Half-yearly Report
Fidelity Asian Values PLC
Half-Yearly Report
For the 6 months ended 31 January 2015
Investment Objective and Performance Summary
To achieve long term capital growth through investment principally in the
stockmarkets of the Asian Region (excluding Japan)
Performance for the six months ended 31 January 2015
Six
months
ended
31
January
2015
Net Asset Value ("NAV") per Ordinary Share total return +9.2%
Ordinary Share Price total return +10.8%
MSCI All Countries Far East ex Japan Index (net) Total Return - in UK
sterling terms* +8.2%
One Year Performance (on a total return basis) (%)
01/02 01/02 01/02 01/02 01/02
/14 /13 /12 /11 /10
to to to to to
31/01 31/01 31/01 31/01 31/01
/15 /14 /13 /12 /11
NAV per Ordinary Share - undiluted +24.0 +0.4 +10.0 -9.8 +33.5
NAV per Share - diluted n/a n/a  +8.5 -8.4 +29.9
Ordinary Share price +25.3 +1.0  +4.6 -7.7 +30.3
MSCI All Countries Far East ex Japan Index (net)
Total Return - in UK sterling terms* +21.3 -6.3 +12.1 -5.7 +27.7
* The Company's Benchmark Index
Sources: Fidelity and Datastream
Past performance is not a guide to future returns
The Company is a member of the Association of Investment Companies
Financial summary
31 31
January July
2015 2014
Assets
Total portfolio exposure1 £211.8m £192.3m
Shareholders' funds £187.9m £172.8m
NAV per Ordinary Share 278.45p 255.99p
Gearing2 12.7% 11.3%
Stockmarketdata
Ordinary Share price at period end 247.00p 224.00p
Period high 255.00p 225.75p
Period low 223.00p 190.50p
Discount to NAV at period end 11.3% 12.5%
Period high 13.9% 13.9%
Period low 7.3% 6.5%
Results for the six months to 31 January 2015 2014
Revenue return per Ordinary Share 0.22p 1.00p
Capital return/(loss) per Ordinary Share 23.34p (4.60p)
Total return/(loss) per Ordinary Share 23.56p (3.60p)
Total returns (includes reinvested income) for the six
months to 31 January 2015 2014
NAV per Ordinary Share +9.2% -1.6%
Ordinary Share price +10.8% -2.7%
MSCI All Countries Far East ex Japan Index (net)3 +8.2% -6.0%
1 The total exposure of the investment portfolio, including exposure to
the investments underlying the long CFDs
2 Total portfolio exposure in excess of Shareholders' funds
3 Benchmark Index in UK sterling terms
Sources: Fidelity and Datastream
Past performance is not a guide to future returns
Chairman's Statement
I have pleasure in presenting the Half Yearly Report for Fidelity Asian Values
PLC ("the Company").
This is my first report as Chairman of the Company and I would like to take
this opportunity to thank Hugh Bolland for his contribution to the Company's
success over the past ten years.
CHANGE OF PORTFOLIO MANAGER
John Lo will be stepping down as Portfolio Manager of the Company and will be
succeeded by Nitin Bajaj. There will be a smooth transition period from 1
April 2015 during which Nitin and John will work closely together as they
realign the portfolio over the forthcoming months.
This change allows John to focus exclusively on his institutional segregated
mandates and the Board would like to thank him for his diligent management of
the portfolio in what has been a challenging period in Asian equity markets.
Over his thirteen year tenure to 31 January 2015, the Company achieved a 12.3%
increase in its net asset value, compared with 10.7% (annualised) for the MSCI
All Countries (Combined) Far East ex Japan Index. (All figures in sterling
terms and on a total return basis). This is an excellent achievement and one of
which John can be extremely proud.
Nitin Bajaj is currently the portfolio manager for the Fidelity Funds - Asian
Smaller Companies Fund. He started at Fidelity in 2003 in the London office as
a Research Analyst. In 2007, after a very successful and highly rated period in
research, Nitin became an Assistant Portfolio Manager for the Fidelity Global
Special Situations Fund in the UK. In 2009, he moved to Fidelity's Mumbai
office, to manage FIL's domestic Indian equity funds. In 2013 he moved to
Singapore and started managing the Asian Smaller Companies Fund on 1 September
2013. Nitin holds a Bachelor of Commerce degree from the University of Delhi,
an MBA from Insead, Singapore and is a member of the Institute of Chartered
Accountants of India.
