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FIDELITY
ASIAN VALUES
PLC
Annual Report for the year ended 31 July 2026
Fidelity Asian Values PLC
|
Annual Report 2026
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The Company’s objective is to achieve long-term capital growth
principally from the stock markets of the Asian Region excluding Japan.
The Portfolio Manager, Nitin Bajaj, assisted
by the Co-Portfolio Manager, Ajinkya Dhavale,
aims to generate outperformance mainly
through a fundamentally-driven bottom-
up security selection approach within the
Asia Pacific ex Japan smaller companies’
universe. The focus is on investing in smaller
companies because they tend to be less
well researched, which can lead to greater
valuation anomalies. The Portfolio Managers’
fundamental analysis involves the evaluation
of various factors including, but not limited to,
stock valuation, financial strength, cash flows,
companies’ competitive advantages, business
prospects and management quality. Their style
is tilted towards value and a two to three year
investment horizon.
Clare Brady, Chairman,
Fidelity Asian Values PLC
Investment Objective and Overview
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Fidelity Asian Values PLC
|
Annual Report 2026
Year at a Glance
Total Return Performance (%)
1
5 years ended 31 July 20263 years ended 31 July 20261 year ended 31 July 2026
+23.9
+40.3
+42.4
+7.8
+6.1
+9.1
+34.8
+23.1
+32.9
NAV per Share
Share Price
Comparative Index
2
Sources: Fidelity and Datastream.
Past performance is not a guide to future returns.
1
Calculated on the basis that dividends paid to shareholders are reinvested in the Company at the ex-dividend date.
2
MSCI All Country Asia ex Japan Small Cap Index (net) total return (in sterling terms).
Share Price
total return
1,2
+7.8%
2025: +17.0%
Net Asset Value
(“NAV”) per Share
total return
1,2
+6.1%
2025: +12.4%
Dividend per Share
22.0p
2025: 20.5p
Comparative Index
total return
1,3
+9.1%
2025: +7.1%
1 Calculated on the basis that dividends paid to shareholders are reinvested in the Company at the ex-dividend date.
2 Alternative Performance Measures. See pages 82 and 83.
3 MSCI All Country Asia ex Japan Small Cap Index (net) total return (in sterling terms).
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Summary of the key aspects of the Company’s investment approach
■ The Company invests in securities of companies which the Portfolio Managers consider have fundamental value that has not been
recognised by the market.
■ The Company invests principally in the Asian Region excluding Japan and the Portfolio Managers favour small and medium-sized
companies. There are no restrictions in terms of size or industry of companies included in the portfolio and investments can be
made in unlisted securities.
■ The Company may also invest in other transferable securities, collective investment schemes, money market instruments, cash and
deposits and is also able to use derivatives for efficient portfolio management and investment purposes.
■The Company operates a variable management fee arrangement which is calculated by reference to its performance against the
Benchmark Index.
2026 2025
Assets as at 31 July
Gross Asset Exposure
1
£487.0m £470.2m
Net Market Exposure
1
£429.0m £416.6m
Total Shareholders’ Funds £389.9m £402.7m
NAV per Share
1,2
621.46p 604.69p
Gross Gearing
1,2
24.9% 16.8%
Net Gearing
1,2
10.1% 3.4%
Share Price and Discount data at 31 July
Share Price at year end 588.00p 564.00p
Year high 672.00p 566.00p
Year low 554.00p 454.00p
Discount to NAV per Share at year end
1,2
5.4% 6.7%
Discount year high 8.5% 14.5%
Discount year low 2.1% 6.7%
Results for the year ended 31 July
Revenue Return per Share
1,2
25.18p 22.51p
Capital Return per Share
1,2
10.68p 40.34p
Total Return per Share
1,2
35.86p 62.85p
Ongoing Charges for the year ended 31 July
Ongoing Charges
1,2
0.95% 0.95%
Variable Element of Management Fee
3
(0.20%) 0.14%
Ongoing Charges including Variable Element of Management Fee
2
0.75% 1.09%
1 See Glossary of Terms on pages 95 to 98.
2 Alternative Performance Measures. See pages 82 and 83.
3 The variable element of the management fee is calculated over a rolling three-year period with reference to the Benchmark Index (see Glossary of Terms on page 95 for
details of the Benchmark Index). Further detail on the variable element of the management fee is provided in the Management Fee section in the Directors’ Report on
page 32.
Financial Highlights
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Annual Report 2026
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Fidelity Asian Values PLC
STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS
Contents
Strategy
Chairman’s Statement 2
Portfolio Managers’ Review 6
Spotlight on the Top 10 Holdings 13
Forty Largest Holdings 15
Distribution of the Portfolio 17
Ten Year Record 20
Strategic Report 21
Governance
Board of Directors 31
Directors’ Report 32
Corporate Governance Statement 36
Directors’ Remuneration Report 40
Statement of Directors’ Responsibilities 43
Report of the Audit and Risk Committee 44
Financial
Independent Auditors’ Report 47
Income Statement 54
Statement of Changes in Equity 55
Balance Sheet 56
Notes to the Financial Statements 57
Alternative Performance Measures 82
Financial Calendar 84
Information for Shareholders
Notice of Meeting 85
Appendix to the Notice of Meeting 90
Shareholder Information 92
Data Protection 94
Glossary of Terms 95
Alternative Investment Fund Manager’s Disclosure 99
Chairman’s Statement
Read more on pages 2 to 5
Portfolio Managers’ Review
Read more on pages 6 to 12
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02
Fidelity Asian Values PLC
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Annual Report 2026
Chairman’s Statement
I am pleased to present the Annual Report of Fidelity Asian
Values PLC (the ‘Company’) for the year ended 31 July 2026.
Given another year of heightened geopolitical volatility –
including the unprecedented disruption of energy markets – it is
gratifying to report another year of solid absolute returns.
In the period under review, the Company’s Share price total
return was +7.8% (2025: +17.0%), assisted by a further narrowing
of the Share price discount to NAV, from 6.7% at 31 July 2025 to
5.4% at the year end. The Company’s net asset value (‘NAV’) per
Share total return was +6.1% (2025: +12.4%), compared with a net
total return of +9.1% (2025: +7.1%) from the Comparative Index,
the MSCI All Country Asia ex Japan Small Cap Index in sterling
terms (‘Index’).
Several factors influenced the investment outcome on both an
absolute and a relative basis. During the year, the weighting of
information technology (‘IT’) stocks in the Index rose from around
19% to approximately 27%. The decision to reduce portfolio
exposure to the IT sector early in the period therefore detracted
from relative performance, although individual holdings such
as Taiwan Semiconductor Manufacturing Company (TSMC), the
portfolio’s largest position, performed extremely well. Strong
general performance from Taiwanese technology stocks meant
that the portfolio’s substantial underweight position in these
stocks detracted relative to the Index. Overweight allocations
to China and Indonesia also weighed on performance, with
Indonesia’s market performance being weak in absolute terms.
The greatest positive contributions to relative performance
came from the portfolio’s underweight position and good stock
selection in South Korea, and the underweight position in India,
which the Portfolio Managers, Nitin Bajaj and Ajinkya Dhavale,
continue to regard as overvalued in aggregate.
You will find detailed information on these points and the
portfolio’s performance in the Portfolio Managers’ Review on
the following pages. In a year dominated by narrow market
leadership from momentum-driven AI-related stocks, Nitin and
Ajinkya have delivered a very good absolute return from a
diversified portfolio. Their strategy remains bottom-up, contrarian
and value-focused. In thematically driven markets such as
these, their approach can make the Company an excellent risk
diversifier within a broader portfolio.
30th Anniversary and long-term performance
The Company was launched in June 1996 and recently marked
its 30th anniversary with an event at the London Stock Exchange
(pictured). Alongside the Board, Nitin and representatives from
Fidelity and other service providers, we had the pleasure of
welcoming a number of shareholders, including two who had
first invested at the IPO and two younger investors who hold the
Company in their Junior ISAs.
As I noted on the day, Asia’s place in the world economy has
transformed over the past 30 years. China is now the world’s
second largest economy and economic development has lifted
around one billion people out of poverty across the region. Every
£1 invested in the Company at IPO, assuming all dividends were
reinvested, would have grown to £8.44 on a NAV basis and £8.36
on a Share price basis by the end of July 2026. This is particularly
Clare Brady – I am pleased to
present the Annual Report of Fidelity
Asian Values PLC (the “Company”)
for the year ended 31 July 2026.
£389.9m
(As at 31 July 2026)
Total Shareholders’ Funds
+7. 8 %
(Year ended 31 July 2026)
Share Price total return
+6.1%
(Year ended 31 July 2026)
Net Asset Value per Share
total return
+9.1%
(Year ended 31 July 2026)
Comparative Index total return
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Annual Report 2026
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Fidelity Asian Values PLC
STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS
notable given the Asian financial crisis in 1997, during which the
Share price fell to 33p at its lowest. The comparable return from
the Index – which would have seen £1 grow into £5.89 – while
still impressive, is substantially lower.
The strength of the long-term performance has also seen the
Company feature for the fourth successive year in the Association
of Investment Companies’ (“AIC”) ISA Millionaire list. This
considers the outcome for investors who invested their full ISA
allowance each year from 1999 and reinvested dividends. A total
investment of £346,560 in the Company from 6 April 1999 to 31
January 2026 would have grown to £1,486,912 on a Share price
total return basis.
Board Strategy Day
Since I became your Chairman, my fellow Directors and I have
held an annual Board Strategy Day to consider all the factors
that we, as non-executive Directors of an investment company,
can and should be influencing. A particular focus at this year’s
event was the strength and depth of the teams supporting Nitin
and Ajinkya in Singapore, both in research and in portfolio
construction and risk. We met with John Stavis and Sherry Tsoi,
who respectively lead the research and portfolio construction
and risk teams in Asia. These discussions reinforced our
understanding of the depth of research provided to your Portfolio
Managers by Fidelity’s exceptional team of analysts, and of
the constructive challenge applied to their stock selection and
trading decisions. With a value-focused investment style, there
is always a risk of ‘value traps’, where stocks appear cheap
not because the market has failed to recognise their inherent
value, but because they face genuine difficulties that may be
hard to overcome. It is therefore reassuring to know that robust
checks and balances are in place to ensure that only the most
compelling opportunities – on both the long and the short side
– are included in the portfolio, and that holding periods are
optimised for the best returns.
As in previous years, we also discussed the competitive
landscape, the use of gearing, distribution, marketing and PR,
as well as service provision and investment restrictions.
Discount Management and Share Repurchases
Share repurchases by the Company were higher than usual in the
first half of the financial year, with 2,816,450 Shares repurchased,
representing 4.2% of the Shares in issue at the beginning of the
year, while the discount narrowed from 6.7% to 3.3%. Discount
volatility in the wider market increased in the second half amid
heightened geopolitical uncertainty. Despite this, the discount
was largely contained between 3% and 6%. Repurchases were
significantly lower in the second half with 1,044,674 Shares
bought back, representing 1.6% of the Shares in issue at the
beginning of the year.
Some shareholders may be concerned that buybacks could
reduce the Company’s scale and, over time, its appeal to larger
investors. While the Board recognises this trade-off, repurchases
at a discount to NAV are accretive to NAV per Share and can
also help limit discount volatility and provide additional liquidity
when natural demand is weak. In the reporting year, share
repurchases enhanced NAV per Share by 0.4% (2025: 0.7%).
This should also be seen in context of the broader industry
which saw £10.2 billion of shares bought back in 2025, a 36%
increase on the year before. The Board therefore continues to use
buybacks, balancing these benefits against the impact on the
Company’s scale.
At the Annual General Meeting (‘AGM’) on 25 November 2026,
the Board will seek shareholder approval to renew the annual
authorities to repurchase up to 14.99% of its Shares in issue
(excluding Treasury Shares) and to allot up to 10% of the Shares
in issue where the Shares trade at a premium to NAV. The
Board’s policy is to repurchase Shares only at prices below the
prevailing NAV per Share and Treasury Shares will only be re-
issued at NAV per Share or at a premium to NAV per Share.
Marketing and Promotion
Share buybacks alone are unlikely to eliminate a persistent
discount to NAV; discounts are a function of supply and demand
and, as such, increasing demand is at least as important as
absorbing excess supply. Your Board continues to work with
Fidelity and external partners to raise the profile of the Company
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Fidelity Asian Values PLC
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Annual Report 2026
Chairman’s Statement continued
through digital and print advertising, sponsorship, events, direct
marketing and press coverage. Kepler Partners produce regular
research notes on the Company, which are distributed widely and
made available on the Company’s website. During the year, we
also increased the use of social media marketing and promotion,
extending our reach beyond traditional channels.
Dividend
The Board is pleased to recommend a final dividend of
22.0 pence per Share for the year ended 31 July 2026, which
represents a 7.3% increase over the previous year, for approval
by shareholders at the AGM on 25 November 2026. The dividend
will be paid on 4 December 2026 to shareholders on the register
at the close of business on 30 October 2026.
This year’s increase is supported by an increase of approximately
12% in net revenue return per Share. Your Portfolio Managers
invest principally for the long-term capital growth of your
investment, but their value-focused investment style often leads
them towards companies with conservative balance sheets and
strong cash generation, which also supports dividend payments
to shareholders.
Gearing
As an investment trust, your Company can use borrowing
and derivative instruments to increase its market exposure
(“Gearing”). This can enhance shareholder returns when the
return on the additional exposure exceeds the cost of financing,
but it can also amplify losses. The level of gross gearing
reflects the investment opportunity set available to your Portfolio
Managers. When they identify more compelling opportunities on
either the long or the short side, gross gearing may rise.
At the period end, gross gearing was 24.9% (2025: 16.8%) and
net gearing was 10.1% (2025: 3.4%). Rather than using bank
borrowing (which can be expensive depending on the prevailing
interest rate environment and is often deployed across a
portfolio on a pro-rata basis), the Company’s gearing is primarily
achieved through contracts for difference (‘CFDs’). CFDs are
derivative instruments that can be used on a security-by-security
basis, allowing Nitin and Ajinkya to increase or reduce exposure
selectively. Each year, your Board reviews the use of CFDs against
alternative forms of gearing. We have again concluded that, in
current market conditions, CFDs provide a flexible and cost-
effective form of financing and allow gearing to be deployed
selectively. We are fortunate that Fidelity has the infrastructure
and capability to allow the use of CFDs in the portfolio; few other
management groups can offer this.
Use of Short Positions
Fidelity’s expertise in derivative instruments also enables
your Portfolio Managers to take short positions. Ajinkya has
significant experience in this area, having spent several years as
a specialist shorting analyst for Fidelity. A short position seeks
to benefit from an anticipated fall in the price of a stock or the
value of an index. These positions may be held for relatively long
periods as it can take time for the investment thesis to play out.
The total short exposure as of 31 July 2026 was 6.9% of net assets
(2025: 6.7%). Short exposure has historically been limited to a
maximum of 10% of net assets. However, while relatively small in
scope, this tool has generally been additive to the Company’s
performance since its introduction.
Your Portfolio Managers currently see a broad range of
opportunities to short stocks. Their research is identifying
companies where stretched valuations are not supported by the
underlying fundamentals, including weak earnings quality, fragile
balance sheets or structural challenges.
Against this background, the Board proposes to amend the
Investment Policy by increasing the maximum permitted short
exposure from 10% to 20% of net assets, subject to approval by
shareholders.
The increase would not introduce a new investment technique
or change the Company’s bottom-up, value-focused investment
philosophy. It would instead give the Portfolio Managers greater
capacity to use an established capability when they identify
compelling opportunities. The 20% limit would be a ceiling, not
a target. For day-to-day management, the Board would normally
set a lower working limit and keep it under regular review.
Your Board undertook extensive due diligence before deciding
to recommend this change. We reviewed the historical use of
shorting, risk monitoring, controls and governance. We also
examined Fidelity’s broader risk and compliance framework,
including daily monitoring against Board-approved limits and
regular reporting to the Board. This work gives us confidence
that the capability is supported by robust systems and
effective oversight.
The related increase in the maximum Gross Asset Exposure from
140% to 150% of NAV would provide room for a larger short
book without changing the formal Net Market Exposure limit.
The Board considers this a measured extension of a successful
part of the strategy. It would give the Portfolio Managers
controlled additional flexibility to exploit a rich opportunity set,
while maintaining disciplined risk management and Board
oversight. Both changes will be put to shareholders at the AGM
in November.
Investment Objective and Investment Policy
Given that shareholders are being asked to approve the changes
to the Investment Policy described above, the Board and Fidelity
are also taking the opportunity to simplify and clarify the wording
and presentation of the Investment Objective and Investment
Policy. No other material changes are proposed beyond the
increase in the short exposure limit and the corresponding
increase in the Gross Asset Exposure limit.
Board of Directors
We are fortunate to have an experienced and stable Board of
Directors and there have been no changes in the period under
review. We believe that your Board has a good mix of essential
qualities and a diverse set of relevant backgrounds. We remain
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Annual Report 2026
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Fidelity Asian Values PLC
STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS
open to challenge and committed to listening to and doing the
best job for all our shareholders. We welcome your engagement
both by attending the AGM and by contacting us via the
Company Secretary.
Continuation Vote
I would remind shareholders that, at the forthcoming Annual
General Meeting, we will be voting on the continuation of the
Company as an investment trust, as we do every five years. In
the past five years, the Company has delivered NAV and Share
price total returns of 42.4% and 40.3% in often challenging market
conditions, and my fellow Directors and I will be voting in favour
of continuation.
Annual General Meeting – Wednesday, 25 November 2026 at 11.00 am
The AGM of the Company will be held at 11.00 am on Wednesday, 25 November 2026 at 4 Cannon Street, London EC4M 5AB
(nearest tube stations are St Paul’s or Mansion House) and virtually via the online Lumi AGM meeting platform. Full details of the
meeting are given in the Notice of Meeting on pages 85 to 89. Items of special business to be proposed at the AGM are detailed in
the Directors’ Report on pages 34 and 35.
For those shareholders unable to attend in person, we will live-stream the formal business and presentations of the meeting online.
Nitin Bajaj and Ajinkya Dhavale, the Portfolio Managers, will be making a presentation to shareholders discussing the
performance of the past year and the prospects for the year to come. The Portfolio Managers and the Board will be very happy
to answer any questions that shareholders may have. Following the AGM, copies of their presentation can be requested by
email at investmenttrusts@fil.com or in writing to the Secretary at FIL Investments International, Beech Gate, Millfield Lane,
Lower Kingswood, Tadworth, Surrey KT20 6RP.
Properly registered shareholders joining the AGM virtually will be able to vote on the proposed resolutions. Please see Note 9 to
the Notes to the Notice of Meeting on page 88 for details on how to vote virtually. Investors viewing the AGM online will be able to
submit live written questions to the Board and the Portfolio Managers and these will be addressed at an appropriate juncture during
the meeting.
Further information and links to the Lumi platform may be found in Note 9 in the Notes to the Notice of Meeting on page 88. On
the day of the AGM, in order to join electronically and ask questions via the Lumi platform, shareholders will need to connect to the
website https://meetings.lumiconnect.com/100-515-687-445.
Please note that investors on platforms, such as Fidelity Personal Investing, Hargreaves Lansdown, Interactive Investor or
AJ Bell Youinvest, will need to request attendance at the AGM in accordance with the policies of your chosen platform.
They may request that you submit electronic votes in advance of the meeting. If you are unable to obtain a unique IVC and
PIN from your nominee or platform, we will also welcome your online participation as a guest. Once you have accessed
https://meetings.lumiconnect.com/100-515-687-445 from your web browser on a tablet, smartphone or computer, you should then
select the ‘Guest Access’ option before entering your name and who you are representing, if applicable. This will allow you to view
the meeting and ask questions, but you will not be able to vote.
Further information on how to vote across the most common investment platforms is available at the following link:
https://www.theaic.co.uk/how-to-vote-your-shares
Outlook
In momentum-driven markets, it is easy for investors to get caught
up in the enthusiasm for fear of missing out, but in the long-term,
one of the best predictors of returns is not to overpay today for
the value of earnings in the future. Currently, the stocks in the
portfolio are, on aggregate, close to the cheapest they have
been in the past 10 years relative to the Index, yet their return on
equity is substantially higher – close to a 10-year high. This is a
portfolio that is full of high-quality companies trading at attractive
valuations, managed with an absolute return mindset and
patiently positioned for long-term capital growth, whatever short-
term surprises the coming year may hold in store for the market.
Clare Brady
Chairman
15 October 2026
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Fidelity Asian Values PLC
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Annual Report 2026
Portfolio Managers’ Review
Nitin Bajaj was appointed as the
Portfolio Manager of Fidelity Asian
Values PLC on 1 April 2015. He is based
in Singapore and has over 24 years
of investment experience. He is also
the Portfolio Manager for the Fidelity
Asian Smaller Companies Fund and
the Fidelity China Focus Fund. He first
joined Fidelity in 2003 as an Investment
Analyst and then took over the Fidelity
India Special Situations Fund and
subsequently started the Fidelity India
Value Fund. He managed these funds
until November 2012, when Fidelity
decided to sell its India business.
Ajinkya Dhavale, the Company’s Co-
Portfolio Manager, supports and works
closely with Nitin Bajaj. He has extensive
experience in Asian markets and shares
a common investment approach and
complementary experience with the
Portfolio Manager. He has over 18
years of investment experience. He
joined Fidelity as an Investment Analyst
in 2011, before becoming an Asia
shorting analyst in 2014 and small-cap
analyst in 2018. He is also Co-Portfolio
Manager of the Fidelity Asian Smaller
Companies Fund.
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Fidelity Asian Values PLC
STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS
Question 1
How did the Company perform during the year to 31 July 2026, and what were the
main drivers of returns?
Answer
Over the year ended 31 July 2026, the Company’s net asset value (“NAV”) total return was +6.1% compared with the Comparative Index
(MSCI All Country Asia ex Japan Small Cap Index (net)) return of +9.1%. The Share price total return for the year was +7.8%, helped by the
discount narrowing from 6.7% to 5.4%.
In Asia, Taiwanese small-cap stocks performed strongly, benefitting from investment in AI-related infrastructure. The Company
significantly reduced its position in these companies late in 2025 and early 2026. This detracted from relative performance as these
stocks continued to rise, with the Taiwan Small Cap Index up 43% in the second quarter of 2026. Meanwhile, our holdings in Indonesia
and China were affected by a combination of factors (outlined below) that weighed on the perception of their domestic stock markets.
We remained underweight in India, which added to relative returns during the review period, as market momentum shifted away from
Indian small caps and towards Taiwan.
Our investment process focuses on owning good businesses that are run by trustworthy management teams and buying them only
when we have an ample margin of safety. As a result of this consistent contrarian value approach, the portfolio comprises a basket of
high-quality businesses trading at a significant discount to our investment universe.
Portfolio Valuation Profile
Higher quality businesses at a lower price
Lower Price to Earnings Ratio vs. Small Cap Index High Return on Equity vs. Small Cap Index
Fidelity Asian Values plc: Portfolio Valuation Profile
Source: Fidelity International, Refinitiv DataStream, 31 July 2026. Index: MSCI AC Asia ex Japan Small-Cap Index. Price to Earnings (P/E) Ratio is a measure for valuing a company’s share price versus its earnings. Price to Earnings based on FY1
estimates. Low PE can indicate that a company may currently be undervalued. Return on Equity is the measure of a company's net income divided by its shareholders' equity. Return on Equity is based on current fiscal year data.
Higher quality businesses at a lower price
Lower Price to Earnings Ratio vs. Small Cap index Higher Return on Equity vs. Small Cap index
-5 0%
-4 0%
-3 0%
-2 0%
-1 0%
0%
10%
6 .0
8 .0
10. 0
12. 0
14. 0
16. 0
18. 0
20. 0
Sep-15
Feb- 16
Jul-16
Dec-16
May-17
Oct-17
Mar-18
Aug-18
Jan-19
Jun-19
Nov-19
Apr -20
Sep-20
Feb- 21
Jul-21
Dec-21
May-22
Oct-22
Mar-23
Aug-23
Jan-24
Jun-24
Nov-24
Apr -25
Sep-25
Feb- 26
Jul-26
Small Ca p Index Fidelity Asian Values PLC Discount (RHS)
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
9 .0
7 .0
9 .0
11. 0
13. 0
15. 0
17. 0
19. 0
Sep-15
Feb- 16
Jul-16
Dec-16
May-17
Oct-17
Mar-18
Aug-18
Jan-19
Jun-19
Nov-19
Apr -20
Sep-20
Feb- 21
Jul-21
Dec-21
May-22
Oct-22
Mar-23
Aug-23
Jan-24
Jun-24
Nov-24
Apr -25
Sep-25
Feb- 26
Jul-26
Small Ca p Index Fidelity Asian Values PLC Premium (RH S)
Source: Fidelity International, Refinitiv DataStream, 31 July 2026. Index: MSCI AC Asia ex Japan Small-Cap Index. Price to Earnings (P/E) Ratio is a measure for valuing a
company’s share price versus its earnings and is based on FY1 estimates. Low P/E can indicate that a company may currently be undervalued. Return on Equity is the
measure of a company’s net income divided by its shareholders’ equity. Return on Equity is based on current fiscal year data.
We have sizeable allocations to China and Indonesia as we have found a large number of businesses trading at significant discounts
to their intrinsic value. Our exposure to Taiwan, South Korea and India remained conservative relative to the Index, as these markets
have been in favour with investors and we struggled to find stocks with a sufficient margin of safety.
In our view, 12 months is a short period of time over which to judge a portfolio’s performance. This should be put in the context of
longer-term performance, in line with our investment horizon. Since taking over the management of the Company’s assets in 2015,
the Company’s NAV total return has risen by 161.6%, which equates to an annualised return of +8.9% versus the MSCI Asia ex Japan
Small Cap Index’s net total return of +7.3%. The cumulative Share price total return has been 183.8%, equivalent to an annualised
return of 9.6%.
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Annual Report 2026
Question 2
Which holdings made the strongest contributions during the year and why?
Answer
Unsurprisingly, given the massive global investment in AI, our positions in semiconductor businesses were among the key contributors
to performance, with Taiwan Semiconductor Manufacturing Company (TSMC) the leading contributor, followed by Topco Scientific.
The Hong Kong-based jewellery retailer Chow Sang Sang also added value.
• Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest semiconductor foundry, was the leading
contributor over the period. We have always viewed TSMC as an undisputed leader in logic chip manufacturing, particularly in the
most advanced applications. It continued to deliver strong earnings growth and margin improvement driven by AI-led demand,
without resorting to price increases.
• Topco Scientific is a Taiwanese supplier of materials, equipment and engineering solutions to semiconductor manufacturers. The
increased demand for semiconductor materials due to continued investment in AI translated into higher profits over the course of
the year, which supported the share price.
• Chow Sang Sang, a prominent gold jewellery retailer in China, benefited from strength in gold prices that lifted its margins. This
position was initiated seven years ago when its enterprise value, broadly the total value of the business including net debt, was
around half the value of the gold and diamond inventory it owned. We exited this position as its valuation approached the value
of its inventory.
Meanwhile, our largest relative detractors were primarily Indonesian stocks that were caught in the market-wide downtrend, while a
short position in a technology stock did not yield the desired outcome in a momentum-led market.
• Short position: We held a short position in a technology company trading at an extreme valuation that does not reflect the
weakness of its core business. However, this position performed poorly as market exuberance in stocks associated with AI
demand remained strong. We do not generally name short positions due to the potential impact of disclosure on portfolio
management.
• Ciputra Development is a best-in-class Indonesian property developer with diversified exposure across the country. Its stock fell
with the broader Indonesian market despite Ciputra’s robust fundamentals, including a strong balance sheet, a substantial land
bank and resilient presales activity. The historical cost of its land alone is approximately twice the amount of the enterprise value.
At estimated market value, we believe this land could be worth 4-5 times that amount.
• Indofood CBP, the largest instant noodle maker in the world with notable market share in Indonesia, the Middle East, Africa,
and Southeastern Europe, was also caught in the sell-off in the Indonesian stock market. We retain our conviction in this durable
Indonesian franchise whose underlying business remains unaffected by weaker investor sentiment towards Indonesia.
Question 3
Technology and artificial intelligence have remained important drivers of Asian
markets over the last year. How are you positioning the portfolio in this segment?
Answer
We believe that AI is a remarkable technology whose applications will transform several industries over the coming decade. However,
that does not necessarily make it a good investment. The internet has been one of the most important technologies of the last three
decades, yet many technology stocks bought in 1999 and 2000 lost 90% of their value.
We are concerned by the expectations now reflected in valuations of stocks associated with this theme. The scale of capital
expenditure being committed to AI infrastructure is unprecedented. According to some estimates, investment in AI infrastructure as a
percentage of GDP is around twice the level of spending on telecom networks during the early 2000s and dot-com era.
Portfolio Managers’ Review continued
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Fidelity Asian Values PLC
STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS
During large investment cycles, reported earnings often exceed expectations because one company’s investment becomes another
company’s revenue, while the cost of the spending is spread over several years through depreciation. This leads to a powerful
earnings cycle that can continue for some time. We question whether those earnings will prove to be sustainable. We feel there is
limited margin of safety in most of the stocks associated with this theme.
We maintain exposure to TSMC, which we continue to view as the unparalleled leader in manufacturing logic chips. It remains
reasonably valued among technology companies in Asia and is one of the few companies in the technology supply chain that has not
raised prices excessively during this cycle, making its earnings more sustainable. We also initiated positions in businesses within the AI
supply chain that benefit from AI-related investment and have valuations that remain reasonable through the cycle.
However, this is a very crowded and popular part of the market, so our ability to find undervalued stocks is limited. We are very
careful when deploying capital in AI stocks as we feel that there is a risk of significant capital loss.
Question 4
Indonesia remains an important area of investment for the Company. What continues
to support your conviction in the market?
Answer
Looking at Indonesia first from a top-down macroeconomic perspective, and then from a bottom-up stock selection perspective, there
are several reasons why we remain positive on the market.
On the macroeconomic front, Indonesia has one of the strongest demographic tailwinds in Asia and inflation is contained compared
with its emerging market peers. Indonesia is a net energy exporter; its fiscal deficit is subject to a statutory ceiling, and levels of
government and household debt are among the lowest globally.
Indonesia – Strong economic fundamentals
Source: Fidelity International, Refinitiv DataStream, IMF World Economic Outlook, BIS Statistics, 30 June 2026.
Indonesia – Strong economic fundamentals
Source: Fidelity International, Refinitiv DataStream, IMF World Economic Outlook, BIS Statistics, 30 June 2026.
Inflation is well contained and has structurally reduced
Comfortably low current account deficit (as % of GDP)
Reasonably low fiscal deficit (as % of GDP)
One of the lowest Total Debt to GDP Ratio
-4
-2
0
2
4
6
8
2015 2016 2017 2018 2019 2020 2021 2022 2023 202 4E 2 02 5E
Brazil Ind ia
Indonesia Vietn am
0
50
10 0
15 0
20 0
25 0
30 0
35 0
40 0
45 0
Japan
DM
UK
China
Europe
US
Korea
Tha i la nd
EM
Malaysi
a
Brazil
In dia
Russia
In do nesi
a
Go vernmen t Hou seh old Non-fin corps
-2
0
2
4
6
8
10
12
14
Jun-12
Dec-12
Jun-13
Dec-13
Jun-14
Dec-14
Jun-15
Dec-15
Jun-16
Dec-16
Jun-17
Dec-17
Jun-18
Dec-18
Jun-19
Dec-19
Jun-20
Dec-20
Jun-21
Dec-21
Jun-22
Dec-22
Jun-23
Dec-23
Jun-24
Dec-24
Jun-25
Dec-25
Jun-26
Brazil Ind ia Indonesia Vietn am
-12
-10
-8
-6
-4
-2
0
2
4
2015 2016 2017 2018 2019 2020 2021 2022 2023 2 02 4E 2 02 5E
Brazil Ind ia
Indonesia V iet n am
Past performance does not predict future returns. Investors should note that the views expressed may no longer be current and may have already been acted upon.
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Despite this reasonable macroeconomic position, Indonesian stocks have been the weakest performers over the review period within
the Asian universe. There are several underlying factors: Indonesia’s stock market has relatively little direct exposure to the AI theme.
This has made it an easy market to overlook amidst the AI-driven frenzy. Further, recent political developments and policy decisions
have also weighed on investor confidence.
Nonetheless, our conviction in Indonesia stems from the stock-specific opportunities available. We have found and invested in a
number of market-leading companies across different industries (from banking and housebuilding to consumer goods) and we have
been able to build our positions in these businesses at attractive prices, often paying P/E ratios of between 5x-10x for businesses that
have been around for decades, generate Return on Equity (ROE) of between 15%-20%, have many years of growth ahead of them and
pay generous dividends to shareholders. The following table shows our key holdings in Indonesia, many of which are long-standing
positions.
As at 31 July 2026
Portfolio
weight
(%)
Index
weight
(%)
Relative
weight
(%)
Forward PE
Ratio
Dividend
Yield
(%)
ROE
(%)
Bank Central Asia 3.6 0.0 3.6 12.2 5.3 21.8
Indosat 2.5 0.0 2.5 11.7 4.9 16.5
Adaro Andalan Indonesia 2.4 0.1 2.4 5.0 7.2 26.7
Indofood CBP 1.7 0.0 1.7 8.5 4.2 16.2
Ciputra Development 1.4 0.0 1.4 4.4 4.8 9.5
Bank Negara 1.2 0.0 1.2 6.1 9.5 14.2
Arwana Citramulia 1.0 0.0 1.0 6.8 8.0 23.4
Cikarang Listrindo 0.9 0.0 0.9 9.5 8.8 9.9
Selamat Sempurna 0.9 0.0 0.9 8.0 8.9 30.0
Amman Mineral Internasional 0.8 0.0 0.8 12.8 – 16.6
Source: Fidelity International, Refinitiv DataStream, 31 July 2026; Index: MSCI AC Asia ex Japan Small-Cap Index. Price to Earnings (P/E) Ratio is a measure for valuing a
company’s share price versus its earnings and is based on FY1 estimates. Dividend yield measures a company’s annual dividend payments as a percentage of its share
price. Dividend Yield is based on current fiscal year data. Return on Equity (ROE) is the measure of a company’s net income divided by its shareholders’ equity. Return on
Equity (ROE) is based on current fiscal year data.
Question 5
Where are you finding the most attractive opportunities in China, and how has the
opportunity set changed during the year?
Answer
We maintain diversified exposure to China in segments of the market that have remained out of favour, where durable businesses are
trading at discounted valuations. As in other global and Asian equity markets, AI-related stocks remained popular, while a lack of an
obvious market catalyst weighed on consumer businesses, selected industrials and real estate stocks.
Our contrarian, value-driven process has led us to these areas, where strong balance sheets and improving shareholder returns add
to our margin of safety. Our biggest exposures in China are in travel-related stocks (BOC Aviation, Macau Casinos, Samsonite and Trip.
com), consumer staples (China Mengniu Dairy), real estate (a number of positions across property development and management)
and, increasingly, healthcare businesses (hospitals/pharmacy chains).
During the year, we exited commodity holdings where the margin of safety was narrowing as the stocks performed strongly.
