FIDELITY ASIAN VALUES PLC – Half-yearly Report.
FIDELITY ASIAN VALUES PLC
AVAILABILITY OF THE HALF-YEARLY REPORT FOR THE SIX MONTHS TO 31
Further to the disclosure of the Company's Half-Yearly report for the six months ended 31 January 2013 by way of an announcement dated 26 March 2012, in accordance with Disclosure and Transparency Rules 4.2 and 6.3.5 (the "Rules") this announcement contains the text of the announcement dated 26 March 2013 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 2013 has been submitted to the UK Listing Authority, and will shortly be available for inspection on the National Storage Mechanism (NSM):
(Documents will usually be available for inspection within two
business days of this notice being given)
The Half-Yearly report will shortly be available on the
Company’s website at
David Fallon FIL Investments International Company Secretary 4 April 2013 01737 836 883 Fidelity Asian Values PLC
Preliminary announcement of unaudited Half-Yearly results for the
six months ended 31 January 2013
Investment Objective and Performance Summary
Summary of Results
Directors’ Responsibility Statement
Twenty Largest Investments Financial Statements Investor Information Directory Glossary of Terms
Warning to Shareholders – Share Fraud Warning
Investment Objective and Performance Summary
The investment objective of the Company is to achieve long term
capital growth through investment principally in the stockmarkets of the
Asian Region (excluding Japan)
Performance (on a total return basis) (%)
Six months to 31 January 2013 Net Asset Value ("NAV") - undiluted
Net Asset Value ("NAV") - diluted +13.5 Ordinary Share Price +12.6 MSCI All Countries (Combined) Far East ex Japan Index (net) - in UK sterling terms +12.3
One Year Performance (on a total return basis) (%)
01/02/12 01/02/11 01/02/10 01/02/09 01/02/08 to to to to to 31/01/13 31/01/12 31/01/11 31/01/10 31/01/09 NAV - undiluted +10.0 -9.8 +33.5 +72.7 -31.6 NAV - diluted Ce+8.5 -8.4 +29.9 +72.7 -31.6 Ordinary share price Ce+4.6 -7.7 +30.3 +68.3 -28.5 Sources: Fidelity and Datastream Past performance is not a guide to future returns Summary of Results 31 31 January July % 2013 2012 change Assets Total portfolio exposure1 [pounds sterling]136.0m [pounds sterling]123.8m +9.9 Shareholders' funds [pounds sterling]129.2m [pounds sterling]117.1m +10.3 NAV per ordinary share - undiluted 225.69p 195.40p
NAV per ordinary share - diluted2 219.91p 194.70p +12.9 Gearing3 5.3% 5.7% Stockmarket data Ordinary share price at period end 197.13p 176.00p +12.0 Period high 198.25p 207.00p Period low 171.25p 161.00p Discount to NAV at period end - undiluted 12.7% 9.9% Period high 12.7% 13.6% Period low 8.9% 2.6% Discount to NAV at period end - diluted 10.4% 9.6% Subscription share price at period end 11.00p 6.75p Period high 14.00p 27.50p Period low 4.52p 5.75p Results for the six months to 31 January (undiluted) - see pages 10 and 11 2013 2012 Revenue return per ordinary share 0.25p 0.94p Capital return/(loss) per ordinary share 29.77p (23.64p) Total return/(loss) per ordinary share 30.02p (22.70p) Total returns (includes reinvested income) for the six months to 31 January 2013 2012 NAV per ordinary share - undiluted +16.1% -9.6% Ordinary share price +12.6% -5.9% MSCI All Countries (Combined) Far East Free ex Japan Index (net)4 +12.3% -6.4%
1 The total exposure of the investment portfolio, including exposure
to the investments underlying the long Contracts for Difference
2 The diluted NAV per ordinary share is included since the NAV per ordinary share is greater than the 191 pence exercise price of the subscription shares. Hence, if all the subscription shares had been converted at the period end, the NAV per ordinary share in issue would have been diluted
3 Total portfolio exposure in excess of shareholders’ funds
4 In UK sterling terms
Sources: Fidelity and
Past performance is not a guide to future returns
Half-Yearly Report as at 31 January 2013
Over the six months to 31 January 2013, the net asset value of Fidelity Asian Values PLC registered encouraging growth and outperformed the Benchmark Index. The net asset value per share increased by 16.1%, compared with an increase of 12.3% for the MSCI All Countries (Combined) Far East Free ex Japan Index. The increase in the net asset value per share was not fully reflected in the ordinary share price which rose by 12.0%. As a result the discount widened from 9.9% to 12.7% over the period. (All figures in UK sterling terms and on a total return basis). MARKETS Far East ex Japan equities recovered from early losses in 2012, bolstered particularly by positive economic news-flow in the second half of the year. Concerns about a deepening of the sovereign debt crisis in the Eurozone eased; the uncertainty surrounding US elections ended; there was rising evidence of an up-turn in the Chinese economic cycle, whilst expectations that a change of guard in China would result in growth-oriented policy measures also proved supportive. The US Federal Reserve initiated another round of quantitative easing which further boosted investor confidence. From a sector perspective, the financial and energy sectors outperformed the overall Index. Banks, insurance providers and real estate firms benefited from an improvement in growth prospects, given broadly strong balance sheets, and attractive earnings. Meanwhile, utilities firms were bolstered by their defensive positioning and attractive yields which proved a safeguard against volatility.
