FIDELITY

ASIAN VALUES

PLC

Annual Report for the year ended 31 July 2022

Fidelity Asian Values PLC

Annual Report 2022

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The Company’s objective is to achieve capital growth principally from the

stockmarkets of the Asian Region excluding Japan.

Asia is the world’s fastest-growing economic

region, offering investors a potentially

unparalleled long-term opportunity. Fidelity

Asian Values PLC provides shareholders with a

differentiated equity exposure to Asian markets.

The Portfolio Manager, Nitin Bajaj, achieves this

differentiation by favouring undervalued small

and medium-sized companies as this allows him

to find quality businesses that are mispriced,

the “winners of tomorrow”, before they

become well known. He utilises Fidelity’s Asia-

based analyst team and believes the current

market environment offers an unprecedented

opportunity to invest in high quality Asian

smaller companies at attractive valuations.

Kate Bolsover, Chairman,

Fidelity Asian Values PLC

Investment Objective and Overview

Fidelity Asian Values PLC

Annual Report 2022

At a Glance

Standardised Performance Total Return (%)

5 years ended 31 July 20223 years ended 31 July 20221 year ended 31 July 2022

+20.7

+33.5

+30.1

+3.9

-3.4

-5.6

+30.2

+7.1

+30.3

NAV per Ordinary Share

Ordinary Share Price

Comparative Index*

Sources: Fidelity and Datastream.

Past performance is not a guide to future returns.

* MSCI All Countries Asia ex Japan Small Cap Index (net) total return (in Sterling terms).

Net Asset Value

(“NAV”) per

Ordinary Share

total return

1,2

+3.9%

2021: +39.5%

Ordinary Share Price

total return

1,2

-3.4%

2021: +47.6%

Dividend

per Ordinary Share

14.00p

2021: 8.80p

Comparative

Index

1,3

-5.6%

2021: 39.2%

1 Includes reinvested income.

2 Alternative Performance Measures. See pages 76 and 77.

3 MSCI All Countries Asia ex Japan Small Cap Index (net) total return (in Sterling terms).

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Summary of the key aspects of the Investment Policy

■ The Portfolio Manager invests in securities of companies which he considers have fundamental value that has not been recognised

by the market.

■ The Company is not restricted in terms of size or industry of companies included in the portfolio and may invest in unlisted

securities.

■ The Company may also invest into 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 Benchmark Index.

2022 2021

Assets as at 31 July

Gross Asset Exposure

£383.7m £375.2m

Total Shareholders’ Funds £367.6m £364.1m

NAV per Ordinary Share

507.78p 497.50p

Gross Gearing

2,3

4.4% 3.0%

Share Price and Discount data at 31 July

Ordinary Share Price at year end 458.00p 483.00p

Year high 505.00p 506.00p

Year low 407.00p 333.00p

(Discount) to NAV per Ordinary Share at year end

(9.8%) (2.9%)

(Discount) year low/Premium year high (0.2%) 2.6%

(Discount) year high (14.5%) (11.9%)

Results for the year ended 31 July

Revenue Return per Ordinary Share

14.21p 9.20p

Capital Return per Ordinary Share

4.31p 132.09p

Total Return per Ordinary Share

18.52p 141.29p

Ongoing Charges for the year to 31 July

2,5

0.95% 0.93%

Variable Element of Management Fee

-0.20% -0.20%

Ongoing Charges including Variable Element of Management Fee for the year to

31July

0.75% 0.73%

1 The value of the portfolio exposed to market price movements.

2 Alternative Performance Measures. See pages 76 and 77.

3 Gross Asset Exposure less Total Shareholders’ Funds expressed as a percentage of Total Shareholders’ Funds.

4 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 88 for

details of the Benchmark Index).

5 Ongoing Charges (excluding finance costs and taxation) as a percentage of average net asset values for the year (prepared in accordance with guidance issued by the

Association of Investment Companies).

Summary of Results

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Annual Report 2022

Fidelity Asian Values PLC

STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS

Contents

Strategy

Chairman’s Statement 02

Portfolio Manager’s Review 05

ESG Investing – The Asian Small Cap Paradox 10

ESG in the Investment Process 12

Spotlight on the Top 10 Holdings 15

Forty Largest Holdings 17

Distribution of the Portfolio 20

Ten Year Record 23

Strategic Report 24

Governance

Board of Directors 32

Directors’ Report 33

Corporate Governance Statement 35

Directors’ Remuneration Report 39

Statement of Directors’ Responsibilities 42

Report of the Audit Committee 43

Financial

Independent Auditor’s Report 45

Income Statement 51

Statement of Changes in Equity 52

Balance Sheet 53

Notes to the Financial Statements 54

Alternative Performance Measures 76

Financial Calendar 78

Information for Shareholders

Annual General Meeting 79

Notice of Meeting 81

Shareholder Information 85

Data Protection 87

Glossary of Terms 88

Alternative Investment Fund Manager’s Disclosure 91

Chairman’s Statement

Read more on pages 05 to 09

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Fidelity Asian Values PLC

Annual Report 2022

Chairman’s Statement

Investment and Market Review

The year under review has been a turbulent period for Asian

and global equity markets. Concerns around the Russia-Ukraine

conflict and the resultant surge in commodity and energy

prices have dominated investor sentiment. Economies globally

have continued to struggle with low growth as well as higher

inflationary pressures amid supply-chain constraints. In such an

environment, Asian and emerging market equities, which are

perceived to be riskier, have been out of vogue.

Given this challenging backdrop, it is especially pleasing

to report that the Company’s NAV strongly outperformed

its Comparative Index. In the year to 31 July 2022, the NAV

increased by 3.9%, compared to the MSCI All Countries Asia

ex Japan Small Cap Index (net) total return (in Sterling terms)

which returned -5.6% over the same period. Nitin and his team

should be commended for their diligence and persistence in

sticking to their style in what has been an especially challenging

time for value investors and we, as a Board, are delighted that

their approach is beginning to pay off. However, it has been

disappointing that this strong relative performance has not been

reflected in a narrowing of the discount, with the share price

still lagging; it returned -3.4% over the period. While it is hard to

comment on share price performance as it is largely a function

of market sentiment, what can be said is that investors have

generally become more risk averse with their capital.

Market Outlook

The long-term outlook for Asia Pacific ex Japan equities remains

positive and the region’s relatively higher growth prospects should

continue to attract investors. Also, at a time when the world

is becoming increasingly protectionist, Asia’s robust domestic

demand from an expanding middle class supports the outlook for

the region. Nonetheless, the region remains vulnerable to a global

slowdown and tightening of global financial conditions.

China’s near-term growth outlook remains skewed to the

downside due to sporadic COVID-related lockdowns across the

country. Government stimulus has so far prevented a contraction

in annual growth, but a weakening external backdrop is weighing

on exports, previously a key driver of activity. Elsewhere, most

Asian countries have actively eased international border

controls, and a significant improvement in vaccination rates has

helped to bring local restrictions to a close. As a result, pent-up

consumption demand is making its way into their economies.

Persistently high and broadening inflation remains one of the

stiffest economic headwinds confronting the US, Europe and

several other major economies. But so far, for most of Asia, the

picture has been rather different. China is, in fact, in a monetary

easing cycle while rates in developed markets are likely to

continue rising. Other Asian economies are also close to the end

of their tightening cycles and they should have room to cut rates

when inflationary pressures ease.

We therefore continue to maintain our positive view on the region.

Overall, Asian equities continue to trade at attractive valuations

compared to long-term historical averages and developed

markets. The Company will continue to focus on finding attractive

long-term investment opportunities across the region based on

strong fundamental research.

Kate Bolsover – I am pleased to

present the Annual Report of Fidelity

Asian Values PLC (the “Company”)

for the year ended 31July 2022.

£367.6m

(As at 31 July 2022)

Total Shareholders’ Funds

+3.9%

(Year ended 31 July 2022)

Net Asset Value per Ordinary Share

(total return)

-3.4%

(Year ended 31 July 2022)

Ordinary Share Price (total return)

-5.6%

(Year ended 31 July 2022)

Comparative Index (total return)

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Annual Report 2022

Fidelity Asian Values PLC

STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS

The depth and quality of research provided by Fidelity

International is amongst the best in Asia and is currently

undertaken by 56 analysts and 39 portfolio managers. Nitin

draws extensively on this pool of talent in making his investment

decisions. In this, Nitin has been well supported by Ajinkya

Dhavale, who has over 14 years of investment experience. He

originally joined Fidelity as an analyst in 2013, covering the

Auto, Cement, Telecommunications and Property sectors. He

became Assistant Portfolio Manager of Fidelity Asian Values PLC

on 1 June 2020 and currently specialises in small and mid cap

stocks in Korea, Taiwan and Frontier Asia.

Due Diligence 2022

Prior to the pandemic, the Board had visited Asia every other

year to observe the Manager and his team in action and to meet

the Fidelity analysts, and also to meet some of the companies in

which we are invested. This year, we were unable to do that but

instead had a virtual visit of three days in March. We used video

conferencing facilities to meet members of the Fidelity team,

market commentators and some investee companies. In addition,

Nitin was able to travel from Singapore and we were pleased to

be able to spend some time with him in person.

Among the companies we met was China Overseas Grand

Oceans Group Limited (COGO), a subsidiary company of

Chinese Overseas Land and Investment. Discussions were

focused on the challenges for developers in China’s downward

property market and the likelihood of consolidation in the

industry. We also heard from the management team of Interojo,

a Korean contact lens maker, with a wide variety of good quality

products at affordable prices.

The Board was, once again, impressed by the breadth and depth

of Fidelity’s team. In addition to the investment team (Nitin and

Ajinkya and the analysts), we spent time with the Global Head

of Stewardship and Sustainable Investing, the Global Head of

Investment Research, the Head of Sales and members of the

Environmental, Social and Governance (”ESG”) team.

We can confirm to shareholders that their money is being well

cared for by a good and well-resourced team.

Gearing

Nitin and Ajinkya have increased the level of gross gearing from

3.0% reported last year to 4.4% as at 31 July 2022. They continue

to believe that the main driver of the Company’s performance

will be stock picking. Therefore, the level of gearing is entirely

determined by the investment opportunities they see. Put simply,

when they have more ideas than money, then the Company will

be geared. When they have more money than ideas, then the

Company will have a larger cash position.

Discount Management and Share Repurchases

The Board has undertaken active discount management,

the primary purpose of which was, and remains, to reduce

discount volatility.

Repurchases of ordinary shares are made at the discretion of

the Board, within guidelines set by it and in light of prevailing

market conditions. Shares will only be repurchased when it results

in an enhancement to the NAV of the ordinary shares. In order

to assist in managing the discount, the Board has shareholder

approval to hold in Treasury any ordinary shares repurchased

by the Company, rather than cancelling them. Any shares held in

Treasury would only be re-issued at NAV per ordinary share or at

a premium to NAV per ordinary share.

There continued to be turmoil in the world’s financial markets

in the reporting year and at times the Company’s discount

was volatile in reaction to such market conditions. The Board,

therefore, approved the repurchase of 780,543 ordinary shares

for holding in Treasury during the year ended 31 July 2022. Since

then and up to the date of this report, markets have continued to

be volatile, and the Company’s discount has, at times, widened

into double digits. As a result, the Board has continued to

operate its discount management policy to narrow the discount

and authorised the purchase of 352,816 ordinary shares into

Treasury, since the year end.

