and
c) in accordance with Disclosure and Transparency Rule 4.2.8R there have been
no related parties transactions during the six months to 31 January 2010 and
therefore nothing to report on any material effect by such a transaction on the
financial position or the performance of the Company during that period; and
there have been no changes in this position since the last annual report that
could have a material effect on the financial position or performance of the
Company in the first six months of the current financial year.
The Half-Yearly financial report has not been audited or reviewed by the
Company's Auditor.
The Half-Yearly financial report was approved by the Board on 12 March 2010 and
the above responsibility statement was signed on its behalf by Sir Victor
Garland, Chairman.
Enquiries:
Chris Davies - Head of Investment Trusts, FIL Investments International - 01737
837 723
Rebecca Burtonwood - Senior Company Secretary, FIL Investments International -
01737 836869
Rebecca Tyerman - Assistant Company Secretary, FIL Investments International -
01737 837758
Twenty Largest Investments as at 31 January 2010
Country of Listing Holding Fair value %1
£000
CHINA China Merchants 5,140 4.9
Bank
A commercial bank
offering corporate
banking, retail
banking
and treasury
businesses. It is
headquartered in
Shenzhen.
Tencent Holdings 3,866 3.7
The company
provides internet,
mobile and
telecommunications
value-added
services in China.
It has an instant
messaging
community in China.
It also provides
advertising
services.
BYD Company 2,378 2.3
The company is
engaged in the
research,
development,
manufacture
and sale of
rechargeable
batteries,
automobiles and
related products.
China Dongxiang 2,143 2.0
Group
The company is
involved with the
design, development
and
sales of
sports-related
apparel, footwear
and accessories.
Belle International 2,074 2.0
The company is
engaged in the
manufacturing,
distribution and
sale of shoes and
footwear products,
and the sale of
sportswear
products.
Baidu 1,810 1.7
A Chinese-language
internet search
provider.
Ports Design 1,789 1.7
A Hong Kong based
vertically
integrated,
international
fashion
and luxury goods
company with its
own design,
manufacturing,
distribution and
retail
capabilities.
HONG KONG Li & Fung 4,044 3.8
An investment
holding company
engaged in the
trading of consumer
products.
Hong Kong Exchanges 3,165 3.0
& Clearing
The company owns
and operates the
only stocks and
futures
exchanges in Hong
Kong, and their
related clearing
houses.
Swire Pacific 3,134 3.0
The company
operates through
five business
divisions:
property,
marine services,
aviation, beverages
and trading and
industrial. It
holds large
developed and
underdeveloped
commercial and
residential real
estate, distributes
the products of The
Coca Cola Company
and operates a
fleet of specialist
vessels.
Sun Hung Kai 2,076 2.0
Properties
In Hong Kong the
company's
operations include
property
development,
property
investment,
property related
businesses, telecom
and information
technology
services, and
transportation,
infrastructure and
logistics. Its
mainland China
operations include
property
development and
property
investment.
Bank of China Hong 1,980 1.9
Kong
A leading listed
commercial banking
group in Hong Kong
in terms of assets
and customer
deposits. With over
270 branches and
470 ATMs and other
distribution
channels in Hong
Kong, the Bank and
its subsidiaries
offer a
comprehensive range
of financial
products and
services to retail
and corporate
customers.
KOREA Samsung Electronics 5,866 5.6
The company
specialises in the
provision of
communication
products. It
operates its
businesses through
five business
divisions:
communication,
semiconductor,
digital media,
liquid crystal
display (LCD) and
home appliances.
POSCO 2,331 2.2
An integrated steel
producer in Korea.
It operates in
steel, engineering
and construction,
trading and other
segments, including
power generation,
liquefied natural
gas production,
network and systems
integration.
LG Telecom 1,845 1.8
The company
specialises in the
provision of
personal
communication
services (PCSs).
AmorePacific 1,753 1.7
Corporation
The company is
engaged in the
provision of
cosmetic products.