Nitin is a value investor and aims to generate alpha through stock selection
within the Asia Pacific ex Japan region in a manner which the Board believes
closely delivers the investment objective for its shareholders. He prefers
investing in smaller companies because they tend to be less well researched,
which leads to greater valuation anomalies. Asset allocation at the country and
sector level is primarily a result of his bottom-up approach, this is similar
to John's style and there is therefore a continuity of approach. Nitin's
fundamental analysis involves the evaluation of various factors including, but
not limited to, stock valuation, financial strength, cash flows, company's
competitive advantages, business prospects and earnings potential. He has a two
to three year investment horizon.
CHANGE OF BENCHMARK
The Board has for some time considered the appropriateness of the MSCI All
Countries (Combined) Far East ex Japan Index given that this index excludes
India and Australia. The Company is the only closed ended fund in its peer
group to adopt this benchmark as its reference index. With these factors in
mind the Board has decided that the MSCI Asia Pacific Ex Japan index (which
includes both India and Australia and is widely used within the peer group) is
more appropriate for performance comparison purposes and will be adopted from 1
August 2015.
The change of portfolio manager and benchmark will not result in a change of
investment policy.
PERFORMANCE
Over the six months to 31 January 2015, the Company's net asset value
registered strong growth and outperformed the benchmark index. The Company
returned 9.2%, compared with 8.2% for the MSCI All Countries Far East ex Japan
Index. Over John's tenure his investment approach has been focused and
consistent, with the majority of outperformance coming from good stock
selection. Research has been key to this; both John Lo and Nitin Bajaj have and
will continue to benefit from Fidelity's strong team of analysts located across
the Asia Pacific region.
THE BOARD AND ITS COMMITTEES
Following the retirement of Hugh Bolland from the Board at the conclusion of
the Annual General Meeting on 9 December 2014, I was appointed as Chairman of
the Board. William Knight retains his role as Senior Independent Director and
Grahame Stott as Chairman of the Audit Committee.
Kate Bolsover
Chairman
26 March 2015
Interim Management Report
PRINCIPAL RISKS AND UNCERTAINTIES
The Board, with the assistance of the Manager, has developed a risk matrix
which, as part of the risk management and internal control process, identifies
the key risks that the Company faces.
The Board believes that the principal risks and uncertainties faced by the
Company continue to fall in the following categories: market risk; performance
risk; gearing risk; currency risk; income-dividends risk; discount controls;
currency risk; tax and regulatory risks; and operational risk. Information on
each of these can be found in the Strategic Report section of the Annual Report
for the year ended 31 July 2014. In the view of the Board these principal risks
and uncertainties are as applicable to the remaining six months of the
financial year as they were to the six months under review.
RELATED PARTY TRANSACTIONS
There have been no related party transactions during the six month period to 31
January 2015, and therefore, there is nothing to report on any material effect
by such a transaction on the financial position or the performance of the
Company.
GOING CONCERN
The Board receives regular reports from the Manager and the Directors have a
reasonable expectation that the Company has adequate resources to continue in
operational existence for the foreseeable future. Thus they continue to adopt
the going concern basis of accounting in preparing the financial statements as
outlined in the Annual Report for the year ended 31 July 2014.
The next continuation vote will be put to shareholders at the Annual General
Meeting in 2016.
DIRECTORS' 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' and gives a true
and fair view of the assets, liabilities, financial position and net return of
the Company as required by the UK Listing Authority Disclosure and Transparency
Rules ("DTR") 4.2.4R; and
b) the Interim Management Statement (which incorporates the Chairman's
Statement ) includes a fair review of the information required by Rule 4.2.7R
and 4.2.8R.
The Half-Yearly Financial Report has not been audited or reviewed by the
Company's Independent Auditor.
The Half-Yearly Financial Report was approved by the Board on 26 March 2015 and
the above responsibility statement was signed on its behalf by the Chairman.