Total return performance for the six months to 31 January 2013
figure that shows relationships between quantities. The graph of a function y=f (x) is the set of points with coordinates [x, f (x)] in the xy-plane, when x and y are numbers.
Sources: Fidelity and Datastream
The robust turnaround in the Company's performance was primarily driven by a high conviction bias towards the information technology sector. The largest driver of outperformance in the period was the overweight position in SouFun Holdings, which is the leading real estate internet portal and home furnishing and improvement website in China. The share price was driven by robust earnings growth as slowing property sales in China attracted a larger number of small and medium sized developers to its marketing and listings services, whilst its cards business, which offers a discount to subscribers, also made strong progress. An overweight stance in personal computer, notebook and smartphone producer Lenovo Group also added value in light of better than expected earnings growth and strong growth prospects given its geographical diversification strategy. Meanwhile, an underweight allocation to the materials sector enhanced both relative and absolute performance. An overweight position in Nine Dragons Paper enhanced returns as interest costs declined and signs of a recovery in demand bolstered investor confidence. On the other hand, not holding a stake in steel producer POSCO and petrochemicals firm LG Chem bolstered relative performance. Within financials, a position in Hong Kong based Wharf Holdings also performed well on the back of positive earnings growth and was later driven by optimism about new development projects in China. A stake in floor care and power tools manufacturer Techtronic Industries was also a leading contributor to overall gains. Conversely, the stake in Li & Fung disappointed given an uncertain outlook for growth. A position in South Korea-based automobile producer KIA Motors retreated in view of productivity losses, disappointing quarterly results and uncertainty surrounding the overstatement of their cars' fuel efficiency. Elsewhere, selected IT holdings such as online games producer NCsoft and China-based internet search provider Baidu disappointed. Whilst the former declined following disappointing quarterly results, share prices in the latter were impacted by prospects of rising competitive pressure, due to concerns surrounding US listed Chinese companies. The Manager significantly decreased the allocation to the consumer discretionary sector by selling the stake in Li & Fung as its growth strategy is unclear and valuations were not attractive. Additionally, the stake in KIA Motors was decreased, although the overweight stance in the firm is retained. A new holding was introduced in educational services provider New Oriental Education & Technology Group at attractive valuations as it seeks to cut costs and focus on increasing margins. The Manager also re-introduced the position in Macau-based casino operator SJM Holdings to benefit from a valuations upside from its expansion strategy and attractive yields. Meanwhile, the exposure to consumer staples was increased by introducing a position in Hengan International and cosmetics producer Korea Kolmar as both these companies benefit from changing consumer preferences. Exposure to both telecommunications and utilities segments was decreased due to limited valuations upside. The Manager continues to retain an overweight stance in the IT sector whilst retaining an underweight stance in financials. With respect to the latter, the Company continues to maintain a substantial overweight in real estate firms such as Wharf Holdings and Sun Hung Kai Properties.
Although growth projections for the region were adjusted downwards, robust domestic demand and better than estimated growth in the US are likely to underpin a faster than expected economic expansion in Asia particularly when compared to the rest of the world. Whilst questions remain on the health of the US and the fragile economic conditions in Europe, the outlook for the Asian region is largely positive for 2013. Growth is likely to remain attractive, with inflation under control and debt at low levels. Most Asian economies have the ability to use counter-cyclical fiscal and monetary policies to support their economies. Balance sheets and cashflows among Asian corporations remain healthy, whilst valuations are attractive. The Manager's strategy remains focussed towards better quality businesses and it continues to favour companies with strong fundamentals and attractive growth strategies and yields.
At the General Meeting held on 28
approved a change to the Company’s investment policy to permit the
use of Contracts For Difference (“CFDs”). The ability to use
CFDs will increase gearing flexibility.
The costs of using CFDs in the manner proposed by the Board and the Manager are currently lower than the costs involved in traditional gearing. Accordingly the Company repaid and cancelled the US$15,000,000 loan facility with Scotiabank Europe PLC on 28 February 2013. The Company has now implemented its CFD investment programme. While gearing through CFDs is currently cheaper than using loans, a temporary increase in turnover will be seen in the next Annual Report as a result of the transition.
Under the investment policy the level of borrowing, whether through
bank lending or CFDs, will not exceed 30% of the value of
See owners’ equity.
the time it was incurred. At 31 January 2013 the level of gearing was
During the six months to 31 January 2013, 2,703,000 ordinary shares
were repurchased for
CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob.
