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Fidelity AsianValues (FAS)

  Print      Mail a friend       Annual reports

Tuesday 29 March, 2016

Fidelity AsianValues

Half-yearly Report

Fidelity Asian Values PLC (“the Company”)

Announcement of unaudited Half-Yearly results for the 6 months ended 31 January 2016

Investment Objective and Performance Summary

To achieve long term capital growth through investment principally in the stockmarkets of the Asian Region (excluding Japan).

Performance for the six months ended 31 January 2016 (Total Return)

Six months ended 
31 January 
2016 
Net Asset Value (“NAV”) per Ordinary Share (undiluted) +3.1% 
Ordinary Share Price +1.2% 
MSCI All Countries Asia ex Japan Index in £ Sterling terms* -6.6% 

One Year Performance (on a total return basis)

01/01/15 to 31/01/16 01/02/14 to 31/01/15 01/02/13 to 31/01/14 01/02/12 to 31/01/13 01/02/11 to 31/01/12
NAV per Ordinary Share – undiluted -1.8 +24.0 +0.4 +10.0 -9.8
NAV per Ordinary Share – diluted n/a n/a n/a +8.5 -8.4
Ordinary share price -2.9 +25.3 +1.0 +4.6 -7.7
MSCI All Countries Asia ex Japan Index in £ Sterling terms* -13.4 +21.3 -6.3 +12.1 -5.7

*   The Company’s Comparative Index from 1 August 2015. Prior to that date it was the MSCI All Countries Far East ex Japan Index (net) £ Sterling terms

Sources: Fidelity and Datastream

Past performance is not a guide to future returns

The Company is a member of the Association of Investment Companies

Financial Summary

31 
January 
2016 
31 
July 
2015 
Assets
Total Gross Asset Exposure1 £179.1m  £162.9m 
Shareholders’ Funds £183.1m  £178.9m 
NAV per Ordinary Share – undiluted 271.28p  265.14p 
Gearing2 -2.2%  -9.0% 
Share price and Discount data
Ordinary Share Price at period end 237.75p  236.88p 
Period high 247.00p  284.00p 
Period low 197.25p  223.00p 
Discount to NAV at period end 12.4%  10.7% 
Period high 14.4%  13.3% 
Period low 7.8%  7.5% 
Results for the six months to 31 January 2016  2015 
Revenue return per Ordinary Share 2.05p  0.22p 
Capital return per Ordinary Share 6.09p  23.34p 
Total return per Ordinary Share 8.14p  23.56p 
Total returns (includes reinvested income) for the six months to 31 January 2016  2015 
NAV per Ordinary Share – undiluted +3.1%  +9.2% 
Ordinary Share Price +1.2%  +10.8% 
MSCI All Countries Asia ex Japan Index in £ Sterling terms3 -6.6%  +8.2% 

1   The value of the portfolio exposed to market price movements

2   Total Gross Asset Exposure less than Shareholders’ Funds

3   The Company’s Comparative Index from 1 August 2015. Prior to that date it was the MSCI All Countries Far East ex Japan Index (net) in £ Sterling terms

Sources: Fidelity and Datastream

Past performance is not a guide to future returns

Interim Management Report

Performance

Over the six months to 31 January 2016, the Company’s net asset value strongly outperformed the MSCI All Countries Asia ex Japan Index (the Company’s Comparative Index). The Company’s NAV returned 3.1%, compared with a fall of 6.6% for the Company’s Comparative Index. Share price return was 1.2%, the discount having widened from 10.7% at the start of the period to 12.4% at the end (all figures in £ Sterling terms and on a total return basis). While the numbers are encouraging, it should be noted that six months is a short period and the Portfolio Manager’s investment horizon is typically three to five years.

Markets

The ebb and flow of markets resulting from normal business cycles was evident in the six-month period ended 31 January 2016 as most equity market indices declined due to concern regarding sustainability of the existing economic direction in China, and its resultant impact on the rest of the world. However, due to the weakness in £ Sterling, the decline in Asian equities in £ Sterling terms was less than in local currencies. Surprisingly, small-cap equities outperformed large-cap equities in Asia during this period. This may have been due to large cap indices being dominated by commodity and financial industries.

