Annual Financial Report

FIDELITY SPECIAL VALUES PLC                          

        ANNUAL FINANCIAL REPORT, PROXY FORM AND ADDITIONAL DISCLOSURES         

           TO THE PRELIMINARY RESULTS FOR THE YEAR TO 31 AUGUST 2013           

Further to the voluntary disclosure of the Company's annual results for the
year ended 31 August 2013 by way of a preliminary announcement dated 4 November
2013, in accordance with the Disclosure and Transparency Rules ("the Rules")
4.1.3 and 6.3.5(2) this announcement contains the text of the preliminary
announcement dated 4 November 2013 together with the additional text in
compliance with the Rules.

The Company's annual report and financial statements for the year ended 31
August 2013 together with the accompanying proxy form have been submitted to
the National Storage Mechanism (NSM) and will shortly be available for
inspection:

www.morningstar.co.uk/uk/nsm

(Documents will usually be available for inspection within two business days of
this notice being given)

The annual report and financial statements will shortly be available on the
Company's website at

www.fidelity.co.uk/static/pdf/common/investment-trusts/special/specialannual-2013.pdf

Christopher Pirnie, FIL Investments International, Company Secretary - 01737
837 929

12 November 2013



Chairman's Statement

RESULTS FOR THE YEAR ENDED                                                     
                                                                               
31 AUGUST 2013                                                                 
                                                                               
NAV:                                                                     +44.8%
                                                                               
SHARE PRICE:                                                             +63.1%
                                                                               
BENCHMARK:                                                               +18.9%
                                                                               
DIVIDEND:                                                                16.25p

PERFORMANCE

This financial year has been the first under the management of Alex Wright, who
took over the reins from Sanjeev Shah on 1 September last year. I am pleased to
report that it has been a very successful year for the Company, with the share
price up 63.1% since I reported to you last year. This is due both to a rise in
the Net Asset Value (NAV) of the Company, up 44.8%, well ahead of the
FTSE All-Share Index, which is up 18.9% over the period, combined with a
significant narrowing of the Company's discount to NAV (all figures on a total
return basis which includes reinvested income).

The last year has seen investors tentatively returning to equities as an asset
class. While there have been a number of events that have created some
volatility in the market, such as the US fiscal deadlock, or more recently,
further geopolitical instability in the Middle East, the overall economic
picture does seem to be improving and confidence returning. This has translated
into good performance for your Company, as many of the Company's contrarian
positions, such as those in the retail and media sectors, rose significantly as
the negative sentiment around these sectors improved. In addition, the
Company's minimal exposure to fashionable stocks with a high proportion of
earnings from emerging markets worked well, as investors questioned the value
in emerging markets compared to that which was available in developed markets.
On the whole, it was a good year to be a contrarian investor.

Part of the Board's underlying reasoning when deciding to appoint Alex Wright
as Portfolio Manager was our desire to make better use of the Company's
closed-ended structure by increasing the proportion of our capital allocated to
medium and smaller companies at those times when good value was identified in
these areas of the market. While less liquid than large companies, there is a
greater potential for a talented stock-picker to add value in this area of the
market, as many good opportunities are overlooked by other investors. Alex had
demonstrated his pedigree in this regard by taking the Fidelity UK Smaller
Companies Fund to the top of its peer group, and I am pleased to say that the
Company's increased exposure to this sector of the market has been of
significant benefit to Shareholders this year. What is doubly pleasing, though,
is that Alex has also demonstrated his skill in stockpicking larger companies,
with around one fifth of the Company's NAV outperformance generated in
companies with a market capitalisation of over £10 billion. The Company's
holdings today encompass a range of companies, with some of the world's largest
companies such as Royal Dutch Shell and HSBC sitting alongside medium sized
companies such as UDG Healthcare, and very small companies such as marketing
agency Creston, which has a market capitalisation of around just £60m.

OUTLOOK

The macroeconomic story has undoubtedly moved on since I wrote to you last
year. On the whole, confidence in developed markets is much better,
particularly in our domestic economy. The stimulus in the housing market seems
to have had the desired impact and stirred the economy into action. The
sustainability of this improvement, of course, remains to be seen. The trend
has been a positive one for our Company, because many of our holdings in mid
and small sized companies do much of their business in the UK.

