Half-year Report

Fidelity Asian Values PLC

Half-Yearly Results for the six months ended 31 January 2022

Financial Highlights

• The net asset value (“NAV”) of the Company increased by +2.2% for the six months ended 31 January 2022, while the share price fell by 1.1% in comparison to the Comparative Index (the MSCI All Countries Asia ex Japan Small Cap Index) which fell by 1.0%  in sterling terms.
• The Company is utilising gearing on a net basis for the first time in seven years to reflect the business opportunities available to the Company. As at 31 January 2022, the Company had net gearing of -2.2%, which has risen to 3.6% as at 18 April 2022.
• The Company continues to own a portfolio of businesses which are dominant in their industries, earn good returns on capital and have attractive valuations

Contacts

For further information please contact:

Anna-Marie Davis

Company Secretary

01737 834798

FIL Investments International

PORTFOLIO MANAGER’S HALF-YEARLY REVIEW

PERFORMANCE REVIEW
Over the six month period ended 31 January 2022, the net asset value (“NAV”) of Fidelity Asian Values PLC rose by 2.2% while the share price fell by 1.1%, compared with a fall of 1.0% in the Comparative Index (the MSCI All Countries Asia ex Japan Small Cap Index (net) total return (in Sterling terms)).

One of the major recent features of the investment landscape across Asia has been the material outperformance of small-cap companies relative to large-cap companies. This has been true during the six month period to 31 January 2022, but the trend really started to take root in March 2020 and looks like a partial mean reversion from what happened between 2016 and 2019 when large-cap companies significantly outperformed small-cap companies. During the last twelve months, on a sectoral basis, we have also seen significant declines in highly priced large-cap companies as well as good earnings delivery from cheaper sectors in the market such as financials, commodities, telecommunications and energy. We have also started to see a similar phenomenon in smaller-cap equities since the start of the calendar year.

However, scratch a little deeper and a large discrepancy can be seen within Asia’s smaller companies, where there has been a disproportionate outperformance of small-cap growth versus small-cap value. Small-cap growth companies are now trading at a premium of over 100% to small-cap value companies - a level we last saw in 1999-2000. Given our small-cap value-oriented focus, this market backdrop has been a big headwind for us.

A silver lining to this is that it means we are able to buy some very good businesses without too much competition. In all this, our process has remained unchanged. We continue to believe that fundamental analysis and owning good businesses where the valuation leaves sufficient margin of safety is the most time-tested way to make money in the stock market over the long term.

Company’s NAV and Comparative Index returns (as at 31 January 2022)

	NAV total return  (Cumulative) (%)	Comparative  Index total  return (%)
Tenure (since 1 April 2015)	+87.8	+63.9
5 Years	+42.3	+49.2
3 Years	+32.2	+44.4
1 Year	+16.3	+14.8
6 Months	+2.2	-1.0
3 Months	+0.1	-3.0
	=========	=========

Source: Fidelity International.

Key Contributors over six months (as at 31 January 2022)

Order	Security	Average  Active Weight  (%)	Gain/Loss  (%)	Contribution  to Relative  Returns (%)
Top 5
1	China Overseas Land & Investment	+1.2	+49.1	+0.5
2	Power Grid Corporation of India	+1.3	+36.9	+0.4
3	KEI Industries	+1.0	+55.1	+0.4
4	Federal Bank	+1.3	+19.1	+0.3
5	Tech Mahindra	+1.1	+27.7	+0.3
				---------------
	Total			+1.9
				=========

Source: Fidelity International.

Key Detractors over six months (as at 31 January 2022)

Order	Security	Average  Active Weight  (%)	Gain/Loss  (%)	Contribution  to Relative  Returns (%)
Top 5
1	China Yongda Automobile Services Holdings	+2.4	-29.3	-0.8
2	Chaowei Power	+0.6	-39.4	-0.4
3	Alibaba Group Holding	+0.8	-35.8	-0.4
4	Chow Sang Sang Holdings International	+2.0	-17.0	-0.4
5	Taiwan Union Technology	+1.5	-18.2	-0.3
				---------------
	Total			-2.3
				=========

Source: Fidelity International.

You will note from the tables above that most of the detractors are from China, while most of the contributors are from India. This is more of a reflection of the state of the stock markets in these two countries rather than due to business performance. However, I am finding more opportunities in China where the market has declined due to structural reasons (policy changes) and cyclical reasons (slowing economic cycle).

The notable exception to the above trend was China Overseas Land & Investment which is a government-owned housebuilder in China and will be a big beneficiary of the turmoil in the private sector from housebuilders such as Evergrande, etc.