. Following the end of the reporting
period, a further 400,000 ordinary shares were repurchased for
The rights attaching to a total of 11,922 subscription shares were exercised during the six months to 31 January 2013. Since the end of the reporting period, a further 86,986 subscription shares have been exercised and the total number of subscription shares remaining in issue as at the date of this report is 11,355,524. The final date for exercising the rights attached to the subscription shares is 31 May 2013. The exercise price of the rights attaching to the subscription shares is 191 pence per subscription share and as at 25 March 2013 the ordinary share price of the Company was 201.5 pence per share. After 31 May 2013, the Company will appoint a trustee to determine the net proceeds from the sale of ordinary shares arising on the exercise of the rights attaching to the subscription shares that have not been exercised after deduction of costs, expenses and fees. If these net proceeds are lower than the cost of exercising the rights attached to the said subscription shares, then the subscription share rights will lapse. If the net proceeds are higher than the cost of exercising the rights attached to the subscription shares then, within fourteen days of 31 May 2013, the Company will either:
exercise all the rights attached to the outstanding subscription
shares and sell in the market place the ordinary shares resulting from
the exercise of such rights; or
accept any offer available for the purchase of the outstanding
subscription shares in excess of the exercise price together with the
relevant costs, expenses and fees
and the resulting net proceeds in excess of the exercise price will be paid to the holders of the outstanding subscription shares unless the amount arising to a subscription shareholder is less than [pounds sterling]5.
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 risk; performance risk; loan risk; gearing risk; currency risk; financial and financial instrument risks; income-dividend risk; share price, NAV and discount volatility risks; counterparty risk; and governance, operational, financial, compliance and administration. Information on each of these is given in the Business Review section of the Annual Report for the year ended 31 July 2012.
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 2012. By order of the Board FIL Investments International 26 March 2013
Directors’ Responsibility Statement-
The Directors confirm to the best of their knowledge that:
v. con·densed, con·dens·ing, con·dens·es
1. To reduce the volume or compass of.
2. To make more concise; abridge or shorten.
set of financial statements contained within the
Half-Yearly financial report has been prepared in
with the UK
Accounting Standards Board’s Statement ‘Half-Yearly Financial
b) the Half-Yearly report narrative on pages 3 to 5 (constituting the interim management report) include 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 2013 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 Half-Yearly financial report was approved by the Board on 26 March 2013 and the above responsibility statement was signed on its behalf by Hugh Bolland, Chairman.
Twenty Largest Investments as at 31 January 2013
Fair Total Exposure Value1 Exposure2 Country Investment [pounds sterling]'000 [pounds sterling]'000 % CHINA Tencent Holdings Provides internet, mobile and telecommunications, value-added services. It has an instant messaging community and it provides messaging services. 5,743 5,743 4.2 Petrochina Produces and sells oil and gas related products. 4,164 4,164 3.1 Lenovo Group Develops, manufactures and markets technology products such as personal computers, notebooks and smart phones. 3,717 3,717 2.7 ChinaOverseas Land & Investment An investment holding company engaged in property development and investment. 3,350 3,350 2.5 SouFun Holdings Operates a real estate Internet portal and a home furnishing and improvement website. 3,212 3,212 2.4 Nine Dragons Paper Holdings Manufactures and sells packaging paper, recycled printing and writing paper, pulp and high value specialty paper products 3,106 3,106 2.3 HONG Wharf Holdings3 KONG The holding company of a group with interests in property, communications, media, entertainment and logistics, primarily operating in Hong Kong. 6,290 4,883 4.6 Sun Hung Kai Properties The core business of the company is the development of property for sale and investment. 4,877 4,877 3.6 Techtronic Industries Manufactures and sells electrical and electronic products. 4,863 4,863 3.6 AIA Group An investment holding company providing products and services to individuals and businesses for their insurance, protection, savings, investment and retirement needs. 4,769 4,769 3.5 Samsonite International Designs, manufactures and distributes luggage and other travel bags. 3,698 3,698 2.7 SJM Holdings Offers amusement and recreation services. It operates casinos, hotels and other tourism-related services in Macau. 3,305 3,305 2.4 SOUTH Samsung Electronics KOREA Provides communication products. It operates through five business divisions: communication, semiconductor, digital media, liquid crystal display ("LCD") and home appliances. 10,517 10,517 7.7 LG Household & Healthcare Manufactures household goods, cosmetics and beverages. It sells beauty care, dental care, laundry and cleaning products through its household division, skin care and make-up products through its cosmetics division, and juice, tea, coffee and bottled water through its beverage division. 