Dividend

Subject to shareholders’ approval at the Annual General Meeting

(“AGM”) on 23 November 2022, the Directors recommend a

dividend of 14.00 pence per ordinary share which represents

an increase of 59.1% over the 8.80 pence paid in 2021. This

dividend will be payable on 7 December 2022 to shareholders

on the register at close of business on 28 October 2022 (ex-

dividend date 27 October 2022). Shareholders will know that the

Company’s objective is long-term capital growth. In light of the

higher income received and the current economic environment,

the Board has elected to recommend almost all of the income

earned to be paid as a dividend. Shareholders should not

assume that such dividends will continue in the future.

Board of Directors and Board Succession

By 2023, I will have served four years as a Director and a further

nine years as Chairman and will step down from the Board at

the AGM in 2023. We had previously advised you that Clare

Brady would succeed Grahame Stott as Chairman of the Audit

Committee at the conclusion of this year’s AGM. The Board has

now agreed that Clare should succeed me as Chairman next

year and we are actively searching for a new Chair of the Audit

Committee. We hope to be able to announce this new Board

member in time for this year’s AGM.

As reported in last year’s Annual Report, Timothy Scholefield

stepped down from the Board after the AGM on 3 December

2021. In anticipation of Timothy and Grahame’s retirements, Sally

Macdonald and Matthew Sutherland were appointed to the

Board on 1 January 2022. Both Sally and Matthew will be subject

to election by shareholders at the AGM on 23 November 2022.

Michael Warren will have reached his nine-year tenure by the

AGM in 2023. However, given the recent and ongoing changes

to the Board, we are proposing to shareholders that he should

remain on the Board for one additional year to ensure that

institutional and historical knowledge of the Company is not lost.

Accordingly, subject to shareholder approval, he will retire from

the Board at the AGM in 2024.

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Fidelity Asian Values PLC

Annual Report 2022

Chairman’s Statement continued

Grahame Stott completed his nine-year tenure in September 2022

and will step down from the Board at the conclusion of the AGM

on 23 November 2022. I would like to thank him on behalf of the

Board and all of the Company’s stakeholders for his invaluable

contribution to the Company, especially his meticulous attention to

detail. He takes with him our very best wishes for the future.

All Directors, with the exception of Grahame, are subject to

election or re-election at the forthcoming AGM. The Directors’

biographies are on page 32, and between them, they have a

wide range of appropriate skills and experience which form a

balanced Board for the Company.

Annual General Meeting – Wednesday, 23 November 2022

at 11.00 am

The AGM of the Company will be held at 11.00 am on

Wednesday, 23 November 2022 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 81 to 84.

Appropriate social distancing and hygiene measures will be in

place for those shareholders attending the AGM in person. For

those shareholders who would prefer not to attend in person or

for whom travel is not convenient, we will live-stream the formal

business and presentations of the meeting online.

Nitin Bajaj, the Portfolio Manager, will be making a presentation

to shareholders highlighting the achievements and challenges

of the year past and the prospects for the year to come. He

and the Board will be very happy to answer any questions

that shareholders may have. Copies of his 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 8 to

the Notes to the Notice of Meeting on page 83 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

Manager and we will answer as many of these as possible at an

appropriate juncture during the meeting.

Further information and links to the Lumi platform may be found

on the Company’s website www.fidelity.co.uk/asianvalues.

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://web.lumiagm.com.

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://web.lumiagm.com from your web browser on a tablet

or computer, you will need to enter the Lumi Meeting ID which

is 118-640-628. 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.

Kate Bolsover

Chairman

11 October 2022

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Annual Report 2022

Fidelity Asian Values PLC

STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS

Portfolio Manager’s 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

20 years’ investment experience. He

is also the Portfolio Manager for the

Fidelity Asian Smaller Companies

Fund as well as 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 has over 14 years of

investment experience. He originally

joined Fidelity as an analyst in

2013, covering the Auto, Cement,

Telecommunications and Property

sectors. He was promoted to

Assistant Portfolio Manager of Fidelity

Asian Values PLC on 1 June 2020

and currently specialises in small and

mid cap stocks in Korea, Taiwan and

Frontier Asia.

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Fidelity Asian Values PLC

Annual Report 2022

Portfolio Manager’s Review continued

Question

How has the Company performed in the

year under review?

Answer

In the year to 31 July 2022, the NAV of the company increased

by 3.9%. The MSCI All Countries Asia ex Japan Small Cap Index

(net) total return (in Sterling terms) returned -5.6% over the same

period. The share price total return was -3.4%.

The Company generated positive absolute returns in a falling

market primarily because we avoided speculative investments,

expensive stocks, and blue-sky business models. Investing in

companies on very rich valuations had been the market norm

during the pandemic so a pull-back was somewhat expected.

This approach reflects our investment philosophy of investing in

good quality businesses which are run by competent and honest

management, and only buying them when valuations provide a

good margin of safety.

Question

Asian stocks have lost value over the

period under review. Has the sell-off

been consistent across the market cap

spectrum? What have been the drivers

for your outperformance?

Answer

The sell-off in Asian equities this year has certainly not been even.

Losses have been lower in small cap stocks than their large cap

counterparts primarily due to the reversal of the crowded ‘large

cap growth’ trading bias that occurred in 2019 and 2020. In

addition, small and large cap indices are further skewed by their

geographic mix, with the large cap index having a significantly

higher weight in China.

Stylistically, Value stocks have done better than Growth stocks

during this period. In our opinion, we are in the early stages of

a long-term style rotation out of Growth equities as the valuation

gap between Growth and Value is still at a twenty-year extreme in

favour of Value stocks. Given our significant bias towards small cap

Value, we think a period of sustained outperformance is possible

over the coming years.

While this market environment provided a positive backdrop for

our style, our focus on bottom-up fundamental research meant that

stock selection has been the biggest contributor to the Company’s

relative performance. During the financial year, our stock selection

was particularly positive in China, India, Korea, Australia and

Indonesia. From a sector perspective, positive returns were posted

in industrials, health care, financials and materials.

In terms of small/mid cap names, Indonesia’s largest yet lowest

cost producer of ceramic tiles Arwana Citramulia benefited from

a favourable demand-supply environment, while India’s fourth

largest cables and wires maker KEI Industries was aided by a

recovery in capital expenditure and its increased focus on higher

margin retail and exports segments. In China, the Company’s

exposure to a large cap state-owned property developer China

Overseas Land & Investment added to performance after the

company, which is operating in a consolidated industry, gained

market share, driven by the flight to quality amongst developers.

Companies which can demonstrate more disciplined operations

and have both good balance sheets and access to land sales are

better able to successfully complete construction projects.

Question

With slightly over 35% of your investments

in either China or Hong Kong, are you

worried about single country exposure?

What do you consider to be the main

risks of investing in China?

Answer

From a risk management perspective, while country positions

are an outcome of underlying stock selection, we restrict our

exposure to any particular country to within Board set guidelines.

Of course, the Board can change such limits, should it so decide,

to suit market dynamics as well as the opportunity set. Given the

macro-economic concerns around China, it comes as no surprise

that Chinese stocks have been sold off; but in our view, there are

many interesting companies that are now trading significantly

below intrinsic value and are being overlooked by the broader

investment community. You could almost compare the current

Chinese multiples and sentiment to what happened in the Indian

market crash in 2012/13 or in the sub-prime credit crisis in the US

in 2008/09.

We look at the situation differently. While we are very conscious of

the macro risks of investing in China due to geopolitical tensions,

regulatory interventions and economic cycles, based on our

analysis, the prices of the businesses we own reflect these risks.

Furthermore, we believe that these companies are providing

products or services that are beneficial to society - either through

improving household products or providing essential infrastructure

services - both of which are critical to the smooth functioning of the

economy.

However, we would like to share some high-level thoughts

regarding the two biggest risks that are being flagged when

it comes to China – the demise of the property sector and the

impact of the country’s zero-COVID policy.

The various lockdowns have taken a heavy toll on industrial

activities and consumption given the lack of movement of citizens.

Yes, we have seen some tweaks to policy requirements (such as

allowing the ongoing operation of manufacturing activities during

a city lockdown), but the government still measures its success

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Annual Report 2022

Fidelity Asian Values PLC

STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS

in overcoming the pandemic as the number of lives saved and

keeping fatalities low. We are monitoring any policy changes, or

indeed fiscal or monetary support aimed at improving sentiment

and underpinning growth. It is critical to note that the country’s

zero-COVID policy can impact corporate earnings so it’s something

that we consider when assessing a company’s earnings visibility.

The other risk associated with China is the health of the

property sector. For years, China had seen a surge in property

development, with many developers benefiting from growing

demand. However, like any prolonged investment cycle, the

property market in China has seen severe misallocation of capital

and excessive risk taking by many private sector developers. In

our opinion, quite a few of these “aggressive” developers will

not survive the downturn. This will have a knock-on impact on the

overall economy; but it will also create significant opportunities for

well-managed companies to increase market share. We believe

that the businesses we own fall in the category of market share

gainers in a number of different sectors in China. Given the current

macro backdrop and pessimism, we believe these businesses are

quite significantly mispriced compared to their long-term potential.

Given this positive risk/return outlook, and importantly, the

underlying stock opportunities, our combined exposure to China

and Hong Kong is around 35% as at the end of July (charts above)

– this is close to the highest it’s been during my tenure.

Question

Large cap stocks make up nearly 20% of

your portfolio. How do you choose these

stocks and why do you hold them?

Answer

Although the Company has a small cap bias, the investment

policy is unrestricted, and we are therefore able to consider large

companies for the portfolio where we believe they demonstrate the

value characteristics that we seek for shareholders’ portfolios.

In order to be considered as investments, these large companies

should demonstrate the same returns profile that we expect from

any small cap holding in the portfolio. We like to think of them as

adding some diversification benefits from the small cap companies

in the portfolio and from the Company’s peer group.

6.5

7.5

8.5

9.5

10.5

11.5

12.5

Jul-15

Jan-16

Jul-16

Jan-17

Jul-17

Jan-18

Jul-18

Jan-19

Jul-19

Jan-20

Jul-20

Jan-21

Jul-21

Jan-22

Jul-22

Exposure in % of Total Net Assets

Forward Price to Earnings

China+HK Exposure

0.4

0.5

0.6

0.7

0.8

0.9

1.0

1.1

1.2

1.3

1.4

Jul-15

Jan-16

Jul-16

Jan-17

Jul-17

Jan-18

Jul-18

Jan-19

Jul-19

Jan-20

Jul-20

Jan-21

Jul-21

Jan-22

Jul-22

Exposure in % of Total Net Assets

Price to Book

China+HK Exposure Price to Book - China

China Price to Book

China Forward Price to Earnings

Forward Price to Earnings - China

China's valuation and the portfolio’s exposure to China + Hong Kong over tenure

Source: Fidelity International, FactSet, 31 July 2022. Index: MSCI China Index. Price to Earnings (“P/E”) Ratio is a measure for valuing a company’s share price versus

its earnings. Price to Book (“P/B“) Ratio is a measure for valuing a company’s share price versus its book value. Low P/E and P/B Ratios can indicate that a company

may currently be undervalued.

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Fidelity Asian Values PLC

Annual Report 2022

Portfolio Manager’s Review continued

Question

How do you approach shorting

companies? Where do you see

opportunities in this space?

Answer

The approach to shorting companies is the exact opposite of what

we do when creating our long positions. Here we are looking for

fragile business models, excessive leverage, management with

poor reputations and/or stretched valuations.

That said, shorting is a specialised skill where risk/reward metrics

can turn against you because your short position increases if the

price increases. Theoretically, a stock’s price can increase to an

infinite amount, but its lowest value can only ever be zero. We keep

the short book well diversified and take smaller sized positions.

Question

Last year you invested in a pre-IPO

holding – Tuhu Car. Can you provide an

update on this company and will we see

more investments like this in the future?