Kate Bolsover
For and on behalf of the Board
26 March 2015
Portfolio Manager's Half Yearly Review
MARKETS
Far East ex Japan equities advanced over the review period as China and the
closely-linked Hong Kong markets registered strong growth against the backdrop
of reform measures announced by the Chinese government. The Chinese market
rally was triggered by the People's Bank of China (PBOC's) decision to cut its
benchmark rate of interest, the launch of Shanghai-Hong Kong Stock Connect and
falling energy and commodity prices which should give a net benefit to
consumers. The central bank also announced measures to boost liquidity in the
system and the central government continued with the implementation of its
reforms. Whilst the outlook for growth in China moderated, the market was
driven by expectations that monetary policy would continue to be supportive,
and falling commodity prices would support profit growth. Elsewhere, equities
in Taiwan rose, as a weaker Taiwanese dollar coupled with healthy demand from
the US is expected to support Taiwanese exporters, particularly in the IT
sector. By way of contrast, the South Korean Index declined amid concerns that
a relative decline in the Japanese yen would raise competitive pressure on
Korean exporters. From a sector perspective, relatively defensively positioned
telecommunication services, healthcare and utilities sectors surged. In
contrast, energy and materials producers tracked the decline in international
resources prices. The consumer discretionary sector also declined over the
review period.
PORTFOLIO REVIEW
The Company's outperformance relative to the index was driven by strong stock
selection in the consumer staples and information technology sectors.
Non-benchmark holdings in the consumer discretionary sector surged on account
of stock specific performance drivers.
The overweight stance in China-based insurance provider Ping An Insurance was
the single largest contributor to outperformance. The stock surged at the end
of 2014 as regulatory changes such as pricing deregulation in participating
products and universal life product and introduction of deferred tax policies
for pension products bolstered growth potential. Ping An is likely to broaden
its product offerings and improve investment yields going forward. Meanwhile,
the position in Citic Securities produced strong returns from both its stock
brokerage and proprietary trading activities. Elsewhere, the non-index holding
in Hana Tour Service added value as it delivered healthy earnings growth and
provided positive guidance for growth in 2015. The company expects to register
continued growth in outbound tourism, and also expects to gain from market
consolidation. Within consumer discretionary, lack of position in Hyundai Motor
enhanced relative performance, whilst the high conviction holding in Techtronic
Industries continued to bolster performance. Meanwhile, a position in LG
Household and Healthcare rose on the back of robust growth in prestige
cosmetics and an improving pricing environment for the household goods business
thanks to a moderating competitive landscape. In the information technology
sector, the position in South Korea-based SK C&C, India–based Redington India,
and China-based Alibaba Group buoyed returns.
The high conviction stake in specialist machinery producer Sarine Technologies
proved disappointing. Seasonal factors and a credit crunch for its key clients
in the Indian diamond industry led to some earnings disappointment over the
quarter. Nevertheless, the long-term outlook for the company remains strongly
linked to new product launches, its technological superiority over competition,
and a robust balance sheet. A holding in South Korea-based construction and
engineering services provider Daelim Industrial succumbed to an earnings
disappointment, mainly on account of cost overruns in overseas projects.
However, an earnings surprise is likely given that the company has seen a sharp
jump in domestic orders and benefits from falling input costs.
The Company retains the strong overweight stance in the consumer discretionary
sector, but closed selected positions as a funding source for better
opportunities elsewhere. The position in jewellery retailer Luk Fook Holdings,
Skyworth Digital Holdings and Hotel Shilla were sold following strong gains.
The resulting proceeds were used to introduce a stake in China-based Great Wall
Motor given its strong product pipeline and in India-based Tata Motors which
should benefit from an economic recovery. Elsewhere, new holdings were
introduced in the energy sector. A position in state owned oil and gas
exploration and production firm CNOOC was introduced at attractive valuations
as well as taking a stake in exploration firm Rex International due to its
strong balance sheet and the likely upside from exploration success. The
Company also holds an overweight stance in the industrial and information
technology sectors with a focus on companies with strong balance sheets and
sustainable competitive advantage. Finally, the Company is underweight in
financials given unattractive valuations mainly in the banking space. However,
the Portfolio Manager does hold selected insurance and real estate managers
with attractive potential for growth.