Portfolio Review

The Company’s outperformance relative to the Comparative Index was driven by strong stock selection. The key contributors and detractors to performance are outlined below.

Key Contributors:

During the six-month period, the most rewarding holdings were New Oriental Education & Technology, Power Grid Corporation of India and HM Sampoerna.

•    New Oriental Education & Technology is the largest after school tutoring service in China with a strong competitive position and pricing power. The business had been going through a period of substantial investment last year leading to low margins. As margins started to increase, the market took notice of the stock.

•    Power Grid Corporation of India is a government-owned monopoly business with strong earnings growth benefiting from a stable regulatory regime. It has a history of generating strong returns over cycles and is at an attractive valuation.

•    HM Sampoerna is majority-owned by Philip Morris. The company is one of the largest cigarette-makers in Indonesia and has been gaining market share due to the strength of its brands. The highly cash generative business is run efficiently and enjoys strong pricing power. The position was sold in January as the stock price rallied and its valuation became expensive.

Key Detractors:

Positions that had a negative impact on performance during the period under review include International Housewares Retail, Slater & Gordon and China Mengniu Dairy.

•    International Housewares Retail has not performed as well as was hoped but remains a high conviction position. It is a Hong Kong based retail chain focused on house wares. It has more than a 50% share in the Hong Kong market and more than a 10% share in the Singapore market. As a result of its understanding of its customer base, sourcing ability and logistics network, it maintains a strong position in both markets and is substantially larger than the second largest player. Its competitive position is much stronger in Hong Kong, where it has been operating for 25 years and which accounts for more than 100% of its profits, as its operations in Singapore and China are losing money.

•    Slater & Gordon was a relatively small position after it was reduced in the middle of 2015 to mitigate the unfavourable impact from the news flow relating to Quindell’s accounting practices. Towards the end of the year the position was sold in light of expectations of a potential regulatory change in the UK which would dramatically reduce the number of claims available for the company to process.

•    China Mengniu Dairy was held for its strong position in the Chinese market where per capita milk consumption is only 25% of the world’s average. The government’s unprecedented focus on dairy quality after recent milk contamination issues has been driving out small players. However, due to the current deflationary environment, volume growth and price hikes have been difficult, while promotion costs and store rollouts are eroding margins. As a result, the position was liquidated.

Investment strategy

Over the last six months, the Company’s net exposure to cash was reduced from 9.0% as at 31 July 2015 to 2.2% as at 31 January 2016, as the Portfolio Manager found more investment opportunities across the region, particularly in China and India.

For example, a holding in Ascendas India Trust was added to the portfolio. This is a Singapore-listed business trust that owns and develops real estate in India for business use. The trust is favoured for its strong portfolio of properties and high yields. The trust is acquiring new properties and seeing positive rental revisions in cities like Bangalore. In India, the Portfolio Manager also initiated a new position in Mphasis, an IT services company owned by Hewlett Packard, at an attractive valuation. After a decline in business from its parent company, it is focusing its efforts on acquiring new customers and improving its margins.

In China, a position in Anhui Expressway was added. This company operates and develops toll expressways and highways in China’s Anhui province. It has a highly cash generative business model, and is also profiting from the tailwind of positive policy changes that would ensure a healthy 8% return. After recent consolidation, its parent company will become the only toll road platform in the Anhui province which supports stable toll road business growth.

OUTLOOK

Ongoing accommodative monetary policies, weak commodity prices and reforms in key Asian economies should continue to underpin a positive outlook for the region. Although economic growth in the region is likely to moderate in line with slowing growth in China, it will still be very attractive compared to the rest of the world. Most investors see the slowdown in the Chinese economy as a negative development, despite the focus on the quality of growth rather than the quantity, and this is expected to keep markets volatile in the near term. In the current market correction, stocks are being sold off indiscriminately, with many high quality stocks with strong long-term outlooks being sold down along with the low quality ones. As a result, Asian valuations are near, or in some cases, below the 2007 global financial crisis levels. This is a promising backdrop for bottom-up stock pickers and there are diverse investment opportunities across a wide range of markets in Asia that offer exceptional growth potential at attractive valuations.