Answer

We continue to hold a position in Tuhu Car that we established

in June 2021. It remains an attractive business due to its market

dominance in the unique online-to-offline auto parts retailing

space. In essence, succeeding in making customers shift online to

buy spare parts and then collect them from physical stores. The

long-term structural growth opportunity is very attractive, and we

have seen similar companies in the US and Australia do very well

in this space over a long period of time. China is still at an early

stage in its development of auto parts retailing and Tuhu Car is the

clear market leader.

Unlisted investments are different from our traditional value

investments as these companies are in an early stage in their

development. We are very careful about such investments, and

I do not foresee the Company increasing unlisted holdings in a

significant way.

Question

Can you explain to us how you integrate

ESG considerations into your portfolio?

Answer

The Company’s primary objective for shareholders is to achieve

capital growth. In order to achieve the best possible returns, we

have always sought to invest in businesses which respect laws,

their employees, customers, the environment and shareholders as

well as managing their businesses properly. ESG considerations

have therefore always been at the heart of our investment thinking.

Investing in smaller companies in Asia using the strength of

Fidelity’s research team here has always offered us the opportunity

to identify companies ahead of other investors. Regulations are

constantly evolving and ESG is no exception to this. We believe

this presents us with opportunities. The development of ESG ratings

covered by the rating agencies (MSCI/Sustainalytics) has not yet

evolved to cover many of the smaller companies which we invest

in. This provides an exciting opportunity as the ESG credentials of

many of the smaller companies (as you will see in the examples

overleaf) are best in class. They are in fact ‘double gems’:

companies with good prospects, strong management and well-

priced alongside their strong ESG credentials.

We have also included a summary of Fidelity’s house approach

to ESG on pages 12 to 14. This is important as Fidelity covers 85%

of the portfolio and is therefore able to give us evidence that my

approach is working.

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Annual Report 2022

Fidelity Asian Values PLC

STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS

Question

What do you view as the biggest risks

and opportunities for the next twelve

months?

Answer

We believe that the biggest risks are always things we do not

know yet or “unknown unknowns”.

Of the things that are known, in our opinion, the biggest risk

continues to be the medium-term impact of experimental monetary

policy of the last decade. The world has never had free money the

way it did in the last ten years and neither has the world lived with

this quantum of debt before. Consequently, it is very hard to have

a playbook to figure out how things will pan out. This is something

that we keep a close eye on and continue to learn about.

Having said that, we believe our strength is stock picking rather

than macro analysis. Peter Lynch, the renowned and highly

successful US portfolio manager, used to say, “if you spent thirteen

minutes a year on economic (macro) analysis, you wasted ten”.

We are of the same school of thought.

We are very happy with the current shape of the portfolio

comprising businesses that are dominant in their industries, earn

good returns on capital and are available at attractive valuations.

The current vital statistics of the Company’s portfolio of investee

companies are as follows:

• Return on Equity at 15.4% versus 11.2% for the Comparative

Index;

• A stronger Balance Sheet than the Comparative Index;

• Price to earnings: 8.5x versus 11.2x for the Comparative Index;

and

• Dividend yield at 4.6% versus 2.9% for the Comparative Index.

Our skills lie in business analysis, finding best in class management

teams and mispriced stocks. We are known to repeat the phrase

below often and it’s fair to say that it has become known as

something of a mantra for the Company:

Find good businesses run by good management and buy them

at prices with a good margin of safety.

We continue to focus on this.

Nitin Bajaj Ajinkya Dhavale

Portfolio Manager Assistant Portfolio Manager

11 October 2022

Chart 1: China's valuation and the portfolio’s exposure to China + Hong Kong over tenure

Fund Valuation

Higher quality businesses at a lower price

Lower Price to Earnings Ratio vs. Small Cap Index

Higher Return on Equity vs. Small Cap Index

6.0

7.0

8.0

9.0

10.0

11.0

12.0

13.0

14.0

15.0

16.0

17.0

Jul-15

Jan-16

Jul-16

Jan-17

Jul-17

Jan-18

Jul-18

Jan-19

Jul-19

Jan-20

Jul-20

Jan-21

Jul-21

Jan-22

Jul-22

Small Cap Index

5.0

7.0

9.0

11.0

13.0

15.0

17.0

Jul-15

Jan-16

Jul-16

Jan-17

Jul-17

Jan-18

Jul-18

Jan-19

Jul-19

Jan-20

Jul-20

Jan-21

Jul-21

Jan-22

Jul-22

Small Cap Index

Fidelity Asian Values PLC

Source: Fidelity International, FactSet, 31 July 2022. Index: MSCI All Countries Asia ex Japan Small Cap Index.

Return on Equity (“ROI”) 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.

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Fidelity Asian Values PLC

Annual Report 2022

Fidelity Asian Values PLC sets out to provide shareholders with

a differentiated exposure to Asian markets. Asia is the fastest-

growing economic region and the Company looks to capitalise

on this by finding “good businesses, run by good people and

buying them at a good price”.

The Company favours smaller companies as this gives it the

opportunity to find mispriced businesses, the “winners of

tomorrow”, before they become well known.

With more than 20,000 listed companies in Asia (excluding

Japan) – which accounts for more than one third of listed

companies worldwide – there is a huge opportunity for a

fundamental research driven stock picker who can fully utilise

Fidelity International’s (“Fidelity”) extensive locally-based analyst

team.

However, the sheer number of companies, and the less-developed

disclosure requirements for smaller businesses in the region

creates challenges for many observers to properly understand the

ESG impacts and implications of investing in them.

There is no ESG “gold standard” for Rating Agencies

Rating agencies use both qualitative and quantitative data to

inform their ratings, for instance, a company’s carbon emissions,

cyber-security readiness and instances of questionable social

conduct all factor into their overall score. MSCI, Institutional

Shareholder Services (ISS), Sustainalytics and S&P are among

the most prominent third-party ESG rating agencies. It should

be noted that these third-party rating agencies use different

methodologies to come up with their ratings and therefore a

company’s rating can vary between rating agencies. What’s even

more challenging, is that these ratings are also not aligned with

the disclosure frameworks supported by institutional investors

(i.e. the Sustainable Accounting Standards Board (SASB) and the

Taskforce on Climate Related Financial Disclosures (TCFD)).

A Large Universe of Under-Researched Companies

With roughly 1,600 companies in the MSCI All Countries Asia ex

Japan Small Cap Index alone, there is an abundance of potential

investment opportunities. But the size of the investment universe

also presents a challenge in terms of coverage by mainstream

commercial agencies. Indeed, there tend to be far fewer sell-side

analysts covering each stock, and the information and earnings

forecasts that are published often focus solely on the shorter-term.

While this lack of coverage speaks to the challenge of investing

in smaller companies more broadly, it also translates into less

comprehensive coverage of ESG factors.

Compounding this, ESG data from third-party providers can

vary widely. While there is a greater amount of information on

governance and environmental factors, data on social issues,

while improving, remains relatively scarce. Even so, because

ESG is not a straightforward topic, a one-size-fits-all approach

rarely works and third party data, even when it does exist, is

often more helpful as an input for consideration rather than as a

comprehensive measure of a company’s ESG profile. Fidelity has

developed its own proprietary ratings system in response to this

and details are set out on page 14.

Fewer Resources Dedicated to ESG

Many smaller companies also face challenges when

communicating and addressing ESG issues as they tend to have

more limited resources available to assess, disclose and report

on ESG and sustainability issues, compared to their large cap

counterparts. While the required disclosures and ESG regulations

are rapidly developing and being enhanced for all companies,

irrespective of size, smaller companies may face disproportionate

burdens. As a consequence, smaller companies, particularly those

without a large or dedicated team covering sustainability issues,

may struggle to produce supplemental or more in-depth ESG data,

and may report fewer disclosures. Much of Fidelity Asian Values

PLC’s portfolio still has limited mainstream ESG coverage.

The Opportunity

Asian smaller companies often operate in niche/specialist areas

that are too small to attract significant interest from larger more

diversified competitors. These exciting niches are precisely

what make the asset class so compelling, particularly when

considering the strides many companies are making when it

comes to ESG.

Given the potential obstacles that Asian smaller companies face

when it comes to dedicating significant resources to sustainability

efforts, there is a perception that they have been slower to

adopt ESG relative to their larger counterparts. But in reality,

many smaller companies are doing much more when it comes

to sustainability and ESG than meets the eye. And again, we

believe these unrecognised or overlooked efforts often create

strong investment opportunities. Fidelity, as an active manager,

with significant breadth and resources, and its own proprietary

ESG rating system, is particularly well positioned to uncover

overlooked opportunities and help companies progress on their

ESG journeys.

ESG in the portfolio – the role of the Board

The Board recognises the importance of ESG factors to many

investors. The Board firmly believes that it is in shareholders’ best

interests that the Company does not invest in companies which

wilfully disregard their impact on the environment or the social

consequences of their activities.

In this light, the Board endorses the capabilities and approach

of Fidelity to ESG in portfolios and its own investment operations

and finds itself closely aligned to them. The Board regularly

reviews how Fidelity applies ESG factors in the investment

process, as set out on pages 12 to 14. The Fidelity group of

companies also sets out its commitment to responsible investing

and provides a copy of its detailed “Responsible Investing”

report at www.fidelity.co.uk/responsible-investing

ESG Investing – The Asian Small Cap Paradox

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Case Studies – recent examples of the Portfolio Manager’s

engagement on ESG issues

In February 2022, the Portfolio Manager had an exclusive ESG

focused engagement with Arwana Citramulia, the largest

ceramic tiles maker in Indonesia and second largest holding

in the portfolio. The focus of the meeting was particularly on

climate change and the company’s greenhouse gas (“GHG”)

emission strategy and goals as well as its sustainability reporting.

Fidelity was concerned that the company did not have adequate

disclosures on climate, particularly GHG emissions data and

targets. During the meeting it was quickly discerned that the issue

was purely a disconnect around what needed to be disclosed,

rather than lack of awareness or effort. In fact, its management

team was way ahead of the curve. The environmental impact is

front of mind for the business, not least because it is intrinsically

linked with margins and profitability as efficiency and gas usage

reduction has been a huge driver of margin improvement. Hence,

Arwana is an industry leader in ESG with one of the lowest

emissions per square meter of ceramic produced. The company

has already started to install solar systems for one of its plants

that will reduce about a quarter of its carbon emissions. It also

has plans to use solar power at all of its facilities as well as

reduce electricity usage with the installation of skylights in its

factories. The company also plans to reuse all wastewater in

production, recycle waste products for building materials and use

recycled materials for packaging. However, the company had

not disclosed its GHG reduction targets. During the meeting, the

company shared its GHG reduction goal in the form of carbon

intensity and that it had plans to consistently achieve a lower

carbon intensity as compared to the best standard in the local

industry. While there were efforts to address climate change,

we noted that there was a lot of room for better reporting of the

work they were already undertaking.

Similarly, the Portfolio Manager met with Japfa in March 2022.

It is the second largest poultry feed business in Indonesia and

one of the leading raw milk businesses in China. In March 2022,

the company placed the first US$-denominated sustainability-

linked bond from Southeast Asia. The issue was also a first for

the agri-food industry worldwide and was more than 3 times

oversubscribed. The company is also a leader in its industry

on sustainable practices. It has a strong focus on Sustainable

Development Goal 2, which is to achieve zero hunger by

providing affordable protein foods and making these more

accessible in emerging Asian countries. The purpose of the call

was to discuss disclosures on climate change. The company

acknowledged the constraints of pushing sustainability while

operating in emerging economies. It also acknowledged the

need to disclose more information on its sustainable practices.

