Half-year Report

Fidelity Japanese Values PLC

Half-yearly Results for the 6 months ended 30 June 2016 (unaudited)

Financial Highlights:

• Fidelity Japanese Values outperformed its reference index by 8.1 percentage points over the six months to 30 June 2016.

• NAV increased by 15.1% over six months to 30 June 2016, but for the dilutive factor of the subscription shares, NAV performance would have been 18.1%.

• Share price return of 9.5%, compared with an average 9% achieved by the peer group

• 13,327,917 subscription shares exercised by shareholders. Outstanding subscription shares sold in the market on the same terms, with shareholders receiving the net proceeds.

“The NAV of the Company increased by 15.1% in sterling terms over the six months to 30 June 2016, outperforming the Russell Nomura Mid/Small Cap Index, which gained by 7.0% during the same period.  The excess return generated included the dilutive effect of the subscription shares issue, which reduced the NAV per share by 3%. Core holdings in the chemicals, retail and pharmaceuticals sectors were the key drivers of the Company’s outperformance," David Robins, Chairman

“Overall, the portfolio remains well positioned. It has a relatively high domestic weighting and lower export ratio (with low exposure to the UK and European markets). The direct impact of the Brexit fallout on the companies that the Company holds is therefore relatively limited. Moreover, the market correction is creating some attractive buying opportunities and Japanese stock valuations are cheap at current levels,” Nicholas Price, Portfolio Manager

Contacts

For further information, please contact:

Natalia de Sousa - Company Secretary

01737 837846

FIL Investments International

Chairman’s Statement

I have pleasure in presenting the Half-Yearly Report for the six months ended 30 June 2016.

PERFORMANCE

The NAV of the Company increased by 15.1% in sterling terms over the six months to 30 June 2016, outperforming the Russell Nomura Mid/Small Cap Index, which gained by 7.0% during the same period, and performing in line with the peer group, which achieved a 15% uplift. The excess return generated included the dilutive effect of the subscription shares issue, which reduced the NAV per share by 3%. The discount to NAV widened over the same period and the share price returned 9.5%, compared with an average 9% achieved by the peer group. Core holdings in the chemicals, retail and pharmaceuticals sectors were the key drivers of the Company’s outperformance.

A commentary on both the portfolio and the Japanese economy may be found in the Portfolio Manager’s Review.

The attribution analysis below shows how the increase in NAV has been achieved.

Analysis of change in NAV for six months to 30 June 2016 (%)

Impact of:
Reference Index (in yen terms)	-17.3
Reference Index income (in yen terms)	+0.9
Stock selection (relative to the Index)	+11.5
Gearing (in yen terms)	-3.6
Exchange  rate	+27.1
Subscription shares exercised	-3.0
Share repurchases	+0.1
Charges	-0.8
Cash	+0.2
	---------------
Total return for the six months to 30 June 2016	+15.1
	=========

GEARING

The Company continues to gear through the use of Contracts For Difference (“CFDs”). Total portfolio exposure was £196.5m as at 30 June 2016, equating to gearing of 23.3%.

TREASURY SHARES

At the Annual General Meeting on 24 May 2016, shareholders approved to hold in Treasury any ordinary shares repurchased by the Company rather than cancelling them. Shares held in Treasury carry no voting rights or rights to receive dividends and have no entitlement in a winding up of the Company. No more than 5% of the issued ordinary share capital can be held in Treasury. Any shares held in Treasury would only be re-issued at NAV per share or at a premium to NAV per share. This would ensure that the net effect of repurchasing and then re-issuing the ordinary shares would enhance NAV per share. No shares are held in Treasury as at the date of this report.

SHARE REPURCHASES

Share repurchases of ordinary shares either for cancellation or holding in Treasury are made at the discretion of the Board and within guidelines set by the Board from time to time. Share repurchases are made in the light of prevailing market conditions, together with their impact on liquidity and gearing. Shares will only be repurchased when the result is an enhancement to the net asset value of the ordinary shares for the remaining shareholders. During the reporting period and as at the date of this report, 500,000 ordinary shares were repurchased for cancellation.