MARKET ENVIRONMENT - CONFLICT BETWEEN RUSSIA AND UKRAINE
Russia invaded Ukraine on 24 February 2022. The conflict is first and foremost a human tragedy but given its global ramifications, it would be remiss to not reflect briefly on the possible implications for the Company. While the direct impact of the conflict on the Company’s holdings is relatively limited, the situation is fluid and changing rapidly, and we are therefore limited in the conclusions that we can currently draw. However, it is apparent that sanctions impacting Russian companies are likely to be in place for some time and further market volatility is to be expected. Supply chain issues and inflationary pressures are also likely to persist and these will almost certainly complicate the already difficult task that central banks were facing in trying to tackle inflation.

In terms of positioning, I am reducing positions and/or selling out of stocks which have not yet declined but where I believe companies may not have the pricing power to face an inflationary shock (e.g. energy and coal companies in India). I am also selectively adding some stocks where prices have declined in anticipation of an inflationary shock but where the franchise has a long history of delivering through various inflationary regimes, for example HDFC Bank. I am also increasing holdings in companies that have cost pass through mechanisms built into their business models such as utility stocks.

INVESTMENT STRATEGY
The last couple of years in the markets have been unprecedented, as the world moved from the pandemic to a government funded liquidity boom. This led to extreme levels of speculation in what were perceived as growth equities. We have started to see a correction in some of these excesses in the last few months.

As can be seen from the charts in the Half-Yearly Report, smaller value companies continue to trade at a very wide valuation discount to growth stocks (both large and small companies). As I have said before, the valuation set up is very similar to the tech bubble of 2000, making the opportunity for small-cap value stock picking to be even greater than usual.

The extreme valuations have been caused by a wall of money - created by governments across the globe in response to the pandemic - all chasing the same stocks in the market. With inflation running at 7% in the US, which is the highest level since the 1980s, and interest rates at zero, essentially the governments are telling everyone, including savers, to go out and borrow. And this is what they have been doing. For instance, the ratio of margin debt (the amount that investors can borrow to buy stocks) to GDP is at an all-time high. During the tech bubble, it also peaked at 3%; and at the time of the housing bubble, it spiked to around 3%. It is now at a staggering 4.5%. These levels are not just high in the US - we are seeing this in countries across the globe. I don’t want to call this a bubble, but it certainly does feel like one.

Even in markets where valuations are stretched, we are also seeing businesses trading very cheaply, creating opportunities for patient investors. We own a portfolio of businesses which are dominant in their industries, earn good returns on capital and are available at attractive valuations. I am excited about the stocks we hold in the portfolio, and the following fundamentals apply to the Company:

· Return on Equity of 14.4% versus 12.0% for the Comparative Index

· Price to earnings: 9.0x versus 12.5x for the Comparative Index

· Dividend yield of 3.5% versus 2.2% for the Comparative Index

In conclusion, a few key messages are worth highlighting. We are in an experimental world with untried economic and monetary policies. There is no playbook for this and we do not know how this will end. So, we have to stay vigilant and we have to be nimble.

The stock market continues to be two-paced and very bifurcated, where on the one hand, we have extreme valuations driven by speculative behaviour, and on the other hand, there are stocks which are completely ignored. This is creating opportunities in markets such as those in Asia which are in a better shape than the West, but not risk-free. In order to take advantage of these opportunities, the company's gearing has increased from 1.2% as of 31 January 2022 to around 8% as of the date of this report. Against this backdrop, I feel confident about the businesses we own, but I will continue to remain watchful in this ever-changing market environment.

NITIN BAJAJ
Portfolio Manager
20 April 2022

TWENTY LARGEST HOLDINGS AS AT 31 JANUARY 2022

The Asset Exposures shown below measure exposure to market price movements as a result of owning shares, equity linked notes and derivative instruments. The Fair Value is the actual value of the portfolio. Where a contract for difference (“CFD”) is held, the Fair Value reflects the profit or loss on the contract since it was opened and is based on how much the share price of the underlying share has moved.