Following engagement, it has established a Sustainability

Committee which includes its CEO and CFO. The company

committed that a comprehensive life-cycle assessment will be

extended to cover all business segments including aquaculture,

pork and dairy production. Japfa has also recently disclosed

its Scope 1 and Scope 2 emissions data and has made a firm

commitment that Scope 3 level data will be available later this

year. The company also intends to establish GHG reduction

targets by 2023.

Elsewhere, the Portfolio Manager engaged with Australian-listed

oil and gas producer Santos in April 2022. The company has a

solid mix of short, medium, and long-term climate targets and a

credible strategy to decarbonise the business over time through

carbon capture and storage in the short-term and eventually

green hydrogen export in the long-term. During the meeting,

Santos mentioned it has a target of reducing emissions by over

5% across operations in the Cooper Basin and Queensland by

2025. Pleasingly, the company is already on track to meet this

target in 2022. Santos is committed to meeting the criteria of

Scope 3 emissions reporting. It has committed to only sell to

customers from countries that have a net zero commitment or

are signatories to the Paris Agreement. Santos aims to cut Scope

1 and 2 emissions by 30% by 2030 and to achieve net zero on

Scope 1 and 2 emissions by 2040. Following engagement, the

company has committed to improve its reporting disclosure as

well as review its methodologies in respect to executive pay.

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Fidelity Asian Values PLC

Annual Report 2022

Fidelity International (“Fidelity”) has embedded Environmental,

Social and Governance (“ESG”) factors in its investment

decision-making for a number of years. Fidelity has been a

signatory to the United Nations Principles for Responsible

Investment (UNPRI) since 2012 and submits an annual report

detailing how it incorporates ESG into its investment analysis. As a

founding signatory to the Net Zero Asset Managers Initiative, Fidelity

has committed to halving the carbon footprint of its investment

portfolios by 2030, from a 2020 baseline, starting with equity and

corporate bond holdings; and to reach net zero for holdings by

2050.

ESG integration at Fidelity is carried out at the fundamental

research analyst level within its investment teams, primarily through

the implementation of the Fidelity Proprietary Sustainability Rating.

This rating was established in 2019 and is designed to generate

a forward-looking and holistic assessment of a company’s ESG

risks and opportunities, based on sector specific key performance

indicators across 127 individual and unique sub-sectors. A

breakdown of the ratings of the companies in the portfolio using

MSCI and Fidelity’s own proprietary ratings is on the next page. In

addition, Fidelity’s portfolio managers are also active in analysing

the effects of ESG factors when making investment decisions. ESG

analysis complements financial analysis to provide a complete view

of every company that is researched and monitored.

Fidelity’s approach to integrating ESG factors into its investment

analysis includes the following activities:

• In-depth research

• Company engagement

• Active ownership

• Collaboration within the investment industry

In addition to Fidelity’s Sustainability Ratings, Fidelity has developed

a proprietary Climate Rating, which is an important part of its

plans to reach net zero emissions across its portfolios. It utilises

its fundamental research capabilities to identify climate-related

risks, net zero investments and targets for transition engagement

within the Fidelity investment universe. It assesses which

companies are in the best position to transition to net zero, or

have a positive trajectory towards transition. The Climate Rating is

designed to complement the broader Sustainability Ratings, which

score companies across a range of environmental, social and

governance criteria.

Although Fidelity’s analysts have overall responsibility for analysing

the environmental, social and governance performance of the

companies in which it invests, it has a dedicated Sustainable

Investing Team working closely with the investment teams and is

responsible for consolidating Fidelity’s approach to stewardship,

engagement, including thematic engagement, ESG integration and

the exercise of its votes at general meetings.

The Sustainable Investing Team has a key role in assisting the

investment teams with ESG integration which includes:

• Implementing Fidelity’s proxy voting guidelines.

• Engagement with investee companies on ESG issues,

utilising Fidelity’s corporate access research capabilities and

investment scale to improve corporate behaviour, including at

company meetings.

• Working closely with the investment team globally across all

asset classes in integrating ESG into analysis and decision-

making.

• Providing internal ESG reporting including analyst reports,

portfolio manager reviews and industry analysis.

• Co-ordinating and responding to specific client queries on ESG

topics.

• Publishing client reporting on ESG integration and proxy voting.

• Maintaining a thorough understanding of current ESG themes

and trends around the world.

• Attending external seminars and conferences focusing on

trending ESG issues and ESG integration.

• Providing ESG training to the investment team and across the

business.

During 2021, Fidelity introduced its sustainable investing voting

principles and guidelines. These seek to provide a clear overview of

Fidelity’s voting approach, promote improved corporate behaviours

and reduce risk, include environmental and social factors, increase

clarity of votes to issuers and clients and meet current market best

practices and stewardship expectations. Examples of the policy

include voting against companies not meeting key criteria on

climate change and against management in developed markets

with less than 30% female representation at board level.

Fidelity’s investment approach involves bottom-up research. As well

as studying financial results, the portfolio managers and analysts

carry out additional qualitative analysis of potential investments.

They examine the business, customers and suppliers and often

visit the companies in person to develop a view of every company

in which Fidelity invests and ESG factors are embedded in this

research process.

Examples of ESG factors that Fidelity’s investment teams may

consider as part of its company and industry analysis include:

• Corporate governance (e.g. Board structure, executive

remuneration)

• Shareholder rights (e.g. election of directors, capital

amendments)

• Changes to regulation (e.g. greenhouse gas emissions

restrictions, governance codes)

• Physical threats (e.g. extreme weather, climate change, water

shortages)

• Brand and reputational issues (e.g. poor health and safety

record, cyber security breaches)

• Supply chain management (e.g. increase in fatalities, lost time

injury rates, labour relations)

ESG in the Investment Process

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STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS

• Work practices (e.g. observation of health, safety and human

rights provisions and compliance with the provisions of the

Modern Slavery Act).

Fidelity operates analyst training and development programmes

which include modules on ESG themes, topics and strategies and

attendance at external seminars on the trending ESG issues in the

market globally as well as conferences to explore new ways of

integrating ESG into the investment process across all asset classes.

Fidelity uses a number of external research sources around the

world that provide ESG-themed reports and it subscribes to an

external ESG research provider and rating agency to supplement

its organic analysis. Fidelity receives reports that include company

specific and industry specific research as well as ad hoc thematic

research looking at particular topics. The ESG ratings are industry

specific and are calculated relative to industry peers and Fidelity

uses these ratings in conjunction with its wider analysis. Fidelity’s

sources of ESG research are reviewed on a regular basis.

The ESG ratings and associated company reports are included

on Fidelity’s centralised research management system. This is an

integrated desktop database, so that each analyst has a first-hand

view of how each company under their coverage is rated according

to ESG factors. In addition, ESG ratings are included in the analyst

research notes which are published internally and form part of the

investment decision. The external research vendor also provides

controversy alerts which include information on companies within

its coverage which have been identified to have been involved

in a high-risk controversy that may have a material impact on the

company’s business or its reputation.

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Fidelity Asian Values PLC

Annual Report 2022

ESG ASSESSMENT

The first two charts below show a breakdown of the underlying stocks in the Company’s portfolio using MCSI and Fidelity’s own ESG

ratings. It is encouraging that Fidelity’s ratings, which are more forward-looking in nature, show a greater proportion of the portfolio

in higher rated stocks than those rated by MSCI, which is more backward-looking and disclosure driven. Additionally, more than 85%

of the portfolio (as shown in the second chart) is covered by Fidelity compared with 53% covered by MSCI (as shown in the first chart)

with the Company’s small and mid cap exposures being given formal ESG coverage by Fidelity sooner than by MSCI.

ESG in the Investment Process continued

Portfolio

Comparative Index

Improving

Stable

Deterorating

Not

rated

Fidelity ESG Ratings direction (%)

Portfolio

Comparative Index

A B

Not

rated

Fidelity Proprietary ESG Ratings (%)

Portfolio

Comparative Index

AAA AA

BBB

BB B CCC

Not

rated

MSCI ESG Ratings breakdown (%)

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STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS

Spotlight on the Top 10 Holdings

as at 31 July 2022

(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.)

HDFC Bank

Position size

HDFC Bank is India’s leading private bank and continues to gain market share from less efficient

government owned banks. The retail-focused bank offers a diverse range of financial products and banking

services to customers. It also offers a wide range of commercial and transactional banking services to

businesses and organisations of all sizes. Its strong management and conservative underwriting culture

ensure that its asset quality is the best in the industry. It has seen consistent quality of growth in its liability

and asset books across cycles with low cost of funds resulting in returns of equity consistently in the mid-

teens range. In the near-term, faster credit growth and rate hikes are also expected to improve net interest

margins.

Sector Financials

2.7%

Arwana Citramulia

Position size

Arwana Citramulia is the lowest cost and most profitable tile maker in Indonesia with roughly 20% market

share. The company has consistently earned a return on invested capital in excess of 20%; it has paid

75% of its profits in dividends and grown sales volumes at high single digit percentage. Its excess returns

are derived from its low cost positioning and exceptional management quality. Given demographics in

Indonesia, tile businesses should continue to grow for many years to come and within that it should be able

to take further market share going forward. The business is trading in the stock market at 14x earnings.

Arwana is an industry leader in ESG with one of the lowest emissions per square meter of ceramic

produced (see case study on page 11).

2.6%

Sector Industrials

Axis Bank

Position size

Axis Bank is the third largest private sector bank in India and benefits from structural growth banking

penetration across the entire spectrum of financial services to customer segments covering large and mid-

corporates, micro, small and mid-sized enterprises (MSMEs), agriculture and retail businesses This enables

it to gain market share from less efficient government-owned banks. The newly installed management team

has been able to consistently improve asset quality and enhance its underwriting culture. This has led to a

marked improvement on its return on equity (currently in the mid-teens). The improvement in quality of its

loan book is expected to continue.

Sector Financials

2.6%

Bank Mandiri (Persero)

Position size

Bank Mandiri is Indonesia’s second largest financial institution by assets. It has a strong balance sheet

relative to its peers and its conservative approach and risk management efforts instil confidence that the

impact in the current cycle should be well handled by the company. Renewed management focus and

business process enhancements should also help accelerate fee income growth. The rising interest rate

environment is also a positive backdrop for net interest margins and the company’s digital prowess remains

under-appreciated by the market.

Sector Financials

2.3%

Focus Media Information Technology

Position size

Focus Media Information Technology is an out-of-home advertising company in China with around 80%

market share. Out-of-home advertising is simply advertising that consumers are exposed to outside of their

homes. This means any marketing material or advertisement is seen by consumers when they are in transit

from one place to another or spending time doing an activity outdoors. Advertising is expected to grow

faster than GDP and out-of-home advertising faster than overall advertising. The customers fund advertising

in advance giving the business a strong cash profile. Its dominant market share provides scale as well as

good rates, ensuring the company enjoys lower costs than its competitors.

Sector Information Technology

2.2%

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Fidelity Asian Values PLC

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Shriram Transport Finance

Position size

Shriram Transport Finance is a company in India that provides financing options for second-hand trucks to

individuals who typically have limited or poor traditional credit records. The company enjoys 80% market

share largely because the assessment of the credit risk is incredibly expert, while the asset valuing process

is very specific to the types of vehicles that are leased. Furthermore, cash collection methods are another

critical component of the success of the business. The company is also highly beneficial to society, allowing

significant growth in entrepreneurship in impoverished groups, and has been built by a management team

over several decades.