Overseas, the big question has been whether the US political system can pull
itself together and move forwards. Whilst it has been painful to watch, US
legislators do now seem to have found some common ground to start from. If a
more long term solution can be found, markets will take this positively. The
other key development over the last year has been the underperformance of
emerging markets. It is possible that in time, if these markets continue to
perform poorly, they may present some interesting opportunities for a
contrarian investor. However, for the time being, the increasing confidence at
home, exemplified recently by the successful Royal Mail IPO, is creating enough
opportunities for the Company. Though markets have performed well, there has
been relatively little in terms of inflows into equity funds over the last
year. Should we see demand for equities picking up further among the general
public in 2014, this would be an indication that we are in the more mature
stages of a bull market.

Year to 31 August               2013     2012     2011     2010     2009  5 years
NAV and Index total return                                                       
%                                                                                
                                                                                 
Fidelity Special Values PLC    +44.8    +15.0     -4.1     +1.3     +9.0    +76.5
                                                                                 
FTSE All-Share Index           +18.9    +10.2     +7.3    +10.6     -8.2    +42.6
                                                                                 
Difference                     +25.9     +4.8    -11.4     -9.3    +17.2    +33.9

OTHER MATTERS

Other relevant matters are detailed below.

Fund Manager

From January 2014 Alex will be taking on the management of the open ended,
Fidelity Special Situations Fund, in addition to his current responsibilities
within Fidelity. The Board has been assured that Alex has been provided with
sufficient additional resources in order to take on this extra responsibility
and also that Fidelity Special Values PLC will continue to retain its unique
portfolio construction which will be run by Alex independently from Special
Situations.

Discount

The Board is very mindful of the importance of the level of discount to our
Shareholders and we have conducted a number of share repurchases during the
year to help narrow the discount. The Board will continue to monitor this
closely and will consider taking further action where we feel it to be
effective.

Treasury shares

In order to assist in managing the discount and keeping it within a narrow
range close to the NAV, the Board has decided to seek Shareholder approval to
hold in Treasury any ordinary shares repurchased by the Company, rather than
cancelling them. The Treasury shares would carry no voting rights or rights to
receive a dividend and would have no entitlement in a winding up of the
Company. No more than 10% of the issued ordinary share capital of the Company
would be held in Treasury. Any shares held in Treasury would only be re-issued
at NAV per share or at a premium to NAV per share. This would ensure that the
net effect of repurchasing and then re-issuing the ordinary shares would
enhance NAV per share. The Board is seeking Shareholder approval to implement
these recommendations at the forthcoming Annual General Meeting.

Derivatives

Derivatives are used on a limited basis as a tool to meet the investment
objectives of the Company. They are used principally in the following ways:

1. As an alternative form of gearing to bank loans or bonds. The Company will
purchase long CFDs that achieve an equivalent effect to bank gearing but often
at lower financing costs.

2. To hedge equity market risks where the Portfolio Manager considers that
suitable protection can be purchased to limit the downside of a falling market
at a reasonable cost.

3. To enhance the investment returns by taking short exposures on stocks that
the Portfolio Manager considers to be over-valued.

The Board has created strict policies and exposure limits to manage derivatives
and their impacts on the different parts of the business and these are
monitored on a daily basis.

Gearing

The Company has increased its use of derivatives over the last year, and the
Board has agreed with the Portfolio Manager that if he is able to find
attractive opportunities in the market, then the Company's gearing should be
allowed to rise, and stay geared, as long as the opportunities remain. Gearing
averaged 7% over the 12 month period and stood at around 14% at the end of
August. This enhanced exposure to both Alex's strong stock selection and a
rising market has added close to 3% to the portfolio return over the last year.
I am confident that combined with Alex's contrarian and value-focused
investment philosophy, this should continue to add value for clients over the
long term.

Overall, the Board is pleased not only with the financial performance of the
Company over the last year, but also that it is making good use of its
structural advantages over its open-ended counterparts. Over the long term,
this extra flexibility should continue to translate into returns for our
Shareholders.