	Asset Exposure  £000	Asset Exposure  %1	Fair  Value  £000
Long Exposures – shares unless otherwise stated
China Yongda Automobiles Services Holdings (shares and long CFD)
Investment holding company engaged in the sale of passenger vehicles and provision of related services	8,013	2.2	6,180
	-------------	-------------	-------------
Federal Bank
Private sector bank	7,657	2.1	7,657
	-------------	-------------	-------------
Arwana Citramulia
Ceramics manufacturer	7,606	2.1	7,606
	-------------	-------------	-------------
Focus Media Information Technology (shares and equity linked notes)
Advertising solution provider	7,134	1.9	7,134
	-------------	-------------	-------------
Chow Sang Sang Holdings International (shares and long CFD)
Jewellery retailer	6,962	1.9	6,658
	-------------	-------------	-------------
Sinotrans (shares and long CFD)
Logistics, storage and terminal services provider	6,918	1.9	5,458
	-------------	-------------	-------------
Axis Bank
Private sector bank	6,676	1.8	6,676
	-------------	-------------	-------------
Texwinca Holdings
Production and sales of dyed yarns and knitted fabrics	6,554	1.8	6,554
	-------------	-------------	-------------
Indofood CBP Sukses Makmur
Producer of packaged food products	6,201	1.7	6,201
	-------------	-------------	-------------
Shinhan Financial Group
Financial holding company	6,038	1.6	6,038
	-------------	-------------	-------------
Powertech Technology
Provider of turnkey services for chip probing, packaging and testing	5,990	1.6	5,990
	-------------	-------------	-------------
Taiwan Union Technology
Provider of professional support, value-added materials and advanced mass lamination service to the global electronics industry	5,900	1.6	5,900
	-------------	-------------	-------------
Granules India
Pharmaceutical manufacturing company	5,518	1.5	5,518
	-------------	-------------	-------------
PTC India
Provider of power trading solutions in India	5,426	1.5	5,426
	-------------	-------------	-------------
Qingdao Port International
Provider of port services	5,388	1.5	5,388
	-------------	-------------	-------------
Shriram Transport Finance
Provider of hire purchase and lease finance for medium and heavy commercial vehicles	5,373	1.5	5,373
	-------------	-------------	-------------
Elite Material
Manufacturer and distributor of base materials for circuit boards	5,322	1.5	5,322
	-------------	-------------	-------------
Gold Road Resources
Gold production and exploration company	5,277	1.4	5,277
	-------------	-------------	-------------
Japfa
Industrial agri-food company	4,606	1.3	4,606
	-------------	-------------	-------------
Pacific Textile Holdings (shares and long CFD)
Manufacturer of customised knitted fabric	4,600	1.3	3,334
	-------------	-------------	-------------
Twenty largest long exposures	123,159	33.7	118,296
	=========	=========	=========
Other long exposures	241,711	66.1	234,931
	=========	=========	=========
Total long exposures before futures and hedges (153 holdings)	364,870	99.8	353,227
	=========	=========	=========
Add: long futures
MSCI All Countries Asia ex Japan Index Future 18/03/2022	4,162	1.2	(213)
	-------------	-------------	-------------
Less: hedging exposures
S&P CNX Nifty Index 31/03/2022 (put option)	(4,998)	(1.4)	365
	=========	=========	=========
Total long exposures after the netting of hedges	364,034	99.6	353,379
	=========	=========	=========
Add: short exposures
Short CFDs (6 holdings)	5,933	1.6	352
	=========	=========	=========
Gross Asset Exposure2	369,967	101.2
Forward Currency Contracts	=========	=========	(24)
Portfolio Fair Value3			353,707
			-------------
Net current assets (excluding derivative assets and liabilities)			11,919
			=========
Total Shareholders’ Funds/Net Assets			365,626
			=========

1  Asset Exposure expressed as a percentage of Total Shareholders’ Funds.

2  Gross Asset Exposure comprises market exposure to investments of £353,441,000 plus market exposure to derivative instruments of £16,526,000.

3  Portfolio Fair Value comprises investments of £353,441,000 plus derivative assets of £779,000 less derivative liabilities of £513,000 (per the Balance Sheet below).

INTERIM MANAGEMENT REPORT

BOARD CHANGES
Timothy Scholefield stepped down from the Board at the conclusion of the Annual General Meeting (“AGM”) on 3 December 2021.

Sally Macdonald was appointed to the Board on 1 January 2022. She has over 36 years’ experience in asset management covering the UK and Asian markets at various investment houses including Sanwa International, Lazard Brothers Asset Management, Canada Life, Morley Fund Managers, Dalton Strategic Partnership and City of London Investment Management. She is a Director of JP Morgan Japanese Investment Trust and a Trustee of Helping the Burmese Delta. She was, until recently, Head of Asian Equities at Marlborough Fund Managers.

As part of the Board’s succession plan, Matthew Sutherland was also appointed to the Board on 1 January 2022. Mr. Sutherland has 32 years’ experience of working in financial markets, primarily as an equity analyst and head of research, of which the last 24 years were spent in Asia covering Asian markets. Prior to retiring from full-time employment in 2016, he worked for Fidelity International, running its substantial and highly-regarded Asian equity research team of over 70 analysts out of Hong Kong and Tokyo covering all the Asian stock markets. Prior to joining Fidelity, he was Country Head for HSBC Securities in Taiwan and worked for BNP Paribas in Manila. Since retiring from full-time employment, Mr. Sutherland has pursued an interest in the art world, receiving a first-class honours degree in History of Art in 2020 and an MA in Art Market and Appraisal in 2021.

Having completed his nine year tenure on the Board, Grahame Stott will step down from the Board at the Company’s AGM in November 2022. Clare Brady will replace him as Chair of the Audit Committee in accordance with the Board’s succession plan.