Sector Financials

1.9%

Texwinca Holdings

Position size

Texwinca Holdings is a Hong Kong-based apparel company supplying to major brands such as H&M,

Uniqlo and Nike. The recent and sporadic lockdowns in China have led to a drop in demand and, as a

result, the stock is very attractively valued. Its balance sheet is strong and its long-term growth prospects

are also encouraging.

Sector Information Technology

1.9%

Gold Road Resources

Position size

Gold Road Resources is a mid-tier Australian gold producer with good scale, long mine life and low

production costs. The company’s production has increased as a result of the successful ramp up in capacity

at its Gruyere operations, near Perth, as well as the acquisition of DGO Gold. The company also sees

exploration upside potential and generates strong free cash flows.

Sector Industrials

1.9%

Granules India

Position size

Granules India is a leading global manufacturer of several off-patent drugs, including Paracetamol,

Ibuprofen, Metformin and Guaifenesin. Its key strength is that it has a limited number of products,

manufactured on a large scale, leading to a low cost of production and in minimal good manufacturing

processes (GMP) issues. After completion of its capital expenditures, its balance sheet is expected to de-

lever providing higher returns.

Sector Industrials

1.9%

Sinotrans

Position size

Sinotrans is the largest logistics company in China focused on freight forwarding, warehousing and land

logistics. It also runs a joint venture with DHL for parcel delivery. Even though it is a government-owned

company, it has a consistent track record of growth and cash generation. The business is trading on 5x

earnings.

Sector Industrials

1.9%

Spotlight on the Top 10 Holdings continued

as at 31 July 2022

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STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS

Forty Largest Holdings

as at 31 July 2022

The Asset Exposures shown below measure exposure to market price movements as a result of owning shares, equity linked notes

and derivative instruments. The Fair Value is the actual value of the portfolio as reported on the Balance Sheet. Where a contract for

difference (“CFD”) is held, the Fair Value reflects the profit or loss on the contract since it was opened and is based on how much the

price of the underlying share has moved.

Asset Exposure

Fair

Value

£’000 %

£’000

Long Exposures – shares unless otherwise stated

HDFC Bank

Private sector bank 9,881 2.7 9,881

Arwana Citramulia

Ceramics manufacturer 9,627 2.6 9,627

Axis Bank

Private sector bank 9,448 2.6 9,448

Bank Mandiri (Persero)

Banking institution 8,498 2.3 8,498

Focus Media Information Technology (shares, long CFD and equity linked notes)

Advertising solution provider 8,125 2.2 7,808

Sinotrans (shares and long CFD)

Logistics, storage and terminal services provider 7,125 1.9 5,723

Shriram Transport Finance

Provider of hire purchase and lease finance for medium and heavy commercial vehicles 7,002 1.9 7,002

Texwinca Holdings

Production and sales of dyed yarns and knitted fabrics 6,941 1.9 6,941

Gold Road Resources

Gold production and exploration company 6,883 1.9 6,883

Granules India

Pharmaceutical manufacturing company 6,876 1.9 6,876

Federal Bank

Private sector bank 6,734 1.8 6,734

BOC Aviation (long CFD)

Global aircraft operating leasing company 6,656 1.8 (95)

China Overseas Grand Oceans Group (shares and long CFD)

Real estate business 6,636 1.8 2,719

China Yongda Automobiles Services Holdings (shares and long CFD)

Investment holding company engaged in the sale of passenger vehicles and provision

of related services 6,631 1.8 4,980

Indofood CBP Sukses Makmur

Producer of packaged food products 6,590 1.8 6,590

Chow Sang Sang Holdings International (shares and long CFD)

Jewellery retailer 6,166 1.7 5,751

Qingdao Port International (shares and long CFD)

Provider of port services 5,522 1.5 5,352

WH Group (shares and long CFD)

Meat and food processing company 5,413 1.5 4,180

Job No: 47909 Proof Event: 21 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

Customer: Fidelity Project Title: FAV Annual Report 2022 T: 0207 055 6500 F: 020 7055 6600

Fidelity Asian Values PLC

Annual Report 2022

Asset Exposure

Fair

Value

£’000 %

£’000

KEI Industries

Manufacturer and supplier of cables and wires 5,166 1.4 5,166

Japfa

Industrial agri-food company 4,917 1.3 4,917

PTC India

Provider of power trading solutions in India 4,912 1.3 4,912

Ascendas India Trust (shares and long CFD)

Property trust 4,850 1.3 4,146

Taiwan Semiconductor Manufacturing Company (long CFD)

Developer, manufacturer and distributor of semiconductor related products 4,657 1.3 370

Alibaba Group Holding (shares and long CFD)

e-commerce group 4,627 1.3 2,464

Shriram City Union Finance

Financial service provider specialising in retail finance 4,547 1.2 4,547

China Foods

Food processing and trading company 4,383 1.2 4,383

Crystal International Group (shares and long CFD)

Manufacturer of clothing 4,356 1.2 4,140

Taiwan Union Technology (shares and long CFD)

Provider of professional support, value-added materials and advanced mass lamination

service to the global electronics industry 4,348 1.2 4,235

NHPC

Hydropower developer 4,303 1.2 4,303

Great Eastern Shipping

Private sector shipping company 4,269 1.2 4,269

Galaxy Entertainment Group (shares and long shares)

Developer and operator of integrated entertainment and resort facilities 4,254 1.1 3,611

Pacific Textile Holdings (shares and long CFD)

Manufacturer of customised knitted fabric 4,175 1.1 2,949

Cikarang Listrindo

Electric power distribution company 4,106 1.1 4,106

Interojo

Manufacturer and seller of contact lenses 4,015 1.1 4,015

Yixintang Pharmaceutical Group (shares and long CFD)

Pharmaceutical retailer 3,940 1.1 3,788

Xingda International Holdings

Manufacturer and producer of radical tire cords, bead wires and other wires 3,874 1.0 3,874

Powertech Technology

Provider of turnkey services for chip probing, packaging and testing 3,624 1.0 3,624

i-SENS

Developer, producer and distributor of diabetes medical devices 3,617 1.0 3,617

Housing Development Finance Corporation

Housing finance provider 3,444 0.9 3,444

Forty Largest Holdings continued

Job No: 47909 Proof Event: 21 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

Customer: Fidelity Project Title: FAV Annual Report 2022 T: 0207 055 6500 F: 020 7055 6600

Annual Report 2022

Fidelity Asian Values PLC

STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS

Asset Exposure

Fair

Value

£’000 %

£’000

SK Hynix (shares and long CFD)

Memory semiconductor supplier of dynamic random-access memory chips and flash

memory chips 3,273 0.9 3,123

Top forty long exposures 224,411 61.0 198,901

Other long exposures 147,329 40.1 140,043

Total long exposures before futures (137 holdings) 371,740 101.1 338,944

Add: long futures

MSCI All Countries Asia ex Japan Index Future 16/09/2022 3,997 1.1 (88)

Total long exposures 375,737 102.2 338,856

Short exposures

Short CFDs (7 holdings) 7,277 2.0 (275)

Short future (1 holding) 682 0.2 (20)

Total short exposures 7,959 2.2 (295)

Gross Asset Exposure

383,696 104.4

Forward currency contracts (46)

Portfolio Fair Value

338,515

Net current assets (excluding derivative assets and liabilities) 29,108

Total Shareholders’ Funds/Net Assets 367,623

1 Asset Exposure (as defined in the Glossary of Terms on page 88) is expressed as a percentage of Total Shareholders’ Funds.

2 Gross Asset Exposure comprises market exposure to investments of £338,845,000 (per Note 10: Investments on page 62) plus market exposure to derivative instruments of

£44,851,000 (per Note 11: Derivative Instruments on page 63).

3 Portfolio Fair Value comprises investments of £338,845,000 plus derivative assets of £972,000 less derivative liabilities of £1,302,000 (per the Balance Sheet on page 53)

A full list of the Company’s holdings as at 31 July 2022 will be available on the Company’s pages of the Manager’s website at

www.fidelity.co.uk/asianvalues from the day of the AGM.

Job No: 47909 Proof Event: 21 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

Customer: Fidelity Project Title: FAV Annual Report 2022 T: 0207 055 6500 F: 020 7055 6600

Fidelity Asian Values PLC

Annual Report 2022

Distribution of the Portfolio

as at 31 July 2022

(Asset Exposure expressed as a percentage of Total Shareholders’ Funds)

Portfolio China India Indonesia Hong Kong

South

Korea Other

2022

Total

2022

Index

2021

Total

Financials

Banks – 7.1 2.3 – 0.8 – 10.2 3.0 4.6

Real Estate Management &

Development 3.0 0.4 – – – 1.3 4.7 4.7 2.2

Consumer Finance – 4.0 0.3 – – – 4.3 1.3 3.9

Thrifts & Mortgage Finance – 0.9 – – – – 0.9 0.6 0.3

Insurance – – – – 0.8 – 0.8 1.1 1.2

Capital Markets – 0.2 – – 0.4 – 0.6 2.3 0.3

Real Estate Investment Trusts

(REITs) – – – – – – – 4.9 1.6

Diversified Financial Services – – – – – – – 0.6 0.4

3.0 12.6 2.6 – 2.0 1.3 21.5 18.5 14.5

Consumer Discretionary

Textiles, Apparel & Luxury Goods – – – 6.5 – 0.8 7.3 2.5 6.8

Specialty Retail 2.0 – – – – 0.4 2.4 0.9 3.0

Auto Components 1.7 – 0.6 – – – 2.3 2.6 4.4

Diversified Consumer Services 0.5 – – – – 1.7 2.2 0.7 1.5

Hotels, Restaurants & Leisure – – 0.8 1.2 – – 2.0 2.3 1.1

Internet & Catalogue Retail 1.3 – – – – – 1.3 0.3 1.3

Leisure Products – – – 0.9 – 0.2 1.1 0.4 2.6

Automobiles – – – – – 0.3 0.3 0.5 0.6

Household Durables – – – – – – – 1.5 0.7

Distributors – – – – – – – 0.1 –

Multiline Retail – – – – – – – 0.5 –

5.5 – 1.4 8.6 – 3.4 18.9 12.3 22.0

Continued on the next page.