Dividend

The Board has decided to recommend a final dividend of 16.25 pence per share
for the year ended 31 August 2013, an increase of 25% over the 13.00 pence paid
for the year ended 31 August 2012. This dividend will be payable on 16 December
2013 to Shareholders on the register at close of business on 15 November 2013
(ex-dividend date 13 November 2013).

Board of Directors

It is my belief that the Board has the relevant skills and experience to serve
the Company well into the future. In common with our practice since 2004, all
Directors are subject to annual re-election and their biographical details are
included in the Annual Report to assist Shareholders when considering their
votes.

Alternative Investment Fund Manager Directive

The Alternative Investment Fund Managers Directive ("AIFMD") is a European
Directive that affects many investment funds, including the Company, which are
managed or promoted within the European Union. The AIFMD was implemented with
effect from 22 July 2013, although the Financial Conduct Authority will permit
a transitional period of one year. The AIFMD will require the Company to
appoint an Alternative Investment Fund Manager ("AIFM") and a Depositary. The
Board has decided in principle that Fidelity will be appointed as its AIFM in
advance of the end of the transitional period on 22 July 2014. Notwithstanding
these changes, the Board has been advised that the AIFMD is unlikely to have
any material effect on the services provided by, or to, the Company. Whilst the
Company will incur additional expenses in order to comply with the AIFMD,
current indications are that these are unlikely to be significant.

The Annual General Meeting: Thursday 12 December 2013 at 11.30 am

The Annual General Meeting will be held at Fidelity's offices at 25 Cannon
Street, London EC4M 5TA (St Paul's or Mansion House tube stations) on Thursday
12 December 2013 at 11.30 am.

It is the most important meeting that we, the Directors of your Company, have
each year. Alex Wright, the Portfolio Manager, will be making a presentation to
Shareholders, highlighting the achievements and challenges of the year past and
the prospects for the year to come. We urge as many of you as possible to come
and join us for this occasion.

Lynn Ruddick

Chairman

4 November 2013



Manager's Review

INTRODUCTION

The performance of the Company during the current financial year has been very
encouraging, delivering a NAV return of 44.8% compared to 18.9% for the
Benchmark Index (figures on a total return basis). The stock market environment
witnessed a

significant improvement over the year supported by positive policy
announcements by global central banks as well as signs of a more concrete
recovery in the major economies of the world. In the following pages, I will
try to explain the major reasons for the Company's positive performance and
some of the significant changes in the Company's portfolio since I took over
the management at the beginning of the financial year.

UK MARKET REVIEW

• The UK stock market rose over the 12 month period, as encouraging policy
announcements by global central banks and signs of stability in the Eurozone
helped to improve investor sentiment. Moreover, data from major economies such
as the US and China were largely positive.

• An economic recovery appears to be taking hold in the UK, with the
second-quarter GDP growth revised upwards to 0.7%,

supported by positive indicators across most sectors of the UK economy.

• Inflation trends remain uncertain as the CPI stayed steadfastly above the
Government's 2% target; at the end of August 2013, the annual rate of CPI stood
at 2.7%, up from 2.5% at the end of August 2012.

• The Bank of England ("BoE") has a new governor in Canadian Mark Carney, who
took over in July. So far there has been no change in the Bank's quantitative
easing programme, which remains at £375 billion, while interest rates were kept
unchanged throughout the year at a level of 0.5%.

The Company's financial year, which ended on 31 August 2013, was very positive
with regard to the NAV performance, as

improving investor sentiment towards many of our key stock picks proved
rewarding.

The year started on a positive note amidst several encouraging announcements
from policymakers across the globe. An unlimited bond purchase programme
announced by the European Central Bank ("ECB") to help regain control of
interest rates in the

Eurozone and the US Federal Reserve's ("Fed") open-ended bond-buying programme
to boost its economy were largely seen as

affirmation of their commitment to keep the economic recovery moving forward.
Unexpectedly, large stimulus measures in Japan also added to hopes that the
global economic recovery will gather momentum. There were some concerns in the
last quarter of 2012 that a failure to resolve the "fiscal cliff" in the US
could set back the recovery, which led to volatility in stock prices, but these
worries were largely unfounded as US lawmakers agreed on a temporary resolution
at the beginning of 2013. The positive momentum was such that until the end of
May 2013, the FTSE All-Share Index had recorded gains for 12 straight months.

