Half-year Report

Fidelity Special Values PLC

Announcement of unaudited Half-Yearly results for the 6 months ended 29 February 2016

The Investment Objective and Financial Highlights

The investment objective of Fidelity Special Values PLC is to achieve long term capital growth predominantly through investment in UK listed companies.

	29  February  2016	31  August  2015
Assets
Shareholders’ funds	£516.4m	£537.3m
Net Asset Value (“NAV”) per share	193.93p	201.61p
Share price and discount data
Share price at period end	187.50p	197.50p
Share price period high1	203.00p	213.30p
Share price period low1	176.00p	161.30p
Discount at period end	(3.3%)	(2.0%)
Premium period high1	1.3%	2.3%
Discount period high1	(4.7%)	(10.6%)
Total returns (includes reinvested income) for the six months to end February	2016	2015
NAV per share	-2.7%	+5.0%
Share price	-3.9%	+1.2%
FTSE All-Share Index2	-1.2%	+4.1%

¹      For the six month period to 29 February 2016 and for the year to 31 August 2015

²    The Company’s Benchmark Index

Sources: Fidelity and Datastream

Past performance is not a guide to future returns

Chairman’s Statement

RESULTS FOR THE SIX MONTHS TO
29 FEBRUARY 2016
NAV PER SHARE: -2.7%
SHARE PRICE: -3.9%
BENCHMARK INDEX: -1.2%
INTERIM DIVIDEND: 1.00p
(All performance figures are on a total return basis which includes reinvested income)

PERFORMANCE

The net asset value (“NAV”) of the Company underperformed the Benchmark Index over the six month reporting period to 29 February 2016. The environment remained challenging as emerging economies have continued to slow and the US economy has grown less than expected. The resources sectors continued to see volatility, and this is having an impact across many other areas of the economy. Although GDP growth in the UK has slowed to slightly below trend, consumer confidence is still robust. Supported by a pickup in real income growth, the longer term growth outlook appears positive.

The Company has investments in a number of areas which should benefit from strong consumer confidence in the UK, such as speciality retailers and travel and leisure companies. These areas of the market offer attractive valuations and opportunities for stock picking. There is an element of bifurcation in valuations across the market, with some companies well above their historical levels, but others much cheaper and out of favour. Given the more benign macroeconomic picture, the Board believes the market will re-appraise the prospects of the companies currently out of favour and the valuations of these companies will become more favourable. As usual, the Company’s investment portfolio has a strong contrarian flavour, and is weighted towards unloved companies rather than those companies that consensus favours.

OUTLOOK
The valuation of the market today is neither too expensive nor too cheap compared to historical levels, and with muted growth prospects, the Portfolio Manager will need strong stock picking ideas and risk management to drive performance of the Company’s NAV. The Board feels that the investment strategy in place is well aligned with the long term interests of the Company’s Shareholders.

Total return (%)	1  year	3  years	5  years	Since  launch
NAV per share	-0.6	+36.9	+65.2	+1,234.2
Share price	+6.7	+48.5	+78.8	+1,227.3
FTSE All-Share Index	-7.3	+10.8	+28.4	+328.0

The figures in the table above are as at 29 February 2016

The attribution analysis of the Company’s NAV per share return for the six months to 29 February 2016 is detailed in the table below.

Analysis of the NAV total return for the period	%
Impact of:
Index	-1.2
Stock selection (ungeared long portfolio)	-1.0
Gearing into long portfolio	-0.6
Shorts	+0.6
Hedges	+0.1
Operational Costs	-0.6
Total return for the six months to 29 February 2016	-2.7

OTHER MATTERS
Discount Management and Share Repurchases
Under the Company’s discount management policy, the Board seeks to maintain the discount in single digits in normal market conditions and will, subject to market conditions, repurchase ordinary shares with the objective of stabilising the share price discount based on the cum income NAV within a single digit range.

The level of discount has widened from 2.0% at the start of the reporting period to 3.3% as at 29 February 2016. This widening of discount gave rise to a NAV total return of -2.7% for the six months ahead of the share price total return of -3.9%. The Board continues to monitor the discount closely and will take action where it feels it to be effective.

In the six months to 29 February 2016, the Company repurchased 250,000 ordinary shares at an average discount of 3.7%. These shares are all held in Treasury.