5,332 5,332 3.9 LG Uplus Provides wireless telecommunication services. 3,992 3,992 2.9 Hotel Shilla Operates hotels and duty free shops. 3,089 3,089 2.3 Daelim Industrial A multinational operating engineering, construction and petrochemical businesses. 3,086 3,086 2.3 TAIWAN Taiwan Semiconductor Manufacturing Researches, develops, manufactures and distributes integrated circuit related products. Its businesses include wafer manufacture, mask production, wafer testing and packaging components. 7,115 7,115 5.2 Asustek Computer Manufactures and distributes computers, communication products and consumer electronics. 3,550 3,550 2.6 Hon Hai Precision Produces and sells electronic products which are applied in computer, communication and consumer electronic goods. 3,218 3,218 2.4 Twenty largest investments 90,993 89,586 66.9 Other investments 45,027 45,027 33.1 Total portfolio (including long CFDs) 136,020 134,613 100.0
1 Fair value represents the
in the Balance Sheet on
2 % of the total exposure of the investment portfolio, including
exposure to the investments underlying the long CFDs
3 Investment is via a long CFD Income Statement for the for the six months for the six months ended year ended ended 31.01.13 31.07.12 31.01.12 unaudited audited unaudited revenue capital total revenue capital total revenue capital total Notes [pounds sterling]'000 [pounds sterling]'000 [pounds sterling]'000 [pounds sterling]'000 [pounds sterling]'000 [pounds sterling]'000 [pounds sterling]'000 [pounds sterling]'000 [pounds sterling]'000 Gains/ (losses) on investments designated at fair value through profit or loss - 17,437 17,437 - (21,037) (21,037) - (14,294) (14,294) Losses on derivative instruments held at fair value through profit or loss - (32) (32) - - - - - - Income 2 1,310 - 1,310 2,999 - 2,999 1,669 - 1,669 Investment management fee (674) - (674) (1,267) - (1,267) (608) - (608) Other expenses (299) - (299) (515) - (515) (257) - (257) Exchange (losses)/ gains on other net assets (9) (58) (67) (10) 217 207 1 213 214 Exchange gains/ (losses) on loans - 102 102 - (447) (447) - (406) (406) ---------- ---------- ---------- ---------- ----------
———- ———- ———- ———-
Net return/ (loss) before finance costs and taxation 328 17,449 17,777 1,207 (21,267) (20,060) 805 (14,487) (13,682) Finance costs (84) - (84) (204) - (204) (101) - (101) ---------- ---------- ---------- ---------- ----------
———- ———- ———- ———-
Net return/ (loss) on ordinary activities before taxation 244 17,449 17,693 1,003 (21,267) (20,264) 704 (14,487) (13,783) Taxation on return/ (loss) on ordinary activities 3 (99) - (99) (123) - (123) (129) - (129) ---------- ---------- ---------- ---------- ----------
———- ———- ———- ———-
Net return/ (loss) on ordinary activities after taxation for the period 145 17,449 17,594 880 (21,267) (20,387) 575 (14,487) (13,912) ========== ========== ========== ========== ==========
========== ========== ========== ==========
Return/ (loss) per ordinary share Undiluted 4 0.25p 29.77p 30.02p 1.45p (34.99p) (33.54p) 0.94p (23.64p) (22.70p) ========== ========== ========== ========== ==========
========== ========== ========== ==========
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
1. To obtain or receive from a source.
2. To produce or obtain a chemical compound from another substance by chemical reaction.
Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the
No operations were acquired or
v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues
1. To stop doing or providing (something); end or abandon:
in the period.
These financial statements have been prepared in accordance with the
Association of Investment Companies (“AIC”) Statement of
Recommended Practice (”
SORP Statement Of Requirement Preliminary
SORP Stock Option Replacement Program
“) issued in January 2009.
Reconciliation of Movements in Shareholders’ Funds
other non- share capital distributable share premium redemption reserve other capital revenue total capital account reserve reserve reserve reserve equity Notes [pounds sterling]'000 [pounds sterling]'000 [pounds sterling]'000 [pounds sterling]'000 [pounds sterling]'000 [pounds sterling]'000 [pounds sterling]'000 [pounds sterling]'000 Opening shareholders' funds: 1
August 2011 15,408 1,140 1,785 7,367 19,238 95,259 1,060 141,257
Exercise of rights attached to subscription shares and conversion into ordinary shares - - - - - - - - Issue of ordinary shares on exercise of rights attached to subscription shares 7 6 41 - - - - - 47 Repurchase of ordinary shares 7 (199) - 199 - -
(1,424) – (1,424)
Net (loss)/ return on ordinary activities after taxation for the period - - - - -
(14,487) 575 (13,912)
Dividend paid to shareholders 5 - - - - - - (614) (614) -------- -------- -------- -------- -------- -------- -------- -------- Closing shareholders' funds: 31 January 2012 15,215 1,181 1,984 7,367 19,238 79,348 1,021 125,354 ======== ======== ======== ======== ========
======== ======== ========