OUTLOOK
The region's market outlook remains healthy as the implementation of structural
reforms and stabilisation in the political environment is likely to boost
growth. Asia's fundamentals and the structural growth story remain intact and
it should continue to be one of the fastest growing regions globally. Asian
economies benefit from the accommodative monetary policies and moderate
economic expansion in the developed world. Moreover, weakening global commodity
prices are leading to lower inflation, which is a positive for the region. In
South Korea, rising competition from Japanese companies due to a weaker yen are
likely to be headwinds for low-end exporters. Nonetheless, the country is home
to strong global brands that continue to gain market share in many developed
and emerging markets. Additionally, a pro–growth policy environment is expected
to support domestic demand.
Twenty Largest Investments as at 31 January 2015
Total
Portfolio Fair Portfolio
Exposure Value1 Exposure2
Country Portfolio, including long CFDs £'000 £'000 %
Tencent Holdings3
Provides internet, mobile and
CHINA telecommunications, value-added services 11,243 4,997 5.3
China Mobile
Provides mobile telecommunications and
related services 8,164 8,164 3.9
Ping An Insurance
A leading Chinese insurance company 7,603 7,603 3.6
Uni-President China Holdings
Manufactures and sells beverages and
instant noodles and smart phones. 4,256 4,256 2.0
Lenovo Group
Develops, manufactures and markets
technology products including personal
computers, notebooks and smart phones 4,094 4,094 1.9
CNOOC
An independent oil and gas exploration
company producing offshore crude oil
and natural gas 3,793 3,793 1.8
1 Fair value represents the carrying value in the Balance Sheet
2 % of the total portfolio exposure of the investment portfolio, including
exposure to the investments underlying the long CFD
3 Investment is via equities and long CFDs
Twenty Largest Investments as at 31 January 2015
Total
Portfolio Fair Portfolio
Exposure Value1 Exposure2
Country Portfolio, including long CFDs £'000 £'000 %
AIA Group3
HONG KONG
Provides financial services to
individuals and businesses for their
insurance, protection, savings,
investment and retirement needs 7,944 4,195 3.8
Techtronic Industries
Manufactures and sells electrical and
electronic products 6,190 6,190 2.9
Wharf Holdings3
A holding company of a group with
interests in property, communications,
media, entertainment and logistics 5,570 1,950 2.6
Cheung Kong Holdings
Develops residential, office, retail,
industrial and hotel properties in Hong
Kong 5,375 5,375 2.5
Power Assets Holdings
Generates and supplies electricity to
Hong Kong Island and Lamma Island
and invests in power and utility
related businesses outside of Hong Kong 5,043 5,043 2.4
RedingtonIndia
INDIA
Operates in information technology
product distribution, supply chain
solutions, after sales service and
financial services 3,898 3,898 1.8
SINGAPORE Sarine Technologies
Develops, manufactures, markets and
sells precision technology products for
the planning, processing, evaluation
and measurement of diamonds and
gemstones 7,931 7,931 3.8
1 Fair value represents the carrying value in the Balance Sheet
2 % of the total portfolio exposure of the investment portfolio, including
exposure to the investments underlying the long CFD
3 Investment is via equities and long CFDs
Total
Portfolio Fair Portfolio
Exposure Value1 Exposure2
Country Portfolio, including long CFDs £'000 £'000 %
Samsung Electronics3
Provides communication products and
has five business divisions:
communication, semiconductor, digital
media, liquid crystal display and
SOUTH KOREA home appliances 11,537 1,851 5.4
Hana Tour Service
Provides travel and tourism services 5,433 5,433 2.6