CHANGE OF BENCHMARK

As explained in the Annual Report for the year ended 31 July 2015 and with effect from 1 August 2015, the Company adopted the MSCI All Countries Asia ex Japan Index as its Comparative Index. As this Index is widely used by the Company’s peers, the Board felt that it was more appropriate as a comparative index. In particular, this Index includes India, an Asian market, and one in which the Portfolio Manager is likely to find significant investment opportunities for shareholders.

CHANGE TO THE COMPANY’S INVESTMENT POLICY

Following the appointment of Nitin Bajaj as the Company’s Portfolio Manager and in order to enhance investment returns and provide greater flexibility in how he can implement his stock selection strategy, the Board sought and received approval by shareholders at the Annual General Meeting on 30 November 2015, to extend the ways in which derivatives can be used by the Company and to clarify and make certain consequential changes to the Company’s investment policy. The Board will continue to maintain guidelines in respect of the net market exposure, the purpose of which is to aim to limit an increase in NAV volatility although this may not be possible in extreme market conditions. Full details of the changes are in the Circular dated 21 October 2015.

OTHER MATTERS

Board Changes

Following the retirement of William Knight from the Board at the conclusion of the Annual General Meeting on 30 November 2015, Philip Smiley was appointed as Senior Independent Director. The Board was also pleased to welcome Timothy Scholefield as a non-executive Director of the Company on 30 September 2015. He was subsequently elected by shareholders at the Annual General Meeting on 30 November 2015.

Fee arrangements

With effect from 1 August 2015, the Company’s annual management charge (“AMC”) changed to a tiered pricing structure. The AMC is now charged at a rate of 0.90% on the Company’s first £200 million of gross assets and then at a rate of 0.85% on any gross assets above £200 million. Prior to this, the AMC was charged at 1% of gross assets. At the same time, the secretarial and administration fee was fixed at £75,000 per annum.

Treasury Shares

At the Annual General Meeting on 30 November 2015, shareholders approved the use of Treasury shares by the Company. Ordinary shares repurchased by the Company up to a maximum of 5% of the issued share capital of the Company will either be held in Treasury or cancelled. Any shares held in Treasury would only be re-issued at a premium to NAV per share.

During the six months to 31 January 2016, no ordinary shares had been repurchased for holding in Treasury or for cancellation and none have been repurchased as at the date of this 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 controls 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 in the following categories: market risk; performance risk; discount controls risk; gearing risk; currency risk; tax and regulatory risks; and operational risks. Information on each of these can be found in the Strategic Report section of the Annual Report for the year ended 31 July 2015.

Related party transactions

There have been no related party transactions during the six month period to 31 January 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 Annual Report for the year ended 31 July 2015.

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

By Order of the Board

FIL Investments International

29 March 2016

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 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.