TAIWAN Hon Hai Precision 4,662 4.4
The company is
principally engaged
in the production
and sale of
electronic products
which are applied
in
computer,
communication and
consumer
electronics goods.
MediaTek 3,844 3.7
The company
designs,
manufactures and
markets compact
disk-read only
memory (CD-ROM) and
digital versatile
disk-read only
memory (DVD-ROM)
chip sets. It sells
its products in
Taiwan and exports
to other countries
in Asia.
Au Optronics 2,348 2.2
The company
designs, develops,
manufactures,
assembles and
markets flat panel
displays. Its
principal products
are thin film
transistor-liquid
display (TFT-LCD).
Advanced 1,946 1.9
Semiconductor
Engineering
The company's
services include
semiconductor
packaging, design
and production of
interconnect
materials,
front-end
engineering
testing, wafer
probing and final
testing services.
Twenty Largest 58,194 55.5
Investments
1 % of total assets less current liabilities
Income Statement
revenuecapitaltotalrevenuecapitaltotalrevenuecapitaltotal
for the for the for the
six year six months
months ended ended
ended
31.01.10 31.07.09 31.01.09
unaudited audited unaudited
Notes £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Gains/ - 13,310 13,310 - 9,210 9,210 - (20,567) (20,567)
(losses) on
investments
Income 2 978 - 978 2,767 - 2,767 1,375 - 1,375
Investment 3 (543) - (543) (861) - (861) (442) - (442)
management
fee
Other (211) - (211) (402) - (402) (199) - (199)
expenses
Exchange 2 233 235 153 1,972 2,125 177 2,158 2,335
gain on
other net
assets
Exchange - (306) (306) - (1,409) (1,409) - (2,455) (2,455)
losses on
loan
Net return/ 226 13,237 13,463 1,657 9,773 11,430 911 (20,864) (19,953)
(loss)
before
finance
costs and
taxation
Interest (65) - (65) (444) - (444) (254) - (254)
payable
Loan - - - - - - - (83) (83)
redemption
costs*
Net return/ 161 13,237 13,398 1,213 9,773 10,986 657 (20,947) (20,290)
(loss) on
ordinary
activities
before
taxation
Taxation on 4 (65) - (65) (233) - (233) (115) - (115)
return/
(loss) on
ordinary
activities
Net return/ 96 13,237 13,333 980 9,773 10,753 542 (20,947) (20,405)
(loss) on
ordinary
activities
after
taxation
for the
period
Return/ 5 0.16p 21.72p 21.88p 1.49p 14.85p 16.34p 0.77p (29.66p) (28.89p)
(loss) per
ordinary
share
* This relates to the cost incurred on the partial redemption of the loan as a
result of the Tender offer. At the year ended 31 July 2009 the loan redemption
cost was reallocated to "other reserves" and was included in the costs of the
Tender offer borne solely by exiting shareholders.
A Statement of Total Recognised Gains and Losses has not been prepared as there
are no gains and losses other than those reported in this Income Statement. The
total column of the Income Statement is the profit and loss account of the
Company.
These financial statements have been prepared in accordance with the AIC
Statement of Recommended Practice ("SORP") issued in January 2009.