Interim Dividend
The Board’s dividend policy is to pay dividends twice yearly in order to smooth the dividend payment throughout the year. The Company’s revenue return for the six months to 29 February 2016 was 0.95 pence per share and the Board has declared an interim dividend of 1.00 pence per share for the six month period to 29 February 2016, thereby maintaining last year’s interim dividend. This will be paid on 25 May 2016 to Shareholders on the register on 13 May 2016 (ex-dividend date 12 May 2016).

Board Changes
After six years as Chairman and nearly eleven years as a Director, I will be stepping down from the Board on 5 July 2016. I have thoroughly enjoyed serving on your Board and would like to thank Shareholders and my fellow Directors for all the support I have been given. I am delighted to say that Andy Irvine will succeed me as Chairman and I wish him every success in that role.

Lynn Ruddick
Chairman
26 April 2016

Portfolio Manager’s Half-Yearly Review

The results for the six months to 29 February 2016 are in the Chairman’s Statement in the Half-Yearly Report.

The performance of the Company over the six month period has been impacted by market volatility, and this resulted in a NAV return of -2.7% compared to -1.2% for the Benchmark Index (both figures on a total return basis). This report seeks to comment on the performance of the Company and the market over the period under review.

ECONOMIC, STOCK MARKET & PORTFOLIO REVIEW
The Benchmark Index fell by 1.2% over the six month period, as concerns about global growth resurfaced, with emerging economies continuing to slow and investors uncertain over how this would be reflected in developed markets. This compares to a fall of 2.3% over the last financial year. There have been considerable declines in the prices of oil and industrial metals, which have severely impacted the earnings of many of the UK market’s largest commodity companies. Nevertheless, the economic background remains supportive for the UK consumer for the time being. Income has continued to recover, and the combination of lower food and fuel prices and some wage growth has led to a consistent rise in household discretionary income during 2015. The recovery in consumer spending is expected to support overall economic growth in 2016 as well.

UK inflation has remained well below the Government’s 2% target, and given this environment, the likelihood of an immediate rise in interest rates remains low. However, should commodity prices continue to stabilise, inflation expectations may be revised upwards later in the year. Given the likely persistence of the international headwinds weighing on the economy, when the Bank of England does decide to increase the interest rates, it is expected to do so gradually.

It might intuitively seem sensible to invest in quality stocks (i.e. those with predictable earnings) in the face of a somewhat uncertain macroeconomic outlook. However, the last two years have seen a magnitude of outperformance which is usually associated with times of extreme economic stress, rather than modest recovery. The prices you are asked to pay for these companies today leave little margin for error.

While I am keen to reduce as far as possible any macro or thematic biases to the portfolio, in this current bifurcated market environment, a contrarian investor cannot help but be attracted to those companies that do not fit the quality perception, and where a wider range of investment outcomes is possible. Many of the ‘value’ categories have some exposure to the economic cycle. For example, banks, oil and construction stand out to me as areas that seem to be pricing in an economic downturn. While there is a good deal to be worried about in the global economy, I believe the chances of a ‘muddle-through’ scenario are much better than the market expects. If this more supportive macroeconomic picture endures, I believe the market will re-appraise the prospects of the stocks currently out of favour, and the gulf of valuations will have to narrow.

In terms of performance, the Company’s NAV fell during the period, and slightly underperformed the Benchmark Index. Overall performance was impacted by negative investment surrounding some of our key holdings in the banking sector, such as Citigroup and Bank of Ireland. Banking is one area that lagged in 2015 and early 2016, but where I continue to find opportunities. For example, Lloyds Banking Group’s stock valuation remains very attractive and in February this year it announced a significantly increased dividend, sending a strong signal to the market on the financial strength of the company. The market has been unwilling to give the company credit for these positive changes, preferring to dwell on past misdemeanours rather than its future prospects. I had increased my exposure to Lloyds as well as other banking stocks during a particularly extreme bout of investor risk aversion. I have also increased my holdings in companies with exposure to construction activity, such as Wolseley and CRH.