SUBSCRIPTION SHARES

The final date for exercising the rights attached to the Company’s subscription shares was 29 April 2016. Between 1 January 2016 and the final subscription date, a total of 13,327,917 subscription shares were exercised by shareholders. In accordance with the terms and conditions on which the subscription shares were issued (as set out in the prospectus published by the Company on 22 July 2014), the Company appointed a final subscription trustee (“Trustee”) in respect of the outstanding 9,199,422 subscription shares following the final subscription date. The Trustee subsequently exercised all of the outstanding subscription shares on the same terms and sold the resulting ordinary shares in the market. Subscription Shareholders, on whose behalf the Trustee exercised the outstanding subscription rights and sold the resulting ordinary shares, received the net proceeds, after deduction of the subscription price of 86.50 pence per share together with all associated fees, costs and expenses, by 1 June 2016. Any aggregate entitlements per holder of under £5.00 were retained for the benefit of the Company.

OUTLOOK

The UK’s unexpected decision to leave the EU led to a sudden and extreme market reaction. The sharp appreciation of the safe-haven yen exacerbated the scale of the market correction in Japan, but for a sterling investor this was masked to an extent by the sharp fall in sterling following the leave vote. While the currency remains a major risk factor, markets are likely to settle down given the limited near-term impact on the global economy and the increased likelihood of monetary easing. Japanese authorities remain committed to ending deflation and supporting sustainable growth. Having postponed a scheduled increase in the sales tax to 2019, Prime Minister Abe’s Liberal Democratic Party and its ally the Komeito Party, won the majority of contested seats in July’s Upper House elections. With the support of some opposition parties, Mr Abe now holds the required supermajority to call for revising the constitution. While constitutional change may well be his ultimate goal, the Prime Minister faces significant hurdles to rewriting the country’s pacifist constitution. Moreover, Mr Abe is well aware that he needs to re-energise the economy and the equity market in order to maintain public support, and his first step is likely to be the announcement of a substantial supplementary budget to boost domestic demand and offset the impact of the yen’s appreciation.

David Robins

Chairman

29 July 2016

Interim Management Report

The Company is required to make the following disclosures in its Half-Yearly 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 into the following categories: market risk; performance risk; discount control risk; gearing risk; currency risk; tax and regulatory risks; and operational risks. Information on each of these risks can be found in the Strategic Report section of the Annual Report for the year ended 31 December 2015.

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. The transactions with the Manager and related party transactions with the Directors are disclosed in Note 11.

GOING CONCERN

Taking account of the information available, including the regular reports received from the Manager, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Board continues, therefore to adopt the going concern basis of accounting in preparing the financial statements for the reasons given the Annual Report for the year ended 31 December 2015. The next continuation vote will be put to shareholders at the Annual General Meeting in 2019.

DIRECTORS’ RESPONSIBILITY STATEMENT

The Disclosure and Transparency Rules (“DTR”) of the UK Listing 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 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 Interim Management Report, together with the Chairman’s Statement and the Portfolio Manager’s Review , includes a fair review of the information required by DTR 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 29 July 2016 and the above responsibility statement was signed on its behalf by David Robins, Chairman.

David Robins

Chairman

29 July 2016

Portfolio Manager’s Review

MARKET REVIEW

The Japanese market endured a volatile start to the year, as concerns about a slowdown in China and a shift in US monetary policy intensified. Overseas investors became aggressive net sellers of Japanese equities as risk aversion increased. The Bank of Japan (“BoJ”) introduced a negative interest rate policy, but the yen strengthened on the view that the US Federal Reserve (the “Fed”) would implement fewer interest rate hikes than was previously expected. This triggered downward revisions to earnings estimates. In this environment, the performance gap between domestic/defensive and external demand-related stocks widened significantly.