Job No: 47909 Proof Event: 21 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

Customer: Fidelity Project Title: FAV Annual Report 2022 T: 0207 055 6500 F: 020 7055 6600

Annual Report 2022

Fidelity Asian Values PLC

STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS

Portfolio China India Indonesia Hong Kong

South

Korea Other

2022

Total

2022

Index

2021

Total

Industrials

Building Products 0.5 – 2.6 – – – 3.1 0.8 2.1

Trading Companies &

Distributors 1.8 – 0.3 – – – 2.1 0.6 1.0

Air Freight & Logistics 2.0 – – – – – 2.0 0.5 1.5

Electrical Equipment – 1.7 – – – – 1.7 2.7 1.9

Transportation Infrastructure 1.5 – – – – – 1.5 1.1 1.6

Professional Services – – – – – 1.5 1.5 0.3 1.0

Machinery 0.7 – – 0.4 – – 1.1 4.0 1.7

Construction & Engineering – – – – 0.5 – 0.5 2.4 4.3

Commercial Services & Supplies – 0.4 – – – – 0.4 0.7 0.4

Marine – – – – 0.3 – 0.3 0.7 0.3

Airlines – – – – – 0.2 0.2 0.2 0.8

Industrial Conglomerates – – – – – – – 0.9 0.2

Aerospace & Defense – – – – – – – 0.5 –

Road & Rail – – – – – – – 0.3 –

6.5 2.1 2.9 0.4 0.8 1.7 14.4 15.7 16.8

Information Technology

Semiconductors &

Semiconductor Equipment – – – – 1.4 3.8 5.2 8.3 6.2

Electronic Equipment Instruments

& Components – 0.9 0.3 – – 2.1 3.3 5.5 7.0

Technology Hardware Storage &

Peripherals – – – – – 1.3 1.3 1.9 0.5

Information Technology Services – 0.5 – – – 0.6 1.1 1.8 2.3

Communications Equipment – – – – – – – 0.8 0.2

Software – – – – – – – 1.3 –

– 1.4 0.3 – 1.4 7.8 10.9 19.6 16.2

Consumer Staples

Food Products – – 1.8 1.4 – 2.5 5.7 2.8 5.6

Food & Staples Retailing 1.9 – – 0.2 – 0.1 2.2 0.6 0.7

Beverages 1.2 – – – – 0.1 1.3 0.5 1.1

Household Products 0.5 – 0.5 – – – 1.0 0.1 0.3

Tobacco – – – – – – – 0.1 –

Personal Products – – – – – – – 0.7 –

3.6 – 2.3 1.6 – 2.7 10.2 4.8 7.7

Job No: 47909 Proof Event: 21 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

Customer: Fidelity Project Title: FAV Annual Report 2022 T: 0207 055 6500 F: 020 7055 6600

Fidelity Asian Values PLC

Annual Report 2022

Portfolio China India Indonesia Hong Kong

South

Korea Other

2022

Total

2022

Index

2021

Total

Materials

Metals & Mining – – – – 0.4 3.9 4.3 2.0 5.2

Chemicals 0.6 0.9 – – 1.1 – 2.6 7.3 1.9

Construction Materials 0.7 – – – – – 0.7 1.3 0.9

Containers & Packaging – – – – – – – 0.3 0.3

Paper & Forest Products – – – – – – – 0.6 –

1.3 0.9 – – 1.5 3.9 7.6 11.5 8.3

Health Care

Health Care Equipment &

Supplies 0.9 – – – 3.4 – 4.3 0.9 2.0

Pharmaceuticals – 1.9 0.5 – – – 2.4 3.8 2.9

Health Care Providers & Services 0.2 – 0.3 – – 0.3 0.8 1.8 2.2

Life Sciences Tools & Services – – – – – 0.1 0.1 0.4 0.1

Biotechnology – – – – – – – 2.1 –

1.1 1.9 0.8 – 3.4 0.4 7.6 9.0 7.2

Utilities

Independent Power &

Renewable Electricity Producers – 2.5 1.1 – – 1.1 4.7 0.9 2.9

Electric Utilities – 1.1 – 0.3 – – 1.4 0.2 2.7

Multi Utilities – – – – – – – 0.3 –

Water Utilities – – – – – – – 0.2 –

Gas Utilities – – – – – – – 0.7 –

– 3.6 1.1 0.3 – 1.1 6.1 2.3 5.6

Energy

Oil, Gas & Consumable Fuels 1.3 1.2 – – – 0.7 3.2 1.7 2.0

Energy Equipment & Services – – – – – 0.2 0.2 0.1 –

1.3 1.2 – – – 0.9 3.4 1.8 2.0

Communications Services

Media 2.3 – – – – – 2.3 0.9 0.9

Wireless Telecommunication

Services – – – – – 0.2 0.2 0.4 0.5

Entertainment – – – – – – – 1.6 0.1

Diversified Telecommunication

Services – – – – – – – 1.3 –

Interactive Media & Services 0.2 – – – – – 0.2 0.3 –

2.5 – – – – 0.2 2.7 4.5 1.5

Exposure before long futures 24.8 23.7 11.4 10.9 9.1 23.4 103.3

Add: long futures – – – – – 1.1 1.1 1.2

Total Asset Exposure

– 2022 24.8 23.7 11.4 10.9 9.1 24.5 104.4

Index – 2022 10.5 25.6 3.0 6.0 16.6 38.3 100.0

Total Asset Exposure

– 2021 23.8 22.5 6.9 9.7 9.6 30.5 103.0

MSCI All Countries Asia ex Japan Small Cap Index (net) total return in Sterling terms, the Company’s Comparative Index.

Distribution of the Portfolio continued

as at 31 July 2022

(Asset Exposure expressed as a percentage of Total Shareholders’ Funds)

Job No: 47909 Proof Event: 21 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

Customer: Fidelity Project Title: FAV Annual Report 2022 T: 0207 055 6500 F: 020 7055 6600

Annual Report 2022

Fidelity Asian Values PLC

STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS

Ten Year Record

For the year ended

31 July 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013

Gross Asset Exposure (£m)

383.7 375.2 276.6 347.4 285.2 273.7 232.0 162.9 192.3 167.4

Shareholders’ Funds (£m) 367.6 364.1 269.4 323.0 288.0 280.2 237.5 178.9 172.8 155.8

NAV per Ordinary Share – undiluted (p)

507.78 497.50 364.39 447.16 419.36 415.17 351.98 265.14 255.99 230.24

NAV per Ordinary Share – diluted (p)

n/a n/a n/a 439.91

413.64

407.77

n/a n/a n/a n/a

Ordinary Share Price (p) 458.00 483.00 335.00 455.50 412.00 386.00 313.00 236.88 224.00 204.50

Subscription Share Price (p) n/a n/a n/a 53.00 23.50 29.50 n/a n/a n/a n/a

(Discount)/Premium – undiluted (%)

(9.8) (2.9) (8.1) 1.9 (1.8) (7.0) (11.1) (10.7) (12.5) (11.2)

Premium/(Discount) – diluted (%)

n/a n/a n/a 3.5

(0.4)

(5.3)

n/a n/a n/a n/a

Revenue return per Ordinary Share (p)

14.21 9.20 8.64 10.70 5.70 6.08 5.36 2.26 1.14 1.05

Dividend per Ordinary Share (p) 14.00 8.80 8.50 8.80 5.50 5.00 4.50 2.00 1.10 1.10

Ongoing Charges (cost of running the

Company) (%)

0.95 0.93 0.98 0.98 1.17 1.22 1.33 1.42 1.50 1.55

Gross Gearing (%)

2,5

4.4 3.0 2.7 7.5 (1.0) (2.3) (2.3) (9.0) 11.3 7.4

NAV total return – undiluted (%)

+3.9 +39.5 -16.7 +8.2 +2.2 +19.3 +33.8 +4.0 +11.7 +18.4

NAV total return – diluted (%)

n/a n/a n/a +7.9

+2.7

+17.2

n/a n/a n/a n/a

Ordinary Share Price total return (%)

-3.4 +47.6 -24.8 +12.3 +8.2 +24.9 +33.3 +6.2 +10.1 +16.8

Comparative Index total return (%)

-5.6 +39.2 -0.8 -4.6 +4.7 +15.6 +13.1 n/a n/a n/a

Benchmark Index total return (%)

-5.6 +39.2 +2.7 +3.9 +5.7 +28.2 +15.8 +0.3 +5.4 +12.0

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 The dilution relates to the subscription share oﬀer that closed in June 2013.

5 Gross Asset Exposure in excess of/(less than) Total Shareholders’ Funds expressed as a percentage of Total Shareholders’ Funds (see Note 18 on page 74).

6 MSCI All Countries Asia ex Japan Small Cap Index (net) total return (in Sterling terms).

7 MSCI All Countries 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

Countries 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.

Job No: 47909 Proof Event: 21 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

Customer: Fidelity Project Title: FAV Annual Report 2022 T: 0207 055 6500 F: 020 7055 6600

Fidelity Asian Values PLC

Annual Report 2022

Strategic Report

Business and Status

The Company carries on business as an investment trust. Its

shares are listed and admitted to trading on the premium

segment of the main market of 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, assets or operations.

Investment Objective and Policy

The Company’s objective is to achieve capital growth principally

from the stockmarkets of the Asian Region* excluding Japan. The

Company’s performance is measured against the return of its

Comparative Index, the MSCI All Countries Asia ex Japan Small

Cap Index (net) total return (in Sterling terms).

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 stockmarkets

in the Asian Region* excluding Japan but investments may be

made in companies listed elsewhere which, in the opinion of the

Portfolio Manager, have significant interests in the Asian Region*

excluding Japan.

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.

No material change will be made to the investment objective

and policy without shareholder approval.

Investment Strategy

In order to achieve this 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. The

Portfolio Manager, Nitin Bajaj, aims 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 Manager 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 Manager’s 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

weightings may, therefore, vary significantly from the weightings

in its Comparative Index. Further, the Portfolio Manager’s

concentration on the identification of fundamental value in

individual stocks within the Asian Region may result in investments

that are contrary to prevalent trends and local conventions.

Investment Retrictions

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.

However the Portfolio Manager will only make any such

investment, where it is expected that the securities will

become listed on a stock exchange in the foreseeable future.

• 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 more than 15% of

their Gross Assets in other listed closed-ended funds.

• Up to 5% 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 weightings.

* Asian Region means the continent of Asia (including Hong Kong, South Korea,

Thailand, Singapore, Malaysia, Taiwan, Indonesia, Philippines, China, India,

Pakistan and Sri Lanka, but excluding Japan, the countries comprising the former

U.S.S.R. and the Middle East), together with Australasia.

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 would 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.

Job No: 47909 Proof Event: 21 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

Customer: Fidelity Project Title: FAV Annual Report 2022 T: 0207 055 6500 F: 020 7055 6600

Annual Report 2022

Fidelity Asian Values PLC

STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS

• 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 Manager considers to be over-

valued.

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 to the

Portfolio Manager’s investment style and philosophy as well as

the markets he operates in. The sum of all short exposures of the

Company from derivatives, excluding hedges, will not exceed 10%

of total net assets.

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.

Key Performance Indicators

The key performance indicators (“KPIs”) used to describe the

performance of the Company and which are comparable to those

reported by the other investment companies are set out below.

Year ended

31 July

2022

Year ended

31 July

2021

NAV per Ordinary Share total

+3.9 +39.5

Ordinary Share Price total return

-3.4 +47.6

Comparative Index total return

-5.6 +39.2

Discount to NAV

9.8 2.9

Ongoing Charges

1, 3

0.95 0.93

1 Alternative Performance Measures.

2 MSCI All Countries 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.

In addition to the KPIs above, the Board also monitors the

Company’s performance against its peer group of investment

companies. Commentary on performance for the year ended

31July 2022 can be found in the Chairman’s Statement

and Portfolio Manager’s Review on pages 2 to 9. Long-term

performance is also monitored and is set out in the Ten Year

Record on page 23.

Principal Risks and Uncertainties and Risk Management

As required by provisions 28 and 29 of the 2018 UK Corporate

Governance 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, 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 and assigns a rating to each risk. The risk matrix

is reviewed by the Audit Committee at least once annually. The

Board has also established associated policies and processes

designed to manage, and where possible, mitigate identified

risks which are then monitored in the form of comprehensive

reports considered by the Audit Committee. The Board

determines the nature and extent of any risks it is willing to take

in order to achieve its strategic objectives and works with the

Manager, who also has responsibility for risk management for

the Company, to continue to meet its UK corporate governance

obligations.

Climate change is one of the most critical emerging issues

confronting asset managers and their investors. The Board notes

that the Manager has integrated ESG considerations, including

climate change, into the Company’s investment process. Further

details are on pages 12 to 14. The Board will continue to monitor

how this may impact the Company as a risk, the main risk being

the impact on investment valuations.