Portfolio Managers’ Review continued
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Fidelity Asian Values PLC
STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS
Question 6
How does Fidelity’s research platform help you identify businesses that may be
overlooked or misunderstood by the wider market?
Answer
Our dedicated and experienced Asian small-cap analyst team provides us with a significant competitive advantage and is particularly
valuable in our investment universe. Public disclosure can be limited in the small-cap universe, and businesses are often less well
researched by the wider market.
Our analysts, who we meet with regularly, are an important source of investment ideas and challenge within our investment process.
Their local, first-hand research helps us build a thorough understanding of a business, its competitive position, management quality
and long-term prospects, including factors that may not be widely understood by the market. The investment trust structure also gives
us additional flexibility to act on those ideas. When we have more ideas than money, we can use gearing. The level of gearing
therefore reflects the investment opportunities we are finding.
We can also draw on Fidelity’s broader expertise and research capabilities in unlisted companies across Asia. Fidelity has specialist
resource in this area alongside its local analyst network, which broadens the range of companies we can research and invest in
beyond listed markets. We use this flexibility selectively, but it gives us access to opportunities that would otherwise not be available to
the portfolio.
We are excited by the team we work with, including the regional analyst team at Fidelity, the small-cap team in Asia and our specialist
shorting analysts. Our performance reflects the hard work and insights of Fidelity’s research team, and we are grateful for their help.
Question 7
Why is the Company seeking shareholder approval to increase its permitted short
exposure, and how could this additional flexibility benefit the portfolio?
Answer
Short exposures are another way for us to express a research view. Just as we look for good businesses trading at valuations that
provide a margin of safety, the short book allows us to express a view on businesses where our research suggests that market
expectations are overly optimistic relative to the underlying fundamentals.
We are not trying to make broad calls on sectors or macroeconomic outcomes. The focus remains on individual companies and the
quality of the investment case. Where we have a high degree of conviction, a short position can complement our long investments,
improve the balance of the portfolio and allow us to make fuller use of the insights generated by our research process.
In our opinion, the current market environment presents highly attractive opportunities for short positions, particularly among
companies with weak balance sheets, stretched valuations, poor earnings quality or structurally challenged business models. Short
positions are an existing part of the Company’s investment approach and have contributed to relative performance for the last five
calendar years.
Increasing the limit would provide additional flexibility within the existing strategy, rather than introducing a new investment technique.
The proposal would allow the Company to make fuller use of the investment flexibility available within the investment trust structure,
while managing risk across the portfolio.
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Annual Report 2026
Question 8
How do you maintain a long-term investment perspective during periods of
heightened market and geopolitical uncertainty?
Answer
We believe that in periods of heightened exuberance or fear, it becomes even more important to focus on what we can understand:
the quality of the business, the strength of its balance sheet, the integrity of the people running it and the price we are being asked
to pay. We have been consistent in our approach: we invest in businesses, not countries or sectors, and stock picking remains the
mainstay of our process.
We have been investing for over two decades based on our understanding of each business and the environment in which it
operates. Companies operate within economic cycles and are affected by geopolitics, so we cannot ignore these risks, but we think
about them primarily at the individual company level. These factors provide guardrails rather than drive our investment decisions. We
do not try to predict every macroeconomic or geopolitical event.
Maintaining a long-term perspective therefore comes down to remaining disciplined and sticking to our investment philosophy. We
look for good businesses run by competent and honest management teams and seek to buy them at valuations that provide an
adequate margin of safety if conditions deteriorate. This time-tested approach has consistently delivered sustainable performance for
the Company over the long-term, and we are confident that it can continue to do so.
Nitin Bajaj Ajinkya Dhavale
Portfolio Manager Co-Portfolio Manager
15 October 2026
Portfolio Managers’ Review continued
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Fidelity Asian Values PLC
STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS
Spotlight on the Top 10 Holdings
as at 31 July 2026
(Based on Asset Exposure expressed as a percentage of Net Assets. Asset Exposure comprises
the value of direct equity investments plus market exposure to derivative instruments.)
Taiwan Semiconductor Manufacturing Company (TSMC)
Position size
TSMC is a Taiwanese semiconductor manufacturer, producing chips designed by
other companies for uses including smartphones, data centres and vehicles. Its
leading manufacturing technology and scale give it a strong competitive position and
support high levels of profitability.
Industry: Semiconductors &
Semiconductor Equipment
6.3%
Bank Central Asia
Position size
Bank Central Asia is an Indonesian bank, with a particularly strong position in
transaction banking. It serves consumers, small businesses and large companies
through an extensive branch and digital network, giving it a broad customer and
deposit base.
3.6%
Industry: Banks
Axis Bank
Position size
Axis Bank is an Indian bank, providing banking and financial services to individuals
and businesses across the country. Its broad customer base, extensive branch network
and growing digital capabilities support its competitive position in the Indian banking
market.
Industry: Banks
3.1%
HDFC Bank
Position size
HDFC Bank is an Indian bank. It provides retail and corporate banking and other
financial services across India, supported by an extensive branch network and a
large customer base. Its scale and diversified lending business give it a strong
position in the Indian banking market.
3.1%
Industry: Banks
Indosat
Position size
Indosat is an Indonesian telecommunications company, providing mobile and
data services to consumers and businesses. Its large customer base and extensive
network give it significant scale in a growing market, while increasing data usage
and continued improvements in network quality support the long-term growth of the
business.
Industry: Wireless
Telecommunication Services
2.5%
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China Mengniu Dairy
Position size
China Mengniu Dairy is a Chinese dairy producer, with products including milk,
yoghurt, ice cream, milk powder and cheese. It has a broad portfolio of recognised
brands and extensive production and distribution capabilities across China.
Industry: Food Products
2.3%
Topco Scientific
Position size
Topco Scientific is a Taiwanese supplier of materials, equipment and components
used in semiconductor manufacturing. Its products include silicon wafers, specialist
chemicals and production equipment, and it also provides engineering and system
integration services to semiconductor manufacturers in Taiwan and overseas.
Industry: Semiconductors &
Semiconductor Equipment
2.1%
SIS
Position size
SIS is an Indian business services company providing security, facilities management
and cash logistics services. It operates across India, Australia, New Zealand and
Singapore, using a large workforce alongside technology enabled systems to provide
services to businesses and public sector customers.
Industry: Commercial Services &
Supplies
2.1%
BOC Aviation
Position size
BOC Aviation is a Chinese aircraft leasing company. It owns and manages a global
fleet of commercial aircraft, which it leases to airlines around the world. Its scale,
diversified customer base and strong financial position provide a solid platform for
continued growth.
Industry: Trading Companies &
Distributors
2.0%
Spotlight on the Top 10 Holdings continued
as at 31 July 2026
(Based on Asset Exposure expressed as a percentage of Net Assets. Asset Exposure comprises
the value of direct equity investments plus market exposure to derivative instruments.)
Adaro Andalan Indonesia
Position size
Adaro Andalan Indonesia is an Indonesian thermal coal producer. Its mining
operations are supported by an integrated logistics network covering barging,
terminals and related services, helping it manage costs, product quality and the
reliability of deliveries to customers.
Industry: Oil, Gas &
Consumable Fuels
2.4%
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Annual Report 2026
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Fidelity Asian Values PLC
STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS
Forty Largest Holdings
as at 31 July 2026
The Asset Exposures shown below measure exposure to market price movements as a result of owning shares, corporate bonds and
derivative instruments. The Fair Value is the realisable value of the portfolio as reported in the Balance Sheet. Where the Company holds
shares and corporate bonds, the Asset Exposure and Fair Value will be the same. For derivative instruments, Asset Exposure is the market
value of the underlying asset to which the Company is exposed, while the Fair Value reflects the mark-to-market on the contract since it
was opened, and is based on how much the share price of the underlying asset has moved.
Asset Exposure
Fair
Value
Industry £’000 %
1
£’000
Exposures – shares unless otherwise stated
Taiwan Semiconductor Manufacturing Company
Semiconductors & Semiconductor
Equipment 24,700 6.3 24,700
Bank Central Asia Banks 13,890 3.6 13,890
HDFC Bank (shares and options) Banks 12,272 3.1 7,946
Axis Bank Banks 12,105 3.1 12,105
Indosat
Wireless Telecommunication
Services 9,629 2.5 9,629
Adaro Andalan Indonesia Oil, Gas & Consumable Fuels 9,474 2.4 9,474
China Mengniu Dairy (long CFDs) Food Products 9,081 2.3 317
Topco Scientific
Semiconductors & Semiconductor
Equipment 8,093 2.1 8,093
SIS Commercial Services & Supplies 8,087 2.1 8,087
BOC Aviation (long CFDs) Trading Companies & Distributors 7,630 2.0 153
ByteDance (unlisted) Interactive Media & Services 6,855 1.8 6,855
Indofood CBP Food Products 6,438 1.7 6,438
China Overseas Grand Oceans Group
(long CFDs)
Real Estate Management &
Development 6,210 1.6 583
Cognizant Technology Solutions IT Services 5,715 1.5 5,715
Qingdao Port International (long CFDs) Transportation Infrastructure 5,476 1.4 116
Ciputra Development
Real Estate Management &
Development 5,325 1.4 5,325
Full Truck Alliance Ground Transportation 5,053 1.3 5,053
Global Standard Technology
Semiconductors & Semiconductor
Equipment 4,985 1.3 4,985
Melco Resorts & Entertainment
(shares and options) Hotels, Restaurants & Leisure 4,895 1.3 3,626
Bank Negara Indonesia (Persero) Banks 4,818 1.2 4,818
Capstone Copper Metals & Mining 4,688 1.2 4,688
RFM Food Products 4,293 1.1 4,293
DaShenLin Pharmaceutical Group (long CFDs)
Consumer Staples Distribution &
Retail 4,199 1.1 593
Vipshop Holdings Broadline Retail 4,118 1.1 4,118
China Overseas Land & Investment (long CFDs)
Real Estate Management &
Development 4,084 1.0 (18)
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Asset Exposure
Fair
Value
Industry £’000 %
1
£’000
Texhong International Group
(shares and long CFDs) Textiles, Apparel & Luxury Goods 3,954 1.0 3,172
Sandfire Resources Metals & Mining 3,930 1.0 3,930
Galaxy Entertainment Group
(shares and long CFDs) Hotels, Restaurants & Leisure 3,913 1.0 960
Seadrill Energy Equipment & Services 3,856 1.0 3,856
Arwana Citramulia Building Products 3,855 1.0 3,855
NAC Kazatomprom Oil, Gas & Consumable Fuels 3,626 0.9 3,626
Genpact Professional Services 3,577 0.9 3,577
Xtep International Holdings (long CFDs) Textiles, Apparel & Luxury Goods 3,565 0.9 57
Home First Finance Co. India Financial Services 3,495 0.9 3,495
NICE Information Service Professional Services 3,464 0.9 3,464
Cikarang Listrindo
Independent Power and
Renewable Electricity Producers 3,455 0.9 3,455
Perseus Mining Metals & Mining 3,428 0.9 3,428
Selamat Sempurna Automobile Components 3,394 0.9 3,394
Poly Property Services (long CFDs)
Real Estate Management &
Development 3,322 0.8 147
Hanyang Eng Construction & Engineering 3,311 0.7 3,311
Forty largest exposures 246,258 63.2 195,309
Other exposures 240,763 61.7 185,239
Total exposures 487,021 124.9 380,548
Gross Asset Exposure
2
487,021 124.9
Forward currency contract (16)
Portfolio Fair Value
3
380,532
Net current assets (excluding derivative assets and liabilities) 9,347
Total Shareholders’ Funds/Net Assets 389,879
1 Asset Exposure (as defined in the Glossary of Terms on page 95) is expressed as a percentage of Total Shareholders’ Funds.
2 Gross Asset Exposure comprises market exposure to investments of £374,720,000 (per Note 10: Investments on page 65) plus market exposure to derivative instruments of
£112,301,000 (per Note 11: Derivative instruments on page 66).
3 Portfolio Fair Value comprises investments of £374,720,000, derivative assets £7,021,000 less derivative liabilities of £1,209,000 (per the Balance Sheet on page 56).
A full list of the Company’s holdings as at 31 July 2026 will be available on the Company’s pages of the Manager’s website at
www.fidelity.co.uk/asianvalues on, or shortly after, 31 October 2026.
Forty Largest Holdings continued
as at 31 July 2026
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Annual Report 2026
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Fidelity Asian Values PLC
STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS
Distribution of the Portfolio
as at 31 July 2026
(Asset Exposure expressed as a percentage of Total Shareholders’ Funds)
Portfolio
China &
Hong Kong Indonesia
South
Korea India Other Total
2026
Index
1
2025
Total
Information Technology
Semiconductors & Semiconductor
Equipment – – 2.9 – 10.7 13.6 12.6 8.5
Information Technology Services – 0.3 – 1.2 1.5 3.0 1.3 1.1
Electronic Equipment, Instruments &
Components 0.1 0.1 0.2 – 1.5 1.9 8.8 0.1
Technology Hardware, Storage &
Peripherals – – – – 0.6 0.6 2.6 1.5
Software – – 0.3 – – 0.3 0.8 –
Communications Equipment – – – – – – 0.7 –
0.1 0.4 3.4 1.2 14.3 19.4 26.9 11.2
Industrials
Professional Services 1.0 – 1.4 – 1.7 4.1 0.5 2.2
Trading Companies & Distributors 2.4 0.4 – – – 2.8 0.3 3.0
Commercial Services & Supplies 0.3 – – 2.1 – 2.4 1.1 1.6
Transportation Infrastructure 1.9 – – – – 1.9 1.0 1.8
Construction & Engineering – – 1.3 – 0.6 1.9 3.1 0.8
Machinery 1.6 – 0.2 – – 1.8 4.7 1.4
Electrical Equipment – – 1.3 – – 1.3 3.3 0.2
Ground Transportation 1.3 – – – – 1.3 0.4 1.3
Building Products – 1.0 – – – 1.0 0.5 1.3
Air Freight & Logistics 0.5 – – – – 0.5 0.3 1.6
Passenger Airlines – – – – 0.1 0.1 0.3 0.2
Marine Transportation – – – – – – 0.5 0.6
Aerospace & Defense – – – – – – 0.4 –
Industrial Conglomerates – – – – – – 1.5 –
9.0 1.4 4.2 2.1 2.4 19.1 17.8 16.0
Financials
Banks – 4.8 – 6.3 0.5 11.6 2.1 12.7
Financial Services – – 0.5 2.4 – 2.9 1.2 2.5
Capital Markets 1.2 – – 0.6 – 1.8 3.2 0.5
Consumer Finance – – – 0.5 – 0.5 1.3 1.0
Insurance – – – – – – 1.2 0.3
1.2 4.8 0.5 9.8 0.5 16.8 9.0 17.0
The table below details the Distribution of the Portfolio based on Asset Exposure which measures the exposure of the portfolio to
market price movements as a result of owning shares and derivative instruments.
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Continued on the next page.
Portfolio
China &
Hong Kong Indonesia
South
Korea India Other Total
2026
Index
1
2025
Total
Consumer Discretionary
Textiles, Apparel & Luxury Goods 4.4 – – – 0.9 5.3 2.0 9.6
Hotels, Restaurants & Leisure 1.7 – – 0.4 2.0 4.1 2.0 3.9
Automobile Components 0.5 0.9 0.7 – – 2.1 2.8 2.3
Broadline Retail 1.6 – – – – 1.6 0.6 –
Diversified Consumer Services 0.7 – 0.5 – 0.4 1.6 0.1 2.2
Household Durables 0.3 – – 0.1 0.8 1.2 1.1 1.6
Automobiles – – 0.4 – – 0.4 0.3 1.7
Specialty Retail – – – – – – 0.9 1.2
Leisure Products – – – – – – 0.2 0.9
Distributors – – – – – – 0.1 –
9.2 0.9 1.6 0.5 4.1 16.3 10.2 23.4
Consumer Staples
Food Products 2.9 3.7 0.6 – 2.4 9.6 2.8 7.2
Consumer Staples Distribution & Retail 2.3 – 0.6 – 0.3 3.2 0.9 2.0
Beverages 0.5 – – 0.2 0.4 1.1 0.6 1.1
Personal Care Products – – 0.8 – – 0.8 0.5 –
Household Products – – – – – – 0.0 0.6
Tobacco – – – – – – 0.1 –
5.7 3.7 2.0 0.2 3.1 14.7 5.1 10.9
Materials
Metals & Mining 0.6 0.8 – – 6.8 8.2 2.0 4.4
Chemicals – – – 0.3 0.9 1.2 4.4 3.7
Containers & Packaging – – 0.6 – – 0.6 0.3 1.2
Construction Materials – – – – – – 0.9 –
Paper & Forest Products – – – – – – 0.3 –
0.6 0.8 0.6 0.3 7.7 10.0 8.0 9.3
Communication Services
Wireless Telecommunication Services – 2.5 – – 0.6 3.1 0.1 0.5
Interactive Media & Services 2.6 – 0.3 – – 2.9 0.5 1.9
Media 0.8 – – – – 0.8 0.5 1.0
Entertainment 0.6 – – – – 0.6 1.1 0.2
Diversified Telecommunication
Services – – 0.6 – – 0.6 0.8 2.2
4.0 2.5 0.9 – 0.6 8.0 3.0 5.8
Distribution of the Portfolio continued
as at 31 July 2026
(Asset Exposure expressed as a percentage of Total Shareholders’ Funds)
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Fidelity Asian Values PLC
STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS
Portfolio
China &
Hong Kong Indonesia
South
Korea India Other Total
2026
Index
1
2025
Total
Real Estate
Real Estate Management &
Development 4.9 1.6 – – 0.4 6.9 3.7 8.3
Residential REITs – – – – 0.5 0.5 0.0 –
Diversified REITs – – – – – – 0.5 –
Health care REITs – – – – – – 0.1 –
Hotel & Resort REITs – – – – – – 0.2 –
Industrial REITs – – – – – – 0.8 –
Office REITs – – – – – – 0.9 –
Retail REITs – – – – – – 0.7 –
Specialised REITs – – – – – – 0.3 –
4.9 1.6 – – 0.9 7.4 7.2 8.3
Energy
Oil, Gas & Consumable Fuels – 2.4 – – 1.5 3.9 1.6 3.5
Energy Equipment & Services 0.7 – – – 1.7 2.4 0.2 2.3
0.7 2.4 – – 3.2 6.3 1.8 5.8
Health Care
Health Care Providers & Services 0.8 – – – 1.4 2.2 1.3 3.0
Health Care Equipment & Supplies – – 1.0 – 0.4 1.4 0.8 3.1
Pharmaceuticals – – 0.9 – 0.5 1.4 4.4 0.1
Health Care Technology 0.2 – – – – 0.2 0.1 –
Life Sciences Tools & Services – – – – – – 0.6 –
Biotechnology – – – – – – 2.1 –
1.0 – 1.9 – 2.3 5.2 9.4 6.2
Utilities
Independent Power and Renewable
Electricity Producers 0.4 0.9 – – – 1.3 1.0 1.4
Multi–Utilities – – – – 0.4 0.4 – 1.0
Electric Utilities – – – – – – 0.1 –
Gas Utilities – – – – – – 0.4 –
Water Utilities – – – – – – 0.3 –
0.4 0.9 – – 0.4 1.7 1.8 2.4
Exposure before options 36.8 19.4 15.1 14.1 39.5 124.9 116.3
Add: options – – – – – – 0.5
Total Asset Exposure – 2026 36.8 19.4 15.1 14.1 39.5 124.9
Index – 2026 100.0
Total Asset Exposure – 2025 41.4 17.5 13.1 12.3 32.5 116.8
1
MSCI All Country Asia ex Japan Small Cap Index (net) total return (in sterling terms), the Company’s Comparative Index.
Note: Exposures in the tables above are calculated as a percentage of net assets.
Numbers in the Index column of the above table may not total due to rounding.
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Ten Year Record
For the year
ended 31 July 2026 2025 2024 2023 2022 2021 2020 2019 2018 2017
Gross Asset
Exposure (£m)
1
487.0 470.2 442.9 440.8 383.7 375.2 276.6 347.4 285.2 273.7
Shareholders’ Funds
(£m) 389.9 402.7 392.0 394.6 367.6 364.1 269.4 323.0 288.0 280.2
NAV per Share –
undiluted (p)
2
621.46 604.69 551.66 549.33 507.78 497.50 364.39 447.16 419.36 415.17
NAV per Share –
diluted (p)
2
n/a n/a n/a n/a n/a n/a n/a 439.91
3
413.64
3
407.77
3
Share Price (p) 588.00 564.00 496.00 520.00 458.00 483.00 335.00 455.50 412.00 386.00
Subscription Share
Price (p) n/a n/a n/a n/a n/a n/a n/a 53.00 23.50 29.50
(Discount)/Premium –
undiluted (%)
2
(5.4) (6.7) (10.1) (5.3) (9.8) (2.9) (8.1) 1.9 (1.8) (7.0)
Premium/(Discount)
– diluted (%)
2
n/a n/a n/a n/a n/a n/a n/a 3.5
3
(0.4)
3
(5.3)
3
Revenue return per
Share (p)
2
25.18 22.51 14.24 15.17 14.21 9.20 8.64 10.70 5.70 6.08
Dividend per Share
(p) 22.0 20.5 14.5 14.5 14.0 8.8 8.5 8.8 5.5 5.5
Ongoing Charges
(cost of running the
Company) (%)
2
0.95 0.95 0.95 0.96 0.95 0.93 0.98 0.98 1.17 1.22
Gross Gearing (%)
2,4
24.9 16.8 13.0 11.7 4.4 3.0 2.7 7.5 (1.0) (2.3)
Net Shares issued/
(bought back) (’000) (3,861) (4,463) (769) (569) (781) (753) 1,699 3,564 1,181 –
Share Price total
return (%)
2
+7.8 +17.0 -1.7 +17.3 -3.4 +47.6 -24.8 +12.3 +8.2 +24.9
NAV per Share total
return – undiluted
(%)
2
+6.1 +12.4 +3.2 +11.4 +3.9 +39.5 -16.7 +8.2 +2.2 +19.3
NAV per Share total
return – diluted (%)
2
n/a n/a n/a n/a n/a n/a n/a +7.9
3
+2.7
3
+17.2
3
Comparative Index
total return (%)
5
+9.1 +7.1 +13.7 +7.5 -5.6 +39.2 -0.8 -4.6 +4.7 +15.6
Benchmark Index
total return (%)
6
+9.1 +7.1 +13.7 +7.5 -5.6 +39.2 +2.7 +3.9 +5.7 +28.2
1 The value of the portfolio exposed to market price movements.
2 Alternative Performance Measures.
3 The dilution relates to the subscription shares offer that closed in December 2019.
4 Gross Asset Exposure in excess of/(less than) Total Shareholders’ Funds expressed as a percentage of Total Shareholders’ Funds (see Note 18 on page 80).
5 MSCI All Country Asia ex Japan Small Cap Index (net) total return (in sterling terms).
6 MSCI All Country Asia ex Japan Small Cap Index (net) total return (in sterling terms) since 1 February 2020. Prior to that and since 1 August 2015, it was the MSCI All
Country Asia ex Japan Index (net) total return (in sterling terms). The variable management fee element of the management fee is measured against the Benchmark
Index.
Sources: Fidelity and Datastream.
Past performance is not a guide to future returns.
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Fidelity Asian Values PLC
STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS
The Directors have pleasure in presenting the Strategic Report
of the Company. The Chairman’s Statement and the Portfolio
Managers’ Review on pages 2 to 12 form part of the Strategic
Report.
Business and Status
The Company carries on business as an investment trust. Its
Shares are listed and traded on the London Stock Exchange.
It has been approved as an investment trust by HM Revenue
& Customs under sections 1158 and 1159 of the Corporation
Tax Act 2010 and it is intended that the Company will continue
to conduct its affairs in a manner that will enable it to retain
this status.
The Company is domiciled in the UK and is an investment
company within the meaning of section 833 of the Companies
Act 2006. The Company is not a “close” company for taxation
purposes and has no employees, premises or operations.
Investment Objective
The Company’s objective is to achieve long-term capital
growth principally from the stock markets of the Asian Region*
excluding Japan.
* Asian Region means the continent of Asia (including Hong Kong, South Korea,
Thailand, Singapore, Malaysia, Taiwan, Indonesia, Philippines, China, India,
Pakistan, Vietnam and Sri Lanka, but excluding the countries comprising the
former U.S.S.R. and the Middle East), together with Australasia.
Investment Policy
The Company seeks to meet its investment objective
through investment in a diversified portfolio of securities
and instruments issued by or related to companies listed on
the stock markets in the Asian Region excluding Japan but
investments may be made in companies listed elsewhere
which, in the opinion of the Portfolio Managers, have
significant interests in the Asian Region excluding Japan.
The Company’s performance is measured against the return
of its Comparative Index, the MSCI All Country Asia ex Japan
Small Cap Index (net) total return (in sterling terms).
In order to diversify the Company’s portfolio, the Board has
set broad guidelines for the Manager, which the Board
reserves the right to amend as it sees fit, in respect of the
country weightings of the portfolio. The Company may invest
directly in the shares of companies or indirectly through equity
related instruments (such as derivative contracts, warrants or
convertible bonds) and in debt instruments. The Company
may also invest in unquoted securities and in other investment
funds, subject to the investment restrictions set out below.
Investment Restrictions
The Company will invest and manage its assets with an
objective of spreading risk with the following investment
restrictions:
• No single or aggregate investment in any one company or
other investment entity shall represent more than 10% of its
Gross Assets, measured at the time of any investment.
• Up to 5% of its Gross Assets, at the time of investment, in
securities which are not listed on any stock exchange.
• Up to 15% of its Gross Assets, at the time of investment, in
other investment funds (whether listed or unlisted) where
such funds offer the only practicable means of gaining
exposure to a particular market in the Asian Region
excluding Japan. Within this limit, no more than 10% of
Gross Assets, at the time of investment, may be invested
in funds that do not have stated policies to invest no more
than 15% of their Gross Assets in other listed closed-ended
funds.
• Up to 15% of its Gross Assets, at the time of investment,
in securities which are not listed or domiciled in the Asian
Region, provided the investments have a strong Asian
Region rationale.
The Company is permitted to invest in Non-Voting Depositary
Receipts, American Depositary Receipts, Global Depositary
Receipts and Equity Linked Notes. Any such investment will be
included in the relevant aggregate country weighting.
Use of Derivative Instruments
In order to meet its investment objective, the Company
may utilise derivative instruments, including index-linked
notes, futures, contracts for differences (“CFDs”), call options
(including covered calls), put options and other equity related
derivative instruments. Derivatives usage will focus on, but will
not be limited to the following investment strategies:
• As an alternative form of gearing to bank loans, the
Company can enter into long CFDs which achieve an
equivalent effect to buying an asset financed by bank
borrowing but often at lower financing costs. The Company
does not currently use bank borrowings for gearing
purposes.
• To hedge equity market risks where suitable protection can
be purchased to limit the downside of a falling market at
reasonable costs.
• To enhance the investment returns by taking short
exposures on stocks that the Portfolio Managers consider
to be overvalued.
The Board has created strict policies and exposure limits and
sub-limits to manage derivatives.
Derivative use is limited in terms of the value of the total
portfolio to which the Company is exposed, whether through
direct or indirect investment. The Board adopts the policy that:
• Net Market Exposure will not exceed the NAV of the
Company by more than 30%; and
• Gross Asset Exposure will not exceed the NAV of the
Company by more than 40%.*
Notwithstanding the Board’s intention in the medium to long-
term to maintain a Net Market Exposure within a range of
between 90% -115%, in the short-term the Net Market Exposure
may fall outside of this range from time to time, having regard
Strategic Report
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Annual Report 2026
to the Portfolio Managers’ investment style and philosophy as
well as the markets they operate in.
The sum of all short exposures of the Company from derivatives,
excluding hedges, will not exceed 10% of total net assets.*
It should be stressed that the majority of the Company’s
exposure to equities will be through direct investment and
not through derivatives. In addition, the limits on exposure
to individual companies and groups are calculated after
translating all derivative exposures into economically
equivalent amounts of the underlying assets.
* See proposed changes set out below.
Changes to Investment Objective and Investment Policy
The Board reviews the Investment Objective and Investment
Policy at least once a year. In accordance with the UK Listing
Rules, no material change will be made to the Company’s
Investment Objective and Investment Policy without the prior
approval of the FCA and of shareholders by ordinary resolution.
At the Company’s Annual General Meeting to be held on
25November 2026, the Board will seek shareholder approval
to amend the Investment Objective and Investment Policy. The
FCA has already given its approval to the proposed changes as
required by the UK Listing Rules. The two main changes being
proposed are set out below:
(i) an increase in the permitted aggregate short exposure from
10% to 20% of the Company’s net asset value, such that
the sum of all short exposures of the Company, excluding
hedges, will not exceed 20% of net asset value.
(ii) an increase in the maximum Gross Asset Exposure from
140% to 150% of the Company’s net asset value as a
consequence of the above change to the permitted
aggregate short exposure.
The Net Market Exposure limit will remain unchanged and
there will be no change to the Company’s investment strategy,
philosophy or investment process. The other proposed changes
to the Investment Objective and Investment Policy are of a minor
or technical nature, including a clarification that the investment
restrictions and limitations described in the Investment Policy
apply at the time of investment and an update to the definition
of Asian Region to bring it more into line with current market
practice.
The rationale for the changes to the Investment Objective and
Investment Policy is explained in the Chairman’s Statement on
page 4.
The full text of the Company’s current Investment Objective and
Investment Policy is set out on pages 21 and 22.
The full text of the proposed updated Investment Objective and
Investment Policy is set out in the Appendix to the notice of
Annual General Meeting on pages 90 and 91. A comparison
of the proposed Investment Objective and Investment Policy
against the current Investment Objective and Investment Policy
is available for inspection in the governance section of the
Company’s website at www.fidelity.co.uk/asianvalues from the
date of publication of this Annual Report up until the date of the
Annual General Meeting to be held on 25 November 2026.
Strategy
In order to achieve its objective, the Company operates as an
investment company and has an actively managed portfolio of
investments. As an investment company, it is able to gear the
portfolio and the Board takes the view that long-term returns
for shareholders can be enhanced by the use of gearing in a
carefully considered and monitored way.
As part of the strategy, the Board has delegated the
management of the portfolio and certain other services to the
Manager (FIL Investment Services (UK) Limited). The Portfolio
Managers, Nitin Bajaj and Ajinkya Dhavale, aim to achieve a
total return on the Company’s net assets over the longer term in
excess of the equivalent return on the Company’s Comparative
Index. The stock selection approach adopted by the Portfolio
Managers is considered to be well-suited to achieving this
objective.
Investment Management Philosophy, Style and Process
The portfolio is built on a stock-by-stock basis following the
Portfolio Managers’ assessment of the fundamental value
available in individual securities. Geographical weightings
are the result of this stock selection process rather than
macroeconomic considerations. The portfolio’s geographical and
industry sector weightings may, therefore, vary significantly from
the weightings in its Comparative Index. Further, the Portfolio
Managers’ focus on the identification of fundamental value in
individual stocks within the Asian Region excluding Japan may
result in investments that are contrary to prevalent trends and
local conventions.
KEY PERFORMANCE INDICATORS
The Board’s intention is for the NAV per Share and Share price
total returns to outperform the Comparative Index and that
the discount should be maintained in single digits in normal
market conditions. It regularly considers the costs of running the
Company to ensure that they are reasonable and competitive.
The key performance indicators (“KPIs”) used to describe the
performance of the Company, and which are comparable to
those reported by other investment companies, are set out below.
Year ended
31 July
2026
%
Year ended
31 July
2025
%
Share price total return
1
+7.8 +17.0
NAV per Share total return
1
+6.1 +12.4
Comparative Index total return
2
+9.1 +7.1
Discount to NAV at the year end
1
5.4 6.7
Ongoing Charges
1,3
0.95 0.95
1 Alternative Performance Measures.
2 MSCI All Country Asia ex Japan Small Cap Index (net) total return (in sterling
terms).
3 The Board has a policy of ensuring that the costs of running the Company are
reasonable and competitive.
Sources: Fidelity and Datastream.
Strategic Report continued
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Fidelity Asian Values PLC
STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS
An explanation of Alternative Performance Measures is set out on
page 82. The Company’s performance by reference to the above
KPIs is discussed in the Chairman’s Statement on pages 2 to 5.
The Portfolio Managers’ Review on pages 6 to 12 highlights how
performance has been achieved during the year.
In addition to the KPIs set out in the table above, the Board also
monitors the Company’s performance against its peer group of
investment companies. Long-term performance is also monitored
and this is set out in the Ten-Year Record on page 20.
PRINCIPAL RISKS AND UNCERTAINTIES AND RISK
MANAGEMENT
As required by provisions 33 and 34 of the Association of
Investment Companies Corporate Governance Code (the “AIC
Code”), the Board has a robust ongoing process for identifying,
evaluating and managing the principal risks and uncertainties
faced by the Company, including those that could threaten its
business model, future performance, solvency and liquidity. The
Board will implement the new requirement, under provision 34
of the AIC Code applicable for reporting periods from 1 January
2026, of a Board declaration on the effectiveness of material
risk management and internal controls in the Company’s next
reporting year.
The Board, with the assistance of the Alternative Investment
Fund Manager (FIL Investment Services (UK) Limited (the
“Manager”)), has developed a risk matrix which, as part of the
risk management and internal controls process, identifies the key
existing and emerging risks and uncertainties that the Company
faces.
The Manager also has responsibility for risk management of the
Company. It works with the Board to identify and manage the
principal and emerging risks and uncertainties and to ensure
that the Board can continue to meet its UK corporate governance
obligations.
The Board considers the risks listed below and on pages 24 to 27
as the principal risks and uncertainties faced by the Company.
Principal Risks
1. Economic, Political and Market Risks
Trend (
from previous year
): Increased
Description and Impact Mitigation
• The Company and its assets may be affected by economic
and market risks. These include market downturns, interest
rate movements, exchange rate movements and market
shocks. Inflation and economic instability may also impact
investors’ risk appetite. Emerging markets are less established
and can be more volatile than developed markets. They
involve higher risks, particularly market, credit, illiquid security,
legal, custody, valuation, and currency risks, and are more
likely to experience market shocks than developed markets.
• The Company is exposed to a variety of geopolitical risks.
The geopolitical landscape continues to change globally and
is largely shaped by the ongoing effects of conflicts, tariff
wars, deglobalisation trends and significant supply disruption.
The Middle East and Russia are significant net exporters of
oil, natural gas and a variety of soft commodities with supply
limitations fuelling global inflation and economic instability,
specifically within Western nations. Energy price inflation
continues to be a primary risk but has impacted countries
to various degrees depending on their reliance on energy
imports.
• The Board has oversight of the Company’s portfolio,
which is reviewed at each Board meeting. The Company’s
portfolio is made up mainly of listed securities, and the
Board ensures that the portfolio is sufficiently diversified by
sector, country and number of holdings.
• The Audit and Risk Committee receives regular risk
management reports from the Manager and reviews any
material economic, political and market risks and their
potential impact on the Company’s portfolio at Audit and
Risk Committee meetings.
• The Manager has major market contingency plans
developed for more extreme market events.
• Market and currency risks to which the Company is
exposed are included in Note 17 to the Financial
Statements on pages 69 to 79 together with summaries of
the policies for managing these risks.