Market conditions gradually stabilised as global risk sentiment improved and commodity prices rose. Share prices reacted favourably to additional monetary easing in Europe and China, and better economic data in the US. As concerns about the outlook for China’s economy eased and commodity prices picked up, the market rotated in favour of oversold cyclical and commodity sectors. While the BoJ decided to maintain its current policy stance, Prime Minister Shinzo Abe’s decision to delay a scheduled increase in the sales tax and commit to fresh fiscal stimulus ahead of summer elections in Japan helped to support stocks.

The yen resumed an upward path as US employment data diminished expectations of an imminent interest rate hike by the Fed and risk aversion increased ahead of the UK referendum on its membership of the European Union. As mentioned in the Chairman’s Statement, the unexpected victory of the ‘Leave’ camp triggered a heavy selloff in risk assets. A global flight to safety increased demand for the safe-haven yen, which broke through the ¥135 level against a weak pound. Although Japanese stocks experienced a steep correction in yen terms, the extreme currency swings produced positive sterling-based returns.

Financials and currency-sensitive cyclical stocks underperformed significantly over the review period. The banks, securities, insurance, mining and transport equipment sectors suffered the steepest declines. Conversely, low-beta domestic and defensive stocks, and small-caps outperformed. In this environment, the performance divergence between value and momentum factors increased significantly.

PORTFOLIO REVIEW

Nissan Chemical Industries, which is the largest overweight position in the Company’s portfolio, was the standout contributor to performance over the review period. The company announced another share buyback plan along with its full-year results, which underscored the strength of its core products such as photoalignment films (used in small LCD panels) and veterinary pharmaceuticals. Alongside its results, Nissan Chemical announced medium and long-term business plans, and reaffirmed its commitment to increase shareholder returns by targeting a 70% total payout ratio.

Sporting goods maker Yonex was another noteworthy performer in the portfolio. It announced strong full-year results, supported by the growth of its badminton equipment business in Asia. Sales in China expanded rapidly, aided by the strength of its brand and its shift from the use of sales agents to direct sales by subsidiaries.

Kotobuki Spirits was also among the top contributors to performance. The confectionary company reported strong annual results that exceeded consensus forecasts. Price hikes, the growth of the souvenir market in Japan amid an increasing number of foreign visitors, and the expansion of its sales network to include Tokyo station and international airports supported the company’s brisk earnings.

Elsewhere, pharmaceuticals company Nippon Shinyaku projected a sharp increase in operating profits for the year to March 2017. Overseas sales of a pulmonary arterial hypertension (PAH) treatment are expected to drive strong growth in royalty income.

Conversely, Orix was the single largest detractor from returns. The diversified financial services company reported solid full-year results and increased its payout to shareholders. However, its relatively high foreign ownership ratio meant that it was susceptible to the sharp deterioration in risk sentiment among global investors. Nonetheless, Orix has a solid long-term track record in achieving excess returns and its valuations look increasingly attractive.

In the electric appliances sector, Rohm, a leading producer of custom integrated circuits and semiconductor devices, fell sharply. Signs of a slowdown in end-demand (particularly in the mobile and audio-visual areas) became more apparent, and higher fixed costs and a stronger yen appeared to limit the scope for a recovery in its earnings. The stock looks attractive from a valuation perspective, but potential upside appears limited amid further declines in consensus forecasts. As a result, the position was sold.

Although there have been no significant changes to the portfolio overall, the Portfolio Manager has added stable domestic growth companies in areas such as communications and retail. Mobile carrier SoftBank and online consumer-to-consumer (C2C) shopping portal Enigmo are recent examples. The Portfolio Manager reduced the holding in agricultural/construction machinery manufacturer Kubota given its sensitivity to currency fluctuations and slower US growth. Instead, the position in Keyence, a high-quality company with good growth prospects in factory-automation equipment was increased. The Portfolio Manager has also taken profits in strong performers whose valuations have risen. Examples include commercial kitchen equipment maker Hoshizaki Electric and online advertising company Septeni Holdings.

The proceeds from the subscription shares that were received in early May were invested across the portfolio, while prioritising holdings in high conviction names. At the same time, a portion of the cash was used to reduce gearing, which had become elevated during the recent market correction.