Job No: 47909 Proof Event: 21 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

Customer: Fidelity Project Title: FAV Annual Report 2022 T: 0207 055 6500 F: 020 7055 6600

Fidelity Asian Values PLC

Annual Report 2022

Principal Risks Description and Risk Mitigation

Economic, Political and

Market Risks

The principal market related risks are market downturns, interest rate movements,

deflation/inflation, exchange rate movements and market shocks, such as the ongoing

pandemic and military conflict. Inflation continues to trend higher across most economies,

driven by a combination of increased demand, as the pandemic restrictions are lifted, global

labour shortages in some sectors and supply chain shortages. The Company is exposed to

geopolitical risks on a number of fronts. In December 2021, the US issued a further Executive

Order prohibiting transactions by US persons in publicly traded securities of certain Chinese

companies. Any further restrictions on listings of Chinese companies in the US could negatively

impact the demand for such stocks, and consequently, their share price. Although this is not

directly relevant to the Company, it may have an indirect impact on the demand for equities

in the portfolio. Additionally, the Company may be exposed to the economic impact from the

war in Ukraine. Russia and Ukraine are both significant net exporters of oil, natural gas and a

variety of soft commodities and supply limitations are fuelling global inflation and economic

instability, specifically within western nations. Whilst the direct impact of the war to APAC

markets has been less severe than European counterparts, a prolonged cost-of-living crisis risks

impacting western shareholder funds and appetite. The fragile relations between US and China

risk further deterioration, should China offer any meaningful support to Russia or if tensions

escalate in the Taiwan Straits. The first is likely to result in sanctions or a trade war, and the

latter, in military conflict.

The Company’s portfolio is made up mainly of listed securities. The Portfolio Manager’s success

or failure to protect and increase the Company’s value against the above background is core

to the Company’s continued success. His investment philosophy of stock-picking and investing in

attractively valued companies aims to outperform the Comparative Index over time.

COVID continues to be a global pandemic with the potential for severe market and economic

impacts. The risk of the likely effects of the ongoing pandemic on the markets is somewhat

mitigated by the Company’s investment trust structure which means no forced sales need to

take place to deal with any redemptions. Therefore, investments can be held over a longer

time horizon.

The Board reviews economic, political and market risks and legislative changes at each Board

meeting.

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 these items.

Risks to which the Company is exposed to in the market and currency risk category are

included in Note 17 to the Financial Statements on pages 66 to 74 together with summaries of

the policies for managing these risks.

Discount Management

Risk

Due to the nature of investment companies, the price of the Company’s shares and its discount

to NAV are factors which are not totally within the Company’s control. The Board has a

discount management policy in place and some short-term influence over the discount may

be exercised by the use of share repurchases at acceptable prices and within the parameters

set by the Board. 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.

The Board considers the risks listed below and on the next two pages to be the principal risks and uncertainties faced by the Company.

Strategic Report continued

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Customer: Fidelity Project Title: FAV Annual Report 2022 T: 0207 055 6500 F: 020 7055 6600

Annual Report 2022

Fidelity Asian Values PLC

STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS

Principal Risks Description and Risk Mitigation

Cybercrime and

Information Security Risks

The operational risk from cybercrime is significant. Cybercrime threats evolve rapidly and

consequently the risk is regularly re-assessed and the Board receives regular updates from the

Manager in respect of the type and possible scale of cyberattacks. The Manager’s technology

team has developed a number of initiatives and controls in order to provide enhanced

mitigating protection to this ever-increasing threat. The risk is frequently re-assessed by Fidelity

International’s (“Fidelity”) information security teams and has resulted in the implementation

of new tools and processes, including improvements to existing ones. Fidelity has established

a dedicated cybersecurity team which provides regular awareness updates and best practice

guidance.

Risks are increased due to the pandemic and from the Russia/Ukraine conflict. These primarily

relate to phishing, remote access threats, extortion and denial of services attacks. The

Manager has dedicated detect and respond resources specifically to monitor the cyber threats

associated with COVID and cyber activity following the Russian invasion of Ukraine. There are

a number of mitigating actions in place including, control strengthening, geo-blocking, phishing

mitigants combined with enhanced resilience and recovery options.

Investment Performance

Risk (including the use of

Derivatives and Gearing)

The achievement of the Company’s investment performance objective relative to the market

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

objectives becoming unattractive to investors. The Investment Manager is responsible for actively

monitoring the portfolio selected in accordance with the asset allocation parameters and seeks

to ensure that individual stocks meet an acceptable risk/reward profile.

In order to manage this risk, 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 also regularly canvasses major shareholders for their views

with respect to company matters.

Derivative instruments are used to enable both the protection and enhancement of investment

returns. There is a risk that the use of derivatives may lead to higher volatility in the NAV and the

share price than might otherwise be the case. The Board has put in place policies and limits to

control the Company’s use of derivatives and exposures. Further details on derivative instruments

risk is included in Note 17 to the Financial Statements on pages 66 to 74.

The Company gears through the use of long CFDs which provide greater flexibility and are

currently cheaper than bank loans. The principal risk is that the Portfolio Manager fails to use

gearing effectively, resulting in a failure to outperform in a rising market or underperform in a

falling market. The Board regularly considers the level of gearing and gearing risk and sets limits

within which the Manager must operate.

Shareholder

Relationship Risk

There is a risk that the Board has insufficient access to shareholders or that the Portfolio

Manager’s investment style is not appealing for investors. A further risk is that weak investment

performance may potentially make the Company less attractive to retail investors and wealth

managers.

The shareholder register and shareholder activity are reviewed at each Board meeting

and regular shareholder meetings are organised by the Broker with the Board and Fidelity,

including the Portfolio Manager. Fidelity has an investment trusts website which has dedicated

pages for the Company and regular updates are provided for investors.

Job No: 47909 Proof Event: 21 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

Customer: Fidelity Project Title: FAV Annual Report 2022 T: 0207 055 6500 F: 020 7055 6600

Fidelity Asian Values PLC

Annual Report 2022

Principal Risks Description and Risk Mitigation

Key Person Risk

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. The Company has an Assistant Portfolio

Manager, Ajinka 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. Fidelity has succession plans

in place for its portfolio managers which have been discussed with the Board and provide

some assurance in this regard.

Environmental, Social

and Governance (“ESG”)

Risk

There is a risk that the value of the assets of the Company are negatively impacted by ESG

related risks, including climate change risk. Fidelity has embedded ESG factors in its investment

decision-making process. ESG integration is carried out at the fundamental research analyst

level within its investment teams, primarily through Fidelity’s Proprietary Sustainability Rating

which is designed to generate a forward-looking and holistic assessment of a company’s

ESG risks and opportunities based on sector-specific key performance indicators across 127

individual and unique sub-sectors. The Portfolio Manager is also active in analysing the effects

of ESG when making investment decisions. The Board continues to monitor developments in this

area and reviews the positioning of the portfolio considering ESG factors.

Further detail on ESG considerations in the investment process is on pages 12 to 14.

Business Continuity and

Operational Risks

Investment team key activities, including portfolio managers, analysts and trading/support

functions, are performing well despite the operational challenges posed when working from

home during the pandemic, and more recently, from the rail strikes.

With variants of COVID continuing to evolve, it is evident that although the pandemic is being

tackled by vaccines, risks remain. There continues to be increased focus from financial services

regulators around the world on the contingency plans of regulated financial firms. The risks

following Russia’s invasion into Ukraine, specifically regarding the potential loss of power

and/or broadband services, are increasingly stable as work transfer recovery options are

established for business-critical activities.

The Manager carries on reviewing its business continuity plans and operational resilience

strategies on an ongoing basis. The Manager continues to take all reasonable steps in

meeting its regulatory obligations and to assess operational risks, the ability to continue

operating and the steps it needs to take to serve and support its clients, including the Board.

There has not been any significant changes to Fidelity’s control environment as a result of

the pandemic and the Manager has provided the Board with assurance that the Company

has appropriate business continuity plans and the provision of services has continued to be

supplied without interruption during the pandemic.

Specific risks posed by the pandemic continue to ease with increasing levels of staff returning

to routine office-based working, albeit under hybrid working arrangements which allows greater

flexibility on remote working as part of the new operating model.

The Company’s other third party service providers, principally the Registrar, Custodian and

Depositary, have also confirmed the implementation of similar measures to ensure no business

disruption and that they continue to manage their operational risk and have appropriate

business continuity plans in place. The Registrar, Custodian and Depositary are all subject to

a risk-based program of internal audits by the Manager. In addition, service providers’ own

internal control reports are received by the Board on an annual basis and any concerns raised

are investigated. Risks associated with these services are generally rated as low, although the

financial consequences could be serious, including reputational damage to the Company.

Strategic Report continued

Job No: 47909 Proof Event: 21 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

Customer: Fidelity Project Title: FAV Annual Report 2022 T: 0207 055 6500 F: 020 7055 6600

Annual Report 2022

Fidelity Asian Values PLC

STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS

Other risks facing the Company include:

Tax and Regulatory Risks

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. The Board monitors tax and

regulatory changes at each Board meeting and through active

engagement with regulators and trade bodies by the Manager.

Going Concern Statement

The Financial Statements of the Company have been prepared

on a going concern basis.

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 2023 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 evolving variants of COVID, the war in Ukraine and

significant market events as set out in the Business Continuity and

Operational Risks on the previous page. The prospects of the

Company over a period longer than twelve months can be found

in the Viability Statement below.

Viability Statement

In accordance with provision 31 of the 2018 UK Corporate

Governance 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 long-term to be at least five

years, and accordingly, the Directors believe 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;

• The principal and emerging risks and uncertainties facing

the Company and their potential impact as set out on

pages25 to 28 and above;

• 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.

For the five year reporting period to 31 July 2022, the Company’s

NAV total return performance of +33.5% was ahead of the +30.2%

total return of the Comparative Index. In comparison, the share

price total return was +30.1%. The Board regularly reviews the

investment policy and considers it remains appropriate. 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, particularly in the

context of the climate change risk identified within the ESG

Risk on page 28. The Board has also considered the impact of

regulatory changes and how this may affect the Company.

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 take place at the AGM in 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.

Job No: 47909 Proof Event: 21 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

Customer: Fidelity Project Title: FAV Annual Report 2022 T: 0207 055 6500 F: 020 7055 6600

Fidelity Asian Values PLC

Annual Report 2022

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, custodial, banking

and audit services. The Board considers the Company’s key

stakeholders to be the existing and potential shareholders,

the external appointed Manager (FIL Investment Services (UK)

Limited) and other third-party professional service providers. The

Board considers that the interest of these stakeholders is 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.

The Board, with the Portfolio Manager, 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 24 and 25.

The Board places great importance on communication with

shareholders. The Annual General Meeting ("AGM") provides

the key forum for the Board and the Portfolio Manager 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 Manager

meets 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 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. The Board believes that a proper consideration of

Environmental, Social and Governance (“ESG”) issues aligns with

the investment objective to deliver long-term capital growth, and

the Board’s review of the Manager includes an assessment of

their ESG approach, which is set out in detail on pages 10 to 14.

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:

• Seeking shareholder approval at the AGM on 3 December

2021 for the continuation of the Company (continuation votes

are held every five years);

• Authorising the repurchase of 352,816 ordinary shares up to

the date of this Annual Report when the Company’s discount

widened, in line with the Board’s discount management

policy;

• The decision to recommend a final dividend of 14.00 pence

per ordinary share, the highest rate paid since the Company

was launched;

• The decision to hold a hybrid AGM in 2022 in order to make

it more accessible to those investors who prefer not to attend

in person; and

• As part of the Board’s succession plans, the appointments of

Sally Macdonald and Matthew Sutherland to the Board with

effect from 1 January 2022.

Board Diversity

As at the date of this Annual Report, there were three male

Directors and three female Directors on the Board. The Board

carries out any candidate search against a set of objective

criteria and on the basis of merit, with due regard for the

benefits of diversity on the Board, including gender. Although the

Company is not a FTSE 350 company, the Board’s composition

exceeds the target of 33% of women on FTSE 350 company

boards set by the Hampton-Alexander Review.