Opening shareholders' funds: 1 August 2011 15,408 1,140 1,785 7,367 19,238 95,259 1,060 141,257 Exercise of rights attached to subscription shares and conversion into ordinary shares - - - - - - - - Issue of ordinary shares on exercise of rights attached to subscription shares 7 12 78 - - - - - 90 Repurchase of ordinary shares 7 (439) - 439 (3,261) (3,261) Net (loss)/ return on ordinary activities after taxation for the year - - - - - (21,267) 880 (20,387) Dividend paid to shareholders 5 - - - - - - (615) (615) -------- -------- -------- -------- -------- -------- -------- -------- Closing shareholders' funds: 31 July 2012 14,981 1,218 2,224 7,367 15,977 73,992 1,325 117,084 Exercise of rights attached to subscription shares and conversion into ordinary shares - - - - - - - - Issue of ordinary shares on exercise of rights attached to subscription shares 7 3 20 - - - - - 23 Repurchase of ordinary shares 7 (676) - 676 (4,946) - (4,946) Net return on ordinary activities after taxation for the period - - - - - 17,449 145 17,594 Dividend paid to shareholders 5 - - - - - - (596) (596) -------- -------- -------- -------- -------- -------- -------- -------- Closing shareholders' funds: 31 January 2013 14,308 1,238 2,900 7,367 11,031 91,441 874 129,159 ======== ======== ======== ======== ======== ======== ======== ======== Balance Sheet 31.01.13 31.07.12 31.01.12 unaudited audited unaudited Notes [pounds sterling]'000 [pounds sterling]'000 [pounds sterling]'000 Fixed assets Investments designated at fair value through profit or loss 134,645 123,758 132,746 ---------- ---------- ---------- Current assets Debtors 3,408 206 3,191 Cash at bank 2,761 3,769 2,245 ---------- ---------- ---------- 6,169 3,975 5,436 ---------- ---------- ---------- Creditors Derivative liabilities held at fair value through profit or loss (32) - - Bank Loans 6 (9,461) (9,563) (9,522) Other creditors (2,162) (1,086) (3,306) ---------- ---------- ---------- (11,655) (10,649) (12,828) ---------- ---------- ---------- Net current liabilities (5,486) (6,674) (7,392) ---------- ---------- ---------- Total net assets 129,159 117,084 125,354 ========== ========== ========== Capital and reserves Share capital 7 14,308 14,981 15,215 Share premium account 1,238 1,218 1,181 Capital redemption reserve 2,900 2,224 1,984 Other non-distributable reserve 7,367 7,367 7,367 Other reserve 11,031 15,977 19,238 Capital reserve 91,441 73,992 79,348 Revenue reserve 874 1,325 1,021 ---------- ---------- ---------- Total equity shareholders' funds 129,159 117,084 125,354 ========== ========== ========== Net asset value per ordinary share Undiluted 8 225.69p 195.40p 205.98p Diluted 8 219.91p 194.70p 203.61p ========== ========== ========== Cash Flow Statement 31.01.13 31.07.12 31.01.12 unaudited audited unaudited [pounds sterling]'000 [pounds sterling]'000 [pounds sterling]'000 Operating activities Investment income received 894 3,032 1,494 Investment management fee paid (332) (1,663) (999) Directors' fees paid (67) (123) (83) Other cash payments (214) (594) (184) ---------- ---------- ---------- Net cash inflow from operating activities 281 652 228 ---------- ---------- ---------- Finance costs Interest paid on long CFDs and bank loans (87) (219) (95) ---------- ---------- ----------
Net cash outflow from finance costs (87) (219) (95)
---------- ---------- ---------- Financial investments Purchase of investments (50,986) (108,698) (33,964) Disposal of investments 55,598 110,939 33,416 ---------- ---------- ---------- Net cash inflow/(outflow) from financial investments 4,612 2,241 (548) ---------- ---------- ---------- Dividend paid to shareholders (596) (615) (614) ---------- ---------- ---------- Net cash inflow/(outflow) before financing 4,210 2,059 (1,029) ---------- ---------- ---------- Financing Repurchase of ordinary shares (5,172) (3,035)
Exercise of rights attached to subscription shares 12 105 62 ---------- ---------- ---------- Net cash outflow from financing (5,160) (2,930) (1,362) ---------- ---------- ---------- Decrease in cash (950) (871) (2,391) ========== ========== ==========
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
2 INCOME 31.01.13 31.07.12 31.01.12 unaudited audited unaudited [pounds sterling]'000 [pounds sterling]'000 [pounds sterling]'000 Income from investments designated at fair value through profit or loss Overseas dividends 1,084 2,784 1,454 Overseas scrip dividends 226 215 215 ---------- ---------- ---------- Total Income 1,310 2,999 1,669 ========== ========== ========== 3 TAXATION ON RETURN/(LOSS) ON ORDINARY ACTIVITIES 31.01.13 31.07.12 31.01.12 unaudited audited unaudited [pounds sterling]'000 [pounds sterling]'000 [pounds sterling]'000 Overseas taxation suffered Revenue 99 123 129 Capital - - - ---------- ---------- ---------- Total 99 123 129 ========== ========== ========== 4 RETURN/(LOSS) PER ORDINARY SHARE 31.01.13 31.07.12 31.01.12 unaudited audited unaudited Undiluted Revenue 0.25p 1.45p 0.94p Capital 29.77p (34.99p) (23.64p) ---------- ---------- ---------- Total 30.02p (33.54p) (22.70p) ========== ========== ========== The undiluted 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. The returns for the six months ended 31 January 2013 were: revenue return [pounds sterling]145,000 (31.07.12: [pounds sterling]880,000; 31.01.12: [pounds sterling]575,000), capital return [pounds sterling]17,449,000 (31.07.12: loss [pounds sterling]21,267,000; 31.01.12: loss [pounds sterling] 14,487,000) and total return [pounds sterling]17,594,000 (31.07.12: loss [pounds sterling]20,387,000; 31.01.12: loss [pounds sterling]13,912,000). The undiluted weighted average number of ordinary shares in issue for the six months ended 31 January 2013 was 58,605,547 (31.07.12: 60,772,836; 31.01.12: 61,279,714). There was no dilution in the six months ended 31 January 2013 (31.07.12: none; 31.01.12: none) because the average market price of the ordinary shares during the periods was below the 191 pence per share exercise price of the rights attaching to the subscription shares.