For and on behalf of the Board

Kate Bolsover

Chairman

29 March 2016

Twenty Largest Investments as at 31 January 2016

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

 
Gross 
Asset 
Exposure 
£’000 
%1  Fair 
Value 
£’000 
Taiwan Semiconductor Manufacturing2 – Taiwan
Integrated circuit related products developer, manufacturer and distributor
7,882  4.3  3,999 
Power Grid Corporation of India – India
Operator of the Indian national electricity grid
7,495  4.1  7,495 
Religare Health Trust – Singapore
Hospital operator
5,228  2.9  5,228 
Tisco Financial Group – Thailand
Auto finance bank
5,103  2.8  5,103 
New Oriental Education & Technology – China
Educational services provider
4,818  2.6  4,818 
WPG Holding – Taiwan
Semiconductor and core components distributor
4,165  2.3  4,165 
Zhejiang Supor Cookware2 – China
Cookware manufacturer and distributor
3,848  2.1  1,866 
LT Group – Philippines
Banking, beverages, spirits, tobacco and property development group
3,696  2.0  3,696 
HDFC Bank – India
Private sector bank
3,551  1.9  3,551 
G8 Education – Australia
Day care centre operator
3,542  1.9  3,542 
Ascendas India Trust – Singapore
Owner and developer of real estate in India for business use
3,348  1.8  3,348 
Zhaopin – China
Careers website operator
3,072  1.7  3,072 
WT Microelectronics – Taiwan
Semiconductor products distributor
2,944  1.6  2,944 
Cognizant Technology Solutions – USA
Information technology consulting and applications provider
2,823  1.5  2,823 
SK Hynix – South Korea
Semiconductor and memory chip manufacturer and supplier
2,704  1.5  2,704 
Supalai – Thailand
Residential property developer
2,648  1.4  2,648 
Mapletree Commercial Trust – Singapore
Real estate investment trust
2,450  1.3  2,450 
International Housewares Retail – Hong Kong
Housewares retail chain
2,297  1.3  2,297 
Essel Propack – India
Tube packaging manufacturer
2,274  1.3  2,274 
Gudang Garam – Indonesia
Cigarettes manufacturer and distributor
2,142  1.2  2,142 
Twenty Largest Investments 76,030 41.5 70,165
Other Investments 103,108 56.3 102,753
Total Gross Asset Exposure 179,138 97.8
Total Portfolio Fair Value3 172,918
Net Current Assets 10,163
Shareholders’ Funds 183,081

   

1  Gross Asset exposure expressed as a percentage of Shareholders’ Funds
2  Investment is via shares and a long Contract for Difference (“CFD”). The CFD provides exposure to movements in the underlying share price in excess of the fair value
3  Total Portfolio Fair Value comprises £172,766,000 of investments plus £189,000 of derivative assets and less £37,000 of derivative liabilities, as shown on the Balance Sheet

Condensed Income Statement

six months ended
31 January 2016
unaudited 
six months ended
31 January 2015
unaudited 
year ended
31 July 2015
audited 
revenue  capital  total  revenue  capital  total  revenue  capital  total 
Notes  £’000  £’000  £’000  £’000  £’000  £’000  £’000  £’000  £’000 
Gains on investments at fair value through profit or loss –  3,139  3,139  –  14,626  14,626  –  1,589  1,589 
Gains on derivative instruments at fair value through profit or loss –  205  205  –  1,199  1,199  –  4,352  4,352 
Income 3 2,766  –  2,766  1,600  –  1,600  4,527  –  4,527 
Investment management fee (822) –  (822) (1,020) –  (1,020) (2,018) –  (2,018)
Other expenses (359) –  (359) (320) –  (320) (622) –  (622)
Exchange gains on other net assets 10  700  710  24  271  295  24  19  43 
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net return before finance costs and taxation 1,595  4,044  5,639  284  16,096  16,380  1,911  5,960  7,871 
Finance costs (13) –  (13) (66) –  (66) (101) –  (101)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net return on ordinary activities before taxation 1,582  4,044  5,626  218  16,096  16,314  1,810  5,960  7,770 
Taxation on return on ordinary activities 4 (197) 65  (132) (71) (343) (414) (287) (566) (853)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net return on ordinary activities after taxation for the period 1,385  4,109  5,494  147  15,753  15,900  1,523  5,394  6,917 
========== ========== ========== ========== ========== ========== ========== ========== ==========
Return per ordinary share 5 2.05p  6.09p  8.14p  0.22p  23.34p  23.56p  2.26p  7.99p  10.25p 
========== ========== ========== ========== ========== ========== ========== ========== ==========

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 period.