• It is the Company’s policy not to hedge the underlying
currencies of the holdings in the portfolio but rather to
take the currency risk into consideration when making
investment decisions.
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Annual Report 2026
• There are country specific risks applicable to the Company’s
portfolio, all of which may potentially impact the performance
of the Company. For example, the market narrative in
Indonesia remains bifurcated, with strong domestic growth
and commodity exposure versus governance transparency
concerns and MSCI classification risks. US/China geopolitical
risks remain elevated, particularly around Taiwan and US
relations. India is heavily dependent on energy imports
and may face a near-term drag on domestic demand and
liquidity conditions.
• Most of the Company’s assets and income are denominated
in currencies other than sterling which is the Company’s
functional and presentation currency. As a result, movements
in exchange rates may affect the sterling value of its assets
and income.
2. Investment Performance Risk (including the use of Derivatives and Gearing)
Trend (
from previous year
): Stable
Description and Impact Mitigation
• The achievement of the Company’s investment performance
objective relative to the Comparative Index requires the
taking of risk, such as investment strategy, asset allocation
and stock selection, and may lead to NAV and Share price
underperformance compared to the Comparative Index and/
or peer group companies.
• Continued underperformance could lead to the Company
and its objective becoming unattractive to investors.
• The Company gears using derivatives including CFDs which
provide greater flexibility and are generally cheaper than
bank loans. The principal risk is that the Portfolio Managers
fail to use gearing effectively, resulting in a failure to
outperform in a rising market or underperformance in a
falling market.
• Derivative instruments are used to enhance investment
returns, as well as for hedging and efficient portfolio
management purposes. There is a risk that the use of
derivatives may lead to higher volatility in the NAV/Share
price, than might otherwise be the case.
• The Manager is responsible for actively monitoring
the portfolio in accordance with the asset allocation
parameters and seeks to ensure that individual stocks
meet an acceptable risk/reward profile. The Board
independently challenges the Portfolio Managers and also
takes comfort from the work of the Portfolio Construction
and Advisory team in reviewing and challenging the
portfolio.
• The Board reviews Fidelity’s compliance with agreed
investment restrictions; investment performance and risk;
relative performance; the portfolio’s risk profile; and
whether appropriate strategies are employed to mitigate
any negative impact of substantial changes in the markets.
The Board and the Company’s Broker also regularly
canvass major shareholders for their views with respect to
company matters.
• The Investment Policy sets the gearing limits within which
the Manager must operate. The Board regularly reviews
the Investment Policy.
• The Board has put in place policies and limits to control
the Company’s use of derivatives and exposures. These
are monitored daily by the Manager’s Compliance team
with regular reports provided to the Board. Further detail
on derivative instruments risk is included in Note 17 to the
Financial Statements on pages 69 to 79.
Strategic Report continued
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Fidelity Asian Values PLC
STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS
3. Competition Risks and Marketplace Threats Impacting Business Growth
Trend (
from previous year
): Increased
Description and Impact Mitigation
• There is increased merger and acquisition activity across the
investment company marketplace and alternative investment
offerings (including passive vehicles) which could influence
the demand for the Company’s Shares.
• There is a risk of costly shareholder activism in the investment
company sector, pursuing goals that may not be in the
interests of most shareholders.
• The Board, the Company’s Broker and the Manager closely
monitor industry activity, the peer group and the Share
register.
• An annual review of strategy is undertaken by the Board
to ensure that the Company continues to offer a relevant
product to investors. There has also been pre-emptive
preparation in case of an activist investor approach that is
not in the interests of most shareholders.
4. Cybercrime and Information Security
Trend (
from previous year
): Increased
Description and Impact Mitigation
• Cybersecurity risk, including the increased use of artificial
intelligence (AI) and cyberattacks or threats to the functioning
of global markets and to the Manager’s own business model,
including its and the Company’s outsourced suppliers.
• The external threat environment has intensified, driven by
AI enhanced ransomware, identity-centric attacks, rapidly
expanding supply chain compromise vectors, and rising
nation state activity.
• The risk is monitored by the Board with the help of the
Manager’s global cybersecurity team and their extensive
Strategic Cyber and Information Security programme and
assurances are obtained from outsourced suppliers.
• The Manager has established a comprehensive framework
of information security policies and standards which
provide a structured approach to identify, prevent, and
respond to information security threats. The framework
ensures consistency in Fidelity’s security measures,
enhances its ability to adapt to evolving/emerging threats,
and ensures compliance with ever-evolving regulatory
requirements.
• The Manager obtains assurance that the Company’s other
key service providers also have cybersecurity measures in
place.
• Key performance indicators and metrics have been
developed by the Manager to monitor the overall efficacy
of cybersecurity processes and controls and to further
enhance the Manager’s cybersecurity strategy and
operational resilience.
5. Business Continuity and Crisis Management
Trend (
from previous year
): Increased
Description and Impact Mitigation
• Business process disruption risk refers to the continued threat
of cyberattacks, geopolitical events, outages, fire events and
natural disasters, resulting in financial and/or reputational
impact to the Company affecting the functioning of the
business.
• In addition to the Manager, the Company relies on other
third-party service providers, principally the Registrar,
Custodian and Depositary, who may be subject to business
continuity and crisis management issues.
• The Manager has Business Continuity and Crisis
Management Frameworks in place to deal with business
disruption and assure operational resilience.
• All third-party service providers are subject to a risk-based
programme of oversight by the Manager. Third-party
service provider internal control reports are received on an
annual basis, with concerns investigated as they arise.
Job No: 106742 Proof Event: 9 Black Line Level: 1 Park Communications Ltd Alpine Way London E6 6LA
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6. Operational Risks
Trend (
from previous year
): Stable
Description and Impact Mitigation
• Financial losses or reputational damage from inadequate
or failed internal processes, people and systems or from
external parties and events.
• The Manager’s Operational Risk Management Framework
is designed to pro-actively prevent, identify and manage
operational risks inherent in most activities.
• The Manager uses robust systems and procedures
dedicated to its operational processes. Its risk
management structure is designed according to the FCA’s
three lines of defence model.
7. Level of Discount to Net Asset Value
Trend (
from previous year
): Stable
Description and Impact Mitigation
• The risk that the Share price performance lags NAV
performance. A widening, or increase in the volatility, of
the discount at which the Company’s Shares trade to NAV
may mean that shareholders would be unable to realise
the underlying value of their investment. In considering the
risk that the discount to NAV poses to shareholder value
and returns, both the absolute level of the discount and the
amount relative to the Company’s peer group and the wider
market are considered.
• The Board reviews the investment strategy, investment
performance and the marketing approach, given the
influence of all these factors on the discount. Due to the
nature of listed companies, the price of the Company’s
Shares and its discount to NAV are factors which are not
completely within the Company’s control.
• The Company’s Share price, NAV and discount volatility
are monitored daily by the Manager and the Company’s
Broker and considered by the Board on a regular basis.
The demand for Shares can be influenced through good
performance and an active investor relations programme.
• Discretionary repurchases of Shares are made within
guidelines set by the Board considering prevailing market
conditions in order to limit the volatility of the discount.
8. Key Person Risk
Trend (
from previous year
): Stable
Description and Impact Mitigation
• Loss of the Portfolio Manager, Co-Portfolio Manager or other
key individuals could lead to potential performance and/or
operational issues.
• The Portfolio Manager, Nitin Bajaj, has a differentiated style
in relation to his peers. This style is intrinsically linked with
the Company’s investment philosophy and strategy and,
therefore, the Company has a key person dependency on
him.
• There is also a risk that the Manager has inadequate
succession plans for other key operational individuals.
• The Company has a Co-Portfolio Manager, Ajinkya
Dhavale, who supports the Portfolio Manager, and has
extensive experience in the Asian markets and companies
and shares a common investment approach and
complementary investment experience with the Portfolio
Manager. The Portfolio Manager is also supported by
an Investment Director, Himalee Bahl, as a primary
spokesperson for the Company. This helps strengthen
the investment process. In addition, the Manager has an
extensive investment management and research presence
in Asia.
• The Manager identifies key dependencies which are
then addressed through succession plans, particularly for
portfolio managers.
Strategic Report continued
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Fidelity Asian Values PLC
STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS
9. Changes in Legislation, Taxation or Regulation
Trend (
from previous year
): Decreased
Description and Impact Mitigation
• Changes in legislation, taxation or regulation, or other
external influence that require changes to the investment
trust structure of the Company are a significant risk for the
Company.
• A breach of Section 1158 of the Corporation Tax Act 2010
could lead to a loss of investment trust status resulting in the
Company being subject to tax on capital gains.
• There have been concerns about investment cost disclosures
and their impact on the industry.
• The Board and Manager closely monitor regulatory,
taxation and legislative changes, with developments
impacting the Company summarised in the form of regular
reporting to the Board.
• The Manager monitors Section 1158 status to ensure that
any issues are escalated to the Board and addressed
promptly.
• The Manager participates in industry discussions regarding
regulatory changes impacting investment companies.
Regulatory developments are monitored and managed by
the Manager through active lobbying and negotiations as
well as a robust change management process.
Emerging Risks
The Audit and Risk Committee continues to seek to identify any
new emerging risks and take any action necessary to mitigate
their potential impact. The risks identified are placed on the
Company’s risk matrix and appropriately graded. This process,
together with the policies and procedures for the mitigation of
existing and emerging risks, is updated and reviewed regularly
in the form of comprehensive reports by the Audit and Risk
Committee. The Board determines the nature and extent of any
risks it is willing to take to achieve its strategic objectives.
Climate change, which refers to a large-scale shift in the planet’s
weather patterns and average temperatures, continues to be an
emerging risk. Globally, climate change effects are already being
experienced in the form of changing weather patterns. Extreme
weather events can potentially impact the operations of investee
companies, their supply chains and their customers. The Board
notes that the Manager has integrated ESG considerations into
the Company’s investment process. The Board will continue to
monitor how this may impact the Company as a risk to investment
valuations and potentially affect shareholder returns.
The Board, together with the Manager, is also monitoring the
emerging risk posed by the rapid advancement of artificial
intelligence (“AI”) and technology and how it may threaten the
Company’s activities and its potential impact on the portfolio and
investee companies. AI can provide asset managers powerful
tools, such as enhancing data analysis risk management, trading
strategies, operational efficiency and client servicing, all of which
can lead to better investment outcomes, and more efficient
operations. However, with these advances in computer power
that impact society, there are risks from its increasing use and
manipulation with the potential to harm, including a heightened
threat to cybersecurity.
The Board and the Manager regularly consider other emerging
risks which may continue to evolve from unforeseen geopolitical
and economic events. There are currently a number of
geopolitical factors that could mean greater stock market risks
and heightened macroeconomic changes such as inflation,
interest rates, currency fluctuations, energy costs and an
increased regulatory environment.
Emerging Risks – Manager’s Role
The Manager also has responsibility for the risk management of
the Company. It works with the Board to identify and manage the
principal and emerging risks and related uncertainties to ensure
that the Board can continue to meet its UK corporate governance
obligations.
Annual Review of Full Risk Register
The Company has a full risk register which includes less material
risks which the Board reviews at least annually.
GOING CONCERN STATEMENT
The Directors have considered the Company’s investment
objective, risk management policies, liquidity risk, credit risk,
capital management policies and procedures, the nature of
its portfolio and its expenditure and cash flow projections. The
Directors, having considered the liquidity of the Company’s
portfolio of investments (being mainly securities which are readily
realisable) and the projected income and expenditure, are
satisfied that the Company is financially sound and has adequate
resources to meet all of its liabilities and ongoing expenses
and continue in operational existence for the foreseeable future.
The Board has, therefore, concluded that the Company has
adequate resources to continue to adopt the going concern
basis for the period to 31 October 2027 which is at least twelve
months from the date of approval of the Financial Statements.
This conclusion also takes into account the Board’s assessment of
the ongoing risks from significant global geopolitical and market
events and regulatory changes that could impact the Company’s
performance, prospects and operations.
The Company’s Articles of Association require that a continuation
resolution be proposed at the forthcoming Annual General
Meeting to be held on 25 November 2026. In the event that
such resolution is not passed, the Directors would be required
to formulate proposals to be put to shareholders for the
reconstruction, reorganisation or winding up of the Company.
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Customer: Fidelity Project Title: FAV Annual Report 2026 T: 0207 055 6500 F: 020 7055 6600
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The Directors have assessed the likelihood of the continuation
resolution being passed, taking account of shareholder
engagement to date, the Company’s long-term performance and
the views of major shareholders. While there can be no certainty
as to the outcome of the vote, the Directors have no reason to
believe that the resolution will not be passed.
Accordingly, the Directors consider it appropriate to adopt the
going concern basis of accounting in preparing the Company’s
Financial Statements.
The prospects of the Company over a period longer than twelve
months can be found in the Viability Statement set out below.
VIABILITY STATEMENT
In accordance with provision 36 of the AIC Code, the Directors
have assessed the prospects of the Company over a longer period
than the twelve-month period required by the “Going Concern”
basis above. The Company is an investment trust with the objective
of achieving long-term capital growth. The Board considers that
five years is an appropriate investment horizon to assess the
viability of the Company, although the life of the Company is not
intended to be limited to this or any other period.
In making an assessment on the viability of the Company, the
Board has considered the following:
• The ongoing relevance of the investment objective in
prevailing market conditions;
• The Company’s level of gearing;
• The Company’s NAV and Share price performance versus its
Comparative Index;
• The principal and emerging risks and uncertainties facing
the Company and their potential impact as set out on pages
23 to 27;
• The Company’s continuation vote to be put forward at the
AGM on 25 November 2026 and every five years thereafter;
• The future demand for the Company’s Shares;
• The Company’s Share price discount to the NAV;
• The liquidity of the Company’s portfolio;
• The level of income generated by the Company; and
• Future income and expenditure forecasts.
The Board regularly reviews the Investment Policy and is
putting forward an amended investment policy for approval
by shareholders at the Annual General Meeting to be held on
25November 2026. There will be no change to the Company’s
investment strategy, philosophy or process as a consequence of
the amendments being made.
The Board has concluded that there is a reasonable expectation
that the Company will be able to continue in operation and meet
its liabilities as they fall due over the next five years based on the
following considerations:
• The Investment Manager’s compliance with the Company’s
investment objective and policy, its investment strategy and
asset allocation;
• The Company’s portfolio mainly comprises readily realisable
securities which can be sold to meet funding requirements if
necessary;
• The Board’s discount management policy; and
• The ongoing processes for monitoring operating costs
and income which are considered to be reasonable in
comparison to the Company’s total assets.
In preparing the Financial Statements, the Directors have
considered the impact of climate change and potential emerging
risks from the use of artificial intelligence, as detailed on page 25.
The Board has also considered the impact of regulatory changes,
ongoing geopolitical tensions and unforeseen market events, and
how these may affect the Company.
In addition, the Directors’ assessment of the Company’s ability
to operate in the foreseeable future is included in the Going
Concern Statement as set out above.
A continuation vote takes place every five years. There is a risk
that shareholders do not vote in favour of the continuation of the
Company during periods when performance of the Company’s
NAV and Share price is poor. The last continuation vote was
at the Company’s AGM held on 3 December 2021. The next
continuation vote will be put forward at the forthcoming AGM to
be held on 25 November 2026.
PROMOTING THE SUCCESS OF THE COMPANY
Under Section 172(1) of the Companies Act 2006, the directors
of a company must act in a way they consider, in good faith,
would be most likely to promote the success of the Company
for the benefit of its members as a whole, and in doing so have
regard (amongst other matters) to the likely consequences of any
decision in the long-term; the need to foster relationships with the
Company’s suppliers, customers and others; the impact of the
Company’s operations on the community and the environment;
the desirability of the Company maintaining a reputation for high
standards of business conduct; and the need to act fairly as
between members of the Company.
As an externally managed investment trust, the Company has no
employees or physical assets, and a number of the Company’s
functions are outsourced to third parties. The key outsourced
function is the provision of investment management services
by the Manager, but other professional service providers
support the Company by providing administration, marketing,
custodial, banking and audit services. The Board considers the
Company’s key stakeholders to be the existing and potential
shareholders, the external appointed Manager and other third-
party professional service providers. The Board considers that the
interests of these stakeholders are aligned with the Company’s
objective of delivering long-term capital growth to investors, in
line with the Company’s stated investment objective and strategy,
while providing the highest standards of legal, regulatory and
commercial conduct.
Strategic Report continued
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Fidelity Asian Values PLC
STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS
The Board, with the Portfolio Managers, sets the overall investment
strategy and reviews this at an annual strategy day which is
separate from the regular cycle of board meetings. In order to
ensure good governance of the Company, the Board has set various
limits on the investments in the portfolio, whether in the maximum
size of individual holdings, the use of derivatives, the level of gearing
and others. These limits and guidelines are regularly monitored and
reviewed and are set out on pages 21 and 22.
The Board receives regular reports from the Company’s Broker
which cover market activity, and how the Company compares
with its peers in its sector on performance, discount and share
repurchase activity, an analysis of the Company’s share register
and market trends.
The Board places great importance on communication with
shareholders. The Annual General Meeting (“AGM”) provides
the key forum for the Board and the Portfolio Managers to
present to the shareholders on the Company’s performance
and future plans and the Board encourages all shareholders to
attend either in person or virtually and raise any questions or
concerns. The Chairman and other Board members are available
to meet shareholders as appropriate. Shareholders may also
communicate with Board members at any time by writing to
them at the Company’s registered office at FIL Investments
International, Beech Gate, Millfield Lane, Tadworth, Surrey
KT20 6RP or via the Company Secretary in writing at the same
address or by email at investmenttrusts@fil.com.
The Portfolio Managers meet with major shareholders,
potential investors, stock market analysts, journalists and
other commentators during the year. These communication
opportunities help inform the Board in considering how best to
promote the success of the Company over the long-term.
The Board seeks to engage with the Manager and other service
providers and advisers in a constructive and collaborative way,
promoting a culture of strong governance, while encouraging
open and constructive debate, in order to ensure appropriate
and regular challenge and evaluation. This approach aims to
enhance service levels and strengthen relationships with service
providers, with a view to ensuring shareholders’ interests are
best served, by maintaining the highest standards of commercial
conduct while keeping cost levels competitive.
Whilst the Company’s direct operations are limited, the Board
recognises the importance of considering the impact of the
Company’s investment strategy on the wider community and
environment and considers the Manager’s ESG approach.
In addition to ensuring that the Company’s investment objective
was being pursued, key decisions and actions taken by the
Directors during the reporting year, and up to the date of this
report, have included:
• The decision to seek shareholder approval at the AGM held
on 26 November 2025 to update the Company’s Articles of
Association;
• Completing an audit tender as the Company’s previous
auditor had been in place for 10 years. Following completion
of the audit tender, PricewaterhouseCoopers LLP was
recommended by the Board for shareholder approval which
was obtained at the AGM held on 26 November 2025;
• The decision to again hold a hybrid AGM this year in order
to make it more accessible and improve the shareholder
experience;
• Authorising the repurchase of 4,022,699 Shares since
1 August 2025 and up to the latest practicable date of this
document in line with the Board’s discount management
policy;
• The decision to repurchase Shares to be held in Treasury
rather than for cancellation with effect from 1 July 2026. The
position with regards to buying back Shares to be held in
Treasury or for cancellation will be kept under regular review
by the Board;
• The decision to recommend the payment of a final dividend
in respect of the year ended 31 July 2026 of 22.0 pence per
Share; and
• The decision to seek shareholder approval at the forthcoming
AGM to be held on 25 November 2026 to amend the
Company’s Investment Objective and Investment Policy,
which includes a proposed increase to the Company’s short
exposure limit and a corresponding increase in the Gross
Asset Exposure limit.
Board Diversity
The Board’s overriding intention is to ensure that it is made up
of the best combination of people in order to achieve long-term
capital growth for the Company’s shareholders from an actively
managed portfolio of investments. To this effect, the Board, as
part of its succession plan, will continue to appoint individuals
who, together as a Board, will aim to ensure the continued
optimal promotion of the Company in the marketplace. Due
regard will be given to the benefit of diversity on the Board,
including gender and ethnicity.
The Board has taken into consideration the FCA’s Listing Rules
requirements (UKLR 6.6.6(9), (10) and (11)) regarding the targets
on board diversity that:
• at least 40% of the individuals on the board are women;
• at least one senior board position (chairman, chief executive
officer (“CEO”), senior independent director or chief financial
officer (“CFO”)) is held by a woman; and
• at least one board member is from a minority ethnic
background, as defined by the Office of National Statistics
criteria.
The Board considers that as an externally managed investment
trust, with no CEO or CFO, the Chairman of the Company, the
Senior Independent Director and Chairman of the Audit and Risk
Committee to be senior positions.
As required by the FCA’s Listing Rules, the Company’s reporting
against these targets is set out in the tables below. The data was
collected on a self-identifying basis. As at 31 July 2026 and up
to the date of this report, the targets that at least 40% of Board
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members are women, at least one senior Board position is held
by a woman and for at least one individual to be from an ethnic
minority background have been met.
Gender Reporting as at 31 July 2026
Number
of Board
Members
Percentage
of the
Board
Number of
Senior Board
Positions
1
Men 2 40% 2
Women 3 60% 1
1
Chairman, Senior Independent Director and Audit and Risk Committee Chairman.
Ethnic Background Reporting as at 31 July 2026
Number
of Board
Members
Percentage
of the
Board
Number of
Senior Board
Positions
1
White
British or
other White
(including
minority
white
groups)
4 80% 2
Asian/Asian
British
1 20% 1
1 Chairman, Senior Independent Director and Audit and Risk Committee Chairman.
CORPORATE AND SOCIAL RESPONSIBILITY
Environmental, Social, and Governance (“ESG”) in the
Investment Process
The Board has contracted with the Manager to provide the
Company with investment management and administrative
services. The Board believes that ESG considerations are
an important input into the assessment of the value of the
Company’s investments. The investment universe is undergoing
significant structural change and is likely to be impacted by
increasing regulation as a result of climate change and other
social and governance factors. The Board is committed to
reviewing how the Manager applies ESG factors in its investment
process. The Fidelity group of companies (including the Manager
and Investment Manager) sets out its commitment to responsible
investing and provides a copy of its detailed Responsible
Investing at https://investment-trust.fidelity.co.uk/sustainable-
investing/.
Modern Slavery Act 2015
As an externally managed investment company, the Company
has no employees and does not provide goods or services in
the normal course of business and does not have customers.
All its operational functions are outsourced to third-party service
providers. Accordingly, the Company falls outside the scope
of the Modern Slavery Act 2015. The Company’s suppliers are
predominantly professional advisers and the Company’s service
providers are considered to be low risk in this regard. In carrying
out its activities and in relationships with suppliers, the Company
aims to conduct itself responsibly, ethically and fairly.
Corporate Engagement
The Board believes that the Company should, where appropriate,
take an active interest in the affairs of the companies in which
it invests and that it should exercise its voting rights at their
general meetings. It delegates the responsibility for corporate
engagement and shareholder voting to the Manager who
updates the Board on any issues and activities. These activities
are reviewed regularly by the Manager’s stewardship team.
Streamlined Energy and Carbon Reporting (SECR)
As an investment company with all its activities outsourced to
third parties, the Company’s own direct environmental impact is
minimal. The Company has no premises, consumes no electricity,
gas or diesel fuel and consequently does not have a measurable
carbon footprint. The Company is categorised as a low energy
user (less than 40MWH) under the Streamlined Energy & Carbon
Reporting regulations and, therefore, is not required to disclose
any energy and carbon information in this Annual Report.
Task Force on Climate-Related Financial Disclosures (TCFD)
Product reports of Task Force on Climate-related Financial
Disclosures (TCFD) issued by the Manager can be obtained via
the Additional Information section on the Company’s pages of
the Manager’s website at www.fidelity.co.uk/asianvalues.
Bribery Act 2010
The Company is committed to carrying out business fairly,
honestly and openly. The Board recognises the benefits this has
to reputation and business confidence. The Board, the Manager,
the Manager’s employees and others acting on the Company’s
behalf, are expected to demonstrate high standards of behaviour
when conducting business.
The Board acknowledges its responsibility for the implementation
and oversight of the Company’s procedures for preventing
bribery, and the governance framework for training,
communication, monitoring, reporting and escalation of
compliance together with enforcing action as appropriate. The
Board has adopted a zero-tolerance policy in this regard.
Criminal Finances Act 2017
The Company is subject to the Criminal Finances Act 2017 and
has a zero-tolerance policy in respect to tax evasion and its
facilitation. The Directors are fully committed to complying with
all legislation and appropriate guidelines designed to prevent
tax evasion and the facilitation of tax evasion in the jurisdictions
in which the Company, its service providers, counterparties and
business partners operate.
Future Developments
Some trends likely to affect the Company in the future are
common to many investment companies together with the impact
of regulatory change and emerging risks. The factors likely to
affect its future development, performance and position are set
out in the Chairman’s Statement and the Portfolio Managers’
Review on pages 2 to 12.
On behalf of the Board
Clare Brady
Chairman
15 October 2026
Strategic Report continued
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Fidelity Asian Values PLC
INFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGYGOVERNANCE
Board of Directors
Clare Brady
Chairman (since 29 November 2023)
Appointed 1 August 2019
M
N
Clare Brady is a chartered governance professional with 35 years’
experience in banking and financial services. She is a non-executive
Director, Audit Committee Chairman and member of the Risk Committee
and Conflicts Committee of M&G Group Limited, M&G Investment
Management Limited and M&G Alternatives Investment Management
Limited. She is also a non-executive Director and Audit and Risk
Committee Chairman of CT Healthcare Trust PLC and a non-executive
Director of JPMorgan American Investment Trust PLC. Clare was a
non-executive Director of Credit Suisse until its merger with UBS. In her
executive career, she was a Director of the International Monetary Fund
(IMF) and prior to that, the Auditor General at the World Bank, based in
Washington D.C. Previously, she headed audit and compliance functions
at the Bank of England, Barclays Capital, HSBC and Deutsche Bank.
Matthew Sutherland
Senior Independent Director
(since 29 November 2023)
Appointed 1 January 2022
A
M
N
Matthew Sutherland has 32 years’ experience of working in financial
markets, primarily as an equity analyst and head of research, of which
the last twenty-four were spent living in Asia covering Asian markets.
Until 2016, he worked for Fidelity International, running its highly
regarded Asian equity research team of over 70 analysts from its Hong
Kong and Tokyo offices. He was also responsible for hiring and training
analysts in India, China, Korea, Hong Kong, Singapore, Japan and
Australia which included coverage of all the Asian stock markets. Prior to
joining Fidelity, he was Country Head for HSBC Securities in Taiwan and
worked for BNP Paribas in Manila.
Hussein Barma
Chairman of the Audit and Risk
Committee
(since 24 November 2022)
Appointed 24 November 2022
A
M
N
Hussein Barma is an independent Governor and Chair of the Audit
and Risk Committee of the University of the Arts London and a
Member of the Finance and Internal Audit Committees for the Oxford
Centre for Islamic Studies. He was previously a non-executive Director
and Chair of the Audit and Remuneration Committees of Atalaya
Mining Copper, S.A., a non-executive Director and Audit Chair of
Chaarat Gold Holdings Limited and a non-executive Director and
member of the Audit, Sustainability and Compensation Committees
of Eldorado Gold Corporation. Between 1998 and 2014, he was the
UK-based Chief Financial Officer of Antofagasta plc. His earlier career
was in professional services and academia and he held positions
at the Financial Reporting Council and Modern Art Oxford. He is a
qualified Barrister and Chartered Accountant and holds a doctorate in
corporate law.
Lucy Costa Duarte
Director
Appointed 1 June 2024
A
M
N
Lucy Costa Duarte is a non-executive Director of Allianz Technology
Trust PLC and MIGO Opportunities Trust plc, as well as a product
specialist for International Biotechnology Trust plc (IBT) at Schroders
and an AIC Marketing Ambassador. Her expertise is in marketing
investment trusts to retail investors, private wealth managers and
institutions. In her earlier career, she was a Director at Citigroup,
heading the emerging markets ECM team in London. She left Citigroup
in 2007 and took a career break, before starting work with IBT at SV
Health Investors in 2016 and moving with IBT to Schroders in 2023.
Sally Macdonald
Chairman of the Management
Engagement Committee
(since 3 April 2024)
Appointed 1 January 2022
A
M
N
Sally Macdonald is a non-executive Director of JPMorgan Japanese
Investment Trust plc, Allianz Global Investors UK Ltd, Thesis Unit Trust
Management and Tutman Fund Solutions Ltd. She has over 40 years’
experience of financial markets, which includes more than 30 years
as an Asian fund manager. She has previously run the Asian desks
for Sanwa, Lazard Brothers Asset Management, Canada Life, Morley
(Aviva), City of London Investment Group and Marlborough Fund
Managers.
Committee membership key
A
Audit and Risk
M
Management Engagement
N
Nomination and Remuneration
Committee Chair
Serving Directors as at the date of this Annual Report. All Directors are non-executive Directors and all are considered to be independent.
Job No: 106742 Proof Event: 9 Black Line Level: 1 Park Communications Ltd Alpine Way London E6 6LA
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Annual Report 2026
Directors’ Report
The Directors have pleasure in presenting their report and
the audited Financial Statements of the Company for the year
ended 31 July 2026. The Company is a public limited company
incorporated in England and Wales on 2 April 1996 with the
registered number 03183919 and commenced business as an
investment trust on 13 June 1996.
Results and Dividends
The Company’s results for the year ended 31 July 2026 are set
out in the Income Statement on page 54. The revenue return was
25.18 pence per Share and the capital return was 10.68 pence
per Share, giving a total return of 35.86 pence per Share.
The Directors recommend that a final dividend of 22.0 pence
(2025: 20.5 pence) per Share be paid on 4 December 2026 to
shareholders who appear on the share register as at the close
of business on 30 October 2026 (ex-dividend date 29 October
2026).
The Board
All Directors served on the Board throughout the year ended
31July 2026 and up to the date of this report. A brief description
of all serving Directors as at the date of this report is shown on
page 31 and indicates their qualifications for Board membership.
Management Company
FIL Investment Services (UK) Limited (“FISL”) is the Company’s
appointed Alternative Investment Fund Manager (the
“AIFM”/”Manager”). FISL, as the Manager, has delegated the
portfolio management of assets and the role of the Company
Secretary to FIL Investments International.
The Alternative Investment Fund Management and Secretarial
Services Agreement (the “Management Agreement”) will
continue unless and until terminated by either party giving to
the other not less than six months’ notice in writing. However,
it may be terminated without compensation if the Company is
liquidated, pursuant to the procedures laid down in the Articles of
Association of the Company. It may also be terminated forthwith
as a result of a material breach of the Management Agreement
or on the insolvency of the Manager or the Company. In addition,
the Company may terminate the Management Agreement by
sixty days’ notice if the Manager ceases to be a subsidiary of FIL
Limited.
FIL Limited, of which FISL and FIL Investments International are
subsidiary group companies, has no beneficial interest in the
Shares of the Company (2025: nil).
The Board reviews the Management Agreement at least annually
and details are included in the Corporate Governance Statement
on page 37. The Management Agreement was reviewed and
updated during the year.
Management Fee
Since 1 August 2018, the Company has had a variable
management fee arrangement which comprises a base
management fee of 0.70% of net assets per annum and a
+/- 0.20% variable fee based on the performance of the NAV
per Share relative to the Company’s Benchmark Index. The
variable management fee is calculated daily by referencing the
performance of the Company’s NAV to the Benchmark Index
on a three year rolling basis. It increases or decreases 0.033%
for each percentage point of the three year NAV per Share
outperformance or underperformance over the Benchmark
Index up to a maximum of +0.20% or a minimum of -0.20%. The
maximum fee that the Company will pay is 0.90% of net assets,
but if the Company underperforms against the Benchmark Index,
then the overall fee could fall as low as 0.50% of net assets. Any
increase to the NAV from the repurchase or issue of Shares is
removed from the fee calculation, so that the Manager cannot
benefit from performance outside of portfolio management
activities.
With effect from 1 August 2024, the base management fee has
been allocated 25% to revenue and 75% to capital. The variable
management fee continues to be charged wholly to capital.
In addition, the Company pays the Manager a secretarial and
administration fee of £75,000 per annum.
The total management fee for the year ended 31 July 2026
is detailed in Note 4 on page 61 and the secretarial and
administration fee is detailed in Note 5 on page 62.
Disclosure of Information to the Company’s Independent
Auditors
As required by Section 418 of the Companies Act 2006, each
Director in office as at the date of this report confirms that:
(a) so far as each Director is aware, there is no relevant audit
information of which the Company’s Independent Auditors
are unaware; and
(b) each Director has taken all the steps that ought to have
been taken as a Director to make himself/herself aware of
any audit information, and to establish that the Company’s
Independent Auditors are aware of that information.
Independent Auditors’ Appointment
Following the completion of a competitive audit tender process,
a resolution to appoint PricewaterhouseCoopers LLP as the
Company’s Independent Auditors was approved by shareholders
at the AGM held on 26 November 2025. A resolution to reappoint
PricewaterhouseCoopers LLP as the Company’s Independent
Auditors will be put forward for approval by shareholders at the
AGM to be held on 25 November 2026.
Corporate Governance
The Corporate Governance Statement forms part of this report
and can be found on pages 36 to 39.
Registrar, Custodian and Depositary Arrangements
The Company has appointed MUFG Corporate Markets as its
Registrar to manage the Company’s share register, JPMorgan
Chase Bank as its Custodian, which is primarily responsible for
safeguarding the Company’s assets, and J.P. Morgan Europe
Limited, under a tri-partite agreement, as its Depositary, which
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Annual Report 2026
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Fidelity Asian Values PLC
INFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGYGOVERNANCE
is primarily responsible for the oversight of the custody of
investment funds and the protection of investors’ interests. Fees
paid to these service providers are disclosed in Note 5 on
page62.
Share Capital
The Company’s share capital comprises ordinary shares of 25
pence each (“Shares”) which are fully listed on the London Stock
Exchange. As at 31 July 2026, the issued share capital of the
Company was 71,307,823 Shares (2025: 75,580,889) of which
8,571,888 Shares (2025: 8,983,830) were held in Treasury. Therefore,
the number of Shares with voting rights was 62,735,935 (2025:
66,597,059). Details of Shares repurchased in the year ended
31 July 2026 are set out in the Share Repurchases section below.
Premium/Discount Management: Enhancing Shareholder
Value
The Board recognises the importance of the relationship between
the Company’s Share price and the NAV per Share and monitors
this closely. It seeks authority from shareholders each year to
issue Shares at a premium or to repurchase Shares at a discount
to the NAV, either for cancellation or for holding in Treasury. The
Board will only exercise these authorities if deemed to be in the
best interests of shareholders at the time.
Share Issues
No Shares were issued during the year ended 31 July 2026
(2025: nil) and none have been issued since then and as at the
date of this report.
The authorities to issue Shares and to disapply pre-emption
rights expire at the AGM to be held on 25 November 2026 and
resolutions to renew these authorities will be put to shareholders
at that AGM.
Share Repurchases
During the year ended 31 July 2026, 822,911 Shares held in
Treasury at the start of the year were cancelled (2025: nil), 410,969
Shares were repurchased to be held in Treasury (2025: 4,463,497)
and 3,450,155 were repurchased for cancellation (2025: nil).