OUTLOOK

Overall, the portfolio remains well positioned. It has a relatively high domestic weighting and lower export ratio (with low exposure to the UK and European markets). The direct impact of the Brexit fallout on the companies that the Company holds is therefore relatively limited. Moreover, the market correction is creating some attractive buying opportunities and Japanese stock valuations are cheap at current levels.

Nicholas Price

Portfolio Manager

29 July 2016

Additional Information

Income Statement

		six months ended				six months ended				year ended
		30 June 2016				30 June 2015				31 December 2015
		unaudited				unaudited				audited
		revenue	capital	total		revenue	capital	total		revenue	capital	total
	Notes	£’000	£’000	£’000		£’000	£’000	£’000		£’000	£’000	£’000
Gains on investments at fair value through profit or loss		–	27,710	27,710		–	14,725	14,725		–	21,132	21,132
(Losses)/gains on derivative instruments		–	(3,913)	(3,913)		–	4,421	4,421		–	2,717	2,717
Income	4	1,305	–	1,305		824	–	824		1,728	–	1,728
Investment management fee	5	(633)	–	(633)		(587)	–	(587)		(1,130)	–	(1,130)
Other expenses		(250)	–	(250)		(276)	–	(276)		(508)	–	(508)
Exchange gains/(losses) on other net assets		95	87	182		(27)	(850)	(877)		(22)	(762)	(784)
		-----------------	-----------------	-----------------		-----------------	-----------------	-----------------		-----------------	-----------------	-----------------
Net return/(loss) before finance costs and taxation		517	23,884	24,401		(66)	18,296	18,230		68	23,087	23,155
Finance costs		(40)	–	(40)		(45)	–	(45)		(88)	–	(88)
		-----------------	-----------------	-----------------		-----------------	-----------------	-----------------		-----------------	-----------------	-----------------
Net return/(loss) on ordinary activities before taxation		477	23,884	24,361		(111)	18,296	18,185		(20)	23,087	23,067
Taxation on return/(loss) on ordinary activities	6	(103)	–	(103)		(61)	–	(61)		(140)	–	(140)
		-----------------	-----------------	-----------------		-----------------	-----------------	-----------------		-----------------	-----------------	-----------------
Net return/(loss) on ordinary activities after taxation for the period		374	23,884	24,258		(172)	18,296	18,124		(160)	23,087	22,927
		==========	==========	==========		==========	==========	==========		==========	==========	==========
Return/(loss) per ordinary share – undiluted and diluted	7	0.31p	19.83p	20.14p		(0.15p)	16.05p	15.90p		(0.14p)	20.24p	20.10p
		==========	==========	==========		==========	==========	==========		==========	==========	==========

There are no gains and losses other than those reported in this Income Statement. The total column of this statement is the profit and loss account of the Company.

All revenue and capital items in this statement derive from continuing operations and no operations were acquired or discontinued in the period.

Statement of Changes in Equity

			share	capital
		share	premium	redemption	other	capital	revenue	total
		capital	account	reserve	reserve	reserve	reserve	equity
	Note	£’000	£’000	£’000	£’000	£’000	£’000	£’000
Six months ended 30 June 2016
As at 31 December 2015		28,555	6,874	2,621	57,568	34,853	(14,471)	116,000
Issue of ordinary shares on exercise of rights attached to subscription shares	9	5,632	13,855	–	–	–	–	19,487
Repurchase of ordinary shares for cancellation	9	(125)	–	125	(413)	–	–	(413)
Net return on ordinary activities after taxation for the period		–	–	–	–	23,884	374	24,258
		-------------------	-------------------	-------------------	-------------------	-------------------	-------------------	-------------------
As at 30 June 2016		34,062	20,729	2,746	57,155	58,737	(14,097)	159,332
		===========	===========	===========	===========	===========	===========	===========
Six months ended 30 June 2015
As at 31 December 2014		28,501	6,741	2,621	57,568	11,766	(14,311)	92,886
Issue of ordinary shares on exercise of rights attached to subscription shares	9	11	28	–	–	–	–	39
Net return/(loss) on ordinary activities after taxation for the period		–	–	–	–	18,296	(172)	18,124
		-------------------	-------------------	-------------------	-------------------	-------------------	-------------------	-------------------
As at 30 June 2015		28,512	6,769	2,621	57,568	30,062	(14,483)	111,049
		===========	===========	===========	===========	===========	===========	===========
Year ended 31 December 2015
As at 31 December 2014		28,501	6,741	2,621	57,568	11,766	(14,311)	92,886
Issue of ordinary shares on exercise of rights attached to subscription shares	9	54	133	–	–	–	–	187
Net return/(loss) on ordinary activities after taxation for the year		–	–	–	–	23,087	(160)	22,927
		-------------------	-------------------	-------------------	-------------------	-------------------	-------------------	-------------------
As at 31 December 2015		28,555	6,874	2,621	57,568	34,853	(14,471)	116,000
		===========	===========	===========	===========	===========	===========	===========