Condensed Statement of Changes in Equity

share  capital  other 
share  premium  redemption non-distributable  other  capital  revenue  total 
capital  account  reserve  reserve  reserve  reserve  reserve  equity 
Note  £’000  £’000  £’000  £’000  £’000  £’000  £’000  £’000 
Six months ended 31 January 2016 (unaudited)
As at 1 August 2015 16,872  20,232  3,197  7,367  8,613  120,496  2,160  178,937 
Net return on ordinary activities after taxation for the period –  –  –  –  –  4,109  1,385  5,494 
Dividend paid to shareholders 6 –  –  –  –  –  –  (1,350) (1,350)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
As at 31 January 2016 16,872  20,232  3,197  7,367  8,613  124,605  2,195  183,081 
========== ========== ========== ========== ========== ========== ========== ==========
Six months ended 31 January 2015 (unaudited)
As at 1 August 2014 16,872  20,232  3,197  7,367  8,613  115,102  1,379  172,762 
Net return on ordinary activities after taxation for the period –  –  –  –  –  15,753  147  15,900 
Dividend paid to shareholders 6 –  –  –  –  –  –  (742) (742)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
As at 31 January 2015 16,872  20,232  3,197  7,367  8,613  130,855  784  187,920 
========== ========== ========== ========== ========== ========== ========== ==========
Year ended 31 July 2015 (audited)
As at 1 August 2014 16,872  20,232  3,197  7,367  8,613  115,102  1,379  172,762 
Net return on ordinary activities after taxation for the year –  –  –  –  –  5,394  1,523  6,917 
Dividend paid to shareholders 6 –  –  –  –  –  –  (742) (742)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
As at 31 July 2015 16,872  20,232  3,197  7,367  8,613  120,496  2,160  178,937 
========== ========== ========== ========== ========== ========== ========== ==========

Condensed Balance Sheet

Company No. 3183919

31.01.16 
unaudited 
31.07.15 
audited 
31.01.15 
unaudited 
Notes  £’000  £’000  £’000 
Fixed assets
Investments at fair value through profit or loss 7 172,766  162,858  183,447 
---------- ---------- ----------
Current assets
Derivative assets at fair value through profit or loss 7 189  –  3,935 
Debtors 2,917  3,737  1,476 
Amounts held in margin accounts 329  –  – 
Cash at bank 8,203  14,366  972 
---------- ---------- ----------
11,638  18,103  6,383 
---------- ---------- ----------
Creditors
Derivative liabilities at fair value through profit or loss 7 (37) –  (727)
Other creditors (1,286) (2,024) (1,183)
---------- ---------- ----------
(1,323) (2,024) (1,910)
---------- ---------- ----------
Net current assets 10,315  16,079  4,473 
---------- ---------- ----------
Net assets 183,081  178,937  187,920 
========== ========== ==========
Capital and reserves
Share capital 8 16,872  16,872  16,872 
Share premium account 20,232  20,232  20,232 
Capital redemption reserve 3,197  3,197  3,197 
Other non-distributable reserve 7,367  7,367  7,367 
Other reserve 8,613  8,613  8,613 
Capital reserve 124,605  120,496  130,855 
Revenue reserve 2,195  2,160  784 
---------- ---------- ----------
Total equity shareholders’ funds 183,081  178,937  187,920 
========== ========== ==========
Net asset value per ordinary share 9 271.28p  265.14p  278.45p 
========== ========== ==========

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 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 July 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 July 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 on ordinary activities after taxation for the period and total shareholders’ funds remain unchanged from what was 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 July 2015.

six 
months 
ended 
31.01.16 
unaudited 
£’000 
six 
months 
ended 
31.01.15 
unaudited 
£’000 
year 
ended 
31.07.15 
audited 
£’000 
3 INCOME
Income from investments
Overseas dividends 2,601  1,392  4,021 
Overseas scrip dividends 159  42  325 
Overseas interest –  –  16 
---------- ---------- ----------
2,760  1,434  4,362 
Income from derivative instruments
Dividends from long CFDs –  165  162 
Other interest
Interest on deposits
---------- ---------- ----------
Total income 2,766  1,600  4,527 
========== ========== ==========

   