No dividend has been declared in respect of the current period. The dividend payment of [pounds sterling]596,000 shown in the Reconciliation of Movements in Shareholders' Funds for the six months ended 31 January 2013, is the final dividend of one penny per ordinary share paid for the year ended 31 July 2012, that was paid on 6 December 2012. The dividend payment of [pounds sterling]615,000 shown in the Reconciliation of Movements in Shareholders' Funds for the year ended 31 July 2012 (six months ended 31 January 2012: [pounds sterling]614,000), is the final dividend of one penny per ordinary share paid for the year ended 31 July 2011, that was paid on 8 December 2011.
6 BANK LOANS
The Company entered into a two year revolving credit facility with Scotiabank Europe PLC for an amount of up to US$15,000,000 on 28 February 2012 and the full amount was drawn down for the 3 months to 29 May 2012, at an interest rate of 1.87%. This was further rolled over for the 3 months to 29 August 2012 at 1.84%, for the 3 months to 29 November 2012 at 1.80% and for the 3 months ending 28 February 2013 at an interest rate of 1.69%.
Since the reporting period end, the Company has repaid the loan and
v. can·celed also can·celled, can·cel·ing also can·cel·ling, can·cels also can·cels
1. To cross out with lines or other markings. See Synonyms at erase.
the US$15,000,000 credit facility on 28
7 SHARE CAPITAL 31.01.13 31.07.12 31.01.12 unaudited audited unaudited shares shares shares Issued, allotted and fully paid: Ordinary shares of 25 pence each Beginning of the period 59,918,781 61,628,970 61,628,970 Issue of ordinary shares on conversion of subscription shares 11,922 47,311 24,771
tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es
To buy (something) again.
The act of buying something that one previously sold or owned.
of ordinary shares (2,703,000) (1,757,500) (797,500)
---------- ---------- ---------- End of the period 57,227,703 59,918,781 60,856,241 ========== ========== ========== Subscription shares of 0.01 pence each1
Beginning of the period 11,454,432 11,501,743 11,501,743
Exercise of rights attaching to subscription shares and conversion into ordinary shares (11,922) (47,311) (24,771) ---------- ---------- ---------- End of the period 11,442,510 11,454,432 11,476,972 ========== ========== ========== 31.01.13 31.07.12 31.01.12 unaudited audited unaudited [pounds sterling]'000 [pounds sterling]'000 [pounds sterling]'000 Issued, allotted and fully paid: Ordinary shares of 25 pence each
Beginning of the period 14,980 15,407 15,407
Issue of ordinary shares on conversion of subscription shares 3 12 6
Repurchase of ordinary shares (676) (439) (199)
---------- ---------- ---------- End of the period 14,307 14,980 15,214 ========== ========== ========== Subscription shares of 0.01 pence each1 Beginning of the period 1 1 1 Exercise of rights attaching to subscription shares and conversion into ordinary shares - - - ---------- ---------- ---------- End of the period 1 1 1 ========== ========== ========== Total share capital 14,308 14,981 15,215 ========== ========== ==========
1 The terms of the rights attaching to the subscription shares are
detailed in the Half-Yearly Report on page 5
8 NET ASSET VALUE PER ORDINARY SHARE
The undiluted net asset value per ordinary share is based on net assets of [pounds sterling] 129,159,000 (31.07.12: [pounds sterling]117,084,000; 31.01.12: [pounds sterling]125,354,000) and on 57,227,703 (31.07.12: 59,918,781; 31.01.12: 60,856,241) ordinary shares, being the number of ordinary shares in issue at the period end. The diluted net asset value per ordinary share has been calculated on the basis that the outstanding subscription shares of 11,442,510 at 31 January 2013 (31.07.12: 11,454,432; 31.01.12: 11,476,972) were exercised on that date. This basis of calculation is in accordance with guidelines laid down by the AIC.
tr.v. di·lut·ed, di·lut·ing, di·lutes
1. To make thinner or less concentrated by adding a liquid such as water.
2. To lessen the force, strength, purity, or brilliance of, especially by admixture.
net asset values per ordinary share are
provided to the
London Stock Exchange
on a daily basis.