Reconciliation of Movements in Shareholders' Funds
Notes called share capital other other capital revenue total
up share premium redemption non-distributable reserve reserve reserve equity
capital account reserve reserve
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Opening 25,789 15,359 5,034 7,367 44,143 37,750 499 135,941
shareholders'
funds:
1 August 2008
Net - - - - - (20,864) - (20,864)
recognised
capital
losses for
the period
Share premium - (15,359) - - 15,359 - - -
account
cancelled
Capital - - (13,803) - 13,803 - - -
redemption
reserve
cancelled
Repurchase of 10 (238) _ 238 - (988) - - (988)
ordinary
shares
Ordinary (10,316) - 10,316 - (53,082) - - (53,082)
shares
cancelled on
completion of
the Tender
offer
Net revenue - - - - - - 542 542
after
taxation for
the period
Dividend paid - - - - - - (496) (496)
to
shareholders
Closing 15,235 - 1,785 7,367 19,235 16,886 545 61,053
shareholders'
funds: 31
January 2009
Opening 25,789 15,359 5,034 7,367 44,143 37,750 499 135,941
shareholders'
funds: 1
August 2008
Net - - - - - 9,773 - 9,773
recognised
capital gains
for the year
Share premium - (15,359) - - 15,359 - - -
account
cancelled
Capital - - (13,803) - 13,803 - - -
redemption
reserve
cancelled
Repurchase of 10 (238) - 238 - (988) - - (988)
ordinary
shares
Ordinary (10,316) - 10,316 - (52,153) - - (52,153)
shares
cancelled on
completion of
the Tender
offer
Costs - - - - (842) - - (842)
associated
with the
Tender offer
Loan - - - - (83) - - (83)
redemption
costs
Net revenue - - - - - - 980 980
after
taxation for
the year
Dividend paid - - - - - - (494) (494)
to
shareholders
Closing 15,235 - 1,785 7,367 19,239 47,523 985 92,134
shareholders'
funds: 31
July 2009
Net - - - - - 13,237 - 13,237
recognised
capital gains
for the
period
Net revenue - - - - - - 96 96
after
taxation for
the period
Dividend paid 8 - - - - - - (609) (609)
to
shareholders
Closing 15,235 - 1,785 7,367 19,239 60,760 472 104,858
shareholders'
funds: 31
January 2010
Balance Sheet
31.01.10 31.07.09 31.01.09
unaudited audited unaudited
Notes £'000 £'000 £'000
Fixed assets
Investments designated at fair 101,640 98,131 64,070
value through profit or loss
Current assets
Debtors 262 1,161 168
Cash at bank 3,486 425 5,333
3,748 1,586 5,501
Creditors - amounts falling due 9 - (6,584) (7,629)
within one year
Fixed rate unsecured loan
Other Creditors (530) (999) (889)
(530) (7,583) (8,518)
Net current assets/(liabilities) 3,218 (5,997) (3,017)
Total net assets 104,858 92,134 61,053
Capital and reserves
Called up share capital 15,235 15,235 15,235
Capital redemption reserve 1,785 1,785 1,785
Other non-distributable reserve 7,367 7,367 7,367
Other reserve 19,239 19,239 19,235
Capital reserve 60,760 47,523 16,886
Revenue reserve 472 985 545
Total equity shareholders' funds 104,858 92,134 61,053
Net asset value per ordinary share 6 172.06p 151.18p 100.18p
Cash Flow Statement
31.01.10 31.07.09 31.01.09
unaudited audited unaudited
£'000 £'000 £'000
Operating activities
Investment income received 944 2,655 1,345
Deposit interest received - 68 66
Investment management fee (261) (1,268) (357)
paid
Directors' fees paid (43) (93) (57)
Other cash (payments)/ (138) (337) 216
receipts
Net cash inflow from 502 1,025 1,213
operating activities
Returns on investments and
servicing of finance
Interest paid (195) (495) (287)
Net cash outflow from returns (195) (495) (287)
on investments and servicing
of finance
Financial investment
Purchase of investments (36,787) (47,992) (19,890)
Disposal of investments (46,979) 97,560 77,115
Net cash inflow from 10,192 49,568 57,225
financial investment
Dividend paid to shareholders (609) (494) (496)
Net cash inflow before 9,890 49,604 57,655
financing
Financing
Repurchase of ordinary shares - (988) (988)
Ordinary shares cancelled on - (52,995) (52,999)
completion of the Tender
offer
Loan redemption costs on - (83) (83)
completion of the Tender
offer
5.60% fixed rate unsecured (6,890) (3,912) (3,710)
loan part repaid
Net cash outflow before (6,890) (57,978) (57,780)
financing
Increase/(decrease) in cash 3,000 (8,374) (125)
Notes to the Financial Statements
1. ACCOUNTING POLICIES
The Half-Yearly financial statements have been prepared on the basis of the
accounting policies set out in the Company's annual report and financial
statements dated 31 July 2009.