ShinhanFinancial Group
Banking group with banking, credit
card, security and life insurance
businesses 4,273 4,273 2.0
LG Household and Healthcare3
Manufactures household goods,
cosmetics and beverages 3,906 2,070 1.9
SK C&C
Provider of IT services, including
IT consulting, outsourcing and
systems integration and maintenance 3,852 3,852 1.8
DaelimIndustrial
A global petrochemical, engineering
and construction group 3,826 3,826 1.8
Taiwan Semiconductor Manufacturing
Researches, develops, manufactures
and distributes integrated circuit
TAIWAN related products 11,143 11,143 5.3
Twenty
Largest
Investments 125,074 99,937 59.1
Other
Investments 86,718 86,718 40.9
Total
Portfolio
(including
long CFDs) 211,792 186,655 100.0
1 Fair value represents the carrying value in the Balance Sheet
2 % of the total portfolio exposure of the investment portfolio, including
exposure to the investments underlying the long CFD
3 Investment is via equities and long CFDs
Income Statement
for the
six
months
ended
31 for the year for the six
January ended months ended
2015 31 July 2014 31 January 2014
unaudited audited unaudited
revenue capital total revenue capital total revenue capital total
Notes £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Gains/(losses) on
investments designated at
fair value through profit
or loss - 14,626 14,626 - 15,131 15,131 - (3,337) (3,337)
Gains on derivative
instruments held at fair
value
through profit or loss - 1,199 1,199 - 3,147 3,147 - 560 560
Income 2 1,600 - 1,600 3,332 - 3,332 1,951 - 1,951
Investment management fee (1,020) - (1,020) (1,805) - (1,805) (882) - (882)
Other expenses (320) - (320) (588) - (588) (290) - (290)
Exchange gains/(losses) on
other net assets 24 271 295 (62) (349) (411) (57) (336) (393)
Net return/(loss) before
finance costs and
taxation 284 16,096 16,380 877 17,929 18,806 722 (3,113) (2,391)
Finance costs (66) - (66) (103) - (103) (52) - (52)
Net return/(loss) on
ordinary activities befor
e taxation 218 16,096 16,314 774 17,929 18,703 670 (3,113) (2,443)
Taxation on return/(loss)
on ordinary activities 3 (71) (343) (414) (5) (621) (626) 5 - 5
Net return/(loss) on
ordinary activities after
taxation for the period 147 15,753 15,900 769 17,308 18,077 675 (3,113) (2,438)
Return/(loss) per Ordinary
Share - basic and
diluted 4 0.22p 23.34p 23.56p 1.14p 25.62p 26.76p 1.00p (4.60p) (3.60p)
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.
All revenue and capital items in the above statement derive from continuing
operations.
No operations were acquired or discontinued in the year.
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
share Other non-
capital
share premium redemption distributable other capital revenue total
capital account reserve reserve reserve reserve reserve equity
Notes £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Opening
shareholders'
funds at 1
August 2013 16,920 20,232 3,149 7,367 9,013 97,794 1,354 155,829
Repurchase of
Ordinary Shares 6 (17) - 17 - (144) - - (144)
Net return on
ordinary
activities
after taxation
for the period - - - - - (3,113) 675 (2,438)
Dividend paid
to shareholders 5 - - - - - - (744) (744)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Closing
shareholders'
funds at 31
January 2014 16,903 20,232 3,166 7,367 8,869 94,681 1,285 152,503
========== ========== ========== ========== ========== ========== ========== ==========
Opening
shareholders'
funds at 1
August 2013 16,920 20,232 3,149 7,367 9,013 97,794 1,354 155,829
Repurchase of
Ordinary Shares 6 (48) - 48 - (400) - - (400)
Net return on
ordinary
activities
after taxation
for the period - - - - - 17,308 769 18,077
Dividend paid
to shareholders 5 - - - - - - (744) (744)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Closing