Several of our key holdings made a significant contribution with merger & acquisition activity remaining a key driver of portfolio returns. For example, the holding in business outsourcer Xchanging rose after the company agreed to an offer from technology consulting company Computer Sciences Corporation following a bidding war. There were other holdings where the prospects of a turnaround and growth momentum helped their shares upwards, such as bookmaker Ladbrokes and Carnival, the world’s biggest cruise company.

I have been taking the opportunity to buy shares in companies whose prices have fallen despite attractive prospects for positive change over the medium term. I am still finding a lot of new ideas among large, medium sized and small companies. I have also has been paying keen attention to the geographical source of sales within the Company, particularly looking at those companies earning non-sterling currencies in view of Brexit concerns.

OUTLOOK
Overall, the market neither looks dangerously expensive nor attractively cheap. However, digging a little deeper reveals significant differences in valuations between companies and categories. I think investors would do well to ensure that their portfolios do not rely on recent trends continuing indefinitely.

As ever, I will be spending my time researching and meeting companies, looking for those that offer some degree of downside protection but also potential for a positive change to show them in a new light. In my experience, this is the best way to deliver the capital growth over the long term.

Alex Wright
Portfolio Manager
26 April 2016

Twenty Largest Investments as at 29 February 2016

The Gross Asset Exposures shown below measure exposure to market price movements as a result of owning either shares, derivative instruments or fixed interest securities. The Fair Values shown measure the actual value on the Balance Sheet.

Shares, derivative instruments and fixed-interest securities	Gross  Asset  Exposure		Fair  value
	£’000	%1	£’000
Long exposures
Royal Dutch Shell (shares and long CFD) Oil & Gas Producers	30,725	6.0	12,761
Lloyds Banking Group (long CFD) Banks	30,546	5.9	3,705
Citigroup (shares and long CFD) Banks	28,099	5.4	25,572
CRH (long CFD) Construction & Materials	21,596	4.2	(265)
Carnival Travel & Leisure	19,587	3.8	19,587
Royal Mail (shares and long CFD) Industrial Transportation	19,242	3.7	8,339
Wolseley Support Services	18,064	3.5	18,064
Ultra Electronics Holdings Aerospace & Defence	17,141	3.3	17,141
Bank of Ireland (long CFD) Banks	14,572	2.8	(3,082)
Regus Support Services	14,049	2.7	14,049
esure Group Non-life Insurance	13,601	2.6	13,601
Homeserve Support Services	12,830	2.5	12,830
Phoenix Group Holdings Life Insurance	12,177	2.4	12,177
HP Computer Systems	11,567	2.2	11,567
Ladbrokes Travel & Leisure	11,398	2.2	11,398
UDG Healthcare (long CFD) Food & Drug Retailers	11,298	2.2	4,795
Hewlett-Packard Enterprises Information Technology Services	11,251	2.2	11,251
ICAP Financial Services	10,925	2.1	10,925
Countrywide Real Estate Investment & Services	10,552	2.1	10,552
Shire (long CFD) Pharmaceuticals & Biotechnology	10,368	2.0	(415)
Twenty largest long exposures	329,588	63.8	214,552
Other long exposures – 97 Holdings	326,331	63.2	279,870
Total long exposures before hedges	655,919	127.0	494,422
Less: Hedging exposure
FTSE 250 Index Future	(41,185)	(8.0)	853
Total long exposures after the netting of hedges	614,734	119.0	495,275
Short exposures
Total short exposures – 11 short CFD holdings	24,042	4.7	2,505
Total Gross Asset Exposure after the netting of hedges	638,776	123.7
Total Portfolio Fair Value2			497,780
Net current other assets			18,597
Shareholders’ Funds			516,377

1    Gross Asset Exposure is expressed as a percentage of Shareholders’ Funds

²    Total Portfolio Fair Value comprises £489,821,000 of Investments plus £16,940,000 of derivative assets and less £8,981,000 of derivative liabilities, as shown on the Balance Sheet in the Half-Yearly Report

Interim Management Report
The Company is required to make the following disclosures in its Half-Yearly Report:

PRINCIPAL RISKS AND UNCERTAINTIES
The Board, with the assistance of the Manager, has developed a risk matrix which, as part of the risk management and internal control process, identifies the key risks that the Company faces.