The stability of the Eurozone remained a major concern, especially following an
election stalemate in Italy and an escalating banking crisis in Cyprus. The
situation in Europe appears more stable now but unless some of the structural
challenges are

addressed properly, it is not inconceivable that we could see a re-emergence of
similar problems. Meanwhile, the ECB's decision to lower its benchmark interest
rate helped to restore confidence somewhat. Central bank action in the UK
largely stayed along expected lines, although the bank's Monetary Policy
Committee voting patterns showed increasing support for raising the

quantitative easing ("QE") programme towards the end of former governor Mervyn
King's tenure. The prospects of a near-term increase in interest rates also
appear to be receding. Carney's forward guidance towards the end of the
financial year tied interest rate increases to the unemployment rate hitting a
threshold of 7%, which appears some way off. The market ended our financial
year on a subdued note in August owing to concerns about potential tapering of
the US Fed's stimulus programme and

geopolitical tensions, particularly in Syria.

Overall, the positive market sentiment was reflected at a sector level, with
most recording positive returns. Amid improving

investor risk appetite, there was an increased focus on growth-oriented stocks,
with those in the consumer services, industrials, technology and financials
sectors among the notable gainers. However, resources stocks were under
pressure due to demand

concerns, and they are prone to cyclical earnings trends and face high cost
inflation.

PORTFOLIO REVIEW

As mentioned above, the Company's performance this year has been very positive
and consolidated the gains from the previous

financial year. With market participants increasingly optimistic about the
macroeconomic outlook, there was a greater focus on

growth opportunities within the mid and small sized companies; in this
environment, several of my key holdings across a variety of sectors made
noteworthy contributions to returns.

At a stock level, Lloyds Banking Group, which has been a key portfolio holding
for several years, was a major contributor.

Lloyds is a quality retail franchise with an improving balance sheet and
earnings growth potential. The holding in Electronic

Arts, a video game publisher, also made a significant contribution to returns
amid expectations of positive earnings growth as cost cuts take hold and
higher-margin digital sales accelerate. Positions in some of my high-conviction
holdings, such as tools and equipment hire business Speedy Hire, business
services firm DCC and health care provider UDG Healthcare, were also supported
by their encouraging outlook for earnings.

Merger & acquisition ("M&A") themes added significant value to the portfolio
during the year. A number of the Company's

holdings were bought out by larger rivals because they saw the good value that
was on offer. I believe this theme can continue, and perhaps gather pace,
throughout 2013 and into 2014. Some of the notable holdings which benefited
from M&A included May Gurney and Invensys. In an environment of low economic
growth, large companies are forced to look outward if they want to grow or
defend their positions. My bias towards mid and small sized companies will
allow the Company to exploit the

inefficiencies in this area of the market, and to benefit from M&A activity
which I expect to continue. On the downside, some key resource holdings
under-performed owing to the lacklustre outlook for these stocks. AngloGold
Ashanti, Saipem and Sevan

Drilling were among the notable decliners, although overall the Company had
very limited exposure to these under-performing sectors.

As far as portfolio positioning was concerned, the transition from the previous
manager Sanjeev Shah was completed in around three months, with the most
significant changes being the increase in weighting to a host of medium sized
and smaller companies, and a reduction in the portfolio's position in the
banking sector. I have kept a large position in banks, the size of which
reflects my view that there is potential significant further upside from the
sector. As balance sheets and funding markets become more secure, so the
downside risk becomes more quantifiable. However, there are still material
risks around this issue. As a contrarian, I have become a little more cautious
following the strong market rally in the past 12 months. Nevertheless, my
process of investing in unloved stocks with mitigated downside risk and
unrecognised growth opportunities has continued to add value.

I have continued to find interesting ideas in a number of different areas of
the market, one of those areas being defensive, high

yielding stocks. During the crisis, investors were keen to buy companies with
defensive growth characteristics and a secure

dividend. This has led to a very positive consensus view on certain stocks,
notably food staples and tobacco companies, leaving new buyers with not much in
the way of a safety margin. However, there continue to be opportunities in
cheap and out of favour companies that are entering a period of positive change
which the market has not yet appreciated. For example, when I bought SSE for
the Company last year, it was trading close to its highest ever dividend
distribution business in Scotland. Additionally, with capacity coming out of UK
power generation, and SSE's strong position in renewables, the company had good
prospects of earnings growth too, which the market has recently been waking up
to.

