Final Results

Fidelity Asian Values PLC Preliminary Announcement of Audited Results For the year ended 31 July 2012 Chairman's Statement PERFORMANCE In the year to 31 July 2012, the undiluted Net Asset Value ("NAV") per share of the Company decreased by 14.3% whereas its Benchmark Index, the MSCI All Countries (Combined) Far East ex Japan Index (net), decreased by 6.6%. The ordinary share price of the Company decreased by 12.6% over the year and the discount narrowed from 11.6% to 9.9%. (All figures in UK sterling terms and on a total return basis.) These results are disappointing against a background of continuing high volatility as described in further detail in the Manager's Review section of the annual report. OUTLOOK Asian economies have not been immune from the economic crisis affecting developed markets, although they have played an increasingly important role in the domestic consumption story, fuelled by rising wages and institutional reforms that encourage consumption, such as pension and tax reforms. This being the case, economies across the Far East ex Japan region are poised to deliver stronger growth relative to the rest of the world. China's economy seems to have lost some momentum in the second quarter of 2012. This is likely to be an outcome of the slowdown in external demand led by the European crisis as well as China's over-tightening in 2010-11, rather than a deterioration of the country's fundamentals. Policy easing in recent months, including stepped-up project approval and reductions in the required reserve ratio and interest rates are encouraging signs. The policy environment in the rest of the region remains supportive and factors driving structural growth, such as favourable demographics, a focus on infrastructure building and stable government finances are likely to fuel a multi-year expansion cycle. Against this backdrop, Asia continues to offer compelling investment opportunities in quality companies at attractive valuations. The Asia Pacific region remains within the fast lane of a two-speed global economy; the region also offers up a wide array of equity dividend opportunities. In the face of these challenging markets, the Manager has increased his focus on fewer and higher quality stock names with clearer long-term visibility of earnings. SUBSCRIPTION SHARES The final date for exercising the rights attached to the subscription shares is 31 May 2013. Further details on the subscription shares may be found in the Directors' Report in the annual report. Details of the subscription shares exercised during the year are outlined in the notes section of the annual report. SHARE REPURCHASES Purchases of ordinary and subscription shares for cancellation are made at the discretion of the Board and within guidelines set from time to time by the Board in light of prevailing market conditions. Share repurchases will only be made when they will result in an enhancement to the net asset value of ordinary shares for remaining shareholders. Details of ordinary shares repurchased for cancellation during the year are outlined in the notes section of the annual report. No subscription shares were repurchased for cancellation during the reporting year. DIVIDEND Subject to shareholders' approval at the forthcoming Annual General Meeting, the Directors recommend a final dividend of one penny per ordinary share (2011: one penny). This dividend will be payable on 6 December 2012 to shareholders on the register at close of business on 5 October 2012 (ex-dividend date 3 October 2012). As the Company's objective is long term capital growth, any revenue surplus is a function of a particular year's business and it should not be assumed that dividends will continue to be paid in the future. GEARING The Company entered into a two year revolving loan facility with Scotiabank Europe PLC for up to US$15,000,000 on 28 February 2012. The full amount was drawn down on 29 February 2012. INVESTMENT POLICY The broad thrust of investment policy continues without significant change. This being said, the Board is always looking for new ways of enhancing the way in which your Company operates. Shareholders will have received a circular with the Annual Report detailing the Board's recommendation to change the Company's investment policy to permit the use of Contracts for Difference ("CFDs") for gearing purposes. A full explanation is provided in the circular. The Board believes that it is in the best interests of shareholders for the Company to continue to have the ability to employ gearing. The ability to use CFDs for gearing purposes will increase flexibility and add to the range of gearing options available to the Board. The costs of using CFDs in the manner proposed are currently lower than the costs involved in traditional bank borrowing. We continue to monitor and review the Company's gearing level. Currently it has net gearing of 4.9%. CONTINUATION VOTE In accordance with the Articles of Association of the Company, the Company is subject to a continuation vote every five years. The next continuation vote will therefore take place at the Annual General Meeting in 2016 rather than 2013 as stated in last year's annual report. ANNUAL GENERAL MEETING The Annual General Meeting will be held on Wednesday, 28 November 2012 at Fidelity's offices at 25 Cannon Street, London EC4M 5TA (St Paul's or Mansion House tube stations) commencing at 11.00 am. All shareholders and Fidelity Savings Plan and ISA Scheme investors are invited to attend. The Portfolio Manager will be making a presentation on the year under review and the immediate prospects for the Company. Mr Hugh Bolland Chairman 28 September 2012 Enquiries: Susan Platts-Martin - Head of