shareholders'
funds at 31
July 2014 16,872 20,232 3,197 7,367 8,613 115,102 1,379 172,762
Net
(loss)/return
on ordinary
activities
after taxation
for the period - - - - - 15,753 147 15,900
Dividend paid
to shareholders 5 - - - - - - (742) (742)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Closing
shareholders'
funds at 31
January 2015 16,872 20,232 3,197 7,367 8,613 130,855 784 187,920
========== ========== ========== ========== ========== ========== ========== ==========
Balance Sheet
Company No. 3183919
31.01.15 31.07.14 31.01.14
unaudited audited .. unaudited
Notes £'000 £'000 £'000
Fixed assets
Investments designated at fair
value through profit or loss 183,447 169,880 150,946
---------- ---------- ----------
Current assets
Derivative assets held at fair
value through profit or loss 3,935 2,617 1,887
Debtors 1,476 836 545
Amounts held in margin accounts - - 805
Cash at bank 972 1,436 1,138
---------- ---------- ----------
6,383 4,889 4,375
---------- ---------- ----------
Creditors
Derivative liabilities held at
fair value through profit or
loss (727) (609) (2,195)
Other creditors (1,183) (1,398) (623)
---------- ---------- ----------
(1,910) (2,007) (2,818)
---------- ---------- ----------
Net current assets 4,473 2,882 1,557
---------- ---------- ----------
Total net assets 187,920 172,762 152,503
========== ========== ==========
Capital and reserves
Share capital 6 16,872 16,872 16,903
Share premium account 20,232 20,232 20,232
Capital redemption reserve 3,197 3,197 3,166
Other non-distributable reserve 7,367 7,367 7,367
Other reserve 8,613 8,613 8,869
Capital reserve 130,855 115,102 94,681
Revenue reserve 784 1,379 1,285
---------- ---------- ----------
Total equity shareholders' funds 187,920 172,762 152,503
========== ========== ==========
Net asset value per Ordinary
Share 7 278.45p 255.99p 225.56p
========== ========== ==========
Cash Flow Statement
six six
months year months
ended ended ended
31.01.15 31.07.14 31.01.14
unaudited audited unaudited
£'000 £'000 £'000
Operating activities
Investment income received 1,386 2,897 1,833
Income received from long CFDs 47 185 21
Investment management fee paid (1,003) (1,785) (880)
Directors' fees paid (64) (121) (61)
Other cash payments (196) (482) (233)
---------- ---------- ----------
Net cash inflow from operating
activities 170 694 680
---------- ---------- ----------
Servicing of finance
Interest paid on long CFDs and bank
loans (68) (102) (51)
---------- ---------- ----------
Net cash outflow from servicing of
finance (68) (102) (51)
---------- ---------- ----------
Taxation
Overseas capital gains tax paid (264) (271) -
---------- ---------- ----------
Net cash outflow from taxation (264) (271) -
---------- ---------- ----------
Financial investment
Purchase of investments (57,995) (118,100) (43,238)
Disposal of investments 58,164 115,361 40,700
---------- ---------- ----------
Net cash inflow/(outflow) from
financial investment 169 (2,739) (2,538)
---------- ---------- ----------
Derivative activities
Payments on long CFD positions closed - 271 -
Movements on amounts held at brokers - 856 51
---------- ---------- ----------
Net cash inflow from derivative
activities - 1,127 51
---------- ---------- ----------
Dividend paid to shareholders (742) (744) (744)
---------- ---------- ----------
Net cash outflow before financing (735) (2,035) (2,602)
---------- ---------- ----------
Financing
Repurchase of Ordinary Shares - (400) (144)
---------- ---------- ----------
Net cash outflow from financing - (400) (144)
---------- ---------- ----------
Decrease in cash (735) (2,435) (2,746)
========== ========== ==========
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 for the year ended 31 July 2014.
