Final Results

Announcement Body Information:

FIDELITY ASIAN VALUES PLC

Preliminary Announcement of Unaudited Results

for the year ended 31 July 2002

CHAIRMAN'S STATEMENT

Performance

This has been another difficult year. The state of the American economy, and
the absence of any clear evidence of the much-anticipated recovery, have had a
depressing effect on world markets. This has been compounded by the serious
accounting and other scandals in the US that increased market volatility and
undermined investor confidence.

 

Asia has to some extent proved the exception. Although rates of growth
differed, most Asian economies showed an improvement over the previous year.
This is in part due to the structural reforms put in place after the last Asian
financial crisis, reforms which have in turn contributed to the emergence of
Asia as a consumer base and done much to boost the region's economic outlook.
Asian electronic and other exporting industries nonetheless remain heavily
dependent on the US and Europe. In the first quarter of 2002, strong export
demand from the US provided a boost to manufacturing and profit growth
expectations, but this tailed off in the second quarter as confidence declined
in the strength of any US recovery. At the same time, sterling based Asian
investors saw some of the gains registered in the rising markets of the first
quarter reduced by the fall in the US dollar.

The net asset value per share of the company rose by 0.7% in the year to 31
July 2002. The MSCI All Countries (combined) Far East Free ex Japan Index fell
by 0.34% and the share price rose by 14.4% over the same period. (All figures
in sterling terms and on a total return basis).

Gearing

As at 31 July 2002, gross gearing amounted to 33.6% of shareholders funds and
net gearing (i.e. after deducting cash held) amounted to 14.3%. As at 23
September 2002 gross gearing was 39.3% and net gearing was 20.4%. The Board
regularly reviews the gearing position of the Company in light of investment
opportunities.

As reported last year we have entered into a loan agreement with HSBC Bank Plc
for an amount of US $32 million at a fixed rate of 6.28% for a period of 5
years from 27 September 2001.

Continuation Vote

The average discount for the 12 months to 23 September 2002 was 13.8% therefore
there will not be a vote on the continuation of the Company at the AGM this
year.

Purchase of Own Shares

In the year to 31 July 2002 the Company purchased and cancelled 2,865,000
shares. Purchases are made by the Manager within guidelines laid down by the
Board and are only made if they will result in an uplift in the net asset
value.

No shares have been purchased for cancellation since the year end. 

Dividend

The Company's objective is to achieve long-term capital growth, and a dividend
will only be paid if it is necessary to do so to retain investment trust
status. Since the Company has revenue losses this year it is not required to
pay a dividend.

Directorate

Mr David FitzWilliam-Lay is retiring as a director at the forthcoming annual
general meeting. David has served as a director since the launch of the Company
in 1996. His wide experience and senior positions in the financial services
industry have made him a valuable colleague and we all wish to thank him.

Outlook

The outlook for all markets, including those in Asia, is clouded by the
prospect of military action against Iraq and the possibility of wider conflict.
As Asian markets have already made substantial gains from their lower levels,
the potential for further gains may, in any case, be limited in the short term.
However, the region remains a key beneficiary of a global economic recovery,
and should perform well once that recovery has begun.

The continuing trend of outsourcing, increased consumer demand, the rise of
brand name credibility and the many corporate and government reforms that have
occurred over the last few years, are all positive developments for Asia. In
general, we believe that Asia continues to offer many attractive long-term
investment opportunities.

Annual General Meeting

The AGM is due to take place on 28 November 2002 at Fidelity's London Cannon
Street office at midday and all shareholders, ISA, Share Plan and PEP investors
are invited to attend. The Investment Manager will be making a presentation on
Asia and the prospects for Fidelity Asian Values. Light refreshments will be
available.

Sir Victor Garland

Chairman

24 September 2002

 

Enquiries : Barbara Powley - Fidelity Investments International

01737 836883

 

FIDELITY ASIAN VALUES PLC

STATEMENT OF TOTAL RETURN (unaudited)

(incorporating the revenue account) of the Company for the year ended 31 July
2002

                                     2002                       2001           
                                                                               
                            Revenue Capital  Total    Revenue Capital   Total  
                                                                               
                             £'000   £'000   £'000     £'000   £'000    £'000  
                                                                               
Losses on investments          -     (975)   (975)       -    (35,249) (35,249)
                                                                               
Income from Overseas         1,537     -     1,537     1,709     -      1,709  
Dividends                                                                      
                                                                               
Income from Overseas Scrip     3       -       3        70       -        70   
Dividends                                                                      
                                                                               
Overseas Interest             167      -      167        -       -        -    
                                                                               
Deposit Income                89       -      89        81       -        81   
                                                                               
Investment Management Fee    (826)     -     (826)     (933)     -      (933)  
                                                                               
Other Expenses               (303)     -     (303)     (432)     -      (432)  
                                                                               
Exchange gains/(losses)        -     (257)   (257)       -       50       50   
                                                                               
Net return before finance     667   (1,232)  (565)      495   (35,199) (34,704)
costs and taxation                                                             
                                                                               