DISCOUNT MANAGEMENT AND SHARE REPURCHASES
The Board operates an active discount management policy, the primary purpose of which is to reduce discount volatility. Repurchases of ordinary shares are made at the discretion of the Board, within guidelines set by it and in light of prevailing market conditions. Shares will only be repurchased when it results in an enhancement to the NAV of the ordinary shares. In order to assist in managing the discount, the Board has shareholder approval to hold in Treasury any ordinary shares repurchased by the Company, rather than cancelling them. Any shares held in Treasury would only be re-issued at NAV per share or at a premium to NAV per share.

There continues to be turmoil in the world’s financial markets and at times the Company’s discount has been commensurately volatile. It remained in single digits during the reporting period and the Company did not carry out any share repurchases. However, since the end of the reporting period, as the discount widened into double digits, the Company repurchased 138,532 shares into Treasury.

PRINCIPAL RISKS AND UNCERTAINTIES
The Board, with the assistance of the Manager (FIL Investment Services (UK) Limited), has developed a risk matrix which, as part of the risk management and internal controls process, identifies the key existing and emerging risks and uncertainties faced by the Company.

  The Board considers that the principal risks and uncertainties faced by the Company fall into the following categories: market, economic and political risks; discount control risk; cybercrime risk; investment performance risk; key person risk; environmental, social and governance (ESG) risk; and pandemic risk. Other risks facing the Company include tax and regulatory risks and operational (service providers) risks. Information on each of these risks can be found in the Strategic Report section of the Annual Report for the year ended 31 July 2021 which can be found on the Company’s pages of the Manager’s website at www.fidelity.co.uk/asianvalues.

While the principal risks and uncertainties are the same as those at the previous year end, the uncertainty has been heightened by the Russia and Ukraine conflict. The quantum of risks has changed, and continues to, change. The Board remains vigilant in monitoring such risks.

A key emerging risk that the Board has identified is climate change. It is one of the most critical emerging issues confronting asset managers and their investors. The Board notes that the Manager has integrated ESG considerations, including climate change, into the Company’s investment process. The Board will continue to monitor this.

Risks from emerging new variants of COVID-19 continue, but the fight against the virus gets stronger with each passing year as vaccination and booster rates increase and treatment for those affected improves. Investors should be prepared for market fluctuations and remember that holding shares in the Company should be considered to be a long-term investment. These risks are somewhat mitigated by the investment trust structure of the Company which means that no forced sales need to take place to deal with any redemptions. Therefore, investments in the Company’s portfolio can be held over a longer time horizon.

The Manager carries on reviewing its business continuity plans and its operational resilience strategies on an ongoing basis. It continues to take all reasonable steps in meeting its regulatory obligations and to assess operational risks, the ability to continue operating and the steps it needs to take to serve and support its clients, including the Board. The Manager has appropriate business continuity plans in place and the provision of services has continued to be supplied without interruption during the pandemic and continues to do so.

Investment team key activities, including those of portfolio managers, analysts and trading/ support functions, have continued to perform well despite the operational challenges posed when working from home or when split team arrangements were in place.

The Company’s other third party service providers have also implemented similar measures to ensure that business disruption is kept to a minimum.

TRANSACTIONS WITH THE MANAGER AND RELATED PARTIES
The Manager has delegated the Company’s portfolio management and company secretariat services to FIL Investments International. Transactions with the Manager and related party transactions with the Directors are disclosed in Note 12 to the Financial Statements below.

GOING CONCERN STATEMENT
The Directors have considered the Company’s investment objective, risk management policies, liquidity risk, credit risk, capital management policies and procedures, the nature of its portfolio, its expenditure and cash flow projections. The Directors, having considered the liquidity of the Company’s portfolio of investments (being mainly securities which are readily realisable) and the projected income and expenditure, are satisfied that the Company is financially sound and has adequate resources to meet all of its liabilities and ongoing expenses and can continue in operational existence for a period of at least twelve months from the date of this Half-Yearly Report.

Accordingly, the Financial Statements of the Company have been prepared on a going concern basis.

This conclusion also takes into account the Board’s assessment of the ongoing risks from COVID-19 and evolving variants as set out above.

Continuation votes are held every five years and the next continuation vote will be put to shareholders at the AGM in 2026.

By Order of the Board

FIL Investments International

20 April 2022

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 condensed 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 Portfolio Manager’s Half-Yearly Review and the Interim Management Report above include a fair review of the information required by DTR 4.2.7R and 4.2.8R.

The Half-Yearly Report has not been audited or reviewed by the Company’s Independent Auditor.

The Half-Yearly Report was approved by the Board on 20 April 2022 and the above responsibility statement was signed on its behalf by Kate Bolsover, Chairman.