The Board believes that the principal risks and uncertainties faced by the Company continue to fall into two broad categories. The first, external risks comprising of market risk, share price risk and discount control risk and the second, internal risks comprising investment management risk and governance, operational, financial, compliance, administration etc risks. Information on each of these risks is given in the Strategic Report section of the Annual Report for the year ended 31 August 2015.

RELATED PARTY TRANSACTIONS
There have been no related party transactions during the six months to 29 February 2016 that have materially affected the financial position or the performance of the Company.

GOING CONCERN
The Board receives regular reports from the Manager and the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the Financial Statements as outlined in the Directors’ Report section of the Annual Report for the year ended 31 August 2015.

Continuation votes are held every three years and the next continuation vote will be put to Shareholders at this year’s Annual General Meeting.

DIRECTORS’ RESPONSIBILITY STATEMENT
The Directors confirm to the best of their knowledge that:

a) the condensed set of Financial Statements contained within the Half-Yearly Financial Report has been prepared in accordance with the UK Accounting Standards Board’s Statement ‘Half-Yearly Financial Reports’ and gives a true and fair view of the assets, liabilities, financial position and net return of the Company as required by the UK Listing Authority Disclosure and Transparency Rules (“DTR”) 4.2.4R; and

b) the Interim Management Report (which incorporates the Chairman’s Statement and the Portfolio Manager’s Half-Yearly Review in the Half-Yearly Report) includes a fair review of the information required by DTR 4.2.7R and 4.2.8R.

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

The Half-Yearly Financial Report was approved by the Board on 26 April 2016 and the above responsibility statement was signed on its behalf by Lynn Ruddick, Chairman.

Condensed Income Statement

					six months ended 29 February 2016 unaudited						year ended 31 August 2015 audited							six months ended 28 February 2015 unaudited
			revenue		capital		total		revenue		capital			total		revenue		capital		total
Notes			£’000		£’000		£’000		£’000		£’000			£’000		£’000		£’000		£’000
		(Losses)/gains on investments	–		(16,831)		(16,831)		–		18,355			18,355		–		18,458		18,458
		(Losses)/gains on long CFDs	–		(3,510)		(3,510)		–		21,843			21,843		–		15,594		15,594
		Gains/(losses) on short CFDs, futures and warrants	–		3,676		3,676		–		(13,239)			(13,239)		–		(11,147)		(11,147)
3		Net income	5,955		–		5,955		16,044		–			16,044		4,842		–		4,842
3		Other interest	52		–		52		155		–			155		61		–		61
		Investment management fee	(2,561)		–		(2,561)		(5,128)		–			(5,128)		(2,469)		–		(2,469)
		Other expenses	(367)		–		(367)		(788)		–			(788)		(331)		–		(331)
		Exchange gains/(losses) on other net assets	11		(94)		(83)		(5)		(490)			(495)		(3)		(186)		(189)
			----------		----------		----------		----------		----------			----------		----------		----------		----------
		Net return/(loss) before finance costs and taxation	3,090		(16,759)		(13,669)		10,278		26,469			36,747		2,100		22,719		24,819
		Finance costs	(470)				(470)		(1,063)		–			(1,063)		(455)		–		(455)
			----------		----------		----------		----------		----------			----------		----------		----------		----------
		Net return/(loss) on ordinary activities before taxation	2,620		(16,759)		(14,139)		9,215		26,469			35,684		1,645		22,719		24,364
4		Taxation on return/(loss) on ordinary activities	(90)		–		(90)		(149)		–			(149)		(69)		–		(69)
			----------		----------		----------		----------		----------			----------		----------		----------		----------
		Net return/(loss) on ordinary activities after taxation for the period	2,530		(16,759)		(14,229)		9,066		26,469			35,535		1,576		22,719		24,295
			==========		==========		==========		==========		==========			==========		==========		==========		==========
5		Return/(loss) per Ordinary Share*	0.95p		(6.29p)		(5.34p)		3.39p		9.90p			13.29p		0.59p		8.47p		9.06p
			==========		==========		==========		==========		==========			==========		==========		==========		==========

* The return per Ordinary Share figures for the six months to 28 February 2015 are restated to reflect the five for one Ordinary Share sub-division that  took place on 29 June 2015

There are no gains and losses other than those reported in this Condensed Income Statement.

The total column of the above 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 period.