9 INVESTMENT TRANSACTIONS COSTS
Investment transaction costs are incurred in the acquisition and disposal of investments. These are included in the gains/(losses) on investments designated at fair value through profit or loss in the capital column of the Income Statement and are summarised below: 31.01.13 31.07.12 31.01.12 unaudited audited unaudited [pounds sterling]'000 [pounds sterling]'000 [pounds sterling]'000 Purchases 103 204 61 Sales 193 338 103 ---------- ---------- ---------- 296 542 164 ========== ========== ==========
10 UNAUDITED FINANCIAL STATEMENTS
The results for the six months to 31 January 2013 and 31 January 2012, which are unaudited, constitute non-statutory accounts within the meaning of Section 435 of the Companies Act 2006. The figures and financial information for the year ended 31 July 2012 are extracted from the latest published financial statements. These financial statements, on which the Independent 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,
see week; Sabbath.
Financial advisers call free on: 0800 41 41 81 8am to 6pm, Monday to
see Sabbath; week.
young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe]
See : Servant
Existing investors who have a specific query regarding their holding or need to provide updated information, for example a change of address, should contact the appropriate administrator:
Holders of ordinary shares: Capita Registrars, Registrars to
, 34 Beckenham Road, Beckenham,
Kent, BR3 4TU. Telephone: 0871 664 0300 (calls cost 10p per minute plus
network extras) 8.30am to 5.30pm, Monday to Friday. Email:
Details of individual shareholdings and other information can also
be obtained from the Registrar’s website:
Fidelity Share Plan investors: Fidelity Investment Trust Share Plan,
PO Box 24035, 12
, Ger. Blindheim, village, Bavaria, S Germany, on the Danube River. Between Blenheim and nearby Höchstädt, John Churchill, 1st duke of Marlborough, and Prince Eugene of Savoy defeated (Aug.
, city (1991 pop. 433,200) and council area, royal burgh, capital of Scotland, on the Firth of Forth. Leith, part of the city since 1920, is Edinburgh’s port.
EH7 9DD. Telephone: 0845 358
1107 (calls cost 3.95p per minute from a BT
dependent on the
tax on imported and, more rarely, exported goods. It is also called a customs duty. Tariffs may be distinguished from other taxes in that their predominant purpose is not financial but economic—not to increase a nation’s revenue but to protect domestic
. Other telephone service providers’ costs may vary.)
Fidelity ISA investors: Fidelity, using the freephone numbers given,
or by writing to: UK Customer Service, Worldwide Investment, Oakhill
Road, Hildenborough, Tonbridge, Kent, TN11 9DZ
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
city (1991 pop. 54,736), South Gloucestershire, SW England. A residential suburb of Bristol, the city of Kingswood has printing and light engineering industries.
county (1991 pop. 997,000), 653 sq mi (1,691 sq km), SE England. The county seat is Guildford. The North Downs cross the county from east to west. To the north the land slopes gently downward to the Thames, into which flow the Wey and the Mole, Surrey’s
KT20 6RP. Telephone: 01732 361144 Fax: 01737
836892 http:// www.fidelity.co.uk/its
FINANCIAL CALENDAR 2013
31 January - Half-Yearly period end 26 March - Announcement of Half-Yearly results to 31 January April - Posting of Half-Yearly report 31 July - Financial year end October - Publication of Annual Report November - Annual General Meeting Directory BOARD OF DIRECTORS Hugh Bolland (Chairman) William Knight (Senior Independent Director) Kate Bolsover (Audit Committee Chairman) Kathryn Matthews Philip Smiley MANAGER, SECRETARY AND REGISTERED OFFICE FIL Investments International Beech Gate Millfield Lane Lower Kingswood Tadworth Surrey KT20 6RP FINANCIAL ADVISERS AND STOCKBROKERS Canaccord Genuity Ltd 88 Wood Street London EC2V 7QR 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 The Registry 34 Beckenham Road Beckenham Kent BR3 4TU LAWYERS Slaughter and May One Bunhill Row London EC1Y 8YY Speechly Bircham LLP 6 New Street Square London EC4A 3LX Glossary of Terms BENCHMARK
MSCI All Countries (Combined) Far East Free ex Japan Index (net)
CONTRACT FOR DIFFERENCE (
A Contract For Difference is a derivative. It is a contract between the Company and a third party at the end of which the parties exchange the difference between the opening price and the closing price of an underlying asset of the specified financial instrument. It does not involve the Company buying or selling the underlying asset, only agreeing to receive or pay the movement in its share price. A Contract For Difference allows the Company to gain access to the movement in the share price by depositing a small amount of cash known as margin. The Company may reason that the asset price will rise, by buying ("long" position) or fall by selling ("short" position). If the Company trades long, dividends are received and interest is paid. If the Company trades short, dividends are paid and interest is received. The Company only intends to use long Contracts For Difference