A more recent addition to the portfolio has been Carnival. This is arguably one
of the most disliked stocks in the FTSE 100, with

a string of high profile difficulties that started with the Costa Concordia
disaster last year. The negative impact on earnings has been undeniable, but
the market seems to think this will last forever, which seems unlikely to me,
especially given that there are a number of different brands in the group.
Capacity growth has dramatically slowed in the cruise market, which should
allow the company to improve pricing, and it has high exposure to the US
consumer, which is showing signs of recovery. There are limited ways to play
the US consumer in the UK market, and few of them are as cheap as Carnival.

I have also been becoming positive on a number of secondary property stocks
recently. Secondary property has been off most

investors' radars for some time. However, with some confidence returning to the
economy, activity has been increasing in the sector, which could create value
for companies with attractive development assets. Additionally, many companies
are trading at deep discounts to their net asset values. A combination of these
attributes is attractive to my investment style, which is about identifying
positive change in unloved companies. Some examples are CLS Holdings, Max
Property, Conygar and Development

Securities.

The good news is that new ideas for the portfolio are still in plentiful
supply. All new ideas must meet my criteria of having downside protection to
the share price and unrecognised growth options.

OUTLOOK

Overall, stock valuations in the UK remain reasonable compared to history.
Additionally, I think the market environment looks very favourable for equities
on a long term view, although we could see some level of volatility from time
to time. Despite record low yields available in the bond market, there have
been very limited flows into equities thus far. Should this so called `great

rotation' start in earnest, we could be at the beginning of an extended bull
market.

Alex Wright

FIL Investments International

4 November 2013

PRINCIPAL RISKS AND UNCERTAINTIES AND RISK MANAGEMENT

The Board confirms that there is an ongoing process for identifying, evaluating
and managing the principal risks faced by the Company. The Board, with the
assistance of the Manager, has developed a risk matrix which, as part of the
internal controls

process, identifies the key risks that the Company faces. The matrix has
identified strategic, marketing, investment management, company secretarial and
other support function risks. The Board reviews and agrees policies for
managing these risks. The process is regularly reviewed by the Board in
accordance with the Financial Reporting Council's ("FRC's") "Internal Control:
Revised Guidance for Directors". Risks are identified, introduced and graded.
This process, together with the policies and procedures for the mitigation of
risks, is updated and reviewed regularly in the form of comprehensive internal
controls reports considered by the Audit Committee. The Board also determines
the nature and extent of any risks it is willing to take in order to achieve
its strategic objectives. The Board's approach to risks is embedded in the
Company's investment objectives and investment policy in the

Annual Report.

EXTERNAL RISKS

MARKET RISK

The Company's assets consist mainly of listed securities and the principal
risks are therefore market related such as market

recessions, interest rate movements, deflation/inflation, terrorism and
protectionism.

Risks to which the Company is exposed and which form part of the market risks
category are included in Note 17 to the financial statements in the Annual
Report together with summaries of the policies for managing these risks. These
are: market price risk (which comprises interest rate risk, foreign currency
risk and other price risk); liquidity risk; counterparty risk; credit risk; and
derivative instruments risk.

Long CFDs are currently used for gearing purposes. In addition a day-to-day
overdraft facility can be used if required. The impact of limited finance from
counterparties has not impacted the Company to date, however there are
alternative suppliers available in the market place should the need arise.

The Company relies on a number of main service providers, namely the Manager,
Registrar and Custodian. The Manager is the member of a privately owned group
of companies on which a regular report is provided to the Board. The Manager,
Registrar and Custodian are subject to regular audits by Fidelity's internal
audit team and the counterparties' own internal controls reports are received
by the Board and any concerns investigated.

SHARE PRICE RISK

Although it is usually the case that the longer a share is owned the less the
risk of losing money, share prices are volatile and for the short term
Shareholder, likely to want to sell in the near future, volatility is a risk.
The Board does not believe that volatility should be a significant risk for the
long term Shareholder.