Condensed Statement of Changes in Equity

Note			share  capital  £’000		share  premium  account  £’000	capital  redemption  reserve  £’000	other  non-  distributable  reserve  £’000			capital  reserve  £’000						revenue  reserve  £’000						total  equity  £’000
		Six months ended 29 February 2016 (unaudited)
		Balance at 1 September 2015	13,532		95,896	3,256		5,152						411,356						8,144						537,336
		Repurchase of Ordinary Shares	–		–	–		–						(468)						–						(468)
		Net return on ordinary activities after taxation for the period	–		–	–		–						(16,759)						2,530						(14,229)
6		Dividend paid to shareholders	–		–	–		–						–						(6,262)						(6,262)
			----------		----------	----------		----------						----------						----------						----------
		Balance at 29 February 2016	13,532		95,896	3,256		5,152						394,129						4,412						516,377
			==========		==========	==========		==========						==========						==========						==========
		Year ended 31 August 2015 (audited)
		Balance at 1 September 2014	13,532		95,767	3,256		5,152						390,883						10,629						519,219
		Issue of Ordinary Shares	–		129	–		–						603						–						732
		Repurchase of Ordinary Shares	–		–	–		–						(6,599)						–						(6,599)
		Net return on ordinary activities after taxation for the year	–		–	–		–						26,469						9,066						35,535
6		Dividend paid to shareholders	–		–	–		–						–						(11,551)						(11,551)
			----------		----------	----------		----------						----------						----------						----------
		Balance at 31 August 2015	13,532		95,896	3,256		5,152						411,356						8,144						537,336
			==========		==========	==========		==========						==========						==========						==========
		Six months ended 28 February 2015 (unaudited)
		Balance at 1 September 2014	13,532		95,767	3,256		5,152						390,883						10,629						519,219
		Repurchase of Ordinary Shares	–		–	–		–						(5,620)						–						(5,620)
		Net return on ordinary activities after taxation for the period	–		–	–		–						22,719						1,576						24,295
6		Dividend paid to shareholders	–		–	–		–						–						(8,886)						(8,886)
			----------		----------	----------		----------						----------						----------						----------
		Balance at 28 February 2015	13,532		95,767	3,256		5,152						407,982						3,319						529,008
			==========		==========	==========		==========						==========						==========						==========

Condensed Balance Sheet

Company number 2972628

				29.02.16		31.08.15		28.02.15
				unaudited		audited		unaudited
Notes				£’000		£’000		£’000
		Fixed assets
7		Investments		489,821		510,256		496,329
				----------		----------		----------
		Current assets
7		Derivative assets		16,940		28,496		36,764
		Debtors		3,336		3,172		701
		Amounts held at futures clearing houses and brokers		1,088		47		8,394
		Fidelity Institutional Liquidity Fund		14,253		500		6,603
		Cash at bank		1,689		4,682		2,000
				----------		----------		----------
				37,306		36,897		54,462
				----------		----------		----------
		Creditors
7		Derivative liabilities		(8,981)		(8,204)		(15,557)
		Other creditors		(1,769)		(1,613)		(6,226)
				----------		----------		----------
				(10,750)		(9,817)		(21,783)
				----------		----------		----------
		Net current assets		26,556		27,080		32,679
				----------		----------		----------
		Net assets		516,377		537,336		529,008
				==========		==========		==========
		Capital and reserves
8		Share capital		13,532		13,532		13,532
		Share premium account		95,896		95,896		95,767
		Capital redemption reserve		3,256		3,256		3,256
		Other non-distributable reserve		5,152		5,152		5,152
		Capital reserve		394,129		411,356		407,982
		Revenue reserve		4,412		8,144		3,319
				----------		----------		----------
		Total equity Shareholders’ funds		516,377		537,336		529,008
				==========		==========		==========
9		Net asset value per Ordinary Share*		193.93p		201.61p		198.35p
				==========		==========		==========

* The net asset value per Ordinary Share figure for 28 February 2015 is restated to reflect the five for one Ordinary Share sub-division that took place on 29 June 2015

Notes to the Condensed Financial Statements

1    RESULTS

The Condensed Financial Statements in this Half-Yearly Financial 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 figures and financial information for the year ended 31 August 2015 are extracted from the latest published Financial Statements of the Company and do not constitute the statutory accounts for that year. Those financial statements have been 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.