Investment Trusts, FIL Investments International - 01737 836 916 Anne Read - Corporate Communications, FIL Investments International - 0207 961 4409 Christopher Pirnie - Company Secretary, FIL Investment International, - 01737 837 929 Income Statement for the year ended 31 July 2012 revenue 2012 total revenue 2011 total £'000 capital £'000 £'000 capital £'000 £'000 £'000 (Losses)/gains on - (21,037) (21,037) - 22,068 22,068 investments designated at fair value through profit or loss Income* 2,999 - 2,999 3,070 - 3,070 Investment management (1,267) - (1,267) (1,509) - (1,509) fee Other expenses (515) - (515) (522) - (522) Exchange (losses)/ (10) 217 207 7 (54) (47) gains on other net assets Exchange (losses)/ - (447) (447) - 287 287 gains on bank loans Net return/(loss) 1,207 (21,267) (20,060) 1,046 22,301 23,347 before finance costs and taxation Finance costs (204) - (204) (214) - (214) Net return/(loss) on 1,003 (21,267) (20,264) 832 22,301 23,133 ordinary activities before taxation Taxation on return/ (123) - (123) (312) - (312) (loss) on ordinary activities** Net return/(loss) on 880 (21,267) (20,387) 520 22,301 22,821 ordinary activities after taxation for the year Return/(loss) per ordinary share Undiluted 1.45p (34.99p) (33.54p) 0.85p 36.35p 37.20p Diluted n/a n/a n/a 0.84p 36.10p 36.94p 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. * INCOME 2012 2011 £'000 £'000 Income from investments designated at fair value through profit or loss Overseas dividends 2,784 2,926 Overseas scrip dividends 215 144 Total income 2,999 3,070 **Relates to overseas taxation only Reconciliation of Movements in Shareholders' Funds for the year ended 31 July 2012 share share capital other non- other capital revenue total capital premium redemption distributable reserve reserve reserve equity £'000 account reserve reserve £'000 £'000 £'000 £'000 £'000 £'000 £'000 Opening 15,245 60 1,785 7,367 19,238 72,958 540 117,193 shareholders' funds: 1 August 2010 Exercise of - - - - - - - - rights attached to subscription shares and conversion into ordinary shares Issue of 163 1,080 - - - - - 1,243 ordinary shares on the exercise of rights attached to subscription shares Net return on - - - - - 22,301 520 22,821 ordinary activities after taxation for the year Closing 15,408 1,140 1,785 7,367 19,238 95,259 1,060 141,257 shareholders' funds: 31 July 2011 Exercise of - - - - - - - - rights attached to subscription shares and conversion into ordinary shares Issue of 12 78 - - - - - 90 ordinary shares on the exercise of rights attached to subscription shares Repurchase of (439) - 439 - (3,261) - - (3,261) ordinary shares Net (loss)/ - - - - - (21,267) 880 (20,387) return on ordinary activities after taxation for the year Dividend paid - - - - - - (615) (615) to shareholders Closing 14,981 1,218 2,224 7,367 15,977 73,992 1,325 117,084 shareholders' funds: 31 July 2012 Balance Sheet as at 31 July 2012 2012 2011 £'000 £'000 Fixed assets Investments designated at fair value through 123,758 146,156 profit or loss Current assets Debtors 206 738 Cash at bank 3,769 4,423 3,975 5,161 Creditors Bank loans (9,563) (9,116) Other creditors (1,086) (944) (10,649) (10,060) Net current liabilities (6,674) (4,899) Total net assets 117,084 141,257 Capital and reserves Share capital 14,981 15,408 Share premium account 1,218 1,140 Capital redemption reserve 2,224 1,785 Other non-distributable reserve 7,367 7,367 Other reserve 15,977 19,238 Capital reserve 73,992 95,259 Revenue reserve 1,325 1,060 Total equity shareholders' funds 117,084 141,257 Net asset value per ordinary share Basic 195.40p 229.21p Diluted 194.70p 223.20p Cash Flow Statement for the year ended 31 July 2012 2012 2011 £'000 £'000 Operating activities Investment income received 3,032 2,410 Investment management fee paid (1,663) (1,105) Directors' fees paid (123) (78) Other cash payments (594) (322) Net cash inflow from operating activities 652 905 Servicing of finance Interest paid on bank loans (219) (215) Net cash outflow from servicing of finance (219) (215) Financial investment Purchase of investments (108,698) (142,254) Disposal of investments 110,939 139,813 Net cash inflow/(outflow) from financial 2,241 (2,441) investment Dividend paid to shareholders (615) - Net cash inflow/(outflow) before financing 2,059 (1,751) Financing Repurchase of ordinary shares (3,035) - Exercise of rights attached to 105 1,244 subscription shares Net cash inflow from bank loans - 3,674 Net cash (outflow)/inflow from financing (2,930) 4,918 (Decrease)/increase in cash (871) 3,167 The above statements have been prepared on the basis of the accounting policies as set out in the annual financial statements to 31 July 2012. This preliminary statement, which has been agreed with the Auditor, was approved by the Board on 28 September 2012. It is not the Company's statutory financial statements. The statutory financial statements for the financial year ended 31 July 2011 have been delivered to the Registrar of Companies. The statutory financial statements for the financial year ended 31 July 2012 have been approved and audited but have not yet been filed. The statutory financial statements for the financial years ended 31 July 2011 and 31 July 2012 received unqualified audit reports, did not include a reference to any matters to which the Auditor drew attention by way of emphasis without qualifying the report and did not contain statements under section 498(2) and (3) of the Companies Act 2006. The annual report and financial statements will be posted to shareholders as soon as is practicable and in any event no later than 26 October 2012.

Companies

Fidelity Asian Values (FAS)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today