Balance Sheet

Company number 2885584

		30 June	31 December	30 June
		2016	2015	2015
		unaudited	audited	unaudited
	Notes	£’000	£’000	£’000
Fixed assets
Investments at fair value through profit or loss	8	158,060	115,532	109,254
		-------------------	-------------------	-------------------
Current assets
Derivative instruments	8	1,856	1,056	206
Debtors		1,530	1,063	517
Cash at bank		4,293	220	4,562
		-------------------	-------------------	-------------------
		7,679	2,339	5,285
		-------------------	-------------------	-------------------
Creditors
Derivative instruments	8	(3,938)	(1,117)	(1,249)
Other creditors		(2,469)	(754)	(2,241)
		-------------------	-------------------	-------------------
		(6,407)	(1,871)	(3,490)
		-------------------	-------------------	-------------------
Net current assets		1,272	468	1,795
		-------------------	-------------------	-------------------
Net assets		159,332	116,000	111,049
		===========	===========	===========
Capital and reserves
Share capital	9	34,062	28,555	28,512
Share premium account		20,729	6,874	6,769
Capital redemption reserve		2,746	2,621	2,621
Other reserve		57,155	57,568	57,568
Capital reserve		58,737	34,853	30,062
Revenue reserve		(14,097)	(14,471)	(14,483)
		-------------------	-------------------	-------------------
Total equity shareholders’ funds		159,332	116,000	111,049
		===========	===========	===========
Net asset value per ordinary share
Undiluted	10	116.94p	101.56p	97.37p
		===========	===========	===========
Diluted	10	n/a	99.08p	95.57p
		===========	===========	===========

Notes to the Financial Statements

1 PRINCIPAL ACTIVITY

The principal activity of the Company is that of an investment trust company within the meaning of section 1158 of the Corporation Tax Act 2010.

2 RESULTS

The condensed Financial Statements in this half-yearly financial report have not been audited by the Company’s 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 December 2015 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

The condensed half-yearly financial statements have been prepared using the same accounting policies as set out in the Company’s Annual Report and Financial Statements for the year ended 31 December 2015. They have been prepared on a going concern basis and in accordance with UK Generally Accepted Accounting Practice and applied in accordance with Financial Reporting Standard 104: Interim Financial Reporting and the Statement of Recommended Practice: Financial Statements of Investment Trust Companies and Venture Capital Trusts, issued by the Association of Investment Companies in November 2014.

4 INCOME

	six months	six months	year
	ended	ended	ended
	30.06.16	30.06.15	31.12.15
	unaudited	unaudited	audited
	£’000	£’000	£’000
Income from investments
Overseas dividends	1,031	615	1,404
Income from derivative instruments
Dividends on long CFDs	274	209	324
	-------------------	-------------------	-------------------
Total income	1,305	824	1,728
	===========	===========	===========

5 INVESTMENT MANAGEMENT FEE

	six months	six months	year
	ended	ended	ended
	30.06.16	30.06.15	31.12.15
	unaudited	unaudited	audited
	£’000	£’000	£’000
Investment Management Fee	633	587	1,130
	===========	===========	===========

FIL Investment Services (UK) Limited is the Company’s Alternative Investment Fund Manager and has delegated portfolio management to FIL Investments International (“FII”). FII charges fees of 0.85% per annum based on the value of the Company’s assets under management, including the exposure to the investments underlying the long CFDs, but excluding investment in any fund managed by the Manager. The fees are payable quarterly in arrears.