2    ACCOUNTING POLICIES

The Condensed Financial Statements have been prepared on a going concern basis and in accordance with UK Generally Accepted Accounting Practice (“UK GAAP”) and with the Statement of Recommended Practice: Financial Statements of Investment Trust Companies and Venture Capital Trusts (“SORP”), issued by the Association of Investment Companies in November 2014. The current financial year, ending 31 August 2016, is the first in which the Company has applied FRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland. The Company has early adopted the amendments to FRS 102: Fair value hierarchy disclosures, issued by the Financial Reporting Council (“FRC”) in March 2016. These Condensed Financial Statements are the first which have been prepared in accordance with FRS 104: Interim Financial Reporting, issued by the FRC in March 2015.

As a result of the adoption of the revised UK GAAP and SORP, presentation formats have been amended where appropriate. The Reconciliation of Movements in Shareholders’ Funds has been renamed the Statement of Changes in Equity and a Cash Flow Statement has not been presented. The Company is exempt from presenting a Cash Flow Statement as a Statement of Changes in Equity is presented and substantially all of the Company’s investments are highly liquid and are carried at market value. The net return/(loss) on ordinary activities after taxation for the period and total equity shareholders’ funds remain unchanged from what would have been reported under the former UK GAAP. Prior period figures have not required restatement and the accounting policies applied to these Financial Statements are consistent with those disclosed in the Financial Statements for the year ended 31 August 2015.

				six months ended 29.02.16		year ended 31.08.15		six months ended 28.02.15
				unaudited		audited		unaudited
				£’000		£’000		£’000
3	INCOME
	Income from investments
	UK dividends			3,442		9,146		3,555
	UK scrip dividends			–		716		–
	Overseas dividends			1,184		3,331		1,260
	Overseas scrip dividends			292		281		–
	Fixed-interest security interest			131		133		–
				----------		----------		----------
				5,049		13,607		4,815
				----------		----------		----------
	Income/(expenses) from derivative instruments
	Dividends received on long CFDs			1,291		3,366		491
	Dividends paid on short CFDs			(385)		(929)		(464)
				----------		----------		----------
				906		2,437		27
				----------		----------		----------
	Net income			5,955		16,044		4,842
				----------		----------		----------
	Other interest
	Interest received on short CFDs			27		98		24
	Interest received on deposits and money market funds			25		57		37
				----------		----------		----------
				52		155		61
				----------		----------		----------
	Total net income and other interest			6,007		16,199		4,903
				==========		==========		==========

				six months ended 29.02.16		year ended 31.08.15		six months ended 28.02.15
				unaudited		audited		unaudited
				£’000		£’000		£’000
4	TAXATION ON RETURN ON ORDINARY ACTIVITIES
	Analysis of the taxation charge/(credit) for the period
	Overseas taxation recovered			(17)		(62)		(51)
	Overseas taxation suffered			107		211		120
				----------		----------		----------
				90		149		69
				==========		==========		==========

				six months ended 29.02.16		year ended 31.08.15		six months ended 28.02.15
				unaudited		audited		unaudited
				pence		pence		pence*
5	RETURN/(LOSS) PER ORDINARY SHARE
	Revenue return per Ordinary Share			0.95p		3.39p		0.59p
	Capital (loss)/return per Ordinary Share			(6.29p)		9.90p		8.47p
				----------		----------		----------
	Total (loss)/return per Ordinary Share			(5.34p)		13.29p		9.06p
				==========		==========		==========

The return/(loss) per Ordinary Share is based on the net return/(loss) on ordinary activities after taxation for the period divided by the weighted average number of Ordinary Shares in issue held outside Treasury during the period, as shown below:

				£’000		£’000		£’000
	Net revenue return on ordinary activities after taxation			2,530		9,066		1,576
	Net capital return on ordinary activities after taxation			(16,759)		26,469		22,719
				----------		----------		----------
	Net total return on ordinary activities after taxation			(14,229)		35,535		24,295
				==========		==========		==========
				number		number		number*
	Weighted average number of Ordinary Shares in issue held outside Treasury			266,463,491		267,389,412		268,334,285
				==========		==========		==========