The Board has agreed that Shares repurchased with effect from
1 July 2026 will be held in Treasury. From 1 August 2026 up to the
latest practicable date of this document, 161,575 Shares have
been repurchased to be held in Treasury.
The authority to repurchase Shares expires at the AGM to be held
on 25 November 2026 and a resolution to renew the authority
to repurchase Shares, either for cancellation or to hold them in
Treasury, will be put to shareholders at that AGM.
SUBSTANTIAL SHARE INTERESTS
As at 31 July 2026 and 30 September 2026, the shareholders
listed in the table below held more than 3% of the issued share
capital of the Company.
Shareholders
31 July
2026
%
30 September
2026
%
Fidelity Platform 13.60 13.37
Raymond James* 10.41 10.65
Interactive Investor 8.52 8.50
Hargreaves Lansdown 7.83 7.73
Evelyn Partners 7.25 7.39
Rathbones 3.99 3.61
AJ Bell 3.66 3.70
RBC Brewin Dolphin 3.49 3.39
* includes Charles Stanley
Additional Information Required in the Directors’ Report
Information on proposed dividends, financial instruments and
disclosure on Streamlined Energy and Carbon Reporting is set
out in the Strategic Report on pages 21 to 30.
ANNUAL GENERAL MEETING – WEDNESDAY, 25 NOVEMBER
2026 AT 11.00 AM
THIS SECTION IS IMPORTANT AND REQUIRES YOUR
IMMEDIATE ATTENTION.
If you are in any doubt as to the action you should take,
you should seek your own personal financial advice from
your stockbroker, bank manager, solicitor or other financial
adviser authorised under the Financial Services and Markets
Act 2000.
The AGM of the Company will be held at 11.00 am on
Wednesday, 25 November 2026 at 4 Cannon Street, London
EC4M 5AB and virtually via the online Lumi AGM meeting
platform. Full details of the meeting are given in the Notice of
Meeting on pages 85 to 89.
The Notice of Meeting and related papers are sent to
shareholders at least 20 working days before the AGM. We
look forward to welcoming you to the AGM in person. For those
shareholders who are not able to attend in person, we will live-
stream the formal business and presentations of the meeting
online.
Properly registered shareholders joining the AGM virtually will be
able to vote on the proposed resolutions. Please see Note 9 to
the Notes to the Notice of Meeting on page 88 for details on how
to vote virtually. Investors viewing the AGM online will be able
to submit live written questions to the Board and the Portfolio
Managers and we will answer as many of these as possible at
an appropriate juncture during the meeting.
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Annual Report 2026
Further information and links to the Lumi platform may be found
in Note 9 to the Notice of Annual General Meeting on page
88. On the day of the AGM, in order to join electronically and
ask questions via the Lumi platform, shareholders will need
to connect to the website at https://meetings.lumiconnect.
com/100-515-687-445.
We urge shareholders to vote and make use of the proxy form
provided. Please note that investors on platforms such as Fidelity
Personal Investing, Hargreaves Lansdown, Interactive Investor
or AJ Bell Youinvest will need to request attendance at the
AGM in accordance with the policies of your chosen platform.
They may request that you submit electronic votes in advance
of the meeting. If you are unable to obtain a unique IVC and
PIN from your nominee or platform, we will also welcome
online participation as a guest. Once you have accessed
https://meetings.lumiconnect.com/100-515-687-445 from your
web browser on a tablet or computer, you should then select the
‘Guest Access’ option before entering your name and who you
are representing, if applicable. This will allow you to view the
meeting and ask questions but you will not be able to vote.
Fidelity Platform Investors – Voting at AGMs
If you hold your Shares in the Company through the Fidelity
Platform, then Fidelity passes on to you the right to vote on the
proposed resolutions at the Company’s AGM. Fidelity Platform
Investors are advised to vote online via the Broadridge Service
(a company that specialises in investor voting facilities). Investors
can sign up to this facility via their Fidelity Investor Account.
Proxy Voting
Paper Proxy Forms will be sent to all shareholders who hold
Shares on the main share register. This will assist shareholders to
vote in advance of the meeting should they decide not to attend
in person.
If you have sold, transferred or otherwise disposed of all your
Shares in the Company, you should pass this document, together
with any accompanying documents, as soon as possible to the
purchaser or transferee, or to the stockbroker, bank or other
agent through whom the sale or transfer was effected, for
onward transmission to the purchaser or transferee.
At the AGM to be held on 25 November 2026, resolutions will be
proposed relating to the items of business set out in the Notice
of Meeting on pages 85 and 86, including the items of special
business summarised below and on the next page.
Continuation of the Company
Resolution 11 is an ordinary resolution to approve continuation of
the Company as an investment trust. The Articles of Association
of the Company require that an ordinary resolution that the
Company should continue as an investment trust be put forward
at the AGM to be held on 25 November 2026 and at each
fifth annual general meeting thereafter. The continuation of
the Company as an investment trust was last approved by
shareholders at the AGM held in December 2021 and over 99%
of proxy votes cast were in favour of continuation.
The Company has delivered strong long-term performance for
shareholders, with the Company’s Share Price and NAV per
Share total return for the 5 year period to 31 July 2026 being
+40.3% and 42.4% respectively, compared to a total return
of 34.8% from its Comparative Index. The Board continues to
believe that the Company’s investment opportunity is compelling.
Shareholder feedback on voting intentions has been sought from
several large shareholders and the feedback provided by those
shareholders has been supportive of the continuation of the
Company.
In the event that the continuation vote is not passed, the Directors
shall be required to draw up proposals for the voluntary
liquidation, unitisation or other reorganisation of the Company
for submission to the Company’s shareholders at a general
meeting to be convened by the Board for a date not more than
six months after the date of the AGM.
Authority to amend the Company’s Investment Objective and
Investment Policy
Resolution 12 is an ordinary resolution to authorise the Directors
to amend the Investment Objective and Investment Policy. Details
of the proposed changes are provided in the Strategic Report on
page 22 and the rationale for the main changes is explained in
the Chairman’s Statement on page 4 and the Portfolio Managers’
Review on page 11. The full text of the proposed amended
Investment Objective and Investment Policy is set out in the
Appendix to the Notice of Meeting on pages 90 and 91.
Authority to Allot Shares
Resolution 13 is an ordinary resolution and provides the Directors
with a general authority to allot securities in the Company
up to an aggregate nominal value of £1,782,695. If passed,
this resolution will enable the Directors to allot a maximum of
7,130,780 Shares which represents approximately 10% of the
issued share capital of the Company (including Treasury Shares)
at the latest practicable date of this document, and to impose
any limits or restrictions and make any arrangements which
they consider necessary or appropriate to deal with Treasury
Shares, fractional entitlements, record dates, legal, regulatory or
practical problems in, or under the laws of, any territory or any
other matter. The Directors would not intend to use this power
unless they considered that it was in the interests of shareholders
to do so. Any Shares issued would be at NAV per Share or at a
premium to NAV per Share.
Authority to Disapply Pre-Emption Rights
Resolution 14 is a special resolution disapplying pre-emption
rights and granting authority to the Directors, without the need
for further specific shareholder approval, to make allotments
of equity securities or sale of Treasury Shares for cash up to
an aggregate nominal value of £1,782,695 (including Treasury
Shares) (approximately 10% of the issued share capital of the
Company at the latest practicable date of this document and
equivalent to 7,130,780 Shares).
Directors’ Report continued
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Fidelity Asian Values PLC
INFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGYGOVERNANCE
Authority to Repurchase Shares
Resolution 15 is a special resolution which renews the Company’s
authority to purchase up to 14.99% (9,379,896) of the Shares in
issue (excluding Treasury Shares) at the latest practicable date of
this document, or, if different, such number as represents 14.99%
of the share capital (excluding Treasury Shares) at the date of
the passing of the resolution, either for immediate cancellation
or for retention as Treasury Shares, at the determination of the
Directors. Once Shares are held in Treasury, the Directors may
only dispose of them in accordance with the relevant legislation
by subsequently selling the Shares for cash or by cancelling the
Shares. Purchases of Shares will be made at the discretion of the
Directors and within guidelines set from time to time by them in
the light of prevailing market conditions. Purchases will only be
made in the market at prices below the prevailing NAV per Share.
Authority to call General Meetings on 14 clear days’ notice
Resolution 16 is a special resolution to provide the Company with
authority to call general meetings (other than annual general
meetings) on 14 clear days’ notice. The Directors believe that the
flexibility provided by this resolution is beneficial to the Company
when dealing with any matters that require prompt consideration
by shareholders.
This authority would only be used in circumstances where the
Board considers it appropriate to do so, taking into account the
circumstances of the business to be considered at the relevant
general meeting.
Recommendation: The Board considers that each of
the resolutions is likely to promote the success of the
Company and is in the best interests of the Company and
its shareholders as a whole. The Directors unanimously
recommend that shareholders vote in favour of the
resolutions as they intend to do in respect of their own
beneficial holdings.
On behalf of the Board
Clare Brady
Chairman
15 October 2026
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Fidelity Asian Values PLC
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Annual Report 2026
Corporate Governance Statement
This Corporate Governance Statement forms part of the Directors’
Report. The Company is committed to maintaining high standards
of corporate governance. Accordingly, the Board has put in
place a framework for corporate governance which it believes is
appropriate for an investment company.
STATEMENT OF COMPLIANCE
The Board has considered the principles and provisions of the
AIC Corporate Governance Code (the “AIC Code”) issued by the
Association of Investment Companies (the “AIC”) in August 2024.
The AIC Code addresses the principles and provisions set out
in the UK Corporate Governance Code (the “UK Code”) issued
by the Financial Reporting Council in January 2024, as well as
setting out additional provisions on issues that are of specific
relevance to investment trust companies. The Board considers
that reporting against the principles and provisions of the AIC
Code, which has been endorsed by the Financial Reporting
Council, provides more relevant information to shareholders.
The FRC has confirmed that investment companies which report
against the AIC Code will meet their obligations under the UK
Code (and associated disclosure requirements under the UK
Listing Rules). This Corporate Governance Statement, together
with the Statement of Directors’ Responsibilities on page 43, set
out how the principles in the AIC Code have been applied.
The AIC Code is available on the AIC website at www.theaic.
co.uk. It includes an explanation of how the AIC Code adapts the
principles and provisions set out in the UK Code to make them
relevant for investment companies. The UK Code can be found
on the FRC’s website at www.frc.org.uk.
The Company has complied with the principles and provisions of
the AIC Code for the year under review and up to the date of this
Annual Report.
As it reports against the AIC Code, the Company does not
comply with the UK Code provisions relating to the role of the
chief executive, executive directors’ remuneration or the need
for an internal audit function. The Board considers that these
provisions are not relevant in the context of the Company as
it is an externally managed investment company and has no
executive directors, employees or internal operations, and its day-
to-day management and administrative functions are delegated
to the Manager.
THE BOARD
Board Composition
The Board, chaired by Clare Brady, consists of five non-executive
Directors as at the date of this Annual Report. The Directors
believe that, between them, they have good knowledge
and wide experience of business in Asia and of investment
companies and that the Board has an appropriate balance of
skills, experience, independence and knowledge of the Company
and length of service to discharge its duties and provide effective
strategic leadership and proper governance of the Company.
Matthew Sutherland is the Senior Independent Director and fulfils
the role as a sounding board for the Chairman, intermediary
for the other Directors as necessary and acts as a channel of
communication for shareholders in the event that contact through
the Chairman is inappropriate.
Biographical details of all the Directors are on page 31.
Training, Development and Board Evaluation
On appointment, Directors receive a full, formal and tailored
induction. Directors are also regularly provided with key information
on the Company’s policies, regulatory and statutory requirements
and internal controls. Changes affecting Directors’ responsibilities
are advised to the Board as they arise. Directors also regularly
participate in relevant training and industry seminars. Training
and development needs are considered as part of the evaluation
process and are agreed with the Chairman.
An annual evaluation of the Board, its Directors and its
Committees is undertaken ahead of each AGM. It takes the form
of written questionnaires and discussions, except for every third
year when an external evaluation is undertaken. The process
is effective in terms of identifying areas for improvement in the
functioning and performance of the Board and its Committees
so that action can be taken based on results. For the year under
review, the performance and contribution to the Company of
each Director was considered using a written questionnaire. The
performance of the Chairman is evaluated by the other Directors
in the Chairman’s absence. It was concluded that the Chairman
and each Director have been effective and that they continue
to demonstrate commitment to their roles. The latest externally
facilitated evaluation was in respect of the year ended 31 July
2025 and therefore the next scheduled externally facilitated
Board performance review will be undertaken for the Company’s
year ending 31 July 2028.
Directors’ and Officers’ Liability Insurance
In addition to the benefits under the Manager’s global Directors’
and Officers’ liability insurance arrangements, the Company
maintains additional insurance cover for its Directors under its
own policy as permitted by the Companies Act 2006.
Professional negligence liability risks
The requirement to cover potential liability risks arising from
professional negligence is covered by the Manager’s own funds.
Sufficient capital above the regulatory limit is held which is
monitored by the board of the Manager.
Board Responsibilities and Board Meetings
The Board has overall responsibility for the Company’s affairs
and for promoting the long-term success of the Company. All
matters which are not delegated to the Company’s Manager
under the Management Agreement are reserved for the Board’s
decision. The Board also considers shareholder issues including
communication and investor relations.
The Board has approved a policy on Directors’ conflicts of
interest. Under this policy, Directors are required to disclose
all actual and potential conflicts of interest as they arise for
consideration and approval. The Board may impose restrictions
or refuse to authorise such conflicts if deemed appropriate.
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Fidelity Asian Values PLC
INFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGYGOVERNANCE
All Directors are able to allocate sufficient time to the Company
to discharge their responsibilities fully and effectively. Each
Director is entitled to take independent professional advice, at
the Company’s expense, in the furtherance of their duties.
The Board considers that it meets sufficiently regularly to
discharge its duties effectively and the table below gives the
attendance record for the meetings held during the
reporting year. In addition to the formal Board and Committee
meetings, the Board undertakes an annual strategy meeting,
and a due diligence trip to Asia every other year. During the
last due diligence trip, held in March 2025, the Board met with
the management of existing and potential investee companies
alongside the Portfolio Managers. The Board also met with
Fidelity’s research and analyst teams. The next trip will take
place in 2027.
Board’s Attendance Record for the Reporting Year
Regular
Board
Meetings
Audit
and Risk
Committee
Meetings
Management
Engagement
Committee
Meetings
Nomination
and
Remuneration
Committee
Meetings
Clare Brady
1
4/4 n/a 1/1 1/1
Hussein Barma 4/4 3/3 1/1 1/1
Lucy Costa Duarte 4/4 3/3 1/1 1/1
Sally Macdonald 4/4 3/3 1/1 1/1
Matthew Sutherland 4/4 3/3 1/1 1/1
1 As Chairman of the Board, Clare Brady is not a Member of the Audit and Risk Committee but is invited to attend meetings.
Figures indicate those meetings for which each Director was eligible to attend and attended in the year. Regular Board meetings
exclude the Board Strategy Day and ad hoc meetings for other Board business.
Since the end of the reporting period, the Directors have also had a Management Engagement Committee meeting at which they
reviewed the performance of the Manager and the terms of the Company’s Management Agreement.
BOARD COMMITTEES
The Board has three Committees through which it discharges
certain of its corporate governance responsibilities. These are
the Audit and Risk Committee, the Management Engagement
Committee and the Nomination and Remuneration Committee.
Terms of reference of each Committee can be found on the
Company’s pages of the Manager’s website www.fidelity.co.uk/
asianvalues.
Audit and Risk Committee
Following the financial year end, the Audit Committee was
renamed the Audit and Risk Committee to better reflect the
Committee’s ongoing responsibilities in respect of the Company’s
risk management and internal control systems, and also arising
from the requirements of the updated AIC Code issued in August
2024. The Audit and Risk Committee is chaired by Hussein Barma
and consists of all the Directors, except for the Chairman, which
is in line with the recommendation of the AIC Code. Full details,
including the Committee’s role and responsibilities, are disclosed
in the Report of the Audit and Risk Committee on pages 44 to 46.
Management Engagement Committee
Composition
The Management Engagement Committee is chaired by Sally
Macdonald and consists of all the Directors.
Role and Responsibilities
The Committee is charged with reviewing and monitoring the
performance of the Manager and ensuring that the terms of the
Company’s Management Agreement remain competitive and
reasonable for shareholders. It meets at least once a year and
reports to the Board, making recommendations where appropriate.
Manager’s Reappointment
Ahead of the AGM, the Committee has reviewed the
performance of the Manager and the current fee structure and
also that of its peers and concluded that it is in the interests
of shareholders that the appointment of the Manager should
continue. In reaching this conclusion, the Committee took into
consideration the commitment, quality and continuity of the team
responsible for the Company. Details of the management fee
structure for the year ended 31 July 2026 are in the Directors’
Report on page 32.
Nomination and Remuneration Committee
Composition
The Nomination and Remuneration Committee is chaired by
Matthew Sutherland and consists of all the Directors.
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Annual Report 2026
During the year ended 31 July 2026, the Nomination Committee
was chaired by Clare Brady. Following the year end, the
Nomination Committee’s remit was expanded to include
remuneration matters and the committee was renamed
the Nomination and Remuneration Committee to reflect its
extended responsibilities. In compliance with the AIC Code
recommendation on chairing remuneration committees, Clare
Brady stood down as chairman of the Committee and Matthew
Sutherland was appointed as her successor.
Role and Responsibilities
The Committee is charged with nominating new Directors
for consideration by the Board, and in turn for approval by
shareholders. The search for a candidate is carried out against
a set of objective criteria, with due regard for the benefits of
diversity on the Board, including gender. New Directors are
appointed on the basis of merit and this process has led to a
diverse Board membership. External consultants may be used to
identify potential candidates and to assist the Board in recruiting
a new independent non-executive director. As described above,
post the financial year end, the Committee’s responsibilities
have been extended to include Directors’ remuneration matters,
including making recommendations on the remuneration of the
Chairman and the other directors.
The Committee meets at least once a year and reviews the
composition, size and structure of the Board and makes
recommendations to the Board as appropriate. It is also
responsible for succession planning and for Directors’
appointments.
The Committee makes recommendations to the Board for the
continuation or cessation of service of Directors and reviews the
tenure of Directors. It also considers the election and re-election
of Directors ahead of each AGM. For the forthcoming AGM on
25 November 2026, it has considered the performance and
contribution to the Company of each Director and concluded
that each Director seeking re-election has been effective and
continues to demonstrate commitment to their role. This has been
endorsed by the Board, which recommends their reappointment
by shareholders at the AGM to be held on 25 November 2026.
ACCOUNTABILITY AND AUDIT
Financial Reporting
Set out on page 43 is a statement by the Directors of their
responsibilities in respect of the preparation of the Annual Report
and Financial Statements. The Independent Auditors have set out
their reporting responsibilities within the Independent Auditors’
Report to the Members on pages 47 to 53.
The Board has a responsibility to present fair, balanced and
understandable annual and half-yearly financial statements.
All financial statements are reviewed by the Audit and Risk
Committee and approved by the Board prior to their issue to
ensure that this responsibility is fulfilled.
Risk Management and Internal Controls
The Board is responsible for the Company’s systems of risk
management and internal controls and for reviewing their
effectiveness. The review takes place at least once a year. Such
systems are designed to manage rather than eliminate risk
of failure to achieve business objectives and can only provide
reasonable, but not absolute, assurance against material
misstatement or loss.
The Board determines the nature and extent of any risks it is
willing to take in order to achieve its strategic objectives. It is
responsible for the design, implementation and maintenance of
controls and procedures to safeguard the assets of the Company
although these tasks have been delegated on a day-to-day basis
to the Manager. The system extends to financial, operational
and compliance controls and risk management. Clear lines of
accountability have been established between the Board and
the Manager. The Manager provides regular reports on controls
and compliance issues to the Audit and Risk Committee and the
Board.
In carrying out its review, the Audit and Risk Committee
has regard to the activities of the Manager, the Manager’s
compliance and risk functions and the work carried out by the
Company’s Independent Auditors and also includes consideration
of internal controls covered in similar reports issued by the other
service providers.
The Board, assisted by the Manager, has undertaken a rigorous
risk and controls assessment. The process also assists in
identifying any new emerging risks and the action necessary to
mitigate their potential impact. The Board confirms that there is
an effective ongoing process in place to identify, evaluate and
manage the Company’s principal business and operational
risks, and that it has been in place throughout the year ended
31 July 2026 and up to the date of this report. This process is in
accordance with the FRC’s “Risk Management, Internal Control
and Related Financial Business Reporting” guidance.
The Board has reviewed the need for an internal audit
function and has determined that the systems and procedures
employed by the Manager, which are subject to inspection by
the Manager’s internal and external audit processes, provide
sufficient assurance that a sound system of internal controls
is maintained to safeguard shareholders’ investments and
the Company’s assets. An internal audit function, specific to
the Company, is therefore considered unnecessary. The Audit
and Risk Committee meets the Manager’s internal audit
representative at least once a year. It receives a summary of
the Manager’s externally audited internal controls report on an
annual basis.
The Board will report against the new requirements under
provision 34 of the AIC Code applicable for reporting periods
beginning on or after 1 January 2026, including a declaration of
effectiveness of material controls at the Company’s financial year
end, in the Company’s next Annual Report for the year ending 31
July 2027.
Corporate Governance Statement continued
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Fidelity Asian Values PLC
INFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGYGOVERNANCE
Whistle-Blowing Procedure
Part of the Manager’s role in ensuring the provision of a good
service, pursuant to the Management Agreement, includes
the ability for employees of Fidelity International (“Fidelity”) to
raise concerns through a workplace concerns escalation policy
(“whistle-blowing procedure”). Fidelity has advised the Board
that it is committed to providing the highest level of service to
its customers and to applying the highest standards of quality,
honesty, integrity and probity. The aim of the policy is to
encourage employees and others working for Fidelity to assist
the Company in tackling fraud, corruption and other malpractice
within the organisation and in setting standards of ethical
conduct.
Relations with Shareholders
Communication with shareholders is given a high priority by
the Board and it liaises with the Manager and the Company’s
broker who are in regular contact with the Company’s major
institutional investors to canvass shareholder opinion and to
communicate its views to shareholders. All Directors are made
aware of shareholders’ concerns and the Chairman, the Senior
Independent Director and, where appropriate, other Board
Directors, are available to meet with shareholders to discuss
strategy and governance. In addition, the Portfolio Managers
also meet with major shareholders and investors in the UK. The
Board regularly monitors the shareholder profile of the Company
and receives regular reports from the Manager on meetings
attended with shareholders and any concerns raised in such
meetings. The Board aims to provide the maximum opportunity
for dialogue between the Company and shareholders. If
any shareholder wishes to contact a member of the Board
directly, they should either email the Company Secretary at
investmenttrusts@fil.com or in writing at FIL Investments
International, Beech Gate, Millfield Lane, Lower Kingswood,
Tadworth, Surrey KT20 6RP. The Company Secretary will attend to
any enquiries promptly and ensure that they are directed to the
Chairman, Senior Independent Director or the Board as a whole,
as appropriate.
The Board encourages all shareholders to attend the Company’s
AGM to be held on 25 November 2026, details of which can
be found on page 5. Nitin Bajaj, the Portfolio Manager and
Ajinkya Dhavale, the Co-Portfolio Manager, will be making a
presentation.
Voting Rights in the Company’s Shares
Every person entitled to vote on a show of hands has one vote.
On a poll, every shareholder who is present in person or by
proxy or representative has one vote for every Share held. At
general meetings, all proxy votes are counted and, except where
a poll is called, proxy voting is reported for each resolution after
it has been dealt with on a show of hands. The proxy voting
results are disclosed on the Company’s pages of the Manager’s
website at www.fidelity.co.uk/asianvalues after the AGM.
Annual General Meeting
The Notice of Meeting on pages 85 to 89 sets out the business
of the AGM and the special business resolutions are explained
more fully on pages 34 and 35. A separate resolution is
proposed on each substantially separate issue including the
approval of the Annual Report and Financial Statements. The
Notice of Meeting and related papers are sent to shareholders
at least 20 working days before the AGM.
On behalf of the Board
Clare Brady
Chairman
15 October 2026
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Fidelity Asian Values PLC
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Annual Report 2026
Chairman’s Statement
The Directors’ Remuneration Report for the year ended 31 July
2026 has been prepared in accordance with the Large & Medium-
sized Companies & Groups (Accounts & Reports) (Amendment)
Regulations 2013 (the “Regulations”). As the Board is entirely
composed of non-executive Directors and has no chief executive
officer and employees, many parts of the Regulations, in particular
those relating to chief executive officer pay and employee pay, do
not apply and are therefore not disclosed in this report.
An ordinary resolution to approve the Directors’ Remuneration
Report (excluding the Remuneration Policy section) will be put to
shareholders at the AGM on 25 November 2026. The Company’s
Independent Auditors are required to audit certain sections of this
report and where such disclosures have been audited, the specific
section has been indicated as such. The Independent Auditors’
opinion is included in its report on pages 47 to 53.
Directors’ Remuneration
The annual fee structure with effect from 1 August 2026 is as follows:
Role
1 August
2026
1 August
2025
Chairman £49,000 £47,500
Chairman of the Audit and Risk
Committee £40,500 £39,500
Senior Independent Director £35,500 £34,500
Directors £33,500 £32,500
Levels of remuneration are reviewed on an annual basis to
ensure that they remain competitive and sufficient to attract and
retain the quality of Directors needed to manage the Company
successfully.
The Remuneration Policy
The Company’s Articles of Association limit the aggregate fees
payable to the Directors to £350,000 per annum. Subject to this
overall limit, it is the Board’s policy to determine the level of
Directors’ fees having regard to the time spent by them on the
Company’s affairs; the level of fees payable to non-executive
directors in the industry generally; the requirement to attract
and retain individuals with suitable knowledge and experience;
and the role that individual Directors fulfil. Other than fees and
reasonable out-of-pocket expenses incurred in attending to the
affairs of the Company, the Directors are not eligible for any
performance related pay or benefits, pension related benefits,
share options, long-term incentive schemes or other taxable
benefits. The Directors are not entitled to exit payments and are
not provided with any compensation for loss of office. Directors’
fees are paid monthly. Directors would not serve a notice period
if their appointment were to be terminated.
The level of Directors’ fees is determined by the whole Board.
Directors do not vote on their own individual fees. The Board
reviews the Company’s Remuneration Policy and implementation
on an annual basis. Reviews are based on information provided
by the Company’s Manager and research from third parties and it
includes information on the fees of other similar investment trusts.
No Director has a service contract with the Company. New
Directors are provided with a letter of appointment which,
amongst other things, provides that their appointment is subject
to the Companies Act 2006 and the Company’s Articles of
Association. Copies of the Directors’ letters of appointment are
available at each of the Company’s AGMs and can be obtained
from the Company’s registered office.
The Company’s Remuneration Policy will apply to new Board
members, who will be paid at the equivalent amount of fees as
current Board members.
Voting on the Remuneration Policy
The Remuneration Policy is subject to a binding vote at every
third AGM. It was last approved at the AGM held on 26
November 2025 with 99.49% of votes (representing 18,347,552
Shares) cast in favour and 0.51% of votes (representing 94,787
Shares) cast against.
Voting on the Directors’ Remuneration Report
At the AGM held on 26 November 2025, 99.49% of votes
(representing 18,357,004 Shares) were cast in favour of the
Directors’ Remuneration Report for the year ended 31 July 2025
and 0.51% of votes (representing 94,919 Shares) were cast
against.
The Directors’ Remuneration Report (excluding the Remuneration
Policy section) for the year ended 31 July 2026 will be put
forward to shareholders at the AGM to be held on 25 November
2026, and the votes cast will be disclosed on the Company’s
website at: www.fidelity.co.uk/asianvalues.
Single Total Figure of Remuneration
The single total aggregate Directors’ remuneration for the year
ended 31 July 2026 was £187,304 (2025: £190,298). This includes
expenses incurred by Directors in attending to the affairs of the
Company and which are considered by HMRC to be a taxable
expense. Information on individual Directors’ fees and taxable
Directors’ expenses are shown in the table on the next page.
Expenditure on Remuneration and Distributions to
Shareholders
The table below shows the total amount paid out in Directors’
remuneration and distributions to shareholders. The projected
Directors’ remuneration for the year ending 31 July 2027 is
disclosed in the table on the next page.
31 July 2026
£
31 July 2025
£
Expenditure on Directors’
Remuneration:
Fees and taxable expenses 187,304 190,298
Distribution to Shareholders:
Dividend payments 13,139,000 10,147,000
Directors’ Remuneration Report
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Fidelity Asian Values PLC
INFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGYGOVERNANCE
Remuneration of Directors
2027 2026 2026 2026 2025 2025 2025
Projected
Total
Fees
(Audited)
Taxable
Expenses
(Audited)
Total
(Audited)
Fees
(Audited)
Taxable
Expenses
(Audited)
Total
(Audited)
(£) (£) (£) (£) (£) (£) (£)
Clare Brady 49,000 47,500 – 47,500 46,000 – 46,000
Hussein Barma 40,500 39,500 – 39,500 38,000 – 38,000
Lucy Costa Duarte 33,500 32,500 – 32,500 31,500 – 31,500
Sally Macdonald 33,500 32,500 804 33,304 31,500 106 31,606
Matthew Sutherland 35,500 34,500 – 34,500 33,500 – 33,500
Michael Warren
1
n/a n/a n/a – 9,692 – 9,692
Total 192,000 186,500 804 187,304 190,192 106 190,298
1 Retired on 21 November 2024.
Performance
The Company’s objective is to achieve long-term capital growth principally from the stock markets of the Asian Region excluding
Japan. The graph below shows performance over ten years to 31 July 2026 against its Benchmark Index.
Total return performance for ten years to 31 July 2026
+136.2%
+118.3%
+171.5%
Prices rebased to 100.
Sources: Fidelity and Datastream.
Share Price
Benchmark Index
NAV per Share
50
75
100
125
150
175
200
225
250
275
300
July 25 July 26July 16 July 17 July 18 July 19 July 20 July 21 July 23 July 24July 22
Directors’ Interest in the Company’s Shares
Although there is no requirement for the Directors to hold Shares in the Company, shareholdings by Directors is encouraged. The table
below shows the interests of the Directors in the Shares of the Company. All of the shareholdings are beneficial. The Portfolio Manager
also holds Shares in the Company.
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Annual Report 2026
Directors’ Shareholdings (Audited)
31 July
2026
31 July
2025
Change
during year
Shares
Clare Brady 13,073 13,073 –
Hussein Barma 2,500 2,500 –
Lucy Costa Duarte 3,800 3,800 –
Sally Macdonald 2,734 2,734 –
Matthew Sutherland 27,859 27,859 –
On behalf of the Board
Clare Brady
Chairman
15 October 2026
Directors’ Remuneration Report continued
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Fidelity Asian Values PLC
INFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGYGOVERNANCE
Statement of Directors’ Responsibilities
The Directors are responsible for preparing the Annual Report
and Financial Statements in accordance with applicable law and
regulations.
Company law requires the Directors to prepare Financial
Statements for each financial period. Under that law they have
elected to prepare the Financial Statements in accordance with
UK Generally Accepted Accounting Practice (UK Accounting
Standards and applicable law), including Financial Reporting
Standard FRS 102: The Financial Reporting Standard applicable
in the UK and Republic of Ireland (“FRS 102”). Under company
law, the Directors must not approve the Financial Statements
unless they are satisfied that they give a true and fair view of the
state of affairs of the Company and of the return for the reporting
period.
In preparing these Financial Statements, the Directors are
required to:
• Select suitable accounting policies in accordance with
Section 10 of FRS 102 and then apply them consistently;
• Make judgements and accounting estimates that are
reasonable and prudent;
• Present information, including accounting policies, in a
manner that provides relevant, reliable, comparable and
understandable information;
• State whether applicable UK Accounting Standards, including
FRS 102, 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 keeping adequate accounting
records that are sufficient to show and explain the Company’s
transactions and disclose with reasonable accuracy at any time
the financial position of the Company and to enable them to
ensure that the Company and the 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 Strategic Report, a Directors’
Report, a Corporate Governance Statement and a Directors’
Remuneration Report that comply with that law and those
regulations.
The Directors have delegated to the Manager the responsibility
for the maintenance and integrity of the corporate and financial
information included on the Company’s pages of the Manager’s
website at www.fidelity.co.uk/asianvalues. Visitors to the
website need to be aware that legislation in the UK governing
the preparation and dissemination of the Financial Statements
may differ from legislation in their own jurisdictions.
The Directors confirm that to the best of their knowledge:
• The Financial Statements, prepared in accordance with UK
Generally Accepted Accounting Practice, including FRS 102,
give a true and fair view of the assets, liabilities, financial
position and profit of the Company;
• The Annual Report, including the Strategic 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;
and
• The Annual Report and Financial Statements, taken as a
whole, are fair, balanced and understandable and provide
the information necessary for shareholders to assess the
Company’s performance, business model and strategy.
The Statement of Directors’ Responsibilities was approved by the
Board on 15 October 2026 and signed on its behalf by:
Clare Brady
Chairman
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Annual Report 2026
Report of the Audit and Risk Committee
I am pleased to present the formal report of the Audit and Risk
Committee (the “Committee”) to shareholders. Following the
financial year end, the Audit Committee was renamed the Audit
and Risk Committee to better reflect the Committee’s ongoing
responsibilities in respect of the Company’s risk management and
internal control systems, and also arising from the requirements of
the updated AIC Code issued in August 2024.
The primary responsibilities of the Committee are to ensure the
integrity of the Company’s financial reporting, the appropriateness
of the risk management and internal controls processes (see
page 38 for further details) and the effectiveness of the external
audit process and how this has been assessed for the year ended
31July 2026.
Composition of the Committee
The Committee comprises me as Chairman, Lucy Costa Duarte,
Sally Macdonald and Matthew Sutherland. In line with the
recommendation of the AIC Corporate Governance Code,
Clare Brady, as Chairman of the Board, is not a member of the
Committee, but is invited to attend the Committee meetings as
a guest. All Committee members are independent non-executive
Directors and collectively have sufficient recent and relevant
financial experience to discharge their responsibilities fully.
Role and Responsibilities of the Committee
The Committee’s authority and duties are defined in its terms of
reference which are available on the Company’s pages of the
Manager’s website at www.fidelity.co.uk/asianvalues.
These duties include:
• Establishing with the Independent Auditors the nature and
scope of the audit, reviewing the Independent Auditors’ quality
control procedures and reporting, the effectiveness of the
audit process and the Independent Auditors’ independence
and objectivity with particular regard to the provision of non-
audit services;
• Making recommendations on the appointment, reappointment
and removal of the Independent Auditors;
• Reviewing the effectiveness of the Company’s risk
management and internal control systems (including financial,
operational and compliance controls) and considering
the scope and obtaining sufficient assurance of the work
undertaken by the Manager’s Internal Audit function;
• Monitoring the integrity of the Company’s half-yearly and
annual Financial Statements and ensuring they are fair,
balanced and understandable; and
• Reviewing the existence and performance of material controls
operating in the Company, including the review of internal
controls reporting of its service providers.