FINANCIAL STATEMENTS

INCOME STATEMENT FOR THE SIX MONTHS ENDED 31 JANUARY 2022

	Notes	Six months ended 31 January 2022 unaudited			Six months ended 31 January 2021 unaudited			Year ended 31 July 2021 audited
		Revenue  £000	Capital  £000	Total  £000	Revenue  £000	Capital  £000	Total  £000	Revenue  £000	Capital  £000	Total  £000
Gains on investments		–	5,093	5,093	–	54,689	54,689	–	94,254	94,254
(Losses)/gains on derivative instruments		–	(795)	(795)	–	3,675	3,675	–	6,975	6,975
Income	4	5,391	–	5,391	4,017	–	4,017	10,842	–	10,842
Investment management fees	5	(1,301)	372	(929)	(1,052)	292	(760)	(2,272)	649	(1,623)
Other expenses		(466)	–	(466)	(389)	–	(389)	(768)	(3)	(771)
Foreign exchange gains/(losses)		–	807	807	–	(1,095)	(1,095)	–	(1,671)	(1,671)
		---------------	---------------	---------------	---------------	---------------	---------------	---------------	---------------	---------------
Net return on ordinary activities before finance costs and taxation		3,624	5,477	9,101	2,576	57,561	60,137	7,802	100,204	108,006
Finance costs		(93)	–	(93)	(143)	–	(143)	(287)	–	(287)
		---------------	---------------	---------------	---------------	---------------	---------------	---------------	---------------	---------------
Net return on ordinary activities before taxation		3,531	5,477	9,008	2,433	57,561	59,994	7,515	100,204	107,719
Taxation on return on ordinary activities	6	(386)	(620)	(1,006)	(548)	(134)	(682)	(774)	(3,380)	(4,154)
		=========	=========	=========	=========	=========	=========	=========	=========	=========
Net return on ordinary activities after taxation for the period		3,145	4,857	8,002	1,885	57,427	59,312	6,741	96,824	103,565
		=========	=========	=========	=========	=========	=========	=========	=========	=========
Return per ordinary share	7	4.30p	6.64p	10.94p	2.57p	78.21p	80.78p	9.20p	132.09p	141.29p
		=========	=========	=========	=========	=========	=========	=========	=========	=========

The Company does not have any other comprehensive income. Accordingly the net return on ordinary activities after taxation for the period is also the total comprehensive income for the period and no separate Statement of Comprehensive Income has been presented.

The total column of this statement represents the Income Statement of the Company. The revenue and capital columns are supplementary and presented for information purposes as recommended by the Statement of Recommended Practice issued by the AIC.

No operations were acquired or discontinued in the period and all items in the above statement derive from continuing operations.

STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 31 JANUARY 2022

	Notes	Share  capital  £000	Share  premium  account  £000	Capital  redemption  reserve  £000	Other non-  distributable  reserve  £000	Other  reserve  £000	Capital  reserve  £000	Revenue  reserve  £000	Total  shareholders’ funds  £000
Six months ended 31 January 2022 (unaudited)
Total shareholders’ funds at 31 July 2021		18,895	50,501	3,197	7,367	719	273,107	10,278	364,064
		---------------	---------------	---------------	---------------	---------------	---------------	---------------	---------------
Net return on ordinary activities after taxation for the period		–	–	–	–	–	4,857	3,145	8,002
Dividend paid to shareholders	8	–	–	–	–	–	–	(6,440)	(6,440)
Total shareholders’ funds at 31 January 2022		18,895	50,501	3,197	7,367	719	277,964	6,983	365,626
		---------------	---------------	---------------	---------------	---------------	---------------	---------------	---------------
Six months ended 31 January 2021 (unaudited)
		---------------	---------------	---------------	---------------	---------------	---------------	---------------	---------------
Total shareholders’ funds at 31 July 2020		18,895	50,501	3,197	7,367	3,379	176,283	9,778	269,400
		=========	=========	=========	=========	=========	=========	=========	=========
Net return on ordinary activities after taxation for the period		–	–	–	–	–	57,427	1,885	59,312
Repurchase of ordinary shares	10	–	–	–	–	(2,575)	–	–	(2,575)
Dividend paid to shareholders	8	–	–	–	–	–	–	(6,241)	(6,241)
		---------------	---------------	---------------	---------------	---------------	---------------	---------------	---------------
Total shareholders’ funds at 31 January 2021		18,895	50,501	3,197	7,367	804	233,710	5,422	319,896
		=========	=========	=========	=========	=========	=========	=========	=========
Year ended 31 July 2021 (audited)
		---------------	---------------	---------------	---------------	---------------	---------------	---------------	---------------
Total shareholders’ funds at 31 July 2020		18,895	50,501	3,197	7,367	3,379	176,283	9,778	269,400
		=========	=========	=========	=========	=========	=========	=========	=========
Net return on ordinary activities after taxation for the year		–	–	–	–	–	96,824	6,741	103,565
Repurchase of ordinary shares	10	–	–	–	–	(2,660)	–	–	(2,660)
Dividend paid to shareholders	8	–	–	–	–	–	–	(6,241)	(6,241)
		---------------	---------------	---------------	---------------	---------------	---------------	---------------	---------------
Total shareholders’ funds at 31 July 2021		18,895	50,501	3,197	7,367	719	273,107	10,278	364,064
		=========	=========	=========	=========	=========	=========	=========	=========