*    The weighted average number of Ordinary Shares in issue held outside Treasury for the six months ended 28 February 2015 is restated to reflect the five for one Ordinary Share sub-division that took place on 29 June 2015, as disclosed in Note 8 below. On the original basis the net returns per Ordinary Share were revenue return 2.94 pence, capital return 42.33 pence and total return 45.27 pence, based on the weighted average number of Ordinary Shares of 25 pence each held outside Treasury in issue of 53,666,857.

				six months ended 29.02.16		year ended 31.08.15		six months ended 28.02.15
				unaudited		audited		unaudited
				pence		pence		pence
6	DIVIDENDS
	Final dividend of 2.35 pence per Ordinary Share paid for the year ended 31 August 2015			6,262		–		–
	Interim dividend of 1.00 pence per Ordinary Share paid for the year ended 31 August 2015*			–		2,665		–
	Dividend of 3.30 pence per Ordinary Share paid for the year ended 31 August 2014*			–		8,886		8,886
				----------		----------		----------
				6,262		11,551		8,886
				==========		==========		==========

*    These dividend rates are restated to reflect the five for one Ordinary Share sub-division that took place on 29 June 2015, as disclosed in Note 8 below. The actual dividend rates paid per Ordinary Share of 25 pence each held outside Treasury were; interim dividend for the year ended 31 August 2015: 5.00 pence; and dividend for the year ended 31 August 2014: 16.50 pence.

The Company has declared an interim dividend for the six month period to 29 February 2016 of 1.00 pence per Ordinary Share to be paid on 25 May 2016 to shareholders on the register at 13 May 2016 (ex dividend date 12 May 2016). The total cost of this interim dividend, which has not been included as a liability in these financial statements, is £2,660,000. This amount is based on the number of Ordinary Shares in issue held outside Treasury at the date of this Report.

7    FAIR VALUE HIERARCHY

The Financial Reporting Council defines a fair value hierarchy that classifies financial instruments measured at fair value at one of three levels, according to the relative reliability of the inputs used to measure their fair value.

Classification             Valued by reference to

Level 1                        The unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at the measurement date.

Level 2                        Inputs other than quoted prices included within Level 1 that are observable (i.e. developed using market data) for the asset or liability, either directly or indirectly.

Level 3                        Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability.

The table below sets out the fair value hierarchy of the Company’s financial instruments held at fair value on the Balance Sheet:

				29 February 2016
				unaudited
				Level 1		Level 2		Level 3		Total
				£'000		£'000		£'000		£'000
	Financial instruments held at fair value
	Investments – shares and fixed-interest securities			489,561		–		260		489,821
	Derivative assets			–		16,940		–		16,940
	Derivative liabilities			–		(8,981)		–		(8,981)
				----------		----------		----------		----------
				489,561		7,959		260		497,780
				==========		==========		==========		==========

				31 August 2015
				audited
				Level 1		Level 2		Level 3		Total
				£'000		£'000		£'000		£'000
	Financial instruments held at fair value
	Investments – shares and fixed-interest securities			508,550		–		1,706		510,256
	Derivative assets			–		28,496		–		28,496
	Derivative liabilities			–		(8,204)		–		(8,204)
				----------		----------		----------		----------
				508,550		20,292		1,706		530,548
				==========		==========		==========		==========

				28 February 2015
				unaudited
				Level 1		Level 2		Level 3		Total
				£'000		£'000		£'000		£'000
	Financial instruments held at fair value
	Investments – shares and fixed-interest securities			491,437		–		4,892		496,329
	Derivative assets			–		36,764		–		36,764
	Derivative liabilities			–		(15,557)		–		(15,557)
				----------		----------		----------		----------
				491,437		21,207		4,892		517,536
				==========		==========		==========		==========

8    SHARE CAPITAL

On 29 June 2015 the Ordinary Shares of 25 pence each were sub-divided. Five Ordinary Shares of 5 pence each were issued for each Ordinary Share of 25 pence each. The Ordinary Shares of 5 pence each rank pari passu with each other and are subject to the same rights and restrictions as the shares they replaced. A holding of Ordinary Shares of 5 pence each following the sub?division represented the same proportion of the issued share capital of the Company as the corresponding holding in the Ordinary Shares of 25 pence each.

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

The tables below show the share capital of the Company before and after the sub-division of shares, including shares held in Treasury.