DISCOUNT RISK

The Board cannot control the discount at which the Company's share price trades
to net asset value. However, it can influence this through its share repurchase
policy and through creating demand for shares through good performance and an
active investor

relations programme.

INTERNAL RISKS

INVESTMENT MANAGEMENT

The Board relies on the Manager's skills and judgement to make investment
decisions based on research and analysis of individual stocks and sectors. The
Board reviews the performance of the asset value of the portfolio against the
Company's Benchmark Index and competitors and the outlook for the market with
the Manager at each Board meeting. The emphasis is on long term investment
performance and the Board accepts that by targeting long term results the
Company risks volatility in the shorter term.

GOVERNANCE, OPERATIONAL, FINANCIAL, COMPLIANCE, ADMINISTRATION ETC

While it is believed that the likelihood of poor governance, compliance and
operational administration by other third party service providers is low, the
financial consequences could be serious, including the associated reputational
damage to the Company. Your Board is responsible for the Company's systems of
risk management and of internal control and for reviewing its effectiveness.
Details of this process are provided in the Corporate Governance Statement in
the Annual Report.

Related Parties

Nicky McCabe is Chief Operating Officer of Moonray Investors, a division of FIL
Limited Group. Nicky McCabe has waived her entitlement to Director's fees.

No Director has a contract of service with the Company and no contracts existed
during or at the end of the financial period in which any Director was
materially interested and which were significant in relation to the Company's
business, except as disclosed in relation to Nicky McCabe's interests in the
Management Agreement. There have been no other related party transactions
requiring disclosure under Financial Reporting Standard ("FRS") 8.

The interests of the Directors and FIL Limited in the ordinary shares of the
Company as at 31 August 2013 and 31 August 2012 are shown in the Annual Report.

Statement of Directors' Responsibilities

The Directors are responsible for preparing the Annual Report and the financial
statements in accordance with applicable law and regulations. Company law
requires the Directors to prepare financial statements for each financial year.
Under that law they have elected to prepare the financial statements in
accordance with UK Generally Accepted Accounting Practice.

The financial statements are required by law to give a true and fair view of
the state of affairs of the Company and of the profit or loss for the period.
In preparing these financial statements, the Directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject
to any material departures disclosed and

explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the Company will continue

in business.

The Directors are responsible for ensuring that adequate accounting records are
kept which disclose with reasonable accuracy at any time the financial position
of the Company and to enable them to ensure that its financial statements
comply with the Companies Act 2006. They are also responsible for safeguarding
the assets of the Company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.

Under applicable law and regulations the Directors are also responsible for
preparing a Directors' Report, including a Business Review, a Corporate
Governance Statement and a Directors' Remuneration Report that comply with that
law and those

regulations.

The Directors have delegated the responsibility for the maintenance and
integrity of the corporate and financial information

included on the Company's pages of the Manager's website www.fidelity.co.uk/its
to the Manager. Legislation in the

UK governing the preparation and dissemination of financial statements may
differ from legislation in other jurisdictions.

We confirm that to the best of our knowledge: the financial statements,
prepared in accordance with the applicable set of

accounting standards, give a true and fair view of the assets, liabilities,
financial position and profit or loss of the Company; and the Directors' Report
includes a fair review of the development and performance of the business and
the position

of the Company together with a description of the principal risks and
uncertainties it faces.

Approved by the Board on 4 November 2013 and signed on its behalf by

Lynn Ruddick

Chairman

Enquiries:

Glenn Williamson - Head of Investment Trusts, FIL Investments International -
01732 777577

Keren Holland - Corporate Communications, FIL Investments International - 0207
074 5262

Christopher Pirnie - Company Secretary, FIL Investment International, - 01737
837929

Income Statement for the year ended 31 August 2013

                                    2013                       2012            
                                                                               
                           revenue  capital    total    revenue  capital  total  
                                                                               
                             £'000    £'000    £'000      £'000    £'000  £'000  
                                                                               
 Gains on investments            -  120,875  120,875          -   35,457 35,457 
                                                                               
 Gains on long CFDs              -   25,387   25,387          -      557    557    
                                                                               
 (Losses)/gains on short         -  (6,740)  (6,740)          -       36     36     
 CFDs, futures and options                                                     
                                                                               