six
months year six
ended ended months
31.01.15 31.07.14 31.01.14
unaudited audited unaudited
£'000 £'000 £'000
2 INCOME
Income from investments designated
at fair value through profit or loss
Overseas dividends 1,392 2,998 1,739
Overseas scrip dividends 42 148 121
---------- ---------- ----------
1,434 3,146 1,860
Income from derivative instruments
Dividends from long CFDs 165 185 91
---------- ---------- ----------
Net income 1,599 3,331 1,951
Other interest
Interest received on deposits 1 1 -
---------- ---------- ----------
Total income and other interest 1,600 3,332 1,951
========== ========== ==========
six six
months year months
ended ended ended
31.01.15 31.07.14 31.01.14
unaudited audited unaudited
£'000 £'000 £'000
TAXATION ON RETURN/(LOSS) ON ORDINARY
3 ACTIVITIES
Overseas taxation suffered/(recovered)
Revenue - taxation on overseas
dividends 71 5 (5)
Capital - Indian capital gains tax 343 621 -
---------- ---------- ----------
414 626 (5)
========== ========== ==========
six six
months year months
ended ended ended
31.01.15 31.07.14 31.01.14
unaudited audited unaudited
RETURN/(LOSS) PER ORDINARY SHARE
4 - BASIC AND DILUTED
Revenue return per Ordinary Share 0.22p 1.14p 1.00p
Capital return/(loss) per Ordinary
Share 23.34p 25.62p (4.60p)
---------- ---------- ----------
Total return/(loss) per Ordinary
Share 23.56p 26.76p (3.60p)
========== ========== ==========
The returns/(losses) per Ordinary Share are based on net returns/(losses) on
ordinary activities after taxation and the weighted average number of Ordinary
Shares in issue during the period. The returns for the six months ended 31
January 2015 were revenue return £147,000 (year ended 31 July 2014: £769,000
and six months ended 31 January 2014: £675,000), capital return £15,753,000
(year ended 31 July 2014: £17,308,000 and six months ended 31 January 2014:
loss £3,113,000) and total return £15,900,000 (year ended 31 July 2014: £
18,077,000 and six months ended 31 January 2014: loss £2,438,000). The weighted
average number of Ordinary Shares in issue for the six months ended 31 January
2015 was 67,488,213 (year ended 31 July 2014: 67,568,925 and six months ended
31 January 2014: 67,610,974).
5 DIVIDENDS
No dividend has been declared in respect of the current period. The dividend
payment of £742,000 shown in the Reconciliation of Movements in Shareholders'
Funds for the six months ended 31 January 2015, is the final dividend for the
year ended 31 July 2014 of 1.10 pence per Ordinary Share paid on 16 December
2014. The dividend payment of £744,000 shown in the Reconciliation of Movements
in Shareholders' Funds for the year ended 31 July 2014 and for the six months
ended 31 January 2014, is the final dividend for the year ended 31 July 2013 of
1.10 pence per Ordinary Share paid on 6 December 2013.
31.01.15 31.07.14 31.01.14
unaudited audited unaudited
£'000 £'000 £'000
6 SHARE CAPITAL
Issued, allotted and fully paid -
Ordinary Shares of 25 pence each
Beginning of the period 16,872 16,920 16,920
Repurchase of Ordinary Shares - (48) (17)
---------- ---------- ----------
End of the period 16,872 16,872 16,903
========== ========== ==========
number number number
of of of
shares shares shares
Beginning of the period 67,488,213 67,680,213 67,680,213
Repurchase of Ordinary Shares - (192,000) (70,000)
---------- ---------- ----------
End of the period 67,488,213 67,488,213 67,610,213
========== ========== ==========
7 NET ASSET VALUE PER ORDINARY SHARE
The net asset value per Ordinary Share is based on net assets of £187,920,000
(31 July 2014: £172,762,000 and 31 January 2014: £152,503,000) and on
67,488,213 (31 July 2014: 67,488,213 and 31 January 2014: 67,610,213) Ordinary
Shares, being the number of Ordinary Shares in issue at the period end.
8 INVESTMENT TRANSACTION COSTS
Investment transaction costs are incurred in the acquisition and disposal of
investments. These costs which are included in the gains/(losses) on
investments designated at fair value through profit or loss in the capital
column of the Income Statement are shown below:
six six
months year months
ended ended ended
31.01.15 31.07.14 31.01.14
unaudited audited unaudited
£'000 £'000 £'000
Purchase transaction costs 117 217 69
Sales transaction costs 151 302 98
---------- ---------- ----------
268 519 167
========== ========== ==========
9 COMPARATIVE INFORMATION
The financial information contained in this half yearly report does not
constitute statutory accounts as defined in section 435 of the Companies Act
2006. The financial information for the six months ended 31 January 2015 and 31
January 2014 has not been audited.
The information for the year ended 31 July 2014 has been extracted from the
latest published audited financial statements, which has been filed with the
Registrar of Companies. The report of the auditor on those accounts contained
no qualifications or statement under sections 498(2) or 498(3) of the Companies
Act 2006.
- END -
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