Meetings and business considered by the Committee
Since the date of the last Annual Report (16 October 2025), the
Committee has met three times and the Independent Auditors
attended two of these meetings.
The following matters were reviewed at each Committee meeting:
• The Company’s risk management and internal controls
framework;
• The Company’s compliance with its investment policy and
Board limits;
• The valuation of unlisted investments;
• The Depositary’s oversight reporting;
• The Company’s revenue and expenses forecasts and its
Balance Sheet; and
• The variable management fee accruals.
In addition, the following matters were considered at the
Committee’s meetings:
March 2026
• The Half-Yearly Report and Financial Statements and
recommendation of their approval to the Board.
• The Going Concern Statement.
• Valuation of unlisted investments.
• The Manager’s Task Force on Climate-Related Financial
Disclosures (TCFD) Reporting process.
June 2026
• Review of the risk and internal control environment.
• The Independent Auditors’ audit plan and the proposed fee
for the Company’s year ending 31 July 2026.
• The Independent Auditors’ letter of engagement for the
year ending 31 July 2026, and any subsequent periods until
superseded with a new written agreement.
• Fidelity’s Internal Audit Reporting, including review of the
execution of the internal audit plan.
• Cybersecurity and potential threats and attacks and the
controls in place to mitigate the risks.
• Review of the Task Force on Climate-Related Financial
Disclosures (TCFD).
October 2026
• Review of risk reporting and third-party controls reports.
• The Independent Auditors’ findings from the audit of the
Company.
• The Independent Auditors’ performance, independence and
the proposed reappointment of PricewaterhouseCoopers LLP
as the Company’s Independent Auditors.
• Compliance with Corporate Governance and regulatory
requirements.
• The Annual Report and Financial Statements and
recommendation of their approval to the Board following
review and conclusion by the Committee that they are fair,
balanced and understandable.
• The Viability and Going Concern Statements.
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Fidelity Asian Values PLC
INFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGYGOVERNANCE
• The final dividend payment to be recommended to the
Board and shareholders for approval.
• The Committee’s Terms of Reference.
Annual Report And Financial Statements
In the review of the Company’s Financial Statements for the year ended 31 July 2026, the Committee deliberated and considered many
significant issues, including consideration of the principal and emerging risks and uncertainties on the Company’s activities and those
issues communicated by the Independent Auditors during their reporting.
Summarised below are the most significant issues considered by the Committee in respect of these Financial Statements and how these
were addressed.
Recognition of investment
income
Investment income is recognised in accordance with Accounting Policy Note 2 (e) on page 58.
The Committee considered the allocation of special dividends between revenue and capital and
the reasons for classification of these special dividends. The Committee reviewed the internal
audit and compliance monitoring reports received from the Manager, and the Manager’s internal
controls report, to satisfy itself that adequate systems were in place for properly recording the
Company’s investment income. The Committee also reviewed reports provided by the Independent
Auditors on their work on the recognition of investment income, including the allocation of special
dividends.
Valuation, existence and
ownership of investments
(including derivatives
and unlisted investments)
The valuation of investments (including derivatives and unlisted investments) is in accordance
with Accounting Policy Notes 2 (k) and 2 (l) on pages 59 and 60. The Committee took comfort
from the Depositary’s regular oversight reports that investment related activities are conducted
in accordance with the Company’s investment policy. The Committee received internal controls
reports from the Manager and the Depositary to satisfy itself that the controls around the
valuation, existence and ownership of investments operate effectively. The valuation of the
Company’s direct investments in unlisted companies is appraised by the Manager’s Fair Value
Committee (“FVC”) in accordance with UK GAAP and International Private Equity Valuation
Guidelines and reviewed by the Audit and Risk Committee. It receives reporting information
from the FVC and reviews and challenges the proposed valuation methodologies for all unlisted
investments. The FVC’s proposals include recommendations, where appropriate, from an
external independent valuer, and detailed input from the Fidelity analysts covering the unlisted
companies, as well as Fidelity’s unlisted investments specialist. The Committee also reviewed the
reports provided by the Independent Auditors on their work on the valuations of the listed and
unlisted investments held in the Company’s portfolio. The Independent Auditors reported their
findings at the October 2026 Audit and Risk Committee meeting.
Management fee
calculation
The Company has a variable management fee arrangement in place, details of which are on
page 32. At each Committee meeting, the Manager reports on the accruals for the variable
part of the fee that have been included in the Company’s NAV and confirms that it has been
calculated in accordance with the Management Agreement. These variable management fee
accruals are reviewed by the Committee. It also receives reporting on the work carried out by
the Independent Auditors that the Company’s variable management fee has been calculated
in accordance with the terms of the Management Agreement.
Allocation of the base
management fees and
finance costs between
capital and revenue
The Board has elected under the Statement of Recommended Practice: Financial Statements of
Investment Trust Companies and Venture Capital Trusts (“SORP”) issued by the Association of
Investment Companies, to charge 75% of base management fees and finance costs to capital
and 25% to revenue, reflecting the Company’s focus on capital growth to generate returns.
The variable management fee is charged to capital.
The Committee has also been provided with an agreed upon procedures report to the Manager, prepared by
PricewaterhouseCoopers LLP, in connection with specific controls operated by the Manager.
As a result of the work performed, the Committee has concluded that the Annual Report and Financial Statements for the
year ended 31 July 2026, taken as a whole, are fair, balanced and understandable and provide the information necessary
for shareholders to assess the Company’s performance, business model and strategy. The Committee has reported these
findings to the Board and recommended that they be approved. The Board’s conclusion in this respect is set out in the
Statement of Directors’ Responsibilities on page 43.
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Annual Report 2026
Independence and Effectiveness of the Audit Process
Following their appointment by shareholders at the AGM held on
26 November 2025, PricewaterhouseCoopers LLP acted as the
Company’s Independent Auditors for the year ended 31 July 2026.
With regard to the independence of the Independent Auditors, the
Committee reviewed:
• The Independent Auditors’ arrangements for managing any
conflicts of interest;
• The fact that no non-audit services were provided to the
Company during the reporting year and up to the date of this
report; and
• The statement by the Independent Auditors that they remain
independent within the meaning of the regulators and their
professional standards.
With regard to the effectiveness of the audit process, the
Committee reviewed:
• The fulfilment by the Independent Auditors of the agreed audit
plan, including the audit team and approach to significant
risks;
• The audit findings report issued by the Independent Auditors
on the audit of the Annual Report and Financial Statements for
the year ended 31 July 2026; and
• Feedback from the Manager on the audit of the Company.
The Committee concluded that the Independent Auditors remained
independent and the audit process was effective.
Independent Auditors’ Appointment and Audit Tenure
As reported in last year’s Annual Report, following completion
of a competitive audit tender, PricewaterhouseCoopers LLP
was put forward for approval by shareholders as the proposed
Independent Auditors to the Company with effect from the financial
year ended 31 July 2026. Shareholders approved the appointment
of PricewaterhouseCoopers LLP at the AGM held on 26 November
2025. Further to the Committee’s review of the Independent
Auditors’ independence and effectiveness, it recommends the
Independent Auditors’ reappointment at the forthcoming AGM.
A resolution to reappoint PricewaterhouseCoopers LLP as
Independent Auditors to the Company will therefore be proposed
at the AGM to be held on 25 November 2026.
The Committee will continue to review the appointment of the
auditor each year to ensure that the Company continues to receive
an optimal level of service. There are no contractual obligations
which restrict the Company’s choice of auditor.
Policy on Non-Audit Services
A policy has been adopted in relation to the provision of non-
audit services. The Independent Auditors will only be engaged
to provide such services where the Audit and Risk Committee is
satisfied that the relevant service is permitted under applicable
regulations and that the independence and objectivity of the
Independent Auditors will not be compromised. The provision of
any non-audit services must be approved in advance by the Audit
and Risk Committee.
No non-audit services were provided by the Independent Auditors
to the Company during the year ended 31 July 2026.
Audit Fees
Fees paid to the Independent Auditors for the audit of the
Company’s Financial Statements are disclosed in Note 5 on
page 62. The audit fee for the reporting year was £58,073 (2025:
£57,783). Included in the previous year’s audit fee payable to Ernst
& Young LLP was an amount of £3,750 in respect of additional
scope of work relating to the transition of reporting functions to
JP Morgan which was settled by the Manager (FIL Investment
Services (UK) Limited).
Hussein Barma
Chairman of the Audit and Risk Committee
15 October 2026
Report of the Audit and Risk Committee continued
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Annual Report 2026
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Fidelity Asian Values PLC
GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY
Report on the audit of the financial statements
Opinion
In our opinion, Fidelity Asian Values PLC’s financial statements:
• give a true and fair view of the state of the company’s affairs
as at 31 July 2026 and of its return for the year then ended;
• have been properly prepared in accordance with United
Kingdom Generally Accepted Accounting Practice (United
Kingdom Accounting Standards, including FRS 102 “The
Financial Reporting Standard applicable in the UK and
Republic of Ireland”, and applicable law); and
• have been prepared in accordance with the requirements of
the Companies Act 2006.
We have audited the financial statements, included within the
Annual Report, which comprise:
• the Balance Sheet as at 31 July 2026;
• the Income Statement for the year then ended;
• the Statement of Changes in Equity for the year then ended;
and
• the notes to the financial statements, which include a
description of the significant accounting policies.
Our opinion is consistent with our reporting to the Audit and Risk
Committee.
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (“ISAs (UK)”) and applicable law.
Our responsibilities under ISAs (UK) are further described in the
Auditors’ responsibilities for the audit of the financial statements
section of our report. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our
opinion.
Independence
We remained independent of the company in accordance with
the ethical requirements that are relevant to our audit of the
financial statements in the UK, which includes the FRC’s Ethical
Standard, as applicable to listed public interest entities, and we
have fulfilled our other ethical responsibilities in accordance with
these requirements.
To the best of our knowledge and belief, we declare that non-
audit services prohibited by the FRC’s Ethical Standard were not
provided.
We have provided no non-audit services to the company in the
period under audit.
Our audit approach
Context
The Company is a standalone Investment Trust Company and
engages FIL Investment Services (UK) Limited (the “Manager”) to
manage its assets.
Overview
Audit scope
• We conducted our audit of the financial statements
using information from J.P. Morgan Europe Limited, (the
‘Administrator’) to whom the Manager has, with the
consent of the Directors, delegated the provision of certain
administrative functions.
• We tailored the scope of our audit taking into account the
types of investments within the Company, the involvement of
the third parties referred to above, the accounting processes
and controls, and the industry in which the Company
operates.
• We obtained an understanding of the control environment
in place at both the Manager and the Administrator, and
adopted a fully substantive testing approach using reports
obtained from the Administrator.
Key audit matters
• Valuation and existence of investments.
• Income from investments.
• Ability to continue as a going concern (Continuation Vote).
Materiality
• Overall materiality: £3,898,788 based on 1% of net assets.
• Performance materiality: £2,924,091.
The scope of our audit
As part of designing our audit, we determined materiality and
assessed the risks of material misstatement in the financial
statements.
Key audit matters
Key audit matters are those matters that, in the auditors’
professional judgement, were of most significance in the audit
of the financial statements of the current period and include the
most significant assessed risks of material misstatement (whether
or not due to fraud) identified by the auditors, including those
which had the greatest effect on: the overall audit strategy; the
allocation of resources in the audit; and directing the efforts of
the engagement team. These matters, and any comments we
make on the results of our procedures thereon, were addressed
in the context of our audit of the financial statements as a whole,
and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
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This is not a complete list of all risks identified by our audit.
Key audit matter How our audit addressed the key audit matter
Valuation and existence of investments.
Refer to the Report of the Audit and Risk Committee, Note 2 –
Accounting Policies and Note 10 – Investments at Fair Value
through Profit or Loss.
We assessed the accounting policy regarding investment
valuation for compliance with the fair value requirements per
FRS102 accounting standards.
The investment portfolio at 31 July 2026 comprised listed
investments (£367.5m), unlisted investments (£7.2m) and
contracts for differences (CFDs) (£5.6m).
Our approach to addressing the matter involved the following
procedures:
We focused on the valuation and existence of investments
because the investment portfolio represents the principal
element of the net asset value of the Company as disclosed in
the Company’s balance sheet.
Listed equity and CFD investments:
• Tested the valuation of all listed equity investments and a
sample of CFD investments by agreeing the prices used in
the valuation to independent third-party sources.
• Tested the existence of the listed equity investments by
agreeing investment holdings to independently obtained
confirmations.
• Tested the existence of a sample of CFD investments by
agreeing year-end positions to independently obtained
confirmations.
The valuation of the assets held in the investment portfolio is
the key driver of the Company’s net asset value and total return.
Incorrect investment valuation could have a significant impact on
the return generated by the shareholders.
For unlisted investments, we focused on the valuation of
‘ByteDance’ as the valuation of this investment requires estimates
and significant judgements to be applied by the Manager.
Changes to the estimates and/or judgements can result in a
material change to the valuation of the investment.
Unlisted investments:
• Understood and assessed the design and implementation
of the process and controls surrounding the valuation
of unlisted investments, including the involvement of an
independent third-party valuer, and governance and
oversight of the valuations by the Manager and the
Company’s Audit Committee.
• For ‘ByteDance’ we performed the following audit
procedures:
– Assessed the appropriateness of the valuation
methodologies applied, against International Private
Equity and Venture Capital Valuation (IPEV) Guidelines
and tested the valuation techniques used, key valuation
inputs and assumptions.
– Reviewed internal Manager’s Fair Value Committee
minutes, attended relevant valuation discussions, and
involved our valuation specialists to assess the valuation
process, significant estimates and judgements.
– Recalculated the valuation using independently obtained
market data and agreeing inputs to contractual terms.
Tested the existence of the unlisted investments by agreeing
investment holdings to independently obtained confirmations.
Income from investments.
Refer to Note 2 – Accounting Policies, Note 3 – Income We assessed the accounting policy for income recognition for
compliance with accounting standards and the AIC SORP and
performed testing to check that income had been accounted for in
accordance with the stated accounting policy.
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GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY
We focused on the accuracy, completeness and occurrence of
investment income as incomplete or inaccurate income could
have a material impact on the Company’s net asset value.
We tested accuracy of dividend receipts by agreeing the
dividend rates to independent market data.
We also focused on the accounting policy for investment
income recognition and the presentation of investment income
in the Income Statement for compliance with the requirements
of The Association of Investment Companies Statement
of Recommended Practice (the “AIC SORP”), as incorrect
application could indicate a misstatement in income recognition.
We tested occurrence by testing that dividends recorded in the
year had been declared in the market.
To test for completeness, we tested that the appropriate
dividends had been received in the year by reference to
independent data of dividends declared for listed investments
held during the year.
We also tested the allocation and presentation of income
between the revenue and capital return columns of the
Statement of Comprehensive Income in line with the
requirements set out in the AIC SORP, by assessing the treatment
applied in the context of the underlying facts and circumstances
of special dividends.
We tested the accuracy and completeness of CFD income
by obtaining independent market data and recalculating the
income recognised.
Ability to continue as a going concern (Continuation Vote).
Refer to Note 2a and the Strategic Report. The procedures we performed and our conclusions on going
concern are included in the Conclusions relating to going
concern section below.
A continuation vote is due to take place at the next Annual General
Meeting in November 2026, which, if passed, will allow the
Company to continue as an investment trust for a further five years.
As such, the Directors have considered and assessed the
potential impact on the ability of the Company to continue as
a going concern. The Directors have concluded, based on their
assessment and discussions with key investors, that they have
no reason to believe that the continuation resolution will not be
passed at the forthcoming Annual General Meeting and the
Company will be able to continue its operations and meet its
liabilities as they fall due for a period of at least 12 months from
the date of approving the financial statements.
How we tailored the audit scope
We tailored the scope of our audit to ensure that we performed
enough work to be able to give an opinion on the financial
statements as a whole, taking into account the structure of the
company, the accounting processes and controls, and the industry
in which it operates.
The Company is a standalone authorised, closed ended
investment trust company that has outsourced the management
and company secretarial services to the Manager. The
Company’s accounting is delegated to the Administrator who
provide company administrative services and JPMorgan Chase
Bank custodian services. We applied professional judgement to
determine the extent of testing required over each balance in the
financial statements and obtained our audit evidence, which was
substantive in nature, from the Manager and Administrator. As part
of designing our audit, we determined materiality and assessed
the risks of material misstatement in the financial statements. In
particular, we looked at where subjective judgements are made,
for example in respect of classification of special dividends.
The impact of climate risk on our audit
As part of our audit we made enquiries of management to
understand the extent of the potential impact of climate risk on
the company’s financial statements, and we remained alert when
performing our audit procedures for any indicators of the impact
of climate risk. Our procedures did not identify any material impact
as a result of climate risk on the company’s financial statements.
Materiality
The scope of our audit was influenced by our application of
materiality. We set certain quantitative thresholds for materiality.
These, together with qualitative considerations, helped us to
determine the scope of our audit and the nature, timing and
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extent of our audit procedures on the individual financial
statement line items and disclosures and in evaluating the effect
of misstatements, both individually and in aggregate on the
financial statements as a whole.
Based on our professional judgement, we determined materiality
for the financial statements as a whole as follows:
Overall company
materiality
£3,898,788.
How we determined it
1% of net assets
Rationale for benchmark
applied
We applied this benchmark, which is a generally accepted auditing practice for investment
trust audits and is also a key measure used by the shareholders in assessing the performance
of the entity.
We use performance materiality to reduce to an appropriately
low level the probability that the aggregate of uncorrected and
undetected misstatements exceeds overall materiality. Specifically,
we use performance materiality in determining the scope of
our audit and the nature and extent of our testing of account
balances, classes of transactions and disclosures, for example in
determining sample sizes. Our performance materiality was 75%
of overall materiality, amounting to £2,924,091 for the company
financial statements.
In determining the performance materiality, we considered a
number of factors – the history of misstatements, risk assessment
and aggregation risk and the effectiveness of controls – and
concluded that an amount at the upper end of our normal range
was appropriate.
We agreed with the Audit and Risk Committee that we would
report to them misstatements identified during our audit above
£194,939 as well as misstatements below that amount that, in our
view, warranted reporting for qualitative reasons.
Conclusions relating to going concern
Our evaluation of the directors’ assessment of the company’s
ability to continue to adopt the going concern basis of accounting
included:
• evaluating the Directors’ updated risk assessment and
considering whether it addressed relevant threats to the
Company;
• evaluating the Directors’ assessment of potential operational
impacts, considering their consistency with other available
information and our understanding of the business and
assessing the potential impact on the financial statements;
• reviewing the Directors’ assessment of the Company’s
financial position in the context of its ability to meet future
expected operating expenses and financing costs, their
assessment of liquidity as well as their review of the
operational resilience of the Company and oversight of key
third-party service providers;
• assessing the implication of significant reductions in NAV as
a result of a severe but plausible downside scenario in the
market’s performance on the ongoing ability of the Company
to operate; and
• reviewing the Directors’ assessment of going concern in
relation to the passing of the continuation vote, including
assessing the stability of the shareholder register, reviewing
the provided correspondence with key shareholders with
regards to shareholders voting intentions, reviewing the
financial performance of the Company compared to its
performance benchmark and reviewing the result of previous
continuation votes.
Based on the work we have performed, we have not identified
any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the
company’s ability to continue as a going concern for a period of
at least twelve months from when the financial statements are
authorised for issue.
In auditing the financial statements, we have concluded that the
directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate.
However, because not all future events or conditions can be
predicted, this conclusion is not a guarantee as to the company’s
ability to continue as a going concern.
In relation to the directors’ reporting on how they have applied
the UK Corporate Governance Code, we have nothing material to
add or draw attention to in relation to the directors’ statement in
the financial statements about whether the directors considered it
appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with
respect to going concern are described in the relevant sections
of this report.
Reporting on other information
The other information comprises all of the information in the
Annual Report other than the financial statements and our
auditors’ report thereon. The directors are responsible for the
other information. Our opinion on the financial statements
does not cover the other information and, accordingly, we do
not express an audit opinion or, except to the extent otherwise
explicitly stated in this report, any form of assurance thereon.
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GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY
In connection with our audit of the financial statements, our
responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in
the audit, or otherwise appears to be materially misstated.
If we identify an apparent material inconsistency or material
misstatement, we are required to perform procedures to conclude
whether there is a material misstatement of the financial
statements or a material misstatement of the other information. If,
based on the work we have performed, we conclude that there is
a material misstatement of this other information, we are required
to report that fact. We have nothing to report based on these
responsibilities.
With respect to the Strategic Report and Directors’ Report, we
also considered whether the disclosures required by the UK
Companies Act 2006 have been included.
Based on our work undertaken in the course of the audit, the
Companies Act 2006 requires us also to report certain opinions
and matters as described below.
Strategic Report and Directors’ Report
In our opinion, based on the work undertaken in the course of the
audit, the information given in the Strategic Report and Directors’
Report for the year ended 31 July 2026 is consistent with the
financial statements and has been prepared in accordance with
applicable legal requirements.
In light of the knowledge and understanding of the company and
its environment obtained in the course of the audit, we did not
identify any material misstatements in the Strategic report and
Directors’ Report.
Directors’ Remuneration
In our opinion, the part of the Directors’ Remuneration Report to
be audited has been properly prepared in accordance with the
Companies Act 2006.
Corporate governance statement
The Listing Rules require us to review the directors’ statements in
relation to going concern, longer-term viability and that part of
the corporate governance statement relating to the company’s
compliance with the provisions of the UK Corporate Governance
Code specified for our review. Our additional responsibilities
with respect to the corporate governance statement as other
information are described in the Reporting on other information
section of this report.
Based on the work undertaken as part of our audit, we have
concluded that each of the following elements of the corporate
governance statement is materially consistent with the financial
statements and our knowledge obtained during the audit, and
we have nothing material to add or draw attention to in relation
to:
• The directors’ confirmation that they have carried out a
robust assessment of the emerging and principal risks;
• The disclosures in the Annual Report that describe those
principal risks, what procedures are in place to identify
emerging risks and an explanation of how these are being
managed or mitigated;
• The directors’ statement in the financial statements about
whether they considered it appropriate to adopt the going
concern basis of accounting in preparing them, and their
identification of any material uncertainties to the company’s
ability to continue to do so over a period of at least twelve
months from the date of approval of the financial statements;
• The directors’ explanation as to their assessment of the
company’s prospects, the period this assessment covers and
why the period is appropriate; and
• The directors’ statement as to whether they have a
reasonable expectation that the company will be able to
continue in operation and meet its liabilities as they fall
due over the period of its assessment, including any related
disclosures drawing attention to any necessary qualifications
or assumptions.
Our review of the directors’ statement regarding the longer-term
viability of the company was substantially less in scope than an
audit and only consisted of making inquiries and considering
the directors’ process supporting their statement; checking that
the statement is in alignment with the relevant provisions of
the UK Corporate Governance Code; and considering whether
the statement is consistent with the financial statements and
our knowledge and understanding of the company and its
environment obtained in the course of the audit.
In addition, based on the work undertaken as part of our audit,
we have concluded that each of the following elements of the
corporate governance statement is materially consistent with the
financial statements and our knowledge obtained during the
audit:
• The directors’ statement that they consider the Annual
Report, taken as a whole, is fair, balanced and
understandable, and provides the information necessary for
the members to assess the company’s position, performance,
business model and strategy;
• The section of the Annual Report that describes the review
of effectiveness of risk management and internal control
systems; and
• The section of the Annual Report describing the work of the
Audit and Risk Committee.
We have nothing to report in respect of our responsibility to
report when the directors’ statement relating to the company’s
compliance with the Code does not properly disclose a
departure from a relevant provision of the Code specified under
the Listing Rules for review by the auditors.
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Responsibilities for the financial statements and
the audit
Responsibilities of the directors for the financial statements
As explained more fully in the Statement of Directors’
Responsibilities, the directors are responsible for the preparation
of the financial statements in accordance with the applicable
framework and for being satisfied that they give a true and fair
view. The directors are also responsible for such internal control
as they determine is necessary to enable the preparation of
financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, the directors are
responsible for assessing the company’s ability to continue as a
going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless
the directors either intend to liquidate the company or to cease
operations, or have no realistic alternative but to do so.
Auditors’ responsibilities for the audit of the financial
statements
Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to
issue an auditors’ report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with ISAs (UK) will always
detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on
the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance
with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements
in respect of irregularities, including fraud. The extent to which
our procedures are capable of detecting irregularities, including
fraud, is detailed below.
Based on our understanding of the company and industry, we
identified that the principal risks of non-compliance with laws
and regulations related to breaches of section 1158 of the
Corporation Tax Act 2010, and we considered the extent to which
non-compliance might have a material effect on the financial
statements. We also considered those laws and regulations
that have a direct impact on the financial statements such
as the Companies Act 2006. We evaluated management’s
incentives and opportunities for fraudulent manipulation of the
financial statements (including the risk of override of controls),
and determined that the principal risks were related to posting
inappropriate journal entries to manipulate revenue or to
increase the net asset value of the Company. Audit procedures
performed by the engagement team included:
• discussions with the Manager and the Audit Committee,
including consideration of known or suspected instances of
non-compliance with laws and regulation and fraud;
• reviewing relevant committee meeting minutes, including
those of the Board and the Audit and Risk Committee;
• assessment of the company’s compliance with the
requirements of section 1158 of the Corporation Tax Act
2010, including recalculation of numerical aspects of the
eligibility conditions;
• review of financial statement disclosures to underlying
supporting documentation;
• challenging assumptions made by the Directors in their
significant accounting estimates, in particular in relation to
the valuation of unlisted investments;
• identifying and testing journal entries, in particular any
material journal entries that meet the fraud risk criteria
posted during the preparation of the financial statements;
and
• designing audit procedures to incorporate unpredictability
around the nature, timing or extent of our testing.
There are inherent limitations in the audit procedures described
above. We are less likely to become aware of instances of
non-compliance with laws and regulations that are not closely
related to events and transactions reflected in the financial
statements. Also, the risk of not detecting a material misstatement
due to fraud is higher than the risk of not detecting one resulting
from error, as fraud may involve deliberate concealment by, for
example, forgery or intentional misrepresentations, or through
collusion.
Our audit testing might include testing complete populations
of certain transactions and balances, possibly using data
auditing techniques. However, it typically involves selecting a
limited number of items for testing, rather than testing complete
populations. We will often seek to target particular items for
testing based on their size or risk characteristics. In other cases,
we will use audit sampling to enable us to draw a conclusion
about the population from which the sample is selected.
A further description of our responsibilities for the audit of the
financial statements is located on the FRC’s website at: www.frc.
org.uk/auditorsresponsibilities. This description forms part of
our auditors’ report.
Use of this report
This report, including the opinions, has been prepared for and
only for the company’s members as a body in accordance with
Chapter 3 of Part 16 of the Companies Act 2006 and for no other
purpose. We do not, in giving these opinions, accept or assume
responsibility for any other purpose or to any other person to
whom this report is shown or into whose hands it may come save
where expressly agreed by our prior consent in writing.
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GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY
Other required reporting
Companies Act 2006 exception reporting
Under the Companies Act 2006 we are required to report to you
if, in our opinion:
• we have not obtained all the information and explanations
we require for our audit; or
• adequate accounting records have not been kept by the
company, or returns adequate for our audit have not been
received from branches not visited by us; or
• certain disclosures of directors’ remuneration specified by
law are not made; or
• the financial statements and the part of the Directors’
Remuneration Report to be audited are not in agreement
with the accounting records and returns.
We have no exceptions to report arising from this responsibility.
Appointment
We were first appointed by the company for the financial year
ended 31 July 2026. Our uninterrupted engagement covers 1
financial year.
Lauren Cooper
(Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London
15 October 2026
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Income Statement
for the year ended 31 July 2026
The Notes on pages 57 to 81 form an integral part of these Financial Statements.
Year ended 31 July 2026 Year ended 31 July 2025
Notes
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Gains on investments 10 – 34,559 34,559 – 21,141 21,141
(Losses)/gains on derivative instruments 11 – (23,052) (23,052) – 12,024 12,024
Income 3 20,147 – 20,147 19,419 – 19,419
Investment management fees 4 (708) (1,319) (2,027) (673) (2,577) (3,250)
Other expenses 5 (983) (32) (1,015) (963) (6) (969)
Foreign exchange losses – (632) (632) – (761) (761)
Net return on ordinary activities before finance costs
and taxation 18,456 9,524 27,980 17,783 29,821 47,604
Finance costs 6 (676) (2,028) (2,704) (688) (2,065) (2,753)
Net return on ordinary activities before taxation 17,780 7,496 25,276 17,095 27,756 44,851
Taxation on return on ordinary activities 7 (1,656) (655) (2,311) (1,563) 85 (1,478)
Net return on ordinary activities after taxation for the
year 16,124 6,841 22,965 15,532 27,841 43,373
Return per ordinary share 8 25.18p 10.68p 35.86p 22.51p 40.34p 62.85p
The Company does not have any other comprehensive income. Accordingly, the net return on ordinary activities after taxation for the
year is also the total comprehensive income for the year and no separate Statement of Comprehensive Income has been presented.
The total column of this statement represents the Income Statement of the Company. The revenue and capital columns are
supplementary and presented for information purposes as recommended by the Statement of Recommended Practice issued by the
AIC.
No operations were acquired or discontinued in the year and all items in the above statement derive from continuing operations.
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GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY
Statement of Changes in Equity
for the year ended 31 July 2026
Notes
Share
capital
£’000
Share
premium
account
£’000
Capital
redemption
reserve
£’000
Other non–
distributable
reserve
£’000
Capital
reserve
£’000
Revenue
reserve
£’000
Total
shareholders’
funds
£’000
Total shareholders’ funds at
1 August 2025 18,895 50,501 3,197 7,367 302,519 20,229 402,708
Net return on ordinary activities after
taxation for the year – – – – 6,841 16,124 22,965
Repurchase of ordinary shares for
cancellation 14 (863) – 863 – (20,287) – (20,287)
Repurchase of ordinary shares into
Treasury 14 – – – – (2,368) – (2,368)
Cancellation of ordinary shares from
Treasury 14 (206) – 206 – – – –
Dividend paid to shareholders 9 – – – – – (13,139) (13,139)
Total shareholders’ funds at
31 July 2026 17,826 50,501 4,266 7,367 286,705 23,214 389,879
Total shareholders’ funds at
1 August 2024 18,895 50,501 3,197 7,367 297,210 14,844 392,014
Net return on ordinary activities after
taxation for the year – – – – 27,841 15,532 43,373
Repurchase of ordinary shares into
Treasury 14 – – – – (22,532) – (22,532)
Dividend paid to shareholders 9 – – – – – (10,147) (10,147)
Total shareholders’ funds at
31 July 2025 18,895 50,501 3,197 7,367 302,519 20,229 402,708
The Notes on pages 57 to 81 form an integral part of these Financial Statements.
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Balance Sheet
as at 31 July 2026
Company number 03183919
Notes
2026
£’000
2025
£’000
Fixed assets
Investments 10 374,720 377,051
Current assets
Derivative instruments 11 7,021 2,278
Debtors 12 3,984 1,839
Amounts held at futures clearing houses and brokers 3,009 2,674
Cash and cash equivalents 5,981 25,407
19,995 32,198
Current liabilities
Derivative instruments 11 (1,209) (2,045)
Other creditors 13 (3,627) (4,494)
Bank overdrafts – (2)
(4,836) (6,541)
Net current assets 15,159 25,657
Net assets 389,879 402,708
Capital and reserves
Share capital 14 17,826 18,895
Share premium account 15 50,501 50,501
Capital redemption reserve 15 4,266 3,197
Other non-distributable reserve 15 7,367 7,367
Capital reserve 15 286,705 302,519
Revenue reserve 15 23,214 20,229
Total shareholders’ funds 389,879 402,708
Net asset value per ordinary share 16 621.46p 604.69p
The Financial Statements on pages 54 to 81 were approved by the Board of Directors on 15 October 2026 and were signed on its
behalf by:
Clare Brady
Chairman
The Notes on pages 57 to 81 form an integral part of these Financial Statements.
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GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY
Notes to the Financial Statements
1 Principal Activity
Fidelity Asian Values PLC is an Investment Company incorporated in England and Wales that is listed on the London Stock Exchange.
The Company’s registration number is 03183919, and its registered office is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth,
Surrey KT20 6RP. The Company has been approved by HM Revenue & Customs as an Investment Trust under Section 1158 of the
Corporation Tax Act 2010 and intends to conduct its affairs so as to continue to be approved.
2 Accounting Policies
The Company has prepared its Financial Statements in accordance with UK Generally Accepted Accounting Practice (“UK GAAP”),
including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, issued by the Financial Reporting
Council (“FRC”). The Financial Statements have also been prepared in accordance with the Statement of Recommended Practice:
Financial Statements of Investment Trust Companies and Venture Capital Trusts (“SORP”) issued by the Association of Investment
Companies (“AIC”), in December 2025. 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.
(a) Basis of accounting – The Financial Statements have been prepared on a going concern basis and under the historical cost
convention, except for the measurement at fair value of investments and derivative instruments. The Directors have a reasonable
expectation that the Company has adequate resources to continue in operational existence up to 31 October 2027, which is at least
twelve months from the date of approval of these Financial Statements. In making their assessment the Directors have reviewed
income and expense projections, reviewed the liquidity of the investment portfolio and considered the Company’s ability to meet
liabilities as they fall due. In addition, the Directors have considered the continuation vote to be put forward at the forthcoming Annual
General Meeting to be held on 25 November 2026. While there can be no certainty as to the outcome of the vote, the Directors have
no reason to believe that the resolution will not be passed. This conclusion also takes into account the Director’s assessment of the
risks faced by the Company as detailed in the Going Concern Statement on page 27.
In preparing these Financial Statements the Directors have considered the impact of climate change risk as an emerging risk and
have concluded that there was no further impact of climate change to be taken into account as the investments are valued based on
market pricing. In line with FRS 102, investments are valued at fair value, which for the Company are quoted bid prices for investments
in active markets at the Balance sheet date. Investments which are unlisted are priced using market-based valuation approaches. All
investments therefore reflect the market participants’ view of climate change risk on the investments held by the Company.
The Company’s Going Concern Statement in the Strategic Report on page 27 takes account of all events and conditions up to
31 October 2027 which is at least twelve months from the date of approval of these Financial Statements.
(b) Significant accounting estimates and judgements – The preparation of the Financial Statements requires the use of estimates
and judgements. These estimates and judgements affect the reported amounts of assets and liabilities at the reporting date. While
estimates are based on best judgement using information and financial data available, the actual outcome may differ from these
estimates.
The key sources of estimation and uncertainty relate to the fair value of the unlisted investments.
Judgements
The Directors consider whether the fair value of unlisted investments is appropriate following detailed review and challenge of the
pricing methodology. The judgement applied in the selection of the methodology used (see Note 2 (k)) for determining the fair value
of each unlisted investment can have a significant impact upon the valuation.