BALANCE SHEET AS AT 31 JANUARY 2022 COMPANY NUMBER 3183919

	Notes	31.01.22  unaudited  £000	31.07.21  audited  £000	31.01.21  unaudited  £000
Fixed assets
Investments	9	353,441	350,225	287,675
		---------------	---------------	---------------
Current assets
Derivative instruments	9	779	437	633
Debtors		2,144	3,489	3,446
Amounts held at futures clearing houses and brokers		1,609	2,825	1,113
Cash at bank		13,368	14,128	30,161
		=========	=========	=========
		17,900	20,879	35,353
		=========	=========	=========
Current liabilities
Derivative instruments	9	(513)	(1,335)	(1,327)
Other creditors		(5,202)	(5,705)	(1,805)
		---------------	---------------	---------------
		(5,715)	(7,040)	(3,132)
		=========	=========	=========
Net current assets		12,185	13,839	32,221
		---------------	---------------	---------------
Net assets		365,626	364,064	319,896
		=========	=========	=========
Capital and reserves
Share capital	10	18,895	18,895	18,895
Share premium account		50,501	50,501	50,501
Capital redemption reserve		3,197	3,197	3,197
Other non-distributable reserve		7,367	7,367	7,367
Other reserve		719	719	804
Capital reserve		277,964	273,107	233,710
Revenue reserve		6,983	10,278	5,422
		=========	=========	=========
Total shareholders’ funds		365,626	364,064	319,896
		=========	=========	=========
Net asset value per ordinary share	11	499.63p	497.50p	437.08p
		=========	=========	=========

Notes to the Financial Statements

1 PRINCIPAL ACTIVITY
Fidelity Asian Values PLC is an Investment Company incorporated in England and Wales with a premium listing on the London Stock Exchange. The Company’s registration number is 3183919, and its registered office is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey KT20 6RP. The Company has been approved by HM Revenue & Customs as an Investment Trust under Section 1158 of the Corporation Tax Act 2010 and intends to conduct its affairs so as to continue to be approved.

2 PUBLICATION OF NON-STATUTORY ACCOUNTS
The Financial Statements in this Half-Yearly Report have not been audited by the Company’s Independent 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 July 2021 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
(i) Basis of Preparation
The Company prepares its Financial Statements on a going concern basis and in accordance with UK Generally Accepted Accounting Practice (“UK GAAP”) and FRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland, issued by the Financial Reporting Council. The Financial Statements are also prepared in accordance with the Statement of Recommended Practice: Financial Statements of Investment Trust Companies and Venture Capital Trusts (“SORP”) issued by the Association of Investment Companies (“AIC”) in April 2021. FRS 104: Interim Financial Reporting has also been applied in preparing this condensed set of Financial Statements. The accounting policies followed are consistent with those disclosed in the Company’s Annual Report and Financial Statements for the year ended 31 July 2021.

(ii) Going Concern
The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for a period of at least twelve months from the date of approval of these Financial Statements. Accordingly, the Directors consider it appropriate to adopt the going concern basis of accounting in preparing these Financial Statements. This conclusion also takes into account the Board’s assessment of the continuing risks arising from COVID-19 and evolving variants.

4 INCOME

	Six months  ended  31.01.22  unaudited  £000	Six months  ended  31.01.21  unaudited  £000	Year  ended  31.07.21  audited  £000
Investment income
Overseas dividends	5,074	3,382	9,457
Overseas scrip dividends	111	310	654
	---------------	---------------	---------------
	5,185	3,692	10,111
	=========	=========	=========
Derivative income
Dividends received on long CFDs	203	320	720
Interest received on CFDs	2	5	9
	---------------	---------------	---------------
	205	325	729
	=========	=========	=========
Other interest
Interest received on collateral and deposits	1	–	2
	---------------	---------------	---------------
Total income	5,391	4,017	10,842
	=========	=========	=========

No special dividends have been recognised in capital during the period (six months ended 31 January 2021: £3,676,000 and year ended 31 July 2021: £4,103,000).