As a result of technical guidance issued by the Institute of Chartered
Accountants in England and Wales in TECH 01/08: "Distributable Profits",
changes in the fair value of investments which are readily convertible to cash,
without accepting adverse terms at the balance sheet date, can be treated as
realised. As a result of the new SORP, capital reserves realised and unrealised
are now shown in aggregate as capital reserve in the Reconciliation of
Movements in Shareholders' Funds and the Balance Sheet. At the balance sheet
date all investments held by the Company were listed on a recognised stock
exchange and were considered to be readily convertible to cash.
2. INCOME
31.01.10 31.07.09 31.01.09
unaudited audited unaudited
£'000 £'000 £'000
Overseas dividends 854 2,626 1,278
Overseas scrip 124 84 42
dividends
Deposit interest - 55 55
Interest on VAT - 2 -
recovered on
investment
management fees*
978 2,767 1,375
*This is interest received in the prior year on VAT on investment management
fees reclaimed following the decision of the European Court of Justice in the
JPMorgan Claverhouse Investment Trust/AIC case (C-363/05) (see Note 3 below).
3. INVESTMENT MANAGEMENT FEE
31.01.10 31.07.09 31.01.09
unaudited audited unaudited
£'000 £'000 £'000
Investment 543 873 454
management fee
VAT recovered* - (12) (12)
543 861 442
*The decision of the European Court of Justice in the JPMorgan Claverhouse
Investment Trust/AIC case (C-363/05) confirmed that the VAT exemption
applicable to the management of special investment funds will also extend to
investment trust companies. Although the Company had recovered virtually all
the VAT charged, as a result of this case it recovered a further £12,385 for
the year ended 31 July 2009.
4. TAXATION ON RETURN/(LOSS) ON ORDINARY ACTIVITIES
31.01.10 31.07.09 31.01.09
unaudited audited unaudited
revenue capital total revenue capital total revenue capital £ total
£'000 £'000 £'000 '000
£'000 £'000 £'000 £'000 £'000
Overseas 65 - 65 233 - 233 115 - 115
taxation
suffered
5. RETURN/(LOSS) PER ORDINARY SHARE
31.01.10 31.07.09 31.01.09
unaudited audited unaudited
Revenue 0.16p 1.49p 0.77p
Capital 21.72p 14.85p (29.66p)
Total 21.88p 16.34p (28.89p)
Returns/(losses) per ordinary share are based on the net revenue return on
ordinary activities after taxation in the period of £96,000 (31.07.09: £
980,000; 31.01.09: £542,000), the capital return in the period of £13,237,000
(31.07.09: capital return £9,773,000; 31.01.09: capital loss £20,947,00) and
the total return in the period of £13,333,000 (31.07.09: total return £
10,753,000; 31.01.09: total loss £20,405,000) and on 60,942,501 ordinary shares
(31.07.09: 65,827,251; 31.01.09: 70,632,359), being the weighted average number
of ordinary shares in issue during the period.
6. NET ASSET VALUE PER ORDINARY SHARE
The net asset value per ordinary share is based on net assets of £104,858,000
(31.07.09: £92,134,000; 31.01.09: £61,053,000) and on 60,942,501ordinary shares
(31.07.09: 60,942,501; 31.01.09: 60,942,501), being the number of ordinary
shares in issue at the period end.
7. COST OF INVESTMENT TRANSACTIONS
Included in the gains/(losses) on investments are the following costs of
investment transactions:
31.01.10 31.07.09 31.01.09
unaudited audited unaudited
£'000 £'000 £'000
Purchases 73 114 49
expenses
Sales expenses 163 245 168
236 359 217
8. DIVIDEND
No dividend has been declared in respect of the current period. The dividend
shown in the Reconciliation of Movements in Shareholders' Funds for the six
months ended 31 January 2010 relates to the year ended 31 July 2009.