Estimates
The key estimate in the Financial Statements is the determination of the fair value of the unlisted investments by the Manager’s Fair
Value Committee (“FVC”), with support from the external valuer and Fidelity’s unlisted investments specialists, for detailed review and
appropriate challenge by the Directors. This estimate is key as it significantly impacts the valuation of the unlisted investments at the
Balance Sheet date. When no recent primary or secondary transaction in the company’s shares has taken place, the fair valuation
process involves estimation using subjective inputs that are unobservable (for which market data is unavailable). The estimates
involved in the valuation process may include the following:
(i) the selection of appropriate comparable companies. Comparable companies are chosen on the basis of their business
characteristics and growth patterns;
(ii) the selection of a revenue metric (either historical or forecast);
(iii) the selection of an appropriate illiquidity discount factor to reflect the reduced liquidity of unlisted companies versus their listed
peers;
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2 Accounting Policies continued
(iv) the estimation of the likelihood of a future exit of the position through an initial public offering (“IPO”) or a company sale;
(v) the selection of an appropriate industry benchmark index to assist with the valuation; and
(vi) the calculation of valuation adjustments derived from milestone analysis and future cash flows (i.e. incorporating operational
success against the plans/forecasts of the business into the valuation).
As the valuation outcomes may differ from the fair value estimates a price sensitivity analysis is provided in the Other Price Risk
Sensitivity in Note 17, to illustrate the effect on the Financial Statements of an over or under estimation of fair value.
The risk of an over or under estimation of fair value is greater when methodologies are applied using more subjective inputs.
(c) Segmental reporting – The Company is engaged in a single segment business and, therefore, no segmental reporting is
provided.
(d) Presentation of the Income Statement – In order to reflect better the activities of an investment company and in accordance
with guidance issued by the AIC, supplementary information which analyses the Income Statement between items of a revenue and
capital nature has been prepared alongside the Income Statement. The net revenue return after taxation for the year is the measure
the Directors believe appropriate in assessing the Company’s compliance with certain requirements set out in Section 1159 of the
Corporation Tax Act 2010.
(e) Income – Income from equity investments is accounted for on the date on which the right to receive the payment is established,
normally the ex-dividend date. Overseas dividends are accounted for gross of any tax deducted at source. Amounts are credited to
the revenue column of the Income Statement. Where the Company has elected to receive its dividends in the form of additional shares
rather than cash, the amount of the cash dividend foregone is recognised in the revenue column of the Income Statement. Any excess
in the value of the shares received over the amount of the cash dividend is recognised in the capital column of the Income Statement.
Special dividends are treated as a revenue receipt or a capital receipt depending on the facts and circumstances of each particular
case.
Derivative instrument income received from dividends on long contracts for difference (“CFDs”) is accounted for on the date on which
the right to receive the payment is established, normally the ex-dividend date. The amount net of tax is credited to the revenue column
of the Income Statement.
Interest received on CFDs, bank deposits, collateral and money market funds are accounted for on an accruals basis and credited
to the revenue column of the Income Statement. Interest received on CFDs represents the finance costs calculated by reference to the
notional value of the CFDs.
f) Investment management fees and other expenses – Investment management fees and other expenses are accounted for on an
accruals basis and are charged as follows:
• The base investment management fee is allocated 25% to revenue and 75% to capital in line with the Board’s expected long-term
split of revenue and capital from the Company’s portfolio of investments.
• The variable investment management fee continues to be charged/credited to capital as it is based on the performance of the
net asset value per share relative to the Benchmark Index; and
• All other expenses continues to be allocated in full to revenue with the exception of those directly attributable to share issues or
other capital events.
(g) Functional currency and foreign exchange – The functional and reporting currency of the Company is UK sterling, which is the
currency of the primary economic environment in which the Company operates. Transactions denominated in foreign currencies are
reported in UK sterling at the rate of exchange ruling at the date of the transaction. Assets and liabilities in foreign currencies are
translated in the rates of exchange ruling at the Balance Sheet date. Foreign exchange gains and losses arising on the translation
are recognised in the Income Statement as a revenue or a capital item depending on the nature of the underlying item to which they
relate.
Notes to the Financial Statements continued
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GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY
2 Accounting Policies continued
(h) Finance costs – Finance costs comprise interest on bank overdrafts and finance costs paid on CFDs, which are accounted for on
an accruals basis, and dividends paid on short CFDs, which are accounted for on the date on which the obligation to incur the cost
is established, normally the ex-dividend date. Finance costs are allocated 25% to revenue and 75% to capital in line with the Board’s
expected long-term split of revenue and capital from the Company’s portfolio of investments.
(i) Taxation – The taxation charge represents the sum of current taxation and deferred taxation.
Current taxation is taxation suffered at source on overseas income less amounts recoverable under taxation treaties. Taxation is
charged or credited to the revenue column of the Income Statement, except where it relates to items of a capital nature, in which case
it is charged or credited to the capital column of the Income Statement. Where expenses are allocated between revenue and capital
any tax relief in respect of the expenses is allocated between revenue and capital returns on the marginal basis using the Company’s
effective rate of corporation tax for the accounting period. The Company is an approved Investment Trust under Section 1158 of the
Corporation Tax Act 2010 and is not liable for UK taxation on capital gains.
Deferred taxation is the taxation expected to be payable or recoverable on timing differences between the treatment of certain items
for accounting purposes and their treatment for the purposes of computing taxable profits. Deferred taxation is based on tax rates that
have been enacted or substantively enacted when the taxation is expected to be payable or recoverable. Deferred tax assets are
only recognised if it is considered more likely than not that there will be sufficient future taxable profits to utilise them.
(j) Dividend paid – Dividends payable to equity shareholders are recognised when the Company’s obligation to make payment is
established.
(k) Investments – The Company’s business is investing in financial instruments with a view to profiting from their total return in the form
of income and long-term capital growth. This portfolio of investments is managed and its performance evaluated on a fair value basis,
in accordance with a documented investment strategy, and information about the portfolio is provided on that basis to the Company’s
Board of Directors. Investments are measured at fair value with changes in fair value recognised in profit or loss, in accordance with
the provisions of both Section 11 and Section 12 of FRS 102. The fair value of investments is initially taken to be their cost and is
subsequently measured as follows:
• Listed investments are valued at bid prices, or last market prices, depending on the convention of the exchange on which they
are listed, and
• Unlisted investments are not quoted, or are not frequently traded, and are stated at the best estimate of fair value. The
Manager’s Fair Value Committee (“FVC”), which is independent of the Portfolio Managers’ team, meets quarterly to determine
the fair value of unlisted investments. These are based on the principles outlined in Note 2 (b).
The unlisted investments are valued at fair value following a detailed review and appropriate challenge by the Directors of the pricing
methodology proposed by the FVC.
The FVC provides a recommendation of fair values to the Directors based on recognised valuation techniques that take account of the
cost of the investment, recent arm’s length transactions in the same or similar investments and financial performance of the investment
since purchase. Consideration is given to the input received from the Fidelity International analyst that covers the company, where
appropriate the external valuer and Fidelity’s unlisted investments specialist.
In accordance with the AIC SORP, the Company includes transaction costs, incidental to the purchase or sale of investments, within
gains on investments in the capital column of the Income Statement and has disclosed these costs in Note 10.
(l) Derivative instruments – When appropriate, permitted transactions in derivative instruments are used. Derivative transactions into
which the Company may enter include long and short CFDs, futures, options and forward currency contracts. Derivatives are classified
as other financial instruments and are initially accounted and measured at fair value on the date the derivative contract is entered into
and subsequently measured at fair value as follows:
• Long and short CFDs – the difference between the strike price and the value of the underlying shares in the contract;
• Futures – the difference between the contract price and the quoted trade price;
• Forward currency contracts – valued at the appropriate quoted forward foreign exchange rate ruling at the Balance Sheet date;
and
• Options – the quoted trade price for the contract.
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2 Accounting Policies continued
Where transactions are used to protect or enhance income, if the circumstances support this, the income and expenses derived are
included in net income in the revenue column of the Income Statement. Where such transactions are used to protect or enhance
capital, if the circumstances support this, the income and expenses derived are included in gains on derivative instruments in the
capital column of the Income Statement. Any positions on such transactions open at the year end are reflected on the Balance Sheet
at their fair value within current assets or current liabilities.
m) Debtors – Debtors include securities sold for future settlement, amounts receivable on the settlement of derivatives, accrued
income, taxation recoverable and other debtors and prepayments incurred in the ordinary course of business. If collection is expected
in one year or less (or in the normal operating cycle of the business, if longer) they are classified as current assets. If not, they
are presented as non-current assets. They are recognised initially at fair value and, where applicable, subsequently measured at
amortised cost using the effective interest rate method.
n) Amounts held at futures clearing houses and brokers – These are amounts held in segregated accounts on behalf of brokers as
collateral against open derivative contracts. These are carried at amortised cost.
o) Cash and cash equivalents – Cash and cash equivalents may comprise cash at bank and money market funds which are short-
term, highly liquid and are readily convertible to a known amount of cash. These are subject to an insignificant risk of changes in
value.
p) Other creditors – Other creditors include securities purchased for future settlement, amounts payable for repurchase of shares,
Indian capital gains tax payable, short CFD dividends payable, investment management fees, secretarial and administration fees and
other creditors and expenses accrued in the ordinary course of business. If payment is due within one year or less (or in the normal
operating cycle of the business, if longer) they are classified as current liabilities. If not, they are presented as non-current liabilities.
They are recognised initially at fair value and, where applicable, subsequently measured at amortised cost using the effective interest
rate method.
q) Capital reserve – The following are accounted for in the capital reserve:
• Gains and losses on the disposal of investments and derivative instruments;
• Changes in the fair value of investments and derivative instruments, held at the year end;
• Foreign exchange gains and losses of a capital nature;
• Variable element of management fee;
• 75% of base investment management fees;
• 75% of finance costs;
• Dividends receivable which are capital in nature;
• Costs associated with the repurchase of ordinary shares;
• Taxation charged or credited relating to items which are capital in nature; and
• Other expenses which are capital in nature.
Technical guidance issued by the Institute of Chartered Accountants in England and Wales in TECH 02/17BL, guidance on the
determination of realised profits and losses in the context of distributions under the Companies Act 2006, states that changes in
the fair value of investments which are readily convertible to cash, without accepting adverse terms at the Balance Sheet date, can
be treated as realised. Capital reserves realised and unrealised are shown in aggregate as capital reserve in the Statement of
Changes in Equity and the Balance Sheet. At the Balance Sheet date, the portfolio of the Company consisted of investments listed
on a recognised stock exchange and derivative instruments contracted with counterparties having an adequate credit rating, and
the portfolio was considered to be readily convertible to cash, with the exception of the level 3 investments which had unrealised
investment holding gains of £3,111,000 (2025: gains of £1,676,000). See Note 17 on pages 76 to 79 for further details on the level
3 investments.
Notes to the Financial Statements continued
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Fidelity Asian Values PLC
GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY
3 Income
Year ended
31 July 2026
£’000
Year ended
31 July 2025
£’000
Investment income
Overseas dividends 15,657 15,258
Overseas scrip dividends 45 40
Overseas property income distributions 31 –
Interest on securities 131 625
15,864 15,923
Derivative income
Dividends received on long CFDs 3,421 2,529
Interest received on CFDs 384 360
3,805 2,889
Other interest
Interest received on bank deposits, collateral and money market funds 471 607
Interest received on tax reclaims 7 –
478 607
Total income 20,147 19,419
No special dividends have been recognised in capital during the year (2025: £nil).
4 Investment Management Fees
Year ended 31 July 2026 Year ended 31 July 2025
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Investment management fees – base 708 2,124 2,832 673 2,020 2,693
Investment management fees – variable – (805) (805) – 557 557
708 1,319 2,027 673 2,577 3,250
FIL Investment Services (UK) Limited is the Company’s Alternative Investment Fund Manager and has delegated portfolio management
to FIL Investments International (“FII”). Both companies are Fidelity group companies.
FII charges base investment management fees at an annual rate of 0.70% of net assets. In addition, there is a +/- 0.20% variation fee
based on the Company’s NAV per ordinary share performance relative to the Company’s Benchmark Index return on a rolling three
year basis which is charged/credited to capital. Fees are payable monthly in arrears and are calculated on a daily basis.
The base investment management fee has been allocated 75% to the capital reserve in accordance with the Company’s accounting
policies.
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5 Other Expenses
Year ended
31 July 2026
£’000
Year ended
31 July 2025
£’000
Allocated to revenue:
AIC fees 28 18
Custody fees 83 72
Depositary fees 26 31
Directors’ expenses 38 72
Directors’ fees
1
212 190
Legal and professional fees 108 120
Marketing expenses 202 181
Printing and publication expenses 107 89
Registrars’ fees 46 40
Secretarial and administration fees payable to the Investment Manager 75 75
Other expenses – 17
Fees payable to the Company’s Independent Auditors for the audit of the Financial Statements 58 58
983 963
Allocated to capital:
Legal and professional fees 32 6
Other expenses 1,015 969
1 Details of the breakdown of Directors’ fees are disclosed in the Directors’ Remuneration Report on page 41; costs relating to the Directors’ national insurance and levies
of £25,000 are included. In the prior year these costs were included in Other expenses.
6 Finance Costs
Year ended 31 July 2026 Year ended 31 July 2025
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Interest paid on bank overdrafts 5 14 19 7 22 29
Interest paid on CFDs 576 1,729 2,305 447 1,340 1,787
Dividends paid on short CFDs 81 243 324 234 703 937
Cost recognised from charges on futures 14 42 56 – – –
676 2,028 2,704 688 2,065 2,753
Finance costs have been allocated 75% to the capital reserve in accordance with the Company’s accounting policies.
Notes to the Financial Statements continued
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Fidelity Asian Values PLC
GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY
7 Taxation on Return on Ordinary Activities
Year ended 31 July 2026 Year ended 31 July 2025
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
a) Analysis of the taxation charge for
the year
Overseas taxation 1,805 – 1,805 1,563 – 1,563
Indian capital gains tax (149) 655 506 – (85) (85)
Taxation charge for the year
(see Note 7b) 1,656 655 2,311 1,563 (85) 1,478
b) Factors affecting the taxation charge for the year
The taxation charge for the year is lower than the standard rate of UK corporation tax for an investment trust company of 25% (2025:
25%). A reconciliation of the standard rate of UK corporation tax to the taxation charge for the year is shown below:
Year ended 31 July 2026 Year ended 31 July 2025
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Net return on ordinary activities before
taxation 17,780 7,496 25,276 17,095 27,756 44,851
Net return on ordinary activities before
taxation multiplied by the standard rate
of UK corporation tax of 25% (2025: rate
of 25%) 4,445 1,874 6,319 4,274 6,939 11,213
Effects of:
Capital gains not taxable
1
– (2,719) (2,719) – (8,101) (8,101)
Income not taxable (3,845) – (3,845) (3,780) – (3,780)
Expenses not deductible – 515 515 – 511 511
Prior period adjustment 33 – 33 – – –
Excess management expenses (633) 330 (303) (494) 651 157
Overseas taxation 1,805 – 1,805 1,563 – 1,563
Indian capital gains tax
2
(149) 655 506 – (85) (85)
Taxation charge for the year
(see Note 7a) 1,656 655 2,311 1,563 (85) 1,478
1 The Company is exempt from UK corporation tax on capital gains as it meets the HM Revenue & Customs criteria for an investment company set out in Section 1159 of
the Corporation Tax Act 2010.
2 The Indian capital gains tax charge in the Income Statement of £655,000 (2025: receipt of £85,000) is composed of £375,000 (2025: £1,553,000) paid in the year and
the £280,000 increase (2025: £1,638,000 reduction) in the Balance Sheet capital gains tax provision. The provision in the Balance Sheet of £776,000 (2025: £496,000,
2024: £2,134,000) represents a future liability as payment is deferred until such time as the Indian investments are sold. During the year a refund has been processed
through revenue amounting £149,000 (2025: nil).
c) Deferred taxation
A deferred tax asset of £9,286,000 (2025: £9,589,000), in respect of excess management expenses of £34,874,000 (2025: £36,087,000),
and excess interest paid of £2,271,000 (2025: £2,271,000) has not been recognised as it is unlikely that there will be sufficient future
taxable profits to utilise these expenses.
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8 Return per Ordinary Share
Year ended
31 July 2026
Year ended
31 July 2025
Revenue return per ordinary share 25.18p 22.51p
Capital return per ordinary share 10.68p 40.34p
Total return per ordinary share 35.86p 62.85p
The return per ordinary share is based on the net return on ordinary activities after taxation for the year divided by the weighted
average number of ordinary shares held outside of Treasury during the year, as shown below:
Year ended
31 July 2026
£’000
Year ended
31 July 2025
£’000
Net revenue return on ordinary activities after taxation 16,124 15,532
Net capital return on ordinary activities after taxation 6,841 27,841
Net total return on ordinary activities after taxation 22,965 43,373
Number Number
Weighted average number of ordinary shares held outside of Treasury 64,037,379 69,010,726
9 Dividends Paid to Shareholders
Year ended
31 July 2026
£’000
Year ended
31 July 2025
£’000
Dividend paid
Dividend of 20.5 pence per ordinary share paid for the year ended 31 July 2025 13,139 –
Dividend of 14.5 pence per ordinary share paid for the year ended 31 July 2024 – 10,147
13,139 10,147
Dividend proposed
Dividend of 22.0 pence per ordinary share proposed for the year ended 31 July 2026 13,766 –
Dividend of 20.5 pence per ordinary share proposed for the year ended 31 July 2025 – 13,168
Total dividend proposed 13,766 13,168
The Directors have proposed the payment of a dividend for the year ended 31 July 2026 of 22.0 pence per ordinary share which is
subject to approval by shareholders at the Annual General Meeting on 25 November 2026 and has not been included as a liability in
these Financial Statements. If approved, the dividend will be paid on 4 December 2026 to shareholders on the register at the close of
business on 30 October 2026 (ex-dividend date 29 October 2026).
Notes to the Financial Statements continued
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GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY
10 Investments at Fair Value through Profit or Loss
2026
£’000
2025
£’000
Listed investments 367,544 371,717
Unlisted investments 7,176 5,334
Investments at fair value 374,720 377,051
Opening book cost 377,392 406,135
Opening investment holding losses (341) (27,558)
Opening fair value 377,051 378,577
Movements in the year
Purchases at cost 264,205 209,010
Sales – proceeds (301,095) (231,677)
Gains on investments 34,559 21,141
Closing fair value 374,720 377,051
Closing book cost 383,671 377,392
Closing investment holding losses (8,951) (341)
Closing fair value 374,720 377,051
The Company received £301,095,000 (2025: £231,677,000) from investments sold in the year. The book cost of these investments when
they were purchased was £257,785,000 (2025: £237,753,000). These investments have been revalued over time and until they were
sold any unrealised gains/losses were included in the fair value of the investments.
Investment transaction costs
Transaction costs incurred in the acquisition and disposal of investments, which are included in the gains on the investments above,
were as follows:
Year ended
31 July 2026
£’000
Year ended
31 July 2025
£’000
Purchases transaction costs 341 241
Sales transaction costs 556 338
897 579
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11 Derivative Instruments
Year ended
31 July 2026
£’000
Year ended
31 July 2025
£’000
(Losses)/gains on derivative instruments
Realised (losses)/gains on long CFD positions closed (7,136) 9,504
Realised (losses)/gains on short CFD positions closed (10,150) 1,245
Realised (losses)/gains on futures contracts closed (1,891) 718
Realised (losses) on options contracts closed (7,548) (467)
Realised gains on forward currency contracts 110 70
Movement in investment holding gains on long CFDs 3,603 1,143
Movement in investment holding gains on short CFDs 1,635 112
Movement in investment holding losses on futures (183) (129)
Movement in investment holding losses on options (1,476) (172)
Movement in investment holding losses on forward currency contracts (16) –
(23,052) 12,024
2026
Fair value
£’000
2025
Fair value
£’000
Derivative instruments recognised on the Balance Sheet
Derivative instrument assets 7,021 2,278
Derivative instrument liabilities (1,209) (2,045)
5,812 233
2026 2025
Fair value
£’000
Asset
exposure
£’000
Fair value
£’000
Asset
exposure
£’000
At the year end the Company held the following derivative
instruments:
Long CFDs 3,431 77,102 (172) 66,384
Call options (long exposure) 589 6,183 – –
Short CFDs 2,120 24,253 485 21,913
Short futures (312) 4,763 (129) 2,353
Put options (short exposure) – – 96 2,143
Call options (short exposure) – – (47) 394
Forward currency contract (16) – – –
5,812 112,301 233 93,187
Notes to the Financial Statements continued
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12 Debtors
2026
£’000
2025
£’000
Securities sold for future settlement 890 108
Amounts receivable on settlement of derivatives 1,315 699
Accrued income 1,590 874
Taxation recoverable 25 28
Other debtors and prepayments 164 130
3,984 1,839
13 Other Creditors
2026
£’000
2025
£’000
Securities purchased for future settlement 1,558 2,449
Amounts payable for settlement of derivatives 343 –
Amounts payable for repurchase of shares into Treasury 295 172
Indian capital gains tax payable 776 496
Amounts payable on short CFD dividends 166 442
Finance costs payable – 18
Creditors and accruals 489 917
3,627 4,494
14 Share Capital
2026 2025
Number of
shares
Nominal
value
£’000
Number of
shares
Nominal
value
£’000
Issued, allotted and fully paid
Ordinary shares of 25 pence each held outside of Treasury
Beginning of the year 66,597,059 16,650 71,060,556 17,766
Ordinary shares repurchased into Treasury (410,969) (103) (4,463,497) (1,116)
Ordinary shares repurchased and cancelled (3,450,155) (863) – –
End of the year 62,735,935 15,684 66,597,059 16,650
Ordinary shares of 25 pence each held in Treasury
1
Beginning of the year 8,983,830 2,245 4,520,333 1,129
Ordinary shares repurchased into Treasury 410,969 103 4,463,497 1,116
Ordinary shares cancelled out of Treasury (822,911) (206) – –
End of the year 8,571,888 2,142 8,983,830 2,245
Total share capital 17,826 18,895
1 Ordinary shares held in Treasury carry no rights to vote, to receive a dividend or to participate in a winding up of the Company.
The cost of ordinary shares repurchased into Treasury during the year was £2,368,000 (2025: £22,532,000), the cost of ordinary shares
repurchased and cancelled during the year was £20,287,000 (2025: £nil) and the nominal value of ordinary shares cancelled out of
Treasury during the year was £206,000 (2025: £nil).
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15 Capital and Reserves
Share
capital
£’000
Share
premium
account
£’000
Capital
redemption
reserve
£’000
Other non-
distributable
reserve
£’000
Capital
reserve
£’000
Revenue
reserve
£’000
Total
shareholders’
funds
£’000
At 1 August 2025 18,895 50,501 3,197 7,367 302,519 20,229 402,708
Gains on investments (see Note 10) – – – – 34,559 – 34,559
Losses on derivative instruments (see Note 11) – – – – (23,052) – (23,052)
Foreign exchange losses – – – – (632) – (632)
Investment management fees (see Note 4) – – – – (1,319) – (1,319)
Other expenses (see Note 5) – – – – (32) – (32)
Finance cost (see Note 6) – – – – (2,028) – (2,028)
Indian capital gains tax (see Note 7) – – – – (655) – (655)
Revenue return on ordinary activities after
taxation for the year – – – – – 16,124 16,124
Dividend paid to shareholders (see Note 9) – – – – – (13,139) (13,139)
Repurchase of ordinary shares for cancellation
(see Note 14) (863) – 863 – (20,287) – (20,287)
Repurchase of ordinary shares into Treasury
(see Note 14) – – – – (2,368) – (2,368)
Cancellation of ordinary shares from Treasury
(see Note 14) (206) – 206 – – – –
At 31 July 2026 17,826 50,501 4,266 7,367 286,705 23,214 389,879
At 1 August 2024 18,895 50,501 3,197 7,367 297,210 14,844 392,014
Gains on investments (see Note 10) – – – – 21,141 – 21,141
Gains on derivative instruments (see Note 11) – – – – 12,024 – 12,024
Foreign exchange losses – – – – (761) – (761)
Investment management fees (see Note 4) – – – – (2,577) – (2,577)
Other expenses (see Note 5) – – – – (6) – (6)
Finance cost (see Note 6) – – – – (2,065) – (2,065)
Indian capital gains tax (see Note 7) – – – – 85 – 85
Revenue return on ordinary activities after
taxation for the year – – – – – 15,532 15,532
Dividend paid to shareholders (see Note 9) – – – – – (10,147) (10,147)
Repurchase of ordinary shares into Treasury
(see Note 14) – – – – (22,532) – (22,532)
At 31 July 2025 18,895 50,501 3,197 7,367 302,519 20,229 402,708
The capital reserve balance at 31 July 2026 includes investment holding losses of £8,951,000 (2025: losses of £341,000) as detailed
in Note 10. See Note 2 (q) for further details. In accordance with the Articles of Association, distributions by way of dividend can be
made from both the revenue reserve and capital reserve to the extent they are realised.
16 Net Asset Value per Ordinary Share
The calculation of the net asset value per ordinary share is based on the total shareholders’ funds divided by the number of ordinary
shares held outside of Treasury.
2026 2025
Total shareholders’ funds £389,879,000 £402,708,000
Ordinary shares held outside of Treasury at year end 62,735,935 66,597,059
Net asset value per ordinary share 621.46p 604.69p
It is the Company’s policy that shares held in Treasury will only be reissued at net asset value per ordinary share or at a premium to
net asset value per ordinary share and, therefore, shares held in Treasury have no dilutive effect.
Notes to the Financial Statements continued
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17 Financial Instruments
Management of risk
The Company’s investing activities in pursuit of its investment objective involve certain inherent risks. The Board confirms that there is
an ongoing process for identifying, evaluating and managing the risks faced by the Company. The Board, with the assistance of the
Manager, has developed a risk matrix which, as part of the internal control process, identifies the risks that the Company faces. Risks
are identified and graded in this process, together with steps taken in mitigation, and are updated and reviewed on an ongoing
basis. Risks identified are shown in the Strategic Report on pages 23 to 27.
This note refers to the identification, measurement and management of risks potentially affecting the value of financial instruments. The
Company’s financial instruments may comprise:
• Equity shares (listed and unlisted), equity linked notes and corporate bonds held in accordance with the Company’s investment
objective and policies;
• Derivative instruments which comprise CFDs, forward currency contracts, futures and options on listed stocks and equity indices;
and
• Cash, liquid resources and short-term debtors and creditors that arise from its operations.
The risks identified arising from the Company’s financial instruments 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. The Board reviews and
agrees policies for managing each of these risks, which are summarised below. These policies are consistent with those followed last
year.
Market price risk
Interest rate risk
The Company principally finances its operations through its share capital and reserves. In addition, the Company has gearing through
the use of derivative instruments. The level of gearing is reviewed by the Board and the Portfolio Managers. The Company is exposed
to a financial risk arising as a result of any increases in interest rates associated with the funding of the derivative instruments.
Interest rate risk exposure
The values of the Company’s financial instruments that are exposed to movements in interest rates are shown below:
2026
£’000
2025
£’000
Exposure to financial instruments that bear interest
Long CFDs – exposure less fair value 73,671 66,556
Bank overdrafts – 2
73,671 66,558
Exposure to financial instruments that earn interest
Short CFDs – exposure plus fair value 26,373 22,398
Cash and cash equivalents 5,981 25,407
Amounts held at futures clearing houses and brokers 3,009 2,674
35,363 50,479
Net exposure to financial instruments that bear interest (38,308) (16,079)
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17 Financial Instruments continued
Foreign currency risk
The Company’s net return on ordinary activities after taxation for the year and its net assets can be affected by foreign exchange rate
movements because the Company has income, assets and liabilities which are denominated in currencies other than the Company’s
functional currency which is UK sterling. The Portfolio Managers may seek to manage exposure to currency movements by using
forward and spot foreign exchange contracts. The Company can also be subject to short-term exposure to exchange rate movements,
for example, between the date when an investment is purchased or sold and the date when settlement of the transaction occurs.
Three principal areas have been identified where foreign currency risk could impact the Company:
• Movements in currency exchange rates affecting the value of investments and derivative instruments;
• Movements in currency exchange rates affecting short-term timing differences; and
• Movements in currency exchange rates affecting income received.
Currency exposure of financial assets
The currency exposure profile of the Company’s financial assets is shown below:
Currency
Investments
at fair value
£’000
Long
exposure to
derivative
instruments
1
£’000
Debtors
2
£’000
Cash
and cash
equivalents
3
£’000
2026
Total
£’000
Hong Kong dollar 44,335 68,739 836 104 114,014
Indonesian rupiah 72,011 – 7 – 72,018
US dollar 46,146 16,987 1,570 5,228 69,931
South Korean won 53,181 – 637 37 53,855
Taiwan dollar 45,608 – 596 – 46,204
Indian rupee 42,767 – 3,147 136 46,050
Australian dollar 23,893 – 3 343 24,239
Thai baht 9,716 – – – 9,716
Singapore dollar 8,231 – – – 8,231
Philippine peso 7,736 – 33 53 7,822
Malaysian ringgit 5,218 – – – 5,218
Sri Lankan rupee 3,939 – – – 3,939
Other overseas currencies 8,253 131 – 75 8,459
UK sterling 3,686 – 164 5 3,855
374,720 85,857 6,993 5,981 473,551
1 The exposure to the market of long CFDs, long options contracts and forward currency contracts.
2 Debtors include amounts held at futures clearing houses and brokers.
3 Cash and cash equivalents are made up of £3,605,000 cash at bank and £2,376,000 held in Fidelity Institutional Liquidity Fund.
Notes to the Financial Statements continued
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17 Financial Instruments continued
Currency
Investments
at fair value
£’000
Long
exposure to
derivative
instruments
1
£’000
Debtors
2
£’000
Cash
and cash
equivalents
3
£’000
2025
Total
£’000
Hong Kong dollar 97,377 54,327 881 615 153,200
US dollar 33,706 12,057 546 23,939 70,248
Indonesian rupiah 66,419 – 108 – 66,527
Indian rupee 48,177 – 1,892 47 50,116
South Korean won 48,834 – 706 – 49,540
Taiwan dollar 25,682 – 106 – 25,788
Australian dollar 16,507 – 84 – 16,591
Thai baht 11,614 – – – 11,614
Singapore dollar 9,626 – – – 9,626
Sri Lankan rupee 6,161 – – – 6,161
Vietnamese dong 5,456 – – – 5,456
Philippine peso 4,875 – 60 – 4,935
Other overseas currencies 1,657 – – 806 2,463
UK sterling 960 – 130 – 1,090
377,051 66,384 4,513 25,407 473,355
1 The exposure to the market of long CFDs.
2 Debtors include amounts held at futures clearing houses and brokers.
3 Cash and cash equivalents are made up of £5,689,000 cash at bank and £19,718,000 held in Fidelity Institutional Liquidity Fund.
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17 Financial Instruments continued
Currency exposure of financial liabilities
The currency profile of these financial liabilities is shown below:
Currency
Short
exposure to
derivative
instruments
1
£’000
Other
creditors
£’000
2026
Total
£’000
US dollar 20,419 117 20,536
Indian rupee 4,763 776 5,539
Hong Kong dollar 1,997 480 2,477
Australian dollar 1,968 343 2,311
Korean won – 816 816
Indonesian rupiah – 265 265
Malaysian Ringgit – 46 46
Other overseas currencies 2,457 – 2,457
UK sterling – 784 784
31,604 3,627 35,231
1 The exposure to the market of short CFDs, short futures and forwards.
Currency
Short
exposure to
derivative
instruments
1
£’000
Other
creditors
£’000
Bank
overdrafts
£’000
2025
Total
£’000
US dollar 17,697 1,496 – 19,193
South Korean won 3,366 135 – 3,501
Hong Kong dollar 2,666 18 – 2,684
Australian dollar 1,944 – – 1,944
Indian rupee 1,130 496 – 1,626
Indonesian rupiah – 916 – 916
Thai baht – 320 – 320
Vietnamese dong – 303 – 303
Singapore dollar – 99 – 99
UK sterling – 711 2 713
26,803 4,494 2 31,299
1 The exposure to the market of short CFDs and call options.
Notes to the Financial Statements continued
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GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY
17 Financial Instruments continued
Other price risk
Other price risk arises mainly from uncertainty about future prices of financial instruments used in the Company’s business. It
represents the potential loss the Company might suffer through holding market positions in the face of price movements.
The Board meets quarterly to consider the asset allocation of the portfolio and the risk associated with particular industry sectors
within the parameters of the investment objective.
The Portfolio Managers are responsible for actively monitoring the existing portfolio selected in accordance with the overall asset
allocation parameters described above and seek to ensure that individual stocks also meet an acceptable risk/reward profile. Other
price risks arising from derivative positions, mainly due to the underlying exposures, are estimated using Value at Risk and Stress Tests
as set out in the Company’s internal Risk Management Process Document.
Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulties in meeting obligations associated with financial liabilities. The
Company’s assets mainly comprise readily realisable securities and derivative instruments which can be sold easily to meet funding
commitments if necessary. Short-term flexibility, if required, is achieved by the use of a bank overdraft.
Liquidity risk exposure
At 31 July 2026, the undiscounted gross cash outflows of the financial liabilities were all repayable within one year and consisted of
derivative instrument liabilities of £1,209,000 (2025: £2,045,000), other creditors of £3,627,000 (2025: £4,494,000) and bank overdrafts
of £nil (2025: £2,000).
Counterparty risk
Certain derivative instruments in which the Company may invest are not traded on an exchange but instead will be traded between
counterparties based on contractual relationships, under the terms outlined in the International Swaps and Derivatives Association’s
(“ISDA”) market standard derivative legal documentation. These are known as Over the Counter (“OTC”) trades. As a result, the
Company is subject to the risk that a counterparty may not perform its obligations under the related contract. In accordance with the
risk management process which the Manager employs, the Manager will seek to minimise such risk by only entering into transactions
with counterparties which are believed to have an adequate credit rating at the time the transaction is entered into, by ensuring that
formal legal agreements covering the terms of the contract are entered into in advance, and through adopting a counterparty risk
framework which measures, monitors and manages counterparty risk by the use of internal and external credit agency ratings and by
evaluating derivative instrument credit risk exposure.
For OTC and exchange traded derivative transactions, collateral is used to reduce the risk of both parties to the contract. Collateral is
managed on a daily basis for all relevant transactions.
Collateral
2026 2025
collateral
received
£’000
collateral
pledged
£’000
collateral
received
£’000
collateral
pledged
£’000
HSBC Bank plc 907 – – 121
Goldman Sachs International Ltd 728 – 181 –
UBS AG 1,278 3,009 – 2,553
J.P. Morgan Securities plc 3,819 – 1,073 –
Morgan Stanley & Co. International Ltd 1,746 – 242 –
Total 8,478 3,009 1,496 2,674
Credit risk
Financial instruments may be adversely affected if any of the institutions with which money is deposited suffer insolvency or other
financial difficulties. All transactions are carried out with brokers that have been approved by the Manager and are settled on a
delivery versus payment basis. Limits are set on the amount that may be due from any one broker and are kept under review by the
Manager. Exposure to credit risk arises on unsettled security transactions and derivative instrument contracts and cash at bank.