 UK dividends                9,454        -    9,454      9,513        -  9,513  
                                                                               
 UK scrip dividends            737        -      737        908        -    908    
                                                                               
 Overseas dividends          1,049        -    1,049        857        -    857    
                                                                               
 Overseas scrip dividends    1,194        -    1,194          -        -      -      
                                                                               
 Income from REIT                -        -        -         92        -     92     
 investments                                                                   
                                                                             
 Dividends received on      3,209         -    3,209        447        -    447    
 long CFDs                                                                     
                                                                               
 Interest received on          43         -       43         42        -     42     
 short CFDs                                                                    
                                                                               
 Deposit interest              24         -       24         66        -     66     
                                                                               
 Interest paid on long      (789)         -    (789)      (341)        -   (341)  
 CFDs                                                                           
                                                                               
 Dividends paid on short    (734)         -    (734)      (502)        -   (502)  
 CFDs                                                                          
                                                                               
 Investment management fee(4,269)         -  (4,269)    (3,412)        - (3,412)
                                                                               
 Other expenses             (635)         -    (635)      (547)        -   (547)  
                                                                               
 Exchange gains/(losses)       -         19       19         -      (117)  (117)  
 on other net assets                                                           
                                                                               
 Net return on ordinary     9,283    139,541  148,824    7,123    35,933   43,056 
 activities before                                                             
 taxation                                                                      
                                                                               
 Taxation on return on       (44)     -        (44)        228      -        228    
 ordinary activities(¹)                                                        
                                                                               
 Net return on ordinary     9,239    139,541  148,780    7,351    35,933   43,284 
 activities after taxation                                                     
 for the year                                                                  
                                                                               
 Return per ordinary share 17.02p   257.01p  274.03p    13.25p   64.78p   78.03p 
                                                                               

(¹) This relates to overseas taxation only.

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.

Balance Sheet as at 31 August 2013

Company number 2972628

                                                          2013        2012
                                                                          
                                                         £'000       £'000
                                                                          
 Fixed assets                                                             
                                                                          
 Investments                                           424,387     326,618
                                                                          
 Current assets                                                           
                                                                          
 Derivative assets                                     31,333      3,839  
                                                                          
 Debtors                                               2,515       5,247  
                                                                          
 Amounts held at futures clearing houses and brokers   -           1,236  
                                                                          
 Cash at bank                                          25,715      8,451  
                                                                          
                                                       59,563      18,773 
                                                                          
 Creditors                                                                
                                                                          
 Derivative liabilities                                (1,864)     (5,115)
                                                                          
 Other creditors                                       (3,626)     (1,652)
                                                                          
                                                       (5,490)     (6,767)
                                                                          
 Net current assets                                    54,073      12,006 
                                                                          
 Total net assets                                      478,460     338,624
                                                                          
 Capital and reserves                                                     
                                                                          
 Share capital                                         13,532      13,594 
                                                                          
 Share premium account                                 95,767      95,767 
                                                                          
 Capital redemption reserve                            3,256       3,194  
                                                                          
 Other non-distributable reserve                       5,152       5,152  
                                                                          
 Capital reserve                                       349,724     212,058
                                                                          
 Revenue reserve                                       11,029      8,859  
                                                                          
 Total equity Shareholders' funds                      478,460     338,624
                                                                          
 Net asset value per ordinary share                    883.93p     622.71p
                                                                          

Reconciliation of Movements in Shareholders' Funds

for the year ended 31 August 2013

                  share    share     capital     other non-   capital  revenue     total
                                                                                        
                capital  premium  redemption  distributable   reserve  reserve    equity
                                                                                        
                  £'000  account     reserve        reserve     
                                                                                        
                           £'000       £'000          £'000     £'000     £'000    £'000              
                                                                                        
 Opening        13,594   95,767   3,194       5,152          212,058   8,859    338,624 
 Shareholders'                                                                          
 funds:                                                                                 
 1 September                                                                            
 2012                                                                                   
                                                                                        
 Repurchase of  (62)     -        62          -              (1,875)   -        (1,875) 
 ordinary                                                                               
 shares                                                                                 
                                                                                        