6 TAXATION ON RETURN/(LOSS) ON ORDINARY ACTIVITIES

The taxation charge of £103,000 (six months ended 30 June 2015: £61,000 and year ended 31 December 2015: £140,000) is irrecoverable overseas taxation suffered on dividend income.

7 RETURN/(LOSS) PER ORDINARY SHARE – UNDILUTED AND DILUTED

	six months	six months	year
	ended	ended	ended
	30.06.16	30.06.15	31.12.15
	unaudited	unaudited	audited
Revenue return/(loss) per ordinary share – pence	0.31	(0.15)	(0.14)
Capital return per ordinary share – pence	19.83	16.05	20.24
	-------------------	-------------------	-------------------
Total return per ordinary share – pence	20.14	15.90	20.10
	===========	===========	===========

The revenue return per ordinary share is based on the net revenue return on ordinary activities after taxation for the period of £374,000 (six months ended 30 June 2015: net loss of £172,000 and year ended 31 December 2015: net loss of £160,000). The capital return per ordinary share is based on the net capital return on ordinary activities after taxation for the period of £23,884,000 (six months ended 30 June 2015: £18,296,000 and year ended 31 December 2015: £23,087,000). The total return per ordinary share is based on the net total return on ordinary activities after taxation for the period of £24,258,000 (six months ended 30 June 2015: £18,124,000 and year ended 31 December 2015: £22,927,000).

The returns/(losses) per ordinary share are all based on the weighted average number of ordinary shares in issue during the period of 120,433,450 (six months ended 30 June 2015: 114,019,063 and year ended 31 December 2015: 114,076,562).

There was no dilution in any of the periods as the average ordinary share price during the periods was below the exercise price of the subscription shares.

8 FAIR VALUE HIERARCHY

The Financial Reporting Council defines a fair value hierarchy that classifies financial instruments measured at fair value at one of three levels, according to the relative reliability of the inputs used to measure their fair value.

Classification      Valued by reference to

Level 1                     The unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at the measurement date.

Level 2                     Inputs other than quoted prices included within Level 1 that are observable (i.e. developed using market data) for the asset or liability, either directly or indirectly.

Level 3                     Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability.

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 table below sets out the Company’s fair value hierarchy:

	30 June 2016		31 December 2015		30 June 2015
	unaudited		audited		unaudited
	Level 1	Level 2	Level 1	Level 2	Level 1	Level 2
	£’000	£’000	£’000	£’000	£’000	£’000
Financial assets at fair value through profit or loss
Fixed assets investments – listed equities	158,060	–	115,532	–	109,254	–
Derivative instruments – long CFDs	–	1,856	–	1,056	–	206
	-------------------	-------------------	-------------------	-------------------	-------------------	-------------------
	158,060	1,856	115,532	1,056	109,254	206
	===========	===========	===========	===========	===========	===========
Financial liabilities at fair value through profit or loss
Derivative instruments – long CFDs	–	(3,938)	–	(1,117)	–	(1,249)
	===========	===========	===========	===========	===========	===========

9 SHARE CAPITAL

	30 June 2016		31 December 2015		30 June 2015
	unaudited		audited		unaudited
	number		number		number
	of shares	£’000	of shares	£’000	of shares	£’000
Ordinary shares of 25 pence each: issued, allotted and fully paid
Beginning of the period	114,218,356	28,555	114,002,375	28,501	114,002,375	28,501
Issue of ordinary shares on the exercise of rights attached to subscription shares	22,527,339	5,632	215,981	54	44,371	11
Repurchase of ordinary shares for cancellation	(500,000)	(125)	–	–	–	–
	-------------------	-------------------	-------------------	-------------------	-------------------	-------------------
End of the period	136,245,695	34,062	114,218,356	28,555	114,046,746	28,512
	===========	===========	===========	===========	===========	===========
Subscription shares of 0.001 pence each: issued, allotted and fully paid
Beginning of the period	22,527,339	–	22,743,320	–	22,743,320	–
Exercise of rights attached to subscription shares and conversion into ordinary shares	(22,527,339)	–	(215,981)	–	(44,371)	–
	-------------------	-------------------	-------------------	-------------------	-------------------	-------------------
End of the period	–	–	22,527,339	–	22,698,949	–
	===========	===========	===========	===========	===========	===========
Total share capital		34,062		28,555		28,512
		===========		===========		===========