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17 Financial Instruments continued
Derivative instrument risk
The risks and risk management processes which result from the use of derivative instruments, are set out in a documented Risk
Management Process Document. Derivative instruments are used by the Manager for the following purposes:
• To gain unfunded long exposure to equity markets, sectors or single stocks. Unfunded exposure is exposure gained without an
initial flow of capital;
• To hedge equity market risk using derivatives with the intention of at least partially mitigating losses in the exposures of the
Company’s portfolio as a result of falls in the equity market; and
• To position short exposures in the Company’s portfolio. These uncovered exposures benefit from falls in the prices of shares which
the Portfolio Managers believe to be overvalued. These positions, therefore, distinguish themselves from other short exposures
held for hedging purposes since they are expected to add risk to the portfolio.
RISK SENSITIVITY ANALYSIS
Interest rate risk sensitivity analysis
Based on the financial instruments held and interest rates at 31 July 2026, an increase of 1.00% in interest rates throughout the year,
with all other variables held constant, would have decreased the net return on ordinary activities after taxation for the year and
decreased the net assets of the Company by £383,000 (2025: decreased the net return and decreased the net assets by £161,000). A
decrease of 1.00% in interest rates throughout the year would have had an equal but opposite effect.
Foreign currency risk sensitivity analysis
Based on the financial instruments held and currency exchange rates as at the Balance Sheet date, with all other variables held
constant, a 10% strengthening of the UK sterling exchange rate against other currencies would have decreased the Company’s net
return on ordinary activities after taxation for the year and decreased the net assets (2025: decreased the net return and decreased
the net assets) by the following amounts:
Currency
2026
£’000
2025
£’000
Hong Kong dollar 10,140 13,683
Indonesian rupiah 6,523 5,965
South Korean won 4,822 4,185
US dollar 4,490 4,641
Taiwan dollar 4,200 2,344
Indian rupee 3,683 4,408
Australian dollar 1,993 1,331
Thai baht 883 1,027
Singapore dollar 748 866
Philippine peso 711 449
Malaysian ringgit 470 94
Sri Lankan rupee 358 560
Other overseas currencies 546 597
39,567 40,150
Notes to the Financial Statements continued
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17 Financial Instruments continued
Based on the financial instruments held and currency exchange rates as at the Balance Sheet date, with all other variables held
constant, a 10% weakening of the UK sterling exchange rate against other currencies would have increased the Company’s net return
on ordinary activities after taxation for the year and increased the net assets (2025: increased the net return and increased the net
assets) by the following amounts:
Currency
2026
£’000
2025
£’000
Hong Kong dollar 12,393 16,724
Indonesian rupiah 7,973 7,290
US dollar 5,893 5,673
South Korean won 5,488 5,115
Taiwan dollar 5,134 2,865
Indian rupee 4,501 5,388
Australian dollar 2,436 1,627
Thai baht 1,080 1,255
Singapore dollar 915 1,059
Philippine peso 869 548
Malaysian ringgit 575 115
Sri Lankan rupee 438 685
Other overseas currencies 667 732
48,362 49,076
Other price risk – exposure to investments sensitivity analysis
Based on the listed investments held and share prices at 31 July 2026, an increase of 10% in share prices, with all other variables held
constant, would have increased the Company’s net return on ordinary activities after taxation for the year and increased the net assets
of the Company by £36,754,000 (2025: increased the net return and increased the net assets by £37,172,000). A decrease of 10% in
share prices would have had an equal and opposite effect.
An increase of 10% in the valuation of unlisted investments held at 31 July 2026 would have increased the Company’s net return on
ordinary activities after taxation for the year and increased the net assets of the Company by £718,000 (2025: increased the net return
and increased the net assets by £533,000). A decrease of 10% in the valuation would have had an equal and opposite effect.
Other price risk – net exposure to derivative instruments sensitivity analysis
Based on the derivative instruments held and share prices at 31 July 2026, an increase of 10% in the share prices underlying the
derivative instruments, with all other variables held constant, would have increased the Company’s net return on ordinary activities
after taxation for the year and increased the net assets of the Company by £5,427,000 (2025: increased the net return and increased
the net assets by £3,958,000). A decrease of 10% in share prices would have had an equal and opposite effect.
Fair Value of Financial Assets and Liabilities
Financial assets and liabilities are stated in the Balance Sheet at values which are not materially different to their fair values. As
explained in Notes 2 (k) and (l), investments and derivative instruments are shown at fair value. In the case of cash at bank, book
value approximates to fair value due to the short maturity of the instruments.
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17 Financial Instruments continued
The sensitivity analysis below illustrates how the unobservable inputs used in the valuation methodologies of the unlisted assets impact
the fair value as at 31 July 2026.
Significant unobservable inputs
Sensitivity to changes in
significant unobservable inputsValuation approach
Fair
value
£’000*
Key
unobservable
inputs
Other
unobservable
inputs Range
Market approach using
comparable traded
multiples or calibration
factors
6,855
TEV/LTM
revenue multiple
1
a, b, c, d 1.50x - 1.90x
If TEV / LTM revenue multiple moved
by +/- 10%, the fair value would
change by £104,674 and -£104,635.
TEV/LTM EBITDA
multiple
2
a, b, c, d 6.00x - 7.50x
If TEV / LTM EBITDA multiple moved by
+/- 10%, the fair value would change
by £138,863 and -£138,824.
TEV/FY+1
revenue multiple
3
a, b, c, d 1.30x - 1.70x
If TEV / FY+1 revenue multiple moved
by +/- 10%, the fair value would
change by £107,656 and -£107,616.
TEV/FY+1
EBITDA multiple
4
a, b, c, d 5.25x - 6.25x
If TEV / FY+1 EBITDA multiple moved
by +/- 10%, the fair value would
change by £135,683 and -£135,643.
Certain unlisted investments have been valued by reference to statements received.
* An asset may be valued using multiple approaches therefore this column is not expected to represent the total of level 3 investments.
1 Total enterprise value (TEV) divided by the last twelve months (LTM) revenue.
2 Total enterprise value (TEV) divided by the last twelve months (LTM) earnings before interest, taxes, depreciation and amortisation (EBITDA).
3 Total enterprise value (TEV) divided by the next twelve months forecasted revenue (FY+1).
4 Total enterprise value (TEV) divided by the next twelve months (FY+1) forecasted earnings before interest, taxes, depreciation and amortisation (EBITDA).
Notes to the Financial Statements continued
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17 Financial Instruments continued
The sensitivity analysis below illustrates how the unobservable inputs used in the valuation methodologies of the unlisted assets impact
the fair value as at 31 July 2025.
Significant unobservable inputs
Sensitivity to changes in
significant unobservable inputsValuation approach
Fair
value
£’000*
Key
unobservable
inputs
Other
unobservable
inputs Range
Market approach using
comparable traded
multiples or calibration
factors
5,281
TEV/LTM
revenue multiple
1
a, b, c, d 1.60x - 2.00x
If TEV / LTM revenue multiple moved
by +/- 10%, the fair value would
change by £78,228 and -£78,834.
TEV/LTM EBITDA
multiple
2
a, b, c, d 6.75x - 7.75x
If TEV / LTM EBITDA multiple moved by
+/- 10%, the fair value would change
by £96,016 and -£96,622.
TEV/FY+1
revenue multiple
3
a, b, c, d 1.45x - 1.85x
If TEV / FY+1 revenue multiple moved
by +/- 10%, the fair value would
change by £84,898 and -£85,302.
TEV/FY+1
EBITDA multiple
4
a, b, c, d 5.75x - 6.75x
If TEV / FY+1 EBITDA multiple moved
by +/- 10%, the fair value would
change by £91,569 and -£92,175.
Scenario analysis
considering a range of
exit scenarios
e
53 Discount rate c, d 18.50% - 23.70%
If the discount rate moved by +/- 10%
the fair value would change by £3,421
and -£3,616.
* An asset may be valued using multiple approaches therefore this column is not expected to represent the total of level 3 investments.
1 Total enterprise value (TEV) divided by the last twelve months (LTM) revenue.
2 Total enterprise value (TEV) divided by the last twelve months (LTM) earnings before interest, taxes, depreciation and amortisation (EBITDA).
3 Total enterprise value (TEV) divided by the next twelve months forecasted revenue (FY+1).
4 Total enterprise value (TEV) divided by the next twelve months (FY+1) forecasted earnings before interest, taxes, depreciation and amortisation (EBITDA).
a. Selection of comparable companies
The fair value is determined by examining the market valuations of similar publicly traded firms. This approach involves identifying
peer companies with similar industry characteristics, size, growth prospects, and financial metrics. Key valuation multiples such as
Price-to-Earnings (P/E), Enterprise Value-to-EBITDA (EV/EBITDA), and Price-to-Sales (P/S) are calculated for each comparable company.
These multiples are then applied to the target company’s corresponding financial figures to derive an estimated value range. The
selection of comparable companies is evaluated at each valuation.
b. Selection of appropriate benchmarks
A benchmark-based valuation methodology estimates the fair value of a company by comparing its financial and operational metrics
to a set of relevant industry or market benchmarks. These benchmarks may include sector averages, historical performance standards,
or key financial ratios such as return on equity (ROE), profit margins, or revenue growth rates. The selection of appropriate benchmarks
is assessed individually for each investment and updated regularly.
c. Selection of alternative valuation methodologies
Fair value is to be determined using a variety of valuation methodologies, each suited to different types of investments and contexts.
Common alternative approaches include the income approach, which estimates fair value based on the present value of expected
future cash flows, utilising discounted cash flow (DCF) models and estimated weighted average cost of capital (WACC) discount rates.
d. Estimate of sustainable earnings
The approach focuses on normalised earnings, either forecasted over the next 12 months or adjusted to reflect a sustainable, long-
term level that smooths out cyclical fluctuations and one-time events. Analysts typically use forward-looking metrics such as projected
net income or EBITDA, derived from management guidance, analyst forecasts, or historical trends. These earnings are then multiplied
by a valuation multiple (e.g., P/E or EV/EBITDA) that reflects market expectations and industry norms. The chosen multiple may be
based on comparable companies or historical averages. By focusing on earnings that are expected to persist over time, the approach
aims to provide a more accurate and stable estimate of intrinsic value, especially in dynamic or transitional market environments.
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17 Financial Instruments continued
e. Range of exit scenarios
Fair value is determined by modelling potential scenarios about how a company might be sold, or value might be realised. Analysts
typically develop several plausible exit scenarios such as a strategic acquisition, initial public offering (IPO), management buyout, or
liquidation each with its own assumptions about timing, valuation multiples, and transaction terms. For each scenario, the expected
proceeds are estimated, often using projected financial metrics and applying relevant market-based multiples. These proceeds are
then discounted back to present value using an appropriate discount rate to reflect the time value of money and risk. The final fair
value is calculated as a probability-weighted average of the present values across all scenarios, incorporating both the likelihood and
financial impact of each outcome.
Fair Value Hierarchy
The Company is required to disclose the fair value hierarchy that classifies its financial instruments measured at fair value at one of
three levels, according to the relative reliability of the inputs used to estimate the fair values.
Classification Input
Level 1
Valued using quoted prices in active markets for identical assets
Level 2
Valued by reference to inputs other than quoted prices included in level 1 that are observable
(i.e. developed using market data) for the asset or liability, either directly or indirectly
Level 3
Valued by reference to valuation techniques using inputs that are not based on observable
market data
Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the fair value
measurement of the relevant asset. The valuation techniques used by the Company are explained in Notes 2 (k) and (l). The table
below sets out the Company’s fair value hierarchy:
Financial assets at fair value through profit or loss
Level 1
£’000
Level 2
£’000
Level 3
£’000
2026
Total
£’000
Investments 367,544 – 7,176 374,720
Derivative instrument assets 589 6,432 – 7,021
368,133 6,432 7,176 381,741
Financial liabilities at fair value through profit or loss
Derivative instrument liabilities (312) (897) – (1,209)
Financial assets at fair value through profit or loss
Level 1
£’000
Level 2
£’000
Level 3
£’000
2025
Total
£’000
Investments 366,943 4,774 5,334 377,051
Derivative instrument assets 124 2,154 – 2,278
367,067 6,928 5,334 379,329
Financial liabilities at fair value through profit or loss
Derivative instrument liabilities (157) (1,888) – (2,045)
Notes to the Financial Statements continued
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GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY
17 Financial Instruments continued
The table below sets out the movements in level 3 financial instruments during the year:
2026
£’000
2025
£’000
Beginning of the year 5,334 1,046
Purchase at cost – ByteDance – 3,001
Purchase at cost – Fireside Ventures 407 –
Sales proceeds – ByteDance – (86)
Sales gain – ByteDance – 13
Sales proceeds – Chime Biologics (51) –
Sales gain – Chime Biologics 51 –
Transfers out level 3 at cost – Interojo
1
– (1,404)
Movement in investment holding gains 1,435 2,764
End of the year 7,176 5,334
1 Financial instruments are transferred out of level 3 when they become listed.
Below are details of the four investments which fall into level 3 of which the first three investments are unlisted and the latter one is
suspended from trading.
ByteDance
ByteDance is a leading global digital media and advertising platform, serving over two billion users across more than 150 markets.
Powered by advanced recommendation algorithms, scalable infrastructure, and ongoing innovation, its platforms include TikTok. The
valuation at 31 July 2026 is based on the company’s financial performance, the macroenvironment and benchmarking the position to
a range of comparable market data. As at 31 July 2026, its fair value was £6,855,000 with book cost £2,928,000. (2025: fair value was
£5,281,000 with book cost £2,928,000).
Fireside Ventures Fund IV
Fireside Ventures Fund IV is a venture capital fund investing in digital first consumer brands in India. The first investment in this fund
was made during the financial year ended 31 July 2026. The Company’s total capital commitment to the fund is $5,000,000 of which
£407,000 had been called and paid in the period to 31 July 2026. As at 31 July 2026, its fair value was £321,000 with book cost
£407,000. This position was not held at 31 July 2025.
Eden Biologics
Eden Biologics develops biosimilars and is also engaged in providing process development and contract manufacturing solutions
to the biopharmaceutical industry and is an unlisted company. On 26 February 2018, the company voluntarily delisted from the
Taipei Exchange. In September 2023, there was a potential voluntary liquidation of the company which was subsequently postponed
indefinitely. The company is attempting to restructure, and the future outcome is uncertain. Given the distressed nature of the company
a decision was made for the price to be written down to nil as of the 16 April 2024. As at 31 July 2026, its fair value was £nil with
book cost £407,000 (2025: £nil with book cost £407,000).
Salt Lake Potash
Salt Lake Potash is a mineral exploration company. The company was suspended from trading on the Australian Stock Exchange on
27July 2021 and in October 2021 it announced that it would be entering voluntary administration. As at 31 July 2026, its fair value was
£nil with book cost £323,000 (2025: £nil with book cost £323,000).
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18 Capital Resources and Gearing
The Company does not have any externally imposed capital requirements. The financial resources of the Company comprise its share
capital and reserves, as disclosed in the Balance Sheet on page 56 and any gearing, which is managed by the use of derivative
instruments. Financial resources are managed in accordance with the Company’s investment policy and in pursuit of its investment
objective, both of which are detailed in the Strategic Report on pages 21 and 22. The principal risks and their management are
disclosed in the Strategic Report on pages 23 to 27.
The Company’s gross and net gearing at the year end is set out below:
2026
Gross gearing Net gearing
Asset
exposure
£’000 %
1
Asset
exposure
£’000 %
1
Investments 374,720 96.1 374,720 96.1
Long CFDs 77,102 19.8 77,102 19.8
Call options (long exposure) 6,183 1.6 6,183 1.6
Total long exposures 458,005 117.5 458,005 117.5
Short CFDs 24,253 6.2 (24,253) (6.2)
Short Futures 4,763 1.2 (4,763) (1.2)
Gross asset exposure/net market exposure 487,021 124.9 428,989 110.1
Shareholders’ funds 389,879 389,879
Gearing
2
24.9% 10.1%
1 Asset exposure to the market expressed as a percentage of shareholders’ funds.
2 Gearing is the amount by which gross asset exposure/net market exposure exceeds shareholders’ funds expressed as a percentage of shareholders’ funds.
2025
Gross gearing Net gearing
Asset
exposure
£’000 %
1
Asset
exposure
£’000 %
1
Investments 377,051 93.6 377,051 93.6
Long CFDs 66,384 16.5 66,384 16.5
Total long exposures 443,435 110.1 443,435 110.1
Short CFDs 21,913 5.5 (21,913) (5.5)
Short Futures 2,353 0.6 (2,353) (0.6)
Put options (short exposure) 2,143 0.5 (2,143) (0.5)
Call options (short exposure) 394 0.1 (394) (0.1)
Gross asset exposure/net market exposure 470,238 116.8 416,632 103.4
Shareholders’ funds 402,708 402,708
Gearing
2
16.8% 3.4%
1 Asset exposure to the market expressed as a percentage of shareholders’ funds.
2 Gearing is the amount by which gross asset exposure/net market exposure exceeds shareholders’ funds expressed as a percentage of shareholders’ funds.
Notes to the Financial Statements continued
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GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY
19 Transactions with the Managers and Related Parties
FIL Investment Services (UK) Limited is the Company’s Alternative Investment Fund Manager and has delegated portfolio management
and the role of Company Secretary to FIL Investments International (“FII”). Both companies are Fidelity group companies.
Details of the current fee arrangements are given in the Directors’ Report on page 32. During the year, the following expenses were
payable to FII:
Year ended
31 July
2026
£’000
Year ended
31 July
2025
£’000
Management fees 2,027 3,250
Secretarial and administration fees 75 75
Marketing services
1
202 181
1 Marketing services includes costs paid to FII to reimburse it for third-party costs it has incurred on behalf of the Company in providing marketing services.
At the Balance Sheet date, the following balances payable to FII were accrued and included in other creditors:
31 July
2026
£’000
31 July
2025
£’000
Management fees 156 217
Secretarial and administration fees 13 44
Marketing services 49 –
Disclosures of the Directors’ interests in the ordinary shares of the Company and Directors’ fees and taxable expenses relating to
reasonable travel expenses payable to the Directors are given in the Directors’ Remuneration Report on pages 40 and 41. In addition
to the fees and taxable expenses disclosed in the Directors’ Remuneration Report, £25,000 (2025: £21,000) of employers’ National
Insurance contributions were paid by the Company. At the Balance Sheet date, Directors’ fees of £38,000 (2025: £17,000) were
accrued and payable.
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Alternative Performance Measures
The Company uses the following as Alternative Performance Measures which are all defined in the Glossary of Terms on pages 95 to 98.
Discount/Premium
Details of the Company’s discount are on the Financial Highlights page.
Gearing
See Note 18 on page 80 for details of the Company’s gearing (both gross and net).
Net Asset Value (“NAV”) per Share
See the Balance Sheet on page 56 and Note 16 on page 68 for further details.
Ongoing Charges
Ongoing Charges have been calculated in accordance with guidance issued by the AIC as the total of investment management fees
and other expenses expressed as a percentage of the average net asset values throughout the year.
2026 2025
Investment management fees (£’000) 2,832 2,693
Other expenses (£’000) 1,015 969
Ongoing charges (£’000) 3,847 3,662
Variable element of management fee (£’000) (805) 557
Average net assets (£’000) 404,562 386,444
Ongoing Charges 0.95% 0.95%
Ongoing Charges including variable element of management fee 0.75% 1.09%
Revenue, Capital and Total Returns per Share
See the Income Statement on page 54 and Note 8 on page 64 for further details.
Total Return Performance
The NAV per Share total return includes reinvestment of the dividend in the NAV of the Company on the ex-dividend date. The Share
price total return includes the reinvestment of the net dividend in the month that the Share price goes ex-dividend.
The tables below and on the next page provide information relating to the NAV per Share and Share price of the Company and the
impact of the dividend reinvestments and the total returns for the years ended 31 July 2026 and 31 July 2025.
2026
Net asset
value per
Share
Share
price
31 July 2025 604.69p 564.00p
31 July 2026 621.46p 588.00p
Change in year +2.8% +4.3%
Impact of dividend reinvestment +3.3% +3.5%
Total return for the year +6.1% +7.8%
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GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY
Total Return Performance continued
2025
Net asset
value per
Share
Share
price
31 July 2024 551.66p 496.00p
31 July 2025 604.69p 564.00p
Change in year +9.6% +13.7%
Impact of dividend reinvestment +2.8% +3.3%
Total return for the year +12.4% +17.0%
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Financial Calendar
The key dates in the Company’s calendar are:
31 July 2026
Financial Year End
October 2026
Announcement of results for the year ended 31 July 2026
October 2026
Publication of the Annual Report
29 October 2026
Ex-Dividend Date
30 October 2026
Dividend Record Date
25 November 2026
Annual General Meeting
4 December 2026
Payment of the Dividend
31 January 2027
Half-Year End
March/April 2027
Announcement of the Half-Yearly results for the six months ended 31 January 2027
April 2027
Publication of the Half-Yearly Report
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FINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS STRATEGY
Notice is hereby given that the Annual General Meeting of
Fidelity Asian Values PLC will be held at 4 Cannon Street,
London EC4M 5AB and virtually via the online Lumi AGM
meeting platform on Wednesday, 25 November 2026 at 11.00
am for the following purposes:
1. To receive and adopt the Annual Report and Financial
Statements for the year ended 31 July 2026.
2. To declare that a final dividend for the year ended
31 July 2026 of 22.0 pence per ordinary share be paid to
shareholders on the register as at close of business on
30 October 2026.
3. To re-elect Clare Brady as a Director.
4. To re-elect Hussein Barma as a Director.
5. To re-elect Lucy Costa Duarte as a Director.
6. To re-elect Sally Macdonald as a Director.
7. To re-elect Matthew Sutherland as a Director.
8. To approve the Directors’ Remuneration Report (excluding
the section headed “The Remuneration Policy” set out on
page 40) for the year ended 31 July 2026.
9. To reappoint PricewaterhouseCoopers LLP as Independent
Auditors of the Company to hold office until the conclusion of
the next general meeting at which Financial Statements are
laid before the Company.
10. To authorise the Directors to determine the Independent
Auditors’ remuneration.
To consider and, if thought fit, pass the following special business
resolutions of which Resolutions 11, 12 and 13 will be proposed
as ordinary resolutions and Resolutions 14, 15 and 16 as special
resolutions.
Continuation of the Company
Resolution 11 is an ordinary resolution regarding the continuation
of the Company as an investment trust for a further five years.
11. THAT the Company’s continuation as an investment trust
company be approved for the period until the Annual
General Meeting to be held in 2031.
Authority to amend the Company’s Investment Objective and
Investment Policy
Resolution 12 will authorise the Directors to amend the Investment
Objective and Investment Policy. The proposed revised Investment
Objective and Investment Policy are set out in the Appendix to
this Notice of Meeting on pages 90 and 91. A summary of the
key changes is set out in the Strategic Report on page 22.
12. THAT the proposed Investment Objective and Investment
Policy set out in the Appendix to this notice of Annual
General Meeting, a copy of which has been produced to
the meeting and signed by the Chairman for the purpose
of identification, be and are hereby adopted as the
investment objective and investment policy of the Company
to the exclusion of all previous investment objectives and
investment policies of the Company.
Authority to allot Shares and disapply pre-emption rights
Resolutions 13 and 14 will, if approved, authorise the Directors to
allot a limited number of Shares (or to sell any Shares which the
Company elects to hold in Treasury) for cash without first offering
such Shares to existing shareholders pro rata to their existing
holdings. The limit set by the Board is 10% of the number of
Shares of the Company (including Treasury Shares) in issue at the
latest practicable date of this document. The Directors will only
issue new Shares, or dispose of Shares held in Treasury, under
this authority in order to take advantage of opportunities in the
market as they arise and only if they believe it is advantageous
to the Company’s shareholders to do so. Any Shares held in
Treasury would be re-issued at net asset value (“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 Shares would
enhance NAV per Share.
13. THAT the Directors be and they are hereby generally and
unconditionally authorised in accordance with Section 551
of the Companies Act 2006 (the “Act”) to exercise all the
powers of the Company to allot ordinary shares of 25p each
in the capital of the Company (“Shares”) or to grant rights to
subscribe for or to convert any securities into Shares in the
Company (“relevant securities”) up to an aggregate nominal
amount of £1,782,695 (approximately 10% of the aggregate
nominal amount of the issued share capital of the Company
(including Treasury Shares) at the latest practicable date
of this document) and so that the Directors may impose
any limits or restrictions and make any arrangements
which they consider necessary or appropriate to deal with
Treasury Shares, fractional entitlements, record dates, legal,
regulatory or practical problems in, or under the laws of,
any territory or any other matter, such authority to expire
at the conclusion of the next Annual General Meeting
(“AGM”) of the Company or the date 15 months after the
passing of this resolution, whichever is the earlier, but so
that this authority shall allow the Company to make offers or
agreements before the expiry of this authority which would
or might require relevant securities to be allotted after such
expiry as if the authority conferred by this resolution had not
expired. All previous unexpired authorities are revoked, but
without prejudice to any allotment of Shares or grant of rights
already made, offered or agreed to be made pursuant to
such authorities.
14. THAT, subject to the passing of Resolution 13, as set out
above, the Directors be and they are hereby authorised,
pursuant to Sections 570-573 of the Act, to allot equity
securities (as defined in Section 560 of the Act) for cash
pursuant to the authority given by the said Resolution 13
and/or to sell Shares held by the Company as Treasury
Shares for cash, as if Section 561 of the Act did not apply to
any such allotment or sale, provided that this power shall be
limited:
a) to the allotment of equity securities or sale of Treasury
Shares up to an aggregate nominal amount of
£1,782,695 (approximately 10% of the aggregate
nominal amount of the issued share capital of the
Company (including Treasury Shares) at the latest
practicable date of this document); and
Notice of Meeting
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b) by the condition that allotments of equity securities or
sales of Treasury Shares may only be made pursuant
to this authority at a price of not less than the NAV per
ordinary share,
and this power shall expire at the conclusion of the next AGM
of the Company or the date 15 months after the passing of
this resolution, whichever is the earlier, save that this authority
shall allow the Company to make offers or agreements before
the expiry of this authority, and the Directors may allot equity
securities in relation to such an offer or agreement as if the
authority conferred by this resolution had not expired.
Authority to repurchase Shares
Resolution 15 is a special resolution which, if approved, will
renew the Company’s authority to purchase up to 14.99%
respectively of the number of Shares in issue (excluding
Treasury Shares) at the latest practicable date of this document
or, if different, at the date of passing of the resolution, either
for cancellation or for retention as Treasury Shares, at the
determination of the Board. Once Shares are held In Treasury,
the Directors may only dispose of them in accordance with the
relevant legislation by subsequently selling the Shares for cash
or cancelling the Shares. Purchases of Shares will be at the
discretion of the Board and within guidelines set from time to
time by the Board in the light of prevailing market conditions.
Purchases will only be made in the market at prices below the
prevailing NAV per Share, thereby resulting in an increased NAV
per Share.
15. THAT the Company be and is hereby generally and
unconditionally authorised in accordance with Section 701
of the Companies Act 2006 (the “Act”) to make market
purchases (within the meaning of Section 693 of the Act)
of ordinary shares of 25 pence each in the capital of the
Company (“Shares”) provided that:
a) the maximum number of Shares hereby authorised
to be purchased shall be 9,379,896 or, if different,
such number as represents 14.99% of the Company’s
issued ordinary share capital (excluding Shares held in
treasury) at the date of the passing of this resolution;
b) the minimum price (excluding expenses) which may be
paid for a Share is 25 pence;
c) the maximum price (excluding expenses) which may be
paid for each Share is the higher of:
(i) 5% above the average of the middle market
quotations for the Shares as derived from the
London Stock Exchange Official List for the five
business days preceding the date of purchase; and
(ii) the higher of the price of the last independent
trade and the highest current independent
purchase bid on the London Stock Exchange at the
time the purchase is carried out;
d) the authority hereby conferred shall expire at the conclusion
of the next AGM of the Company or the date 15 months
after the passing of this resolution, whichever is the earlier,
unless such authority is renewed prior to such time; and
e) the Company may make a contract to purchase Shares
under the authority hereby conferred prior to the expiry
of such authority which will or may be executed wholly
or partly after the expiration of such authority and
may make a purchase of Shares pursuant to any such
contract.
Any Shares purchased pursuant to this authority shall, as the
directors may determine, either be (i) cancelled or (ii) held in
treasury for subsequent sale, transfer or cancellation.
Authority to call General Meetings on 14 clear days’ notice
Resolution 16 is a special resolution to provide the Company with
authority to call general meetings (other than annual general
meetings) on 14 clear days’ notice. The Directors believe that
the flexibility provided by this resolution is beneficial to the
Company when dealing with any matters that require prompt
consideration by shareholders. This authority would only be used
in circumstances where the Board considers it appropriate to do
so, taking into account the circumstances of the business to be
considered at the relevant general meeting.
16. THAT general meetings (other than annual general meetings)
of the Company may be called on not less than 14 clear
days’ notice, provided that this authority shall expire at the
conclusion of the next AGM of the Company.
By Order of the Board
FIL Investments International
Secretary
15 October 2026
Notice of Meeting continued
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FINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS STRATEGY
Notes to the Notice of Meeting:
1. A member of the Company entitled to attend and vote at
the Annual General Meeting may appoint a proxy or proxies
to attend and to speak and vote instead of him. A member
may appoint more than one proxy in relation to the Annual
General Meeting provided that each proxy is appointed to
exercise the rights attached to a different share or shares
held by that member. A proxy need not be a member of
the Company. To appoint a proxy via the Investor Centre
at https://uk.investorcentre.mpms.mufg.com/, you will
need to log into your Investor Centre account or register if
you have not previously done so. Once you have setup your
account you will need to add your shareholding by clicking
‘Add Holding’ in the ‘Portfolio’ section and following the
on-screen instructions. You will require your Investor Code
(IVC) to add your shareholding. You can find your IVC on
your share certificate or by contacting our Registrar, MUFG
Corporate Markets. Alternatively, shareholders can vote via
the Investor Centre app, which is a free app for smartphone
and tablet provided by MUFG Corporate Markets (the
company’s Registrar). It allows you to securely manage
and monitor your shareholdings in real time, take part in
online voting, keep your details up to date, access a range
of information including payment history and much more.
The app is available to download on both the Apple App
Store and Google Play, or by scanning the relevant QR code
below.
2. A Form of Proxy is enclosed and must be returned to the
Registrar at the address on the form to arrive not later than
11:00 on Monday, 23 November 2026. Completion and
return of the form of proxy will not prevent a shareholder
from subsequently attending the meeting and voting in
person if they so wish.
3. To be effective, the instrument appointing a proxy, and
any power of attorney or other authority under which it is
signed (or a copy of any such authority certified notarially
or in some other way approved by the Directors), must
be deposited with the Company’s Registrar, PXS 1, MUFG
Corporate Markets, Central Square, 29 Wellington Street,
Leeds LS1 4DL not less than 48 hours before the time for
holding the meeting or adjourned meeting or, in the case of
a poll taken more than 48 hours after it is demanded, not
less than 24 hours before the time appointed for the taking
of the poll at which it is to be used.
4. In the case of joint holders, the vote of the senior who
tenders the vote shall be accepted to the exclusion of the
votes of the other joint holders and for this purpose, seniority
shall be determined by the order in which the names stand
in the Register of Members.
5. CREST members who wish to appoint a proxy or proxies
through the CREST electronic proxy appointment service may
do so for the meeting and any adjournment(s) thereof by
using the procedures described in the CREST Manual. CREST
personal members or other CREST sponsored members, and
those CREST members who have appointed a voting service
provider(s), should refer to their CREST sponsor or voting
service provider(s), who will be able to take the appropriate
action on their behalf.
In order for a proxy appointment or instruction made
using the CREST service to be valid, the appropriate
CREST message (a CREST Proxy Instruction) must be
properly authenticated in accordance with Euroclear UK &
International Limited’s specifications and must contain the
information required for such instruction, as described in
the CREST Manual (available via www.euroclear.com).
The message, regardless of whether it constitutes the
appointment of a proxy or is an amendment to the
instruction given to a previously appointed proxy must, in
order to be valid, be transmitted so as to be received by
the Company’s registrars (ID: RA10) by the latest time(s) for
receipt of proxy appointments specified in Note 3 above. For
this purpose, the time of receipt will be taken to be the time
(as determined by the time stamp applied to the message
by the CREST Application Host) from which the issuer’s agent
is able to retrieve the message by enquiry to CREST in the
manner prescribed by CREST. After this time, any change of
instructions to proxies appointed through CREST should be
communicated to the appointee through other means.
CREST members and, where applicable, their CREST
sponsors or voting service providers should note that
Euroclear UK & International Limited does not make
available special procedures in CREST for any particular
messages. Normal system timings and limitations will
therefore apply in relation to the input of CREST Proxy
Instructions. It is the responsibility of the CREST member
concerned to take (or, if the CREST member is a CREST
personal member or sponsored member or has appointed a
voting service provider(s), to procure that his CREST sponsor
or voting service provider(s) take(s)) such action as shall
be necessary to ensure that a message is transmitted by
means of the CREST system by any particular time. In this
connection, CREST members and, where applicable, their
CREST sponsors or voting service providers are referred, in
particular, to those sections of the CREST Manual concerning
practical limitations of the CREST system and timings
(www.euroclear.com).
The Company may treat as invalid a CREST Proxy Instruction
in the circumstances set out in Regulation 35(5)(a) of the
Uncertificated Securities Regulations 2001 (as amended).
6. Proxymity Voting – If you are an institutional investor,
you may also be able to appoint a proxy electronically
via the Proxymity platform, a process which has been
agreed by the Company and approved by the Registrar.
For further information regarding Proxymity, please go to
www.proxymity.io. Your proxy must be lodged by no later
than 11:00 on Monday, 23 November 2026 in order to
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be considered valid. Before you can appoint a proxy via
this process, you will need to have agreed to Proxymity’s
associated terms and conditions. It is important that you
read these carefully as you will be bound by them and they
will govern the electronic appointment of your proxy. An
electronic proxy appointment via the Proxymity Platform
may be revoked completely by sending an authenticated
message via the platform instructing the removal of your
proxy vote.
7. Unless otherwise indicated on the Form of Proxy, CREST,
Proxymity or any other electronic voting instruction, the proxy
will vote as they think fit or, at their discretion, withhold from
voting.
8. All members are entitled to attend and vote at the AGM
and ask questions. The right to vote at the meeting will
be determined by reference to the Register of Members
as at close of business on Monday, 23 November 2026.
Shareholders are urged to vote using the proxy form
provided or electronically where permitted by your nominee
or platform.
9. The Company is pleased to be able to offer facilities for
shareholders to attend, ask questions and vote at the AGM
electronically in real time should they wish to do so. The
details are set out below.
In order to join the AGM electronically and to vote and
ask questions via the platform, shareholders will need to
connect to the following site https://meetings.lumiconnect.
com/100-515-687-445. Lumi is available as a mobile web
client, compatible with the latest browser versions of Chrome,
Firefox, Edge and Safari and can be accessed using any
web browser on a tablet, smartphone or computer.
Once you have accessed https://meetings.lumiconnect.
com/100-515-687-445 from your device, you will be prompted
to enter your unique 11 digit Investor Code (“IVC”) including
any leading zeros and ‘PIN’. Your PIN is the last 4 digits of
your IVC. This will authenticate you as a shareholder.
Your IVC can be found on your share certificate or as
detailed on your proxy form. You can also obtain this by
contacting MUFG Corporate Markets, our Registrar, by
calling +44 (0) 371 277 1020*.