 Net return on  -        -        -           -              139,541   9,239    148,780 
 ordinary                                                                               
 activities                                                                             
 after                                                                                  
 taxation for                                                                           
 the year                                                                               
                                                                                        
 Dividend paid  -        -        -           -              -         (7,069)  (7,069) 
 to                                                                                     
 Shareholders                                                                           
                                                                                        
 Closing        13,532   95,767   3,256       5,152          349,724   11,029   478,460 
 Shareholders'                                                                          
 funds:                                                                                 
 31 August                                                                              
 2013                                                                                   
                                                                                        
 Opening        14,131   95,767   2,657       5,152          186,987   7,827    312,521 
 Shareholders'                                                                          
 funds:                                                                                 
 1 September                                                                            
 2011                                                                                   
                                                                                        
 Repurchase of  (537)    -        537         -              (10,862)  -        (10,862)
 ordinary                                                                               
 shares                                                                                 
                                                                                        
 Net return on  -        -        -           -              35,933    7,351    43,284  
 ordinary                                                                               
 activities                                                                             
 after                                                                                  
 taxation for                                                                           
 the year                                                                               
                                                                                        
 Dividend paid  -        -        -           -              -         (6,319)  (6,319) 
 to                                                                                     
 Shareholders                                                                           
                                                                                        
 Closing        13,594   95,767   3,194       5,152          212,058   8,859    338,624 
 Shareholders'                                                                          
 funds:                                                                                 
 31 August                                                                              
 2012                                                                                   
                                                                                        

Cash Flow Statement for the year ended 31 August 2013

                                                          year          year
                                                         ended         ended
                                                      31.08.13      31.08.12
                                                                            
                                                         £'000         £'000
                                                                            
  Operating activities                                                      
                                                                            
  Investment income received                         10,335        10,480   
                                                                            
  Net derivative income/(expenses)                   1,596         (354)    
                                                                            
  Deposit interest received                          22            67       
                                                                            
  Investment management fee paid                     (4,064)       (4,325)  
                                                                            
  Directors' fees paid                               (137)         (160)    
                                                                            
  Other cash payments                                (617)         (666)    
                                                                            
  Net cash inflow from operating activities          7,135         5,042    
                                                                            
  Taxation                                                                  
                                                                            
  Overseas taxation recovered                        27            249      
                                                                            
  Taxation recovered                                 27            249      
                                                                            
  Financial investments                                                     
                                                                            
  Purchase of investments                            (369,725)     (147,520)
                                                                            
  Disposal of investments                            400,121       157,186  
                                                                            
  Net cash inflow from financial investments         30,396        9,666    
                                                                            
  Derivative activities                                                     
                                                                            
  Payments on CFDs                                   (7,778)       (1,441)  
                                                                            
  Movements on amounts held at futures clearing      1,236         4,123    
  houses and brokers                                                        
                                                                            
  Payments on futures                                (4,415)       -        
                                                                            
  Premium paid on options                            -             (281)    
                                                                            
  Premium received on options                        -             263      
                                                                            
  Net cash (outflow)/inflow from derivative          (10,957)      2,664    
  activities                                                                
                                                                            
  Dividend paid to Shareholders                      (7,069)       (6,319)  
                                                                            
  Net cash inflow before financing                   19,532        11,302   
                                                                            
  Financing                                                                 
                                                                            
  Repurchase of ordinary shares                      (2,287)       (10,450) 
                                                                            
  Net cash outflow from financing                    (2,287)       (10,450) 
                                                                            
  Increase in cash                                   17,245        852      
                                                                            

The above statements have been prepared on the basis of the accounting policies
as set out in the annual financial statements to 31 August 2013. This
preliminary statement, which has been agreed with the Auditor, was approved by
the Board on 4

November 2013. It is not the Company's statutory financial statements.  The
statutory financial statements for the financial year ended 31 August 2012 have
been delivered to the Registrar of Companies. The statutory financial
statements for the financial year ended 31 August 2013 have been approved and
audited but have not yet been filed. The statutory financial statements for the
financial years ended 31 August 2012 and 31 August 2013 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 13 November 2013.