A bonus issue of subscription shares to ordinary shareholders on the basis of one subscription share for every five ordinary shares held took place on 27 August 2014. Each subscription share gave the holder the right, but not the obligation, on the last business day of each month to subscribe for one ordinary share upon payment of the subscription price of 86.50 pence.

The final date to exercise those rights was 29 April 2016. After 29 April 2016, the Company appointed a trustee who exercised all the remaining rights attached to the subscription shares that had not been exercised by shareholders. The resulting ordinary shares issued were sold in the market and the profits of that sale, being the net proceeds less the 86.50 pence per share cost of exercising the rights and after deduction of expenses and fees, were paid to the holders of those outstanding subscription shares.

During the period the Company issued 22,527,339 ordinary shares (year ended 31 December 2015: 215,981 and six months ended 30 June 2015: 44,371) on the exercise of rights attached to subscription shares. The subscription share price, of 86.50 pence per ordinary share issued, represented a premium of 61.50 pence per share over the 25 pence nominal value of each share. The total premium received in the period on the issue of ordinary shares of £13,855,000 (year ended 31 December 2015: £133,000 and six months ended 30 June 2015: £28,000) was credited to the share premium account.

During the period the Company repurchased and cancelled 500,000 ordinary shares (year ended 31 December 2015: nil and six months ended 30 June 2015: nil). The £125,000 nominal value of those shares cancelled was credited to the capital redemption reserve and the £413,000 cost of repurchasing the shares was charged to the other reserve.

10 NET ASSET VALUE PER ORDINARY SHARE

The net asset value per ordinary share is based on net assets of £159,332,000 (31 December 2015: £116,000,000 and 30 June 2015: £111,049,000) and on the number of ordinary shares in issue at the period end of 136,245,695 (31 December 2015: 114,218,356 and 30 June 2015: 114,046,746). Net asset values per ordinary share are published by the London Stock Exchange on a daily basis.

There was no diluted net asset value per ordinary share at 30 June 2016 as all the outstanding subscription share rights were exercised on 9 May 2016, as disclosed in Note 9 above. The diluted net asset values per ordinary share at 31 December 2015 and 30 June 2015 are calculated on the basis of what the financial position would have been if all the rights attached to the subscription shares in issue (31 December 2015: 22,527,339 and 30 June 2015: 22,698,949) had been exercised on those dates. The basis of calculation is in accordance with guidelines laid down by the Association of Investment Companies.

11 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. Details of the management fees payable are disclosed in Note 5 above.

As at 30 June 2016, the Board consisted of five non-executive Directors, all of whom are considered to be independent by the Board. David Miller retired from the Board on 24 May 2016. None of the Directors have a service contract with the Company.

The Chairman receives an annual fee of £30,000, the Audit Committee Chairman receives an annual fee of £23,000 and each other Director receives an annual fee of £20,000. The following members of the Board hold ordinary shares in the Company: David Robbins 37,000 shares, Sir Laurie Magnus 48,000 shares, Philip Kay 12,183 shares and Mami Mizutori 11,063 shares.

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

ENDS

A copy of the Half Yearly Report will shortly be submitted to the National Storage Mechanism and will be available for inspection at www.morningstar.co.uk/uk/NSM

The Half Yearly Report will also be available on the Company's website at www.fidelityinvestmenttrusts.com where up to date information on the Company, including daily NAV and share prices, factsheets and other information can also be found.