5 INVESTMENT MANAGEMENT FEES

	Six months  ended  31.01.22  unaudited  £000	Six months  ended  31.01.21  unaudited  £000	Year  ended  31.07.21  audited  £000
Investment management fees – base (charged to revenue)	1,301	1,052	2,272
Investment management fees – variable (credited to capital)	(372)	(292)	(649)
	---------------	---------------	---------------
	929	760	1,623
	=========	=========	=========

FIL Investment Services (UK) Limited is the Company’s Alternative Investment Fund Manager and has delegated portfolio management to FIL Investments International (“FII”). Both companies are Fidelity group companies.

The Company charges base investment management fees at an annual rate of 0.70% of net assets. In addition, there is +/- 0.20% variation fee based on the Company’s NAV per share performance relative to the Company’s Benchmark Index. Fees are payable monthly in arrears and are calculated on a daily basis.

6 TAXATION ON RETURN ON ORDINARY ACTIVITIES

	Six months  ended  31.01.22  unaudited  £000	Six months  ended  31.01.21  unaudited  £000	Year  ended  31.07.21  audited  £000
Revenue – taxation on overseas dividends	386	548	774
Capital – Indian capital gains tax	620	134	3,380
	---------------	---------------	---------------
Total taxation charge for the period	1,006	682	4,154
	=========	=========	=========

7 RETURN PER ORDINARY SHARE

	Six months  ended  31.01.22  unaudited	Six months  ended  31.01.21  unaudited	Year  ended  31.07.21  audited
Revenue return per ordinary share	4.30p	2.57p	9.20p
Capital return per ordinary share	6.64p	78.21p	132.09p
	---------------	---------------	---------------
Total return per ordinary share	10.94p	80.78p	141.29p
	=========	=========	=========

The return per ordinary share is based on the net return on ordinary activities after taxation for the period divided by the weighted average number of ordinary shares in issue during the period, as shown below:

	£000	£000	£000
Net revenue return on ordinary activities after taxation	3,145	1,885	6,741
Net capital return on ordinary activities after taxation	4,857	57,427	96,824
	---------------	---------------
Net total return on ordinary activities after taxation	8,002	59,312	103,565
	=========	=========	=========

	Number	Number	Number
Weighted average number of ordinary shares held outside Treasury during the period	73,178,879	73,428,741	73,297,971
	=========	=========	=========

8 DIVIDENDS PAID TO SHAREHOLDERS

	Six months  ended  31.01.22  unaudited  £000	Six months  ended  31.01.21  unaudited  £000	Year  ended  31.07.21  audited  £000
Dividend of 8.80 pence per ordinary share paid for the year ended 31 July 2021	6,440	–	–
Dividend of 8.50 pence per ordinary share paid for the year ended 31 July 2020	–	6,241	6,241
	---------------	---------------	---------------
	6,440	6,241	6,241
	=========	=========	=========

No dividend has been declared in respect of the six months ended 31 January 2022 (six months ended 31 January 2021: £nil).

9 FAIR VALUE HIERARCHY
The Company is required to disclose the fair value hierarchy that classifies its financial instruments measured at fair value at one of three levels, according to the relative reliability of the inputs used to estimate the fair values.

Classification	Input
Level 1	Valued using quoted prices in active markets for identical assets
Level 2	Valued by reference to inputs other than quoted prices included in level 1 that are observable (i.e. developed using market data) for the asset or liability, either directly or indirectly
Level 3	Valued by reference to valuation techniques using inputs that are not based on observable market data

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 valuation techniques used by the Company are as disclosed in the Company’s Annual Report for the year ended 31 July 2021 (Accounting Policies Notes 2 (k) and 2 (l) on page 59). The table below sets out the Company’s fair value hierarchy:

31 January 2022 (unaudited)	Level 1  £000	Level 2  £000	Level 3  £000	Total  £000
Financial assets at fair value through profit or loss
Investments	347,827	4,161	1,453	353,441
Derivative instrument assets	365	414	–	779
	---------------	---------------	---------------	---------------
	348,192	4,575	1,453	354,220
	=========	=========	=========	=========
Financial liabilities at fair value through profit or loss
Derivative instrument liabilities	(213)	(300)	–	(513)
	=========	=========	=========	=========

31 July 2021 (audited)	Level 1  £000	Level 2  £000	Level 3  £000	Total  £000
Financial assets at fair value through profit or loss
Investments	346,634	1,869	1,722	350,225
Derivative instrument assets	44	393	–	437
	---------------	---------------	---------------	---------------
	346,678	2,262	1,722	350,662
	=========	=========	=========	=========
Financial liabilities at fair value through profit or loss
Derivative instrument liabilities	(336)	(999)	–	(1,335)
	=========	=========	=========	=========