9. LOAN FACILITY
The remaining balance of US$11,000,000 of the fixed rate unsecured loan from
LloydsTSB Bank PLC of US$ 18,000,000 which was drawn down on 27 September 2006
for a period of three years at an interest rate of 5.60% per annum was repaid
on 25 September 2009.
On 3 February 2010 the Company entered into a US$ 15,000,000-364 day revolving
credit facility with ING Bank N.V. As at the date of this report no amount had
been drawn down.
10. SHARE REPURCHASES
The following ordinary share repurchases were made:
31.01.10 31.07.09 31.01.09
unaudited audited unaudited
Number of ordinary shares - 951,935* 951,935
repurchased
Average price per share - 103.79p 103.79p
Total cost including stamp duty - £988,000 £988,000
and commission (£)
*In addition to these shares repurchased, on completion of the Tender offer to
shareholders 12 September 2008, a total of 41,262,764 ordinary shares were
cancelled from the Register of Members and £52,153,000 was paid to the exiting
shareholders. Costs associated with the Tender offer were borne solely by the
exiting shareholders.
11. UNAUDITED FINANCIAL STATEMENTS
The results for the six months to 31 January 2010 and 31 January 2009, which
are unaudited, constitute non-statutory accounts within the meaning of s435 of
the Companies Act 2006. The figures and financial information for the year
ended 31 July 2009 are extracted from the latest published financial
statements. These financial statements, on which the Auditor gave an
unqualified report, have been delivered to the Registrar of Companies.
INVESTOR INFORMATION
CONTACT INFORMATION
Private investors call free on: 0800 41 41 10 9am to 6pm, Monday to Saturday.
Financial advisers call free on: 0800 41 41 81 Lines are open from 8am to 6pm,
Monday to Friday
www.fidelity.co.uk/its
Existing investors who have specific queries regarding their holding or need to
provide update information, for example a change of address, should contact the
appropriate administrator:
Holders of ordinary shares:
Capita Registrars (Registrars to Fidelity Asian Values PLC), Northern House,
Woodsome Park, Fenay Bridge, Huddersfield, Yorkshire, HD8 0GA. Telephone: 0871
664 0300 (calls to this number cost 10p per minute plus network extras.) Lines
are open from 8.30am to 5.30pm, Monday to Friday. If calling from overseas,
telephone +44 208 639 3399
Email: ssd@capitaregistrars.com
Share Plan investors:
Fidelity Investment Trust Share Plan BNP Paribas Securities Services, Block C,
Western House, Lynchwood Business Park, Peterborough PE2 6BP. Telephone: 0845
358 1107 (calls to this number are charged at 4p per minute from a BT landline
dependent on the tariff. Other telephone service providers' costs may vary.)
