AGM Statement

At the Company's Annual General Meeting held on 2 July 2003, all resolutions
were duly passed. The resolution passed under Special Business was as follows:

The Company's authority to purchase its own shares for cancellation has been
renewed. This authority is limited to 14.99% of the Company's issued share
capital at the date of the meeting.

At the Annual General Meeting, the Chairman made the following comments:

Since the end of March the stock market has recovered significantly and I am
sure that you would wish me to bring you up to date as to how we have fared
against our benchmark.

As at the end of the first quarter, 30 June 2003, the net asset value per share
was 325.73p, compared to 278.59p on 31 March, an increase of 16.9%. Over the
same period the FTSE All-Share index rose by 13.6%. This represented an
outperformance of 3.3% but, even better, the share price at the end of the
quarter had risen by 18.6% from 31 March and the discount to net asset value
per share had declined from 17.1% to 15.7%.

It is encouraging that this outperformance has been due not only to the effect
of gearing but also to Fidelity's stock selection.

However, you will not be surprised if I go on to say that we must not focus too
closely on this short period of performance especially as the economic view
around the world is still so uncertain. Nevertheless, this is good news and I
am glad to be able to report it to you today.

The Earl of Eglinton and Winton and Sir Gavin Laird both retired as directors
at the conclusion of the Annual General Meeting.