31 January 2021 (unaudited)	Level 1  £000	Level 2  £000	Level 3  £000	Total  £000
Financial assets at fair value through profit or loss
Investments	284,357	2,157	1,161	287,675
Derivative instrument assets	406	227	–	633
	---------------	---------------	---------------	---------------
	284,763	2,384	1,161	288,308
	=========	=========	=========	=========
Financial liabilities at fair value through profit or loss
Derivative instrument liabilities	–	(1,327)	–	(1,327)
	=========	=========	=========	=========

10 SHARE CAPITAL

	31 January 2022 unaudited		31 July 2021 audited		31 January 2021 unaudited
	Number of  shares	£000	Number of  shares	£000	Number of  shares	£000
Issued, allotted and fully paid
Ordinary shares of 25 pence each held outside of Treasury
Beginning of the period	73,178,879	18,295	73,932,107	18,483	73,932,107	18,483
	---------------	---------------	---------------	---------------	---------------	---------------
Ordinary shares repurchased into Treasury	–	–	(753,228)	(188)	(742,273)	(186)
	---------------	---------------	---------------	---------------	---------------	---------------
End of the period	73,178,879	18,295	73,178,879	18,295	73,189,834	18,297
	=========	=========	=========	=========	=========	=========
Ordinary shares of 25 pence each held in Treasury1
Beginning of the period	2,402,010	600	1,648,782	412	1,648,782	412
Ordinary shares repurchased into Treasury	–	–	753,228	188	742,273	186
	---------------	---------------	---------------	---------------	---------------	---------------
End of the period	2,402,010	600	2,402,010	600	2,391,055	598
	---------------	---------------	---------------	---------------	---------------	---------------
Total share capital		18,895		18,895		18,895
	=========	=========	=========	=========	=========	=========

1  Ordinary shares held in Treasury carry no rights to vote, to receive a dividend or to participate in a winding up of the Company.

There were no share repurchases into Treasury during the period (year ended 31 July 2021: £2,660,000 and six months ended 31 January 2021: £2,575,000).

11 NET ASSET VALUE PER ORDINARY SHARE

	31.01.22  unaudited	31.07.21  audited	31.01.21  unaudited
Total shareholders’ funds	£365,626,000	£364,064,000	£319,896,000
Ordinary shares held outside of Treasury at period end	73,178,879	73,178,879	73,189,834
	---------------	---------------	---------------
Net asset value per ordinary share	499.63p	497.50p	437.08p
	=========	=========	=========

It is the Company’s policy that shares held in Treasury will only be reissued at net asset value per ordinary share or at a premium to net asset value per ordinary share and, therefore, shares held in Treasury have no dilutive effect.

12 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 and the role of Company Secretary to FIL Investments International (“FII”). Both companies are Fidelity group companies.

Details of the fee arrangements are given in Note 5 above. During the period, management fees of £929,000 (six months ended 31 January 2021: £760,000 and year ended 31 July 2021: £1,623,000) and secretarial and administration fees of £38,000 (six months ended 31 January 2021: £38,000 and year ended 31 July 2021: £75,000) were payable to FII. At the Balance Sheet date, management fees of £157,000 (31 January 2021: £143,000 and 31 July 2021: £156,000) and secretarial and administration fees of £25,000 (31 January 2021: £6,000 and 31 July 2021: £25,000) were accrued and included in other creditors. FII also provides the Company with marketing services. The total amount payable for these services during the period was £104,000 (six months ended 31 January 2021: £66,000 and year ended 31 July 2021: £124,000). At the Balance Sheet date, marketing services of £13,000 (31 January 2021: £13,000 and 31 July 2021: £25,000) were accrued and included in other creditors.

As at 31 January 2022, the Board consisted of six non-executive Directors (as shown in the Directory in the Half-Yearly Report), all of whom are considered to be independent by the Board. None of the Directors have a service contract with the Company. The Chairman receives an annual fee of £37,000, the Audit Committee Chairman an annual fee of £31,000 and each other Director an annual fee of £26,750. The following members of the Board held shares in the Company: Kate Bolsover 15,452 ordinary shares, Clare Brady 2,500 ordinary shares, Sally Macdonald 2,111 ordinary shares, Grahame Stott 25,000 ordinary shares, Matthew Sutherland 27,859 ordinary shares and Michael Warren 10,000 ordinary shares.

The financial information contained in this Half-Yearly Results Announcement does not constitute statutory accounts as defined in section 435 of the Companies Act 2006. The financial information for the six months ended 31 January 2022 and 31 January 2021 has not been audited or reviewed by the Company’s Independent Auditor.

The information for the year ended 31 July 2021 has been extracted from the latest published audited financial statements, which have been filed with the Registrar of Companies, unless otherwise stated. The report of the Auditor on those financial statements contained no qualification or statement under sections 498(2) or (3) of the Companies Act 2006.

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.

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.fidelity.co.uk/asianvalues where up to date information on the Company, including daily NAV and share prices, factsheets and other information can also be found.