Fidelity ISA investors:
Fidelity, using the freephone number given, or by writing to: UK Customer
Service, Fidelity International, Oakhill House, 130 Tonbridge Road,
Hildenborough, Tonbridge, Kent, TN11 9DZ
www.fidelity.co.uk/its
Fidelity ShareNetwork:
http://www.fidelity.co.uk/sharenetwork
General enquiries should be made to Fidelity, the Investment Manager and
Secretary, at the Company's registered office: FIL Investments International,
Investment Trusts, Beech Gate, Millfield Lane, Lower Kingswood, Tadworth,
Surrey KT20 6RP. Telephone: 01732 361144
Fax: 01737 836892 http://www.fidelity.co.uk/its
FINANCIAL CALENDAR 2010
31 January - Half-Yearly period end
15 March - Announcement of Half-Yearly results to 31 January
1 April - Posting of Half-Yearly report
31 July - Financial year end
October - Publication of Annual Report
November - Annual General Meeting
BOARD OF DIRECTORS
The Hon Sir Victor Garland, KBE (Chairman)
Hugh Bolland (Chairman of the Audit Committee and Senior Independent Director)
Kate Bolsover
William Knight
Kathryn Matthews
Philip Smiley
MANAGER, SECRETARY AND REGISTERED OFFICE
FIL Investments International Beechgate, Millfield Lane, Lower Kingswood,
Tadworth, Surrey, KT20 6RP
FINANCIAL ADVISERS AND STOCKBROKERS
J. P. Morgan Cazenove
20 Moorgate, London, EC2R 6DA
INDEPENDENT AUDITOR
Grant Thornton UK LLP, Chartered Accountants and Registered Auditor
30 Finsbury Square, London, EC2P 2YU
BANKERS AND CUSTODIAN
JPMorgan Chase Bank (London Branch)
125 London Wall, London, EC2Y 5AJ
REGISTRARS
Capita Registrars
Northern House, Woodsome Park, Fenay Bridge, Huddersfield, West Yorkshire, HD8
0GA
LAWYERS
Slaughter and May, One Bunhill Row, London, EC1Y 8YY
The Fidelity Individual Savings Account ("ISA") is offered and managed by
Financial Administration Services Limited. The Fidelity Investment Trust Share
Plan is managed by FIL Investments International. Both companies are authorised
and regulated by the Financial Services Authority. The Fidelity Investment
Trust Share Plan is administered by BNP Paribas Securities Services and shares
will be held in the name of Puddle Dock Nominees Limited. The value of savings
and eligibility to invest in an ISA will depend on individual circumstances and
all tax rules may change in the future. Fidelity investment trusts are managed
by FIL Investments International. Fidelity only gives information about its own
products and services and does not provide investment advice based on
individual circumstances. Should you wish to seek advice, please contact a
Financial Adviser.
Please note that the value of investments and the income from them may fall as
well as rise and the investor may not get back the amount originally invested.
Past performance is not a guide to future returns. For funds that invest in
overseas markets, changes in currency exchange rates may affect the value of
your investment. Investing in small and emerging markets can be more volatile
than other more developed markets.
Reference in this document 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 already have been acted upon by
Fidelity.
Fidelity, Fidelity International and the Pyramid Logo are trademarks of FIL
Limited.
Issued by Fidelity Asian Values PLC.
WARNING TO SHAREHOLDERS - "BOILER ROOM" SCAMS
Over the year, many companies have become aware that their shareholders have
received unsolicited phone calls or correspondence concerning investment
matters. These are typically from overseas based `brokers' who target UK
shareholders, offering to sell them what often turn out to be worthless or high
risk shares in US or UK investments. These operations are commonly known as
`boiler rooms'. These `brokers' can be very persistent and extremely
persuasive, and a 2006 survey by the Financial Services Authority ("FSA")
reported that the average amount lost by investors is around £20,000. It is not
just the novice investor that has been duped in this way; many of the victims
had been successfully investing for several years. Shareholders are advised to
be very wary of any unsolicited advice, offers to buy shares at a discount or
offers of free company reports.
If you receive any unsolicited investment advice:
• Make sure you get the correct name of the person and organisation
• Check that they are properly authorised by the FSA before getting involved by
visiting www.fsa.gov.uk/register
• Report the matter to the FSA either by calling 0845 606 1234 or visiting
www.moneymadeclear.fsa.gov.uk
• If the calls persist, hang up.
If you deal with an unauthorised firm, you will not be eligible to receive
payment under the Financial Services Compensation Scheme. The FSA can be
contacted by completing an online form at www.fsa.gov.uk/pages/doing/regulated/
law/alerts/overseas.html
Details of any share dealing facilities that the Company endorses will be
included in Company mailings. More detailed information on this or similar
activity can be found on the FSA website www.moneymadeclear.fsa.gov.uk
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