				29.02.16		31.08.15		28.02.15
				unaudited		audited		unaudited
				number of shares		number of shares		number of shares
	Ordinary Shares of 5 pence each held outside Treasury
	Beginning of the period			266,524,480		–		–
	Shares issued on the sub-division			–		266,249,480		–
	Shares issued from Treasury			–		350,000		–
	Shares repurchased into Treasury			(250,000)		(75,000)		–
				----------		----------		----------
	End of the period			266,274,480		266,524,480		–
				==========		==========		==========
	Ordinary Shares of 5 pence each held in Treasury
	Beginning of the period			4,120,000		–		–
	Shares issued on the sub-division			–		4,395,000
	Shares issued from Treasury			–		(350,000)		–
	Shares repurchased into Treasury			250,000		75,000		–
				----------		----------		----------
	End of the period			4,370,000		4,120,000		–
				==========		==========		==========
	Ordinary Shares of 25 pence each held outside Treasury
	Beginning of the period			–		54,004,896		54,004,896
	Shares repurchased into Treasury			–		(755,000)		(665,000)
	Shares cancelled on the sub-division			–		(53,249,896)		–
				----------		----------		----------
	End of the period			–		–		53,339,896
				==========		==========		==========
	Ordinary Shares of 25 pence each held in Treasury
	Beginning of the period			–		124,000		124,000
	Shares repurchased into Treasury			–		755,000		665,000
	Shares cancelled on the sub-division			–		(879,000)		–
				----------		----------		----------
	End of the period			–		–		789,000
				==========		==========		==========

				29.02.16		31.08.15		28.02.15
				unaudited		audited		unaudited
				£’000		£’000		£’000
	Ordinary Shares of 5 pence each held outside Treasury
	Beginning of the period			13,326		–		–
	Shares issued on the sub-division			–		13,312		–
	Shares issued from Treasury			–		18		–
	Shares repurchased into Treasury			(13)		(4)		–
				----------		----------		----------
	End of the period			13,313		13,326		–
				----------		----------		----------
	Ordinary Shares of 5 pence each held in Treasury
	Beginning of the period			206		–		–
	Shares issued on the sub-division			–		220		–
	Shares issued from Treasury			–		(18)		–
	Shares repurchased into Treasury			13		4		–
				----------		----------		----------
	End of the period			219		206		–
				----------		----------		----------
	Ordinary Shares of 25 pence each held outside Treasury
	Beginning of the period			–		13,501		13,501
	Shares repurchased into Treasury			–		(189)		(166)
	Shares cancelled on the sub-division			–		(13,312)		–
				----------		----------		----------
	End of the period			–		–		13,335
				----------		----------		----------
	Ordinary Shares of 25 pence each held in Treasury
	Beginning of the period			–		31		31
	Shares repurchased into Treasury			–		189		166
	Shares cancelled on the sub-division			–		(220)		–
				----------		----------		----------
	End of the period			–		–		197
				----------		----------		----------
	Total share capital			13,532		13,532		13,532
				==========		==========		==========

9    NET ASSET VALUE PER ORDINARY SHARE

The net asset value per Ordinary Share is based on net assets of £516,377,000 (31 August 2015: £537,336,000 and 28 February 2015: £529,008,000) and on 266,274,480 (31 August 2015: 266,524,480 and 28 February 2015: 266,699,480) Ordinary Shares, being the number of Ordinary Shares in issue held outside Treasury at the period end. It is the Company’s policy that shares held in Treasury will only be reissued at a premium to net asset value per Ordinary Share and, therefore, Ordinary Shares held in Treasury do not have a dilutive effect.

The number of Ordinary Shares held outside Treasury in issue at 28 February 2015 is restated to reflect the five for one Ordinary Share sub-division that took place on 29 June 2015, as disclosed in Note 8 above. On the original basis the net asset value per Ordinary Share was 991.77 pence, based on 53,339,896 Ordinary Shares of 25 pence each held outside Treasury in issue.

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

For further information, please contact:

Bonita Guntrip – Company Secretary

01737 837320

FIL Investments International

27 April 2016

ENDS

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.fidelityinvestmenttrusts.com where up to date information on the Company, including daily NAV and share prices, factsheets and other information can also be found.