 
 
 
six 
months 
ended 
31.01.16 
unaudited 
£’000 
six 
months 
ended 
31.01.15 
unaudited 
£’000 
year 
ended 
31.07.15 
audited 
£’000 
4 TAXATION ON RETURN ON ORDINARY ACTIVITIES
Revenue – taxation charged on overseas dividends 197  71  287 
Capital – Indian capital gains tax (credited)/ charged (65) 343  566 
---------- ---------- ----------
132  414  853 
========== ========== ==========

   

six 
months 
ended 
31.01.16 
unaudited 
£’000 
six 
months 
ended 
31.01.15 
unaudited 
£’000 
year 
ended 
31.07.15 
audited 
£’000 
5 RETURN PER ORDINARY SHARE
Revenue return per ordinary share 2.05p  0.22p  2.26p 
Capital return per ordinary share 6.09p  23.34p  7.99p 
---------- ---------- ----------
Total return per ordinary share 8.14p  23.56p  10.25p 
========== ========== ==========

The returns per ordinary share are based on net returns on ordinary activities after taxation and the weighted average number of ordinary shares in issue during the period. The returns for the six months ended 31 January 2016 were revenue return £1,385,000 (six months ended 31 January 2015: £147,000 and year ended 31 July 2015: £1,523,000), capital return £4,109,000 (six months ended 31 January 2015: £15,753,000 and year ended 31 July 2015: £5,394,000) and total return £5,494,000 (six months ended 31 January 2015: £15,900,000 and year ended 31 July 2015: £6,917,000). The weighted average number of ordinary shares in issue for the six months ended 31 January 2016 was 67,488,213 (six months ended 31 January 2015: 67,488,213 and year ended 31 July 2015: 67,488,213).

six 
months 
ended 
31.01.16 
unaudited 
£’000 
six 
months 
ended 
31.01.15 
unaudited 
£’000 
year 
ended 
31.07.15 
audited 
£’000 
6 DIVIDENDS PAID TO SHAREHOLDERS
Dividend of 2.00 pence per ordinary share paid on 10 December 2015 in respect of the year ended 31 July 2015 1,350  –  – 
Dividend of 1.10 pence per ordinary share paid on 16 December 2014 in respect of the year ended 31 July 2014 –  742  742 
---------- ---------- ----------
1,350  742  742 
========== ========== ==========

No dividend has been declared in respect of the six months to 31 January 2016.

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:

31 January 2016  31 July 2015  31 January 2015 
unaudited  audited  unaudited 
Level 1  Level 2  Level 1  Level 2  Level 1  Level 2 
£’000  £’000  £’000  £’000  £’000  £’000 
Financial instruments held at fair value
Fixed assets – investments in listed equities  172,766  –  162,858  –  183,447  – 
Derivative assets –
long CFDs 
–  189  –  –  –  3,935 
Derivative liabilities – long CFDs  –  (23) –  –  –  (727)
Derivative liabilities – written put options  –  (14) –  –  –  – 
---------- ---------- ---------- ---------- ---------- ----------
172,766  152  162,858  –  183,447  3,208 
========== ========== ========== ========== ========== ==========

   

31.01.16   31.07.15  31.01.15 
unaudited  audited  unaudited 
number
of shares 
£’000  number
of shares 
£’000  number
of shares 
£’000 
8          SHARE CAPITAL
Ordinary shares of 25 pence each – issued, allotted and fully paid 
At the beginning of the period 67,488,213  16,872  67,488,213  16,872  67,488,213  16,872 
---------- ---------- ---------- ---------- ---------- ----------
At the end of the period 67,488,213  16,872  67,488,213  16,872  67,488,213  16,872 
========== ========== ========== ========== ========== ==========

9   NET ASSET VALUE PER ORDINARY SHARE

The net asset value per ordinary share is based on net assets of £183,081,000 (31 July 2015: £178,937,000 and 31 January 2015: £187,920,000) and on 67,488,213 (31 July 2015: 67,488,213 and 31 January 2015: 67,488,213) ordinary shares, being the number of ordinary shares in issue at the period end.

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:

Natalia de Sousa – Company Secretary

01737 837846

FIL Investments International

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


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