Access to the AGM will be available from 30 minutes before
the meeting start time, although the voting functionality will
not be enabled until the Chairman of the meeting declares
the poll open. During the AGM, you must ensure you are
connected to the internet at all times in order to vote when
the Chairman commences polling on the Resolutions.
Therefore, it is your responsibility to ensure connectivity for
the duration of the AGM via your wi-fi. A user guide to the
Lumi platform is available on the Company’s pages of the
Manager’s website at: www.fidelity.co.uk/asianvalues.
If you wish to appoint a proxy other than the Chairman of
the meeting and for them to attend the virtual meeting on
your behalf, please submit your proxy appointment in the
usual way before contacting MUFG Corporate Markets on
+44 (0) 371 277 1020* in order to obtain their IVC and PIN.
It is suggested that you do this as soon as possible and
at least 48 hours (excluding non-business days) before the
meeting.
If your shares are held within a nominee/platform and
you wish to attend the electronic meeting, you will need to
contact your nominee as soon as possible. Your nominee
will need to present a corporate letter of representation to
MUFG Corporate Markets, the Registrar, as soon as possible
and at least 72 hours (excluding non-business days) before
the meeting, in order that they can obtain for you your
unique IVC and PIN to enable you to attend the electronic
meeting.
If you are unable to obtain a unique IVC and PIN from
your nominee or platform, we will also welcome online
participation as a guest. Once you have accessed
https://meetings.lumiconnect.com/100-515-687-445 from
your web browser on a tablet, smartphone or computer, you
should then select the ‘Guest Access’ option before entering
your name and who you are representing, if applicable. This
will allow you to view the meeting and ask questions, but you
will not be able to vote.
* Lines are open from 09:00 to 17:30 Monday to Friday, excluding public
holidays in England and Wales. Calls are charged at the standard
geographic rate and will vary by provider. Calls outside the UK will be
charged at the applicable international rate.
10. Any person to whom this notice is sent who is a person
nominated under Section 146 of the Companies Act 2006 to
enjoy information rights (a “Nominated Person”) may, under
an agreement between him and the member by whom he
was nominated, have a right to be appointed (or to have
someone else appointed) as a proxy for the meeting. If a
Nominated Person has no such proxy appointment right
or does not wish to exercise it, he may, under any such
agreement, have a right to give instructions to the member
as to the exercise of voting rights. The statement of the rights
of members in relation to the appointment of proxies in
Note 1 above does not apply to Nominated Persons. The
right described in that paragraph can only be exercised by
members of the Company.
11. If the Chairman, as a result of any proxy appointments, is
given discretion as to how the votes which are the subject
of those proxies are cast and the voting rights in respect
of those discretionary proxies, when added to the interests
in the Company’s securities already held by the Chairman,
result in the Chairman holding such number of voting rights
that he has a notifiable obligation under the Disclosure and
Transparency Rules, the Chairman will make the necessary
notifications to the Company and the Financial Conduct
Authority. As a result, any member holding 3% or more of
the voting rights in the Company who grants the Chairman a
discretionary proxy in respect of some or all of those voting
rights and so would otherwise have a notification obligation
under the Disclosure and Transparency Rules, need not make
separate notification to the Company and the Financial
Conduct Authority.
Notice of Meeting continued
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FINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS STRATEGY
12. Pursuant to Regulation 41 of the Uncertificated Securities
Regulations 2001, the Company has specified that to be
entitled to attend and vote at the AGM (and for the purpose
of determining the number of votes they may cast), members
must be entered on the Register of Members by close of
business on Monday, 23 November 2026. If the meeting is
adjourned then, to be so entitled, members must be entered
on the Register of Members by close of business on the day
two days before the time fixed for the adjourned meeting,
or, if the Company gives notice of the adjourned meeting, at
any other time specified in that notice.
13. As at the latest practicable date prior to the publication of
this document, the Company’s issued share capital consisted
of 71,307,823 ordinary shares carrying one vote each. The
number of Shares held by the Company in Treasury was
8,733,463. Therefore, the total number of Shares with voting
rights in the Company was 62,574,360.
14. Any corporation which is a member can appoint one or
more corporate representatives who may exercise on its
behalf all of its powers as a member provided that they do
not do so in relation to the same shares.
15. Shareholders and any proxies or representatives they
appoint understand that by attending the meeting they
are expressly agreeing that they are willing to receive any
communications, including communications relating to the
Company’s securities, made at the meeting.
16. It is possible that, pursuant to requests made by members
of the Company under Section 527 of the Companies Act
2006, the Company may be required to publish on its
website a statement setting out any matter relating to the
audit of the Company’s accounts (including the Independent
Auditors’ report and the conduct of the audit) that is to be
laid before the AGM or any circumstance connected with
an auditor of the Company ceasing to hold office since the
previous meeting at which the Annual Report and Financial
Statements were laid. The Company may not require the
Shareholders requesting any such website publication to
pay its expenses in complying with such requests. Where
the Company is required to place a statement on a website
under Section 527 of the Companies Act 2006, it must
forward the statement to the Company’s Independent
Auditors not later than the time when it makes the statement
available on the website. The business which may be dealt
with at the AGM includes any statement that the Company
has been required under Section 527 of the Companies Act
2006 to publish on its website.
17. No Director has a service contract with the Company.
18. A copy of this notice and other information required by
Section 311A of the Companies Act 2006 is published on the
Company’s website at www.fidelity.co.uk/asianvalues.
Registered office: Beech Gate, Millfield Lane, Lower Kingswood,
Tadworth, Surrey KT20 6RP.
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Appendix to the Notice of Meeting
AMENDMENTS TO THE COMPANY’S INVESTMENT OBJECTIVE
AND INVESTMENT POLICY
The Company’s proposed revised Investment Objective and
Investment Policy, as proposed in resolution 12 on page 85 of the
Notice of Meeting, is set out below. If approved by shareholders,
the revised Investment Objective and Investment Policy will be
effective from the date of the passing of the resolution.
Investment Objective
The Company’s objective is to achieve long-term capital growth
principally from the stock markets of the Asian Region excluding
Japan (“the Region”).
Investment Policy
The Company seeks to meet its objective by investing in a
diversified portfolio of securities and instruments issued by or
related to companies listed on the stock markets in the Region.
Investments may be made in companies listed elsewhere which,
in the opinion of the Manager, have significant interests in the
Region.
The Company may invest directly in the shares of companies or
indirectly through equity related instruments (including warrants and
convertible bonds), through derivative instruments (including futures,
options and contracts for difference) and in debt instruments. The
Company is permitted to invest in Non-Voting Depositary Receipts,
American Depositary Receipts, Global Depositary Receipts and
Equity Linked Notes. The Company may also invest in unquoted
securities and in other investment funds. All such investments will
be included in the relevant aggregate country weighting.
Performance Measurement
The Company’s performance is measured against the return of its
Comparative Index, the MSCI All Country Asia ex Japan Small Cap
Index (net) total return (in sterling terms).
Investment Restrictions
The Company is managed subject to the following investment
restrictions:
• No single or aggregate investment in any one company or other
investment entity shall represent more than 10% of the Company’s
Gross Assets.
• Up to 5% of the Company’s Gross Assets may be invested in
securities which are not listed on any stock exchange.
• Up to 15% of the Company’s Gross Assets may be invested in
other investment funds (whether listed or unlisted) where such
funds offer the only practicable means of gaining exposure to
a particular market, industry or asset class in the Region, save
that no more than 10% of the Company’s Gross Assets will be
invested in other London-listed closed ended funds.
• Up to 15% of the Company’s Gross Assets may be invested
in securities which are not listed or domiciled in the Region,
provided the investments have significant interests in the Region.
• The Company’s Net Market Exposure will not exceed 130% of the
Net Asset Value of the Company.
• The Company’s Gross Asset Exposure will not exceed 150% of the
Net Asset Value of the Company.
• The sum of all short exposures of the Company, excluding
Hedges, will not exceed 20% of the Net Asset Value of the
Company.
The investment restrictions and limitations described in this Investment
Policy apply at the time of investment and the values of existing
investments shall be determined on the basis of the Company’s most
recently published Net Asset Value at the relevant time.
Gearing
The Company may use gearing, through borrowing or derivatives,
including contracts for difference, subject to the investment restrictions
above. The Board is responsible for the Company’s gearing strategy
with day-to-day decisions being made by the Manager.
Use of Derivatives
As well as a form of gearing, the Company may use derivatives for
hedging, efficient portfolio management and investment purposes.
The Company may maintain long and short exposure through
derivatives subject to the investment restrictions above.
Cash Management
Pending reinvestment, distribution or repayments of any outstanding
indebtedness, the Company’s uninvested cash may be held in cash,
cash equivalents, near-cash instruments, money market instruments
and/or money market and cash funds.
For the purposes of the Investment Objective and this Investment
Policy:
“Asian Region” means the continent of Asia (including China, Hong
Kong, India, Indonesia, Malaysia, Pakistan, Philippines, Singapore,
South Korea, Sri Lanka, Taiwan, Thailand and Vietnam) together with
Australasia.
“Gross Assets” means the total value of the Company’s assets.
“Gross Asset Exposure” means the total market exposure of the
Company’s portfolio, whether through direct or indirect investment. It
is calculated as being equal to: (Long Exposure + Short Exposure) –
Hedges.
“Hedges” means short positions that demonstrate risk-reduction
qualities by offsetting long positions held by the Company which have
regional congruence and a correlation of at least 80 per cent. to the
Long Exposure of the Company.
“Long Exposure” means the value of the Company’s direct and
indirect investments in long positions (including the economic value of
the exposure to the reference asset of any derivative instrument).
“Net Assets” or “Net Asset Value” means the total value of the
Company’s assets less the total value of its liabilities.
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FINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS STRATEGY
“Net Market Exposure” means the net positive market exposure of the
Company’s portfolio, whether through direct or indirect investment,
with short and hedge positions subtracted from long positions. It is
calculated as being equal to: (Long Exposure – Hedges) – Short
Exposure.
“Short Exposure” means the value of the Company’s direct and
indirect investments in short positions (including the economic value
of the exposure to the reference asset of any derivative instrument),
excluding Hedges.
Changes to Investment Objective and Investment Policy
The Board reviews the Investment Objective and Investment
Policy at least once a year. In accordance with the UK Listing
Rules, no material change will be made to the Company’s
Investment Objective and Investment Policy without the prior
approval of the FCA and of shareholders by ordinary resolution.
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Shareholder Information
Investing in Fidelity Asian Values PLC
Fidelity Asian Values PLC is a company listed on the London
Stock Exchange and you can buy its shares through a platform,
stockbroker or bank. Fidelity also offers a range of options, so
that you can invest in the way that is best for you. Details of how
to invest and the latest Key Information Document can be found
on the Company’s pages of the Manager’s website at: www.
fidelity.co.uk/asianvalues
CONTACT INFORMATION
Shareholders and Fidelity’s Platform Investors should contact the
appropriate administrator using the contact details given below
and in the next column. Links to the websites of major platforms
can be found online at: www.fidelity.co.uk/its
Shareholders on the main share register
Contact MUFG Corporate Markets, Registrar to Fidelity Asian
Values PLC, Central Square, 29 Wellington Street, Leeds LS1 4DL.
Email: shareholderenquiries@cm.mpms.mufg.com
Telephone: +44 (0) 371 664 0300 (calls are charged at the
standard geographic rate and will vary by provider. Calls
outside the United Kingdom will be charged at the applicable
international rate. Lines are open 9:00 – 17:30, Monday to Friday
excluding public holidays in England and Wales).
Details of individual shareholdings and other information can
also be obtained online from the Registrar’s Investor Centre at
https://uk.investorcentre.mpms.mufg.com. Shareholders are
able to manage their shareholding online via the Investor Centre
app. Facilities include:
Account Enquiry – Shareholders can access their personal
shareholding, including share transaction history, dividend
payment history and obtain an up-to-date shareholding valuation.
Amendment of Standing Data – Shareholders can change
their registered postal address and add, change or delete
dividend mandate instructions. Shareholders can also download
forms such as change of address, stock transfer and dividend
mandates as well as buy and sell shares in the Company.
Should you have any queries in respect of the Investor Centre,
contact the helpline on +44 (0) 371 664 0300 (calls are charged
at the standard geographic rate and will vary by provider. Calls
outside the United Kingdom will be charged at the applicable
international rate. Lines are open 9:00 – 17:30, Monday to Friday
excluding public holidays in England and Wales).
Fidelity Platform Investors
Contact Fidelity, using the freephone numbers given below, or by
writing to: UK Customer Service, Fidelity, PO Box 391, Tadworth,
Surrey KT20 9FU.
Website: www.fidelity.co.uk
Private investors: call free on 0800 41 41 10, 9:00 – 18:00,
Monday to Saturday.
Financial advisers: call free on 0800 41 41 81, 8:00 – 18:00,
Monday to Friday.
General Enquiries
General enquiries should be made to the Secretary, at the
Company’s registered office: FIL Investments International,
Investment Trusts, Beech Gate, Millfield Lane, Lower Kingswood,
Tadworth, Surrey KT20 6RP.
Email: investmenttrusts@fil.com
Website: www.fidelity.co.uk/its
If you hold Fidelity Asian Values PLC shares in an account
provided by Fidelity International, you will receive a report every
six months detailing all of your transactions and the value of your
shares.
ShareGift
You may donate your shares to charity free of charge through
ShareGift. Further details are available at www.sharegift.org.uk.
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FINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS STRATEGY
Managers and Advisors
Alternative Investment Fund Manager
(AIFM/the Manager)
FIL Investment Services (UK) Limited
Beech Gate
Millfield Lane
Lower Kingswood
Tadworth
Surrey
KT20 6RP
Investment Manager, Secretary and
Registered Office
FIL Investments International
Beech Gate
Millfield Lane
Lower Kingswood
Tadworth
Surrey
KT20 6RP
Email: investmenttrusts@fil.com
Banker and Custodian
JPMorgan Chase Bank
125 London Wall
London
EC2Y 5AJ
Depositary
J.P.Morgan Europe Limited
25 Bank Street
London
E14 5JP
Financial Adviser and Stockbroker
Jefferies International Limited
100 Bishopsgate
London EC2N 4JL
Independent Auditors
PricewaterhouseCoopers LLP
7 More London Riverside
London
SE1 2RT
Lawyer
Hogan Lovells Cadwalader
Atlantic House
Holborn Viaduct
London
EC1A 2FG
Registrar
MUFG Corporate Markets
Central Square
29 Wellington Street
Leeds
LS1 4DL
Company Information
The Company was launched on 13 June 1996 with one warrant attached to every five shares. The original subscription price for
each share was £1 (the final subscription date for the warrants was December 2006). On 4 March 2010, the Company issued one
subscription share for every five ordinary shares held with a final subscription date of May 2013. A further subscription share issue was
made on 2 December 2016 on the basis of one subscription share for every five held with a final exercise date of 29 November 2019.
The Company is a member of The Association of Investment Companies (the “AIC”) from whom general information on investment
trusts can be obtained by telephoning +44 (0) 207 282 5555 (email address: enquiries@theaic.co.uk).
Price Information
The share price of Fidelity Asian Values PLC is published daily in The Financial Times under the heading “Investment
Companies”. It is also published in The Times and The Daily Telegraph. Price and performance information is also available at
www.fidelity.co.uk/asianvalues.
Investors can also obtain current price information by telephoning Fidelity for free on 0800 41 41 10 or FT Cityline on 0905 817 1690,
(voice activated service) (calls charged at 60p per minute on a per second basis from a BT landline. Charges for other telephone
networks may vary). The Reuters code for Fidelity Asian Values PLC’s ordinary shares is FAS.L, the sedol is 0332231 and the ISIN is
GB0003322319.
Net Asset Value (“NAV”) Information
The Company’s NAV is calculated and released to the London Stock Exchange on a daily basis.
Capital Gains Tax
All UK individuals under present legislation are permitted to have £3,000 of capital gains in the current tax year 2026/2027
(2025/2026: £3,000) before being liable for capital gains tax. Capital gains tax is charged at 18% and 24% dependent on the total
amount of taxable income.
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General Data Protection Regulation (“GDPR”)
What personal data is collected and how it is used
The Company is an investment trust which is a public limited company and has certain regulatory obligations such as the requirement to
send documents to its shareholders, for example, the Annual Report and other documents that relate to meetings of the Company. The
Company will, therefore, collect shareholders’ personal data such as names, addresses and identification numbers or investor codes
and will use this personal data to fulfil its statutory obligations.
Any personal data collected will be kept securely on computer systems and in some circumstances on paper. Personal information is
kept secure in line with Fidelity’s Information Security policies and standards. If you are unhappy with how we have used your personal
data, you can complain by contacting the UK Data Protection Officer at Fidelity International, Beech Gate, Millfield Lane, Lower
Kingswood, Tadworth, Surrey KT20 6RP.
Sharing personal data
In order to assist the Company in meeting its statutory requirements, the Company delegates certain duties around the processing
of this data to its third-party service providers, such as the Company’s Registrar and Printers. The Company has appointed
Fidelity to undertake marketing activities for the Company and their privacy statement can be found on the Company website at
https://investment-trusts.fidelity.co.uk/security-privacy/
The Company’s agreements with the third-party service providers have been updated to be compliant with GDPR requirements.
The Company confirms to its shareholders that their data will not be shared with any third-party for any other purpose, such as for
marketing purposes. In some circumstances, it may be necessary to transfer shareholders’ personal data across national borders
to Fidelity Group entities operating in the European Economic Area (“EEA”). Where this does occur, the European standard of
protections will be applied to the personal data that is processed. Where personal data is transferred within the Fidelity group but
outside of the EEA, that data will subsequently receive the same degree of protection as it would in the EEA.
Retention period
Personal data will be kept for as long as is necessary for these purposes and no longer than legally permitted to do so.
Requesting access, making changes to personal data and other important information
Shareholders can access the information that the Company holds about them or ask for it to be corrected or deleted by contacting
Fidelity’s UK Data Protection Officer, Fidelity International, Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey KT20 6RP.
Fair treatment of investors
The legal and regulatory regime to which the Company and the Directors are subject ensures the fair treatment of investors. The Listing
Rules require that the Company treats all shareholders of the same class of shares equally. In particular, the Directors have certain
statutory duties under the Companies Act 2006 with which they must comply. These include a duty upon each Director to act in the way
she or he considers, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a
whole.
Data Protection
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FINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS STRATEGY
Glossary of Terms
AAF Report
A report prepared in accordance with the Audit and Assurance
Faculty guidance issued by the Institute of Chartered Accountants
in England and Wales.
ADR (American Depositary Receipt)
A negotiable certificate issued by a US bank representing a
specified number of shares in a foreign stock that is traded on a
US Exchange.
AIC
The Association of Investment Companies (“AIC”). The Company
is a member of the AIC.
AIF
Alternative Investment Fund (“AIF”). The Company is an AIF.
AIFM
Alternative Investment Fund Manager (“AIFM”). The Board has
appointed FIL Investment Services (UK) Limited to act as the
Company’s AIFM (the Manager).
AIFMD
The Alternative Investment Fund Managers Directive (“AIFMD”), a
European Union Directive implemented on 22 July 2014, and as
retained and adapted under UK domestic law post Brexit.
Alternative Performance Measures
The Company uses the following Alternative Performance
Measures which are all defined in this Glossary:
• Discount/Premium;
• Gearing;
• Net Asset Value (NAV) per Share;
• Ongoing Charges;
• Revenue, Capital and Total Returns; and
• Total Return Performance (Net Asset Value Total Return and
Share Price Total Return).
Asset Exposure
The value of an underlying security or instrument to which
the Company is exposed, whether through direct or indirect
investment (including the economic value of the exposure in the
underlying asset of derivatives).
Benchmark Index
The MSCI All Country Asia ex Japan Small Cap Index (net) total
return (in sterling terms) since 1 February 2020. Prior to that and
since 1 August 2015, it was the MSCI All Country Asia ex Japan
Index (net) total return (in sterling terms). The Benchmark Index is
used to calculate the Company’s Variable Management Fee, in
accordance with the European Benchmark Directive.
Capital Gains Tax (CGT)
The tax that may be payable if shares are sold at a profit.
Collateral
Asset provided as security for the unrealised gain or loss under a
contract for difference.
Comparative Index
The MSCI All Country Asia ex Japan Small Cap Index (net) total
return (in sterling terms) against which the performance of the
Company is measured.
Contract For Difference (CFD)
A contract for difference is a derivative. It is a contract between
the Company and an investment house at the end of which the
parties exchange the difference between the opening price and
the closing price of an underlying asset of the specified financial
instrument. It does not involve the Company buying or selling the
underlying asset, only agreeing to receive or pay the movement
in its share price. A contract for difference allows the Company
to gain access to the movement in the share price by depositing
a small amount of cash known as collateral. The Company may
reason that the asset price will rise, by buying (“long” position)
or fall, by selling (“short” position). If the Company holds long
positions, dividends are received and interest is paid. If the
Company holds short positions, dividends are paid and interest
is received.
Corporation Tax
The tax the Company may have to pay on its profits for a year. As
an investment trust, the Company is exempt from corporation tax
on its capital gains and does not pay tax on any UK dividends.
It can also offset expenses against any taxable income and
consequently it is tax efficient for the Company.
Custodian
An entity that holds (as intermediary) the Company’s assets,
arranges the settlement of transactions and administers income,
proxy voting and corporate actions. The Company’s Custodian is
JPMorgan Chase Bank.
Depositary
An entity that oversees the custody, cash arrangements and other
AIFM responsibilities of the Company. J.P.Morgan Europe Limited
act as the Company’s Depositary.
Derivatives
Financial instruments (such as futures, options and contracts
for difference) whose value is derived from the value of an
underlying asset.
Diluted Net Asset Value Per Share
The diluted net asset value per Share reflects what the net asset
value per Share would have been if all the rights attached to
any outstanding subscription shares had been exercised at a
particular date. A dilution occurs when the exercise price of the
subscription share rights is less than the net asset value per
Share.
Discount
If the Share price of the Company is lower than the net asset
value per Share, the Company is said to be trading at a discount.
The discount is shown as a percentage of the net asset value per
Share.
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Glossary of Terms continued
Equity Linked Notes
Debt instruments whose return on investment is linked to specific
equities or equity markets. The return on equity linked notes may
be determined by an equity index, a basket of equities, or a
single equity.
Fair Value
The fair value is the best estimate of the value of the investments,
including derivatives, at a point in time and this is measured as:
• Listed investments – valued at bid prices or last market
prices, where available, otherwise at published price
quotations;
• Unlisted investments – valued using an appropriate
valuation technique in the absence of an active market;
• Contracts for difference – valued as the difference
between the settlement price of the contract and the value
of the underlying shares in the contract (unrealised gains or
losses);
• Futures and options – valued at the quoted trade price for
the contract; and
• Forward currency contracts – valued at the appropriate
quoted forward foreign exchange rate ruling at the Balance
Sheet date.
Fidelity International (Fidelity)
FIL Limited and its subsidiary group companies including FIL
Investment Services (UK) Limited and FIL Investments International
which act as AIFM, Secretary and Investment Manager.
Forward Currency Contract
An agreement to buy or sell a currency at a specified future date
and at a pre-agreed price.
Future
An agreement to buy or sell a fixed amount of an asset at a fixed
future date and at a fixed price.
Gearing
The Company may use gearing, through borrowing or derivatives,
including contracts for difference, subject to the investment
restrictions listed in its Investment Policy. The Company uses two
measures of gearing (Gross Gearing and Net Gearing).
Gross Assets
The total value of the Company’s assets.
Gross Asset Exposure
The total market exposure of the Company’s portfolio, whether
through direct or indirect investment. It is calculated as being
equal to: (Long Exposure + Short Exposure) – Hedges.
Gross Gearing
The amount by which Gross Asset Exposure exceeds
Shareholders’ Funds expressed as a percentage of Shareholders’
Funds.
Growth Stocks
Companies which are considered to have the potential to
outperform the overall market over time because of their future
potential.
Hedges
Short positions that demonstrate risk-reduction qualities by
offsetting long positions held by the Company which have
regional congruence and a correlation of at least 80 per cent. to
the Long Exposure of the Company.
Hedging
A strategy aimed at minimising or eliminating the risk or loss
through adverse movements normally involving taking a position
in a derivative such as a future or an option.
Independent Auditors
The independent auditors of the Company, PricewaterhouseCoopers
LLP.
Independent Valuer
An independent third-party valuer that provides an objective and
independent assessment on the value of unlisted and hard to
price assets using sophisticated valuation methodologies.
Initial Public Offering (IPO)
An initial public offering (“IPO”) is the first sale of stock by a
private company to the public. IPOs are often issued by smaller,
younger companies seeking the capital to expand, but can also
be done by large privately owned companies looking to become
publicly traded.
Investment Manager
FIL Investments International.
Latest practicable date
The latest practicable date prior to the publication of this Annual
Report was 13 October 2026, being the latest practicable date
prior to publication for the purposes of certain information
contained herein.
Long Exposure
The value of the Company’s direct and indirect investments in
long positions (including the economic value of the exposure to
the reference asset of any derivative instrument).
Manager
FIL Investment Services (UK) Limited is the appointed Manager
under the AIFMD. It has delegated the investment management
of the Company to the Investment Manager.
Net Assets or Net Asset Value (NAV)
The total value of the Company’s assets less the total value of its
liabilities.
Net Asset Value Per Share
The net asset value divided by the number of Shares in issue.
Net Gearing
The amount by which Net Market Exposure exceeds
Shareholders’ Funds expressed as a percentage of Shareholders’
Funds.
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FINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS STRATEGY
Net Market Exposure
The net positive market exposure of the Company’s portfolio,
whether through direct or indirect investment, with short and
hedge positions subtracted from long positions. It is calculated as
being equal to: (Long Exposure – Hedges) – Short Exposure.
Ongoing Charges (Excluding Variable Management Fee)
Total operational expense (excluding finance costs and taxation)
incurred by the Company as a percentage of average net asset
values for the reporting year.
Option
An option is a contract which gives the right but not the
obligation to buy or sell an underlying asset at an agreed price
on or before an agreed date. Options may be calls (buy) or puts
(sell) and are used to gain or reduce exposure to the underlying
asset on a conditional basis.
Portfolio Managers
Nitin Bajaj, Portfolio Manager, and Ajinkya Dhavale, Co-Portfolio
Manager, are responsible for managing the Company’s assets.
Pre-Emption Rights
Section 561 of the Companies Act 2006 provides that a company
offering a new issue of shares must first make an offer of these
shares, on the same or more favourable terms, in proportion
to the nominal value held to existing shareholders. At each
Annual General Meeting, the Board seeks shareholder approval
to disapply the pre-emption rights provision, up to 10% of the
Company’s issued share capital.
Premium
If the Share price of the Company is higher than the net asset
value per Share, the Company’s Shares are said to be trading
at a premium. The premium is shown as a percentage of the net
asset value per Share.
Price To Book Ratio
The Price to Book Ratio (also known as P/B ratio) is a measure of
valuing a company’s share price versus its book value.
Price To Earnings Ratio
The Price to Earnings Ratio (also known as P/E ratio) is a
measure of valuing a company’s share price versus its earnings.
Registrar
An entity that manages the Company’s shareholder register. The
Company’s Registrar is MUFG Corporate Markets.
Reserves
• Share premium account represents the amount by which
the proceeds from the issue of Shares or the issue of Shares
on the exercise of rights attached to subscription shares,
exceeded the nominal value of those Shares. It is not
distributable by way of dividends and cannot be used to
fund share repurchases.
• Capital redemption reserve maintains the equity share
capital of the Company and represents the nominal value
of shares repurchased and cancelled. It is not distributable
by way of dividends and it cannot be used to fund share
repurchases.
• Other non-distributable reserve represents amounts
transferred from the warrant reserve in prior years. It is not
distributable by way of dividends and it cannot be used to
fund share repurchases.
• Other reserve represents amounts transferred from the
share premium account and the capital redemption reserve
in prior years with High Court approval. It is not distributable
by way of dividends. It can be used to fund share
repurchases.
• Capital reserve represents realised gains or losses on
investments and derivatives sold, unrealised increases and
decreases in the fair value of investments and derivatives
held and other income and costs recognised in the capital
column of the Income Statement. It is distributable by way of
dividends. It can be used to fund share repurchases.
• Revenue reserve represents retained revenue surpluses
recognised through the revenue column of the Income
Statement. It is distributable by way of dividends.
Return
The return generated in a given period from investments:
• Revenue Return – reflects the dividends and interest from
investments and other income net of expenses, finance costs
and taxation;
• Capital Return – reflects the return on capital, excluding any
revenue return; and
• Total Return – reflects the aggregate of revenue and capital
returns.
Return On Equity
Return on Equity (ROE) is a measure of the return on a company’s
stock. The higher the percentage, the more income the company
is generating and adding to shareholder value.
Shareholders’ Funds
Shareholders’ funds are also described as “net asset value” and
represent the total value of the Company’s assets less the total
value of its liabilities as shown in the balance sheet.
Share or Shares or ordinary share(s)
The ordinary shares of 25p each in the capital of the Company.
Short Exposure
The value of the Company’s direct and indirect investments in
short positions (including the economic value of the exposure
to the reference asset of any derivative instrument), excluding
Hedges.
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Total Return Performance
The return on the Share price or net asset value per Share taking
into account the rise and fall of share prices and the dividends
paid to shareholders. Any dividends received by the shareholder
are assumed to have been reinvested in additional shares (for
share price total return) or the Company’s assets (for net asset
value total return).
Treasury Shares
Shares of the Company that have been repurchased by the
Company and not cancelled but held in Treasury. These shares
do not pay dividends, have no voting rights and are excluded
from the net asset value per Share calculation.
Value Stocks
Usually companies that are currently trading below what they are
really worth and will thus theoretically provide a superior future
return.
Glossary of Terms continued
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FINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS STRATEGY
Alternative Investment Fund Manager’s
Disclosure
In compliance with the Alternative Investment Fund Managers’ Directive (“AIFMD”), the Board has appointed FIL Investment Services
(UK) Limited (“FISL”) as the Company’s Alternative Investment Fund Manager (“AIFM”). FISL has delegated the portfolio management
and company secretarial function to FIL Investments International. Details of the current Management Agreement can be found in the
Directors’ Report on page 32.
The table below discloses information required by the Alternative Investment Fund Managers Regulations 2013.
Function AIFM Role and Responsibility AIFMD Disclosure
Investment
management
The AIFM provides portfolio management of
assets and investment advice in relation to the
assets of the Company. It has delegated this
function to FIL Investments International.
The Board remains responsible for setting the
investment strategy, investment policy and
investment guidelines and the AIFM operates
within these guidelines.
Details of the Company’s investment objective, its
strategy and investment policy, including limits, are
on pages 21 and 22.
Risk
management
The AIFM has a responsibility for risk
management for the Company which is in
addition to the Board’s corporate governance
responsibility for risk management.
The Company has a Risk Management
Process Document which demonstrates that
risk management is separated functionally
and hierarchically from operating units and
demonstrates independence safeguards. The
Manager maintains adequate risk management
systems in order to identify, measure and monitor
all risks at least annually under AIFMD. The
Manager is responsible for the implementation
of various risk activities such as risk systems, risk
profile, risk limits and testing.
The Board, as part of UK corporate governance,
remains responsible for the identification of
significant risks and for the ongoing review of the
Company’s risk management and internal control
processes.
The AIFM has an ongoing process for identifying,
evaluating and managing the principal risks faced
by the Company and this is regularly reviewed
by the Board. The Board remains responsible for
the Company’s system of risk management and
internal controls and for reviewing its effectiveness.
Further details can be found in the Strategic Report
on pages 23 to 27, in the Corporate Governance
Statement on page 38 and in Note 17 to the
Financial Statements on pages 69 to 79.
Valuation of
illiquid assets
The AIFMD requires the disclosure of the
percentage of the Alternative Investment Fund’s
assets which are subject to special arrangements
arising from their illiquid nature and any new
arrangements for managing the liquidity of the
Company.
As at the date of this report, none of the Company’s
assets are subject to special arrangements arising
from their illiquid nature.
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Function AIFM Role and Responsibility AIFMD Disclosure
Leverage
The Company uses leverage to increase its
exposure to the stock markets of the Asian Region
(excluding Japan) and currently holds derivative
instruments to achieve this. The AIFM has set
maximum levels of leverage that are reasonable.
It has implemented systems to calculate and
monitor compliance against these limits and has
ensured that the limits have been complied with
at all times.
There are two methods of calculating leverage
– the Gross Method which does not reduce
exposure for hedging; and the Commitment
Method which does reduce exposure for hedging.
The maximum leverage limits are 1.80 for the Gross
Method and 1.50 for the Commitment Method.
At 31 July 2026, actual leverage was 1.29 for the
Gross Method and 1.28 for the Commitment Method.
Liquidity
management
The AIFM, in consultation with the Board,
maintains a liquidity management policy which is
considered at least annually.
No new arrangements for managing the liquidity of
the Company have been made. Further details can
be found in Note 17 on page 73.
Remuneration
of the AIFM
The AIFM operates under the terms of Fidelity
International’s Remuneration Policy Statement.
This ensures that the AIFM complies with the
requirements of the FCA’s Remuneration Code
(SYSC19A); the AIFM Remuneration Code
(SYSC19B); and the BIPRU Remuneration Code
(SYSC19C).
Details of Fidelity International’s Remuneration Policy
can be found at https://www.fidelityinternational.
com/remuneration-policy.
Securities Financing Transactions Regulations (“SFTR”)
Securities Financing Transactions (Unaudited)
The following disclosures relate to contracts for difference (“CFDs”) held by the Company which may be considered Total Return Swaps
under the SFTR, a European Union regulation which came into force on 12 January 2016, and as retained and adapted under UK
domestic law post Brexit.
As at 31 July 2026, all CFDs were contracted bilaterally with open maturities:
Broker
Fair Value
£’000
Percentage
of
Net Assets
Collateral
held by the
broker
£’000
Collateral
held by the
Company
£’000
Goldman Sachs International Ltd (378) (0.10%) 728 –
HSBC Bank plc 485 0.12% 907 –
J.P. Morgan Securities plc 3,085 0.79% 3,819 –
Morgan Stanley & Co. International Ltd 1,616 0.41% 1,746 –
UBS AG 743 0.19% 1,278 –
Collateral held by the broker was held in a segregated account on behalf of the Company with a maturity of one day. The total return
for the year ended 31 July 2026 from CFDs was a loss of £10,872,000.
Alternative Investment Fund Manager’s
Disclosure continued
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FIL Investments International (Company No. 1448245) FIL Investment Services (UK) Limited (Company No. 2016555) Financial Administration
Services Limited (Company No. 1629709) FIL Pensions Management (Company No. 2015142) and FIL Life Insurance Limited (Company No.
3406905). All these companies are registered in England and Wales with their registered office being Beech Gate, Millfield Lane, Lower
Kingswood, Tadworth, Surrey KT20 6RP. All these companies are authorised and regulated by the Financial Conduct Authority with the
exception of FIL Life Insurance Limited which is authorised by the Prudential Regulation Authority and regulated by the Financial
Conduct Authority and the Prudential Regulation Authority. UKM1024/388153/ P
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Fidelity Asian Values PLC
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Annual Report 2026
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