Interest payable            (1,392)    -    (1,392)   (1,621)    -     (1,621) 
                                                                               
Exchange losses on loan        -     2,007   2,007       -    (1,087)  (1,087) 
                                                                               
Return on ordinary           (725)    775     50      (1,126) (36,286) (37,412)
activities before tax                                                          
                                                                               
Tax on ordinary activities   (77)      -     (77)      (177)     -      (177)  
                                                                               

Return on ordinary activities  (802)   775   (27)     (1,303) (36,286) (37,589)
after tax attributable to                                                      
equity shareholders                                                            
                                                                               
Return per ordinary share     (0.85p) 0.82p (0.03p)                            
                                                                               
Basic                                                 (1.31p) (36.38p) (37.69p)
                                                                               

All revenue and capital items in the above statement derive from continuing
operations.

No operations were acquired or discontinued in the year.

BALANCE SHEET (unaudited)

as at 31 July 2002

                                                                      2002       2001   
                                                                                        
                                                                     £'000      £'000   
                                                                                        
Fixed assets                                                                            
                                                                                        
Investments                                                          76,980     81,369  
                                                                                        
Current assets                                                                          
                                                                                        
Debtors - amounts falling due within one year                         724        380    
                                                                                        
Cash at Bank                                                         4,547      3,505   
                                                                                        
Creditors - amounts falling due within one year                      5,271      3,885   
                                                                                        
                                                                    (1,078)    (23,093) 
                                                                                        
Net current assets /(liabilities)                                    4,193     (19,208) 
                                                                                        
Total assets less current liabilities                                81,173     62,161  
                                                                                        
Creditors - amounts falling due after more than one year            (20,437)      -     
                                                                                        
Total net assets                                                     60,736     62,161  
                                                                                        

Capital and Reserves                                                                  
                                                                                      
Called up share capital                                       23,376        24,092    
                                                                                      
Capital redemption reserve                                     2,330         1,614    
                                                                                      
Share premium account                                            7             7      
                                                                                      
Other reserves                                                                        
                                                                                      
Other reserve                                                 59,282        60,680    
                                                                                      
Warrant reserve                                                7,369         7,369    
                                                                                      
Capital reserve - realised                                   (24,016)      (17,292)   
                                                                                      
Capital reserve - unrealised                                  (5,981)      (13,480)   
                                                                                      
Revenue reserve                                               (1,631)        (829)    
                                                                                      
Total equity shareholders' funds                              60,736        62,161    
                                                                                      
Net asset value per ordinary share:                                                   
                                                                                      
Basic                                                          64.95        64.50p    
                                                                                      

CASH FLOW STATEMENT (unaudited)

for the year ended 31 July 2002

                                                                       2002     2001  
                                                                                      
                                                                      £'000    £'000  
                                                                                      
Operating activities                                                                  
                                                                                      
Investment income received                                            1,127    1,426  
                                                                                      
Deposit Interest received                                               88       81   
                                                                                      
Investment management fee paid                                        (628)    (928)  
                                                                                      
Directors' fees paid                                                   (64)     (37)  
                                                                                      
Other cash payments                                                   (269)    (346)  
                                                                                      
Net cash Inflow from operating activities                              254      196   
                                                                                      

Returns on Investments and servicing of finance                                        
                                                                                       
Interest paid                                                         (1,539)  (1,602) 
                                                                                       
Net cash outflow from returns on Investments and servicing of finance (1,539)  (1,602) 
                                                                                       
Taxation                                                                369            
                                                                                       
UK Income tax recovered                                                           -    
                                                                                       
Financial Investment                                                                   
                                                                                       
Purchase of investments                                               (79,853) (61,067)
                                                                                       
Realised exchange gains/(losses)                                       (244)      88   
                                                                                       
Disposal of investments                                                83,572   67,366 
                                                                                       
Net cash Inflow from financial investment                              3,475    6,387  
                                                                                       
Net cash Inflow before financing                                       2,559    4,981  
                                                                                       
Financing                                                                              
                                                                                       
Repurchase of ordinary shares                                         (1,398)  (2,516) 
                                                                                       
Exercise of warrants                                                     -        5    
                                                                                       
7.03% Fixed rate unsecured loan repaid                                (21,709)    -    
                                                                                       
6.28% Fixed rate unsecured loan drawn down                             21,709     -    
                                                                                       
Net cash Outflow from financing                                       (1,398)  (2,511) 
                                                                                       
Increase in cash                                                       1,161    2,470  
                                                                                       

The above statements have been prepared on the basis of the accounting policies
as set out in the most recently published set of annual financial statements.

The figures for the period to 31.07.01 have been extracted from the accounts
for the period ended 31.07.01 which have been delivered to the Registrar of
Companies and on which the Auditors gave an unqualified report. 

The annual report and accounts will be posted to shareholders by no later than
15 October 2002.