Financial instruments (such as futures, options and Contracts For
Difference) whose value is
v. de·rived, de·riv·ing, de·rives
1. To obtain or receive from a source.
from the value of an underlying
If the share price of the Company is lower than the net asset value per share, the Company's sharesare said to be trading at a discount. The discount is shown as a percentage of thenet asset value. The opposite of a discount is a premium. It is more common for an investment trust to trade at a discount than a premium
The fair value is the best estimate of the value of the investments,
including derivatives, at a point in time and this is measured as:
— Listed investments valued at bid prices, or last market prices,
where available, otherwise at published price quotations
— Unlisted investments valued using an appropriate valuation
technique in the absence of an active market
Gearing describes the level of a company's leverage and is usually expressed as a percentage. It can be obtained through the use of bank loans, bank overdrafts or Contracts For Difference in order to increase a company's exposure to stocks. If assets rise in value, gearing magnifies the return to shareholders. Correspondingly, if the assets fall in value, gearing magnifies the fall. Gearing reflects the amount of leverage the Company uses to invest in the market. Contracts For Difference are used as a way of gaining exposure to the price movements of shares without buying the underlying shares directly. In a simple example, if a company has [pounds sterling]100 million of net assets and [pounds sterling]8 million of borrowings (either via bank loans or long Contracts For Difference) then the Shareholders' funds are 8% geared. Normally, the higher the gearing factor, the more sensitive an investment trust's shares will be to the movements up and down in the value of the investment portfolio.
NET ASSET VALUE (
Net asset value is sometimes also described as "shareholders' funds", and represents the total value of the Company's assets less the total value of its liabilities. For valuation purposes it is common to express the net asset value on a per share basis PREMIUM If the share price of the Company is higher than the net asset value per share, the Company's shares are said to be trading at a premium. The premium is shown as a percentage of the net asset value. The opposite of a premium is a discount
The return generated in the period from the investments:
— Revenue Return reflects the dividends and interest from
investments and other income net of expenses, finance costs and
— Capital Return reflects the return on capital, excluding any
— Total Return reflects the aggregate of revenue and capital
returns in the period
SHARE REPURCHASES An increasingly popular way for investment trust companies to return cash to their shareholders is through offering to repurchase a proportion of shares currently held. Companies seek the permission of shareholders to do so at their annual general meetings allowing them to repurchase a proportion of their total shares (up to 14.99%) in the market at prices below the prevailing net asset value per share. This process is also used to enhance the net asset value per share and to reduce the discount to net asset value
Shareholders’ funds are also described as “net asset
value” and represent the total value of the Company’s assets
less the total value of its liabilities
TOTAL PORTFOLIO EXPOSURE
The value of the fixed asset investments at fair value plus the fair
value of the underlying securities within the Contracts For
TOTAL RETURN PERFORMANCE
The return on the ordinary share price or net asset value per share taking into account the rise and fall of ordinary share prices and the dividends paid to shareholders. Any dividends received by the shareholder are assumed to have been reinvested in additional ordinary shares (for share price total return) or the Company's assets (for net asset value total return)
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 Bank of New York Mellon and shares will be held in the name of Bank of New York 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 older 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 have
already been acted upon by Fidelity.
Issued by Fidelity Asian Values PLC
Fidelity, Fidelity Worldwide Investment, the Fidelity Worldwide
Investment logo and symbol are trademarks of FIL Limited.
The contents of websites referred to in this document do not form
part of this Half-Yearly Report.
Warning To Shareholders SHARE FRAUD WARNING
Share fraud includes scams where investors are called out of the
blue and offered shares that often turn out to be worthless or
non-existent, or an inflated price for shares they own. These calls come
from fraudsters operating in ‘boiler rooms’ that are mostly
While high profits are promised, those who buy or sell shares in
this way usually lose their money.
The Financial Services Authority (FSA) has found most share fraud victims are experienced investors who lose an average of [pounds sterling]20,000, with around [pounds sterling]200m lost in the UK each year. PROTECT YOURSELF If you are offered unsolicited investment advice, discounted shares, a premium price for shares you own, or free company or research reports, you should take these steps before handing over any money:
1. Get the name of the person and organisation contacting you.
.uk/fsaregister to ensure
they are authorised.
3. Use the details on the FSA Register to contact the firm.
4. Call the FSA Consumer
a telephone line set aside for callers to contact an organization for help with a problem
on 0845 606 1234 if there are no
contact details on the Register or you are told they are out of
5. Search our list of unauthorised firms and individuals to avoid
doing business with.
6. REMEMBER: if it sounds too good to be true, it probably is!
If you use an unauthorised firm to buy or sell shares or other investments, you will not have access to the Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS) if things go wrong.
REPORT A SCAM
If you are approached about a share scam you should tell the FSA
using the share fraud reporting form at www.fsa.gov.uk/scams, where you
can find out about the latest investment scams. You can also call the
Consumer Helpline on 0845 606 1234.
If you have already paid money to share fraudsters you should contact Action Fraud on 0300 123 2040
Fidelity, Fidelity Worldwide Investment, the Fidelity Worldwide
Investment logo and symbol are trademarks of FIL Limited
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tr.v. ver·i·fied, ver·i·fy·ing, ver·i·fies
1. To prove the truth of by presentation of evidence or testimony; substantiate.
, carbon offsetting project.