CORPORATE AND SOCIAL RESPONSIBILITY

Environmental, Social, and Governance 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

increasingly important input into the assessment of the value of

its 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 the 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 www.fidelity.co.uk/responsible-investing. Further

information on Fidelity International’s approach to ESG in the

investment process and sustainable investing can be found on

pages 12 to 14 and are part of this Strategic Report.

Strategic Report continued

Job No: 47909 Proof Event: 21 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

Customer: Fidelity Project Title: FAV Annual Report 2022 T: 0207 055 6500 F: 020 7055 6600

Annual Report 2022

Fidelity Asian Values PLC

STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS

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.

Bribery Act 2010 and Criminal Finances Act 2017

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 has adopted a zero

tolerance policy in respect to bribery and tax evasion and its

facilitation.

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

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.

By Order of the Board

FIL Investments International

Secretary

11 October 2022

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Customer: Fidelity Project Title: FAV Annual Report 2022 T: 0207 055 6500 F: 020 7055 6600

Fidelity Asian Values PLC

Annual Report 2022

Board of Directors

Kate Bolsover

Chairman (since 9 December 2014)

Appointed 1 January 2010

Kate Bolsover is a non-executive Director of Baillie Gifford & Co. Ltd and

Bellevue Healthcare Trust plc. She is a Senior Independent Director of

Invesco Bond Income Plus Limited and TR Property Investment Trust PLC.

Between 1995 and 2005, she worked for Cazenove Group plc and J.P.

Morgan Cazenove as Managing Director of the mutual fund business

and latterly Director of Corporate Communications. Prior to this, she

worked in business development and mutual funds covering countries in

the Far East.

Clare Brady

Senior Independent Director

(since 22 April 2021)

Appointed 1 August 2019

Clare Brady is a chartered governance professional with 35 years’

experience in banking and financial services. She is currently a non-

executive director of Credit Suisse Group AG and chairs their Conduct

and Financial Crime Compliance Committee. She is a member of

the Audit and Risk Commission of the International Federation of Red

Cross and Red Crescent Societies and a Trustee of The Golden Charter

Trust. In her executive career, she was most recently 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, Clare headed

audit and compliance functions at the Bank of England, Barclays Capital,

HSBC and Deutsche Bank.

Sally Macdonald

Director

Appointed 1 January 2022

Sally Macdonald is a non-executive Director of JP Morgan Japanese

Investment Trust plc and Evelyn Partners Fund Solutions (formerly Smith

& Williamson Fund Administration Limited). She was, until recently, the

Head of Asian Equities at Marlborough Fund Managers. She has more

than thirty-five years’ experience of financial markets, which includes

almost thirty years as an Asian fund manager. She has previously

run the Asian desks for Sanwa, Lazard Brothers Asset Management,

Canada Life, Morley (Aviva), Dalton Strategic Partnership and City of

London Investment Group.

Grahame Stott

Director

Appointed 24 September 2013

Retiring 23 November 2022

Grahame Stott is Chairman of the Management Board of the Institute

and Faculty of Actuaries. He is also a non-executive Director and

Chairman of the Audit Committee and the Remuneration Committee of

China Motor Bus Company Limited. He is a Fellow of the Institute and

Faculty of Actuaries and an Affiliate of the ACCA. He has extensive

consultancy experience and insight into the intermediary market.

He spent 20 years at Watson Wyatt in Hong Kong, and became the

regional Director for 12 countries across Asia Pacific. He also served

as the Head of Watson Wyatt’s Global Investment Consulting Business.

His background is in working with fast growing listed companies.

Matthew Sutherland

Director

Appointed 1 January 2022

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.

Michael Warren

Director

Appointed 29 September 2014

Michael Warren is a non-executive Director of Henderson Smaller

Companies Investment Trust plc, Carrington Investments and Rathbones

Unit Trust Management Ltd. He is also an advisor to Gresham House

Asset Management Ltd (formerly known as Livingbridge LLP). He is a

past non-executive Director of Liontrust Panthera, Alquity Investment

Management Ltd and Vindependents. He worked for Thames River

Capital from 2007 until 2012 as Investment Director. Prior to that he

worked at HSBC Investments, where he was responsible for Institutional

and Retail distribution, and before that at Deutsche Asset Management,

where he was a main board member. Latterly, he served as Managing

Director of the UK mutual fund business, DWS.

Committee membership key

Audit

Management Engagement

Nomination

Committee Chair

All Directors are non-executive Directors and all are considered to be independent.

1 In accordance with the AIC Code, the Board considers Mrs Bolsover to remain independent notwithstanding the fact that her total tenure on the Board exceeds

nine years as a non-executive Director.

Job No: 47909 Proof Event: 21 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

Customer: Fidelity Project Title: FAV Annual Report 2022 T: 0207 055 6500 F: 020 7055 6600

Annual Report 2022

Fidelity Asian Values PLC

INFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGYGOVERNANCE

Directors’ Report

The Directors have pleasure in presenting their report and the

audited Financial Statements of the Company for the year ended

31 July 2022.

Results and Dividends

The Company’s results for the year ended 31 July 2022 are set

out in the Income Statement on page 51. The revenue return was

14.21 pence and the capital return was 4.31 pence, giving a total

return of 18.52 pence per ordinary share.

The Directors recommend that a final dividend of 14.00 pence

(2021: 8.80 pence) per ordinary share be paid on 7 December

2022 to shareholders who appear on the share register as at

the close of business on 28 October 2022 (ex-dividend date

27 October 2022).

The Board

All Directors served on the Board throughout the year ended

31July 2022 and up to the date of this report, with the exception

of Sally Macdonald and Matthew Sutherland who were both

appointed on 1 January 2022. A brief description of all serving

Directors as at the date of this report is shown on page 32 and

indicates their qualifications for Board membership.

In line with the Board's succession plan, Grahame Stott will not

be seeking re-election at the AGM on 23 November 2023.

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.

The Board reviews the Management Agreement at least annually

and details are included in the Corporate Governance Statement

on page 36.

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 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%.

Therefore, 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.

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 2022

is detailed in Note 4 on page 58 and the secretarial and

administration fee is detailed in Note 5 on page 59.

Auditor’s Appointment

A resolution to reappoint Ernst & Young LLP as Auditor to the

Company will be proposed at the AGM on 23 November 2022.

Disclosure of Information to the Company’s Auditor

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 Auditor is 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

Auditor is aware of that information.

Corporate Governance

The Corporate Governance Statement forms part of this report

and can be found on pages 35 to 38.

Registrar, Custodian and Depositary Arrangements

The Company has appointed Link Group 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 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 page 59.

Share Capital

The Company’s share capital comprises ordinary shares of 25

pence each which are fully listed on the London Stock Exchange.

As at 31 July 2022, the issued share capital of the Company was

75,580,889 ordinary shares (2021: 75,580,889) of which 3,182,553

shares are held in Treasury (2021: 2,402,010). Therefore, the

number of shares with voting rights was 72,398,336 (2021:

73,178,879).

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

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Fidelity Asian Values PLC

Annual Report 2022

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.

Ordinary Share Issues

No ordinary shares were issued during the year ended 31 July

2022 (2021: nil) and none have been issued since then and as at

the date of this report.

The authorities to issue ordinary shares and to disapply pre-

emption rights expire at the AGM on 23 November 2022 and

resolutions to renew these authorities will be put to shareholders

at this AGM.

Ordinary Share Repurchases

During the year ended 31 July 2022, 780,543 ordinary shares

were repurchased for holding in Treasury (2021: 753,228). Since

then and as at the date of this report a further 352,816 ordinary

shares have been repurchased into Treasury.

The authority to repurchase ordinary shares expires at the AGM

on 23 November 2022 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 this AGM.

Substantial Share Interests

As at 31 July 2022 and 31 August 2022, the shareholders listed

in the table below held more than 3% of the issued ordinary

share capital of the Company.

Shareholders

31 July

2022

31 August

2022

Fidelity Platform Investors 14.32 14.31

Charles Stanley 7.21 7.30

Interactive Investor 7.05 7.10

Hargreaves Lansdown 7.03 7.04

Evelyn Partners 6.32 6.38

Brewin Dolphin 4.51 4.52

Rathbones 3.88 3.72

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 24 to 31.

By Order of the Board

FIL Investments International

Secretary

11 October 2022

Directors’ Report continued

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Annual Report 2022

Fidelity Asian Values PLC

INFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGYGOVERNANCE

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.

Corporate Governance Codes

The Board follows the principles and provisions of the UK

Corporate Governance Code (the “UK Code”) issued by the

Financial Reporting Council (the “FRC”) in July 2018. The Board

also follows the AIC Code of Corporate Governance (the “AIC

Code”) issued by the Association of Investment Companies

(“AIC”) in February 2019. The AIC Code addresses the principles

and provisions of the UK Code. The FRC has confirmed that

investment companies which report against the AIC Code will

meet their obligations under the UK Code and paragraph 9.8.6

of the Listing Rules. This Statement, together with the Statement of

Directors’ Responsibilities on page 42, set out how the principles

have been applied.

The AIC Code can be found on the AIC’s website at

www.theaic.co.uk and the UK Code can be found on the

FRC’s website at www.frc.org.uk.

Statement of Compliance

The Company has complied with the recommendations of the

AIC Code and the relevant provisions of the UK Code for the

year under review and up to the date of this report, except in

relation to the UK Code provisions relating to the role of the chief

executive; executive directors’ remuneration; and the need for an

internal audit function. The Board considers that these provisions

are not relevant to the position of the Company as it is an

externally managed investment company and has no executive

directors, employees or internal operations. All of its day to day

management and administrative functions are delegated to the

Manager.

THE BOARD

Board Composition

The Board, chaired by Kate Bolsover, consists of six 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.

The Board’s succession plan is in the Chairman’s Statement on

pages3 and 4.

Clare Brady 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 32.

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 external evaluation of the Board, its Committees and the

Manager was carried out through Lintstock Ltd., which has no

connection with the Company or the Manager. It was concluded

that the Chairman, each Director and the Manager had been

effective and continues to demonstrate commitment to their roles.

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.

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.

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 on the next page

gives the attendance record for the meetings held during the

reporting year. In addition to the formal Board and Committee

meetings, the Board also holds a separate annual Strategy

meeting. Under normal circumstances, it also undertakes a

due diligence trip to Asia every other year and meets with the

management of existing and potential investee companies,

alongside the Portfolio Manager, including Fidelity International’s

research and analyst teams. However, due to the ongoing

pandemic and travel restrictions in some countries, the trip that

was rescheduled from March 2020 to March 2022, has been

further postponed to March 2023. In its place, the Board carried

out a series of due diligence sessions virtually in March 2022.

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Board’s Attendance Record for the Reporting Year

Regular

Board

Meetings

Audit

Committee

Meetings

Management

Engagement

Committee

Meetings

Nomination

Committee

Meetings

Kate Bolsover 5/5 n/a 1/1 1/1

Clare Brady 5/5 3/3 1/1 1/1

Sally Macdonald

3/3 2/2 n/a 1/1

Timothy Scholefield

2/2 1/1 1/1 n/a

Grahame Stott 5/5 3/3 1/1 1/1

Matthew Sutherland

3/3 2/2 n/a 1/1

Michael Warren 5/5 3/3 1/1 1/1

1 Appointed on 1 January 2022.

2 Retired on 3 December 2021.

Figures indicate those meetings for which each Director was eligible to attend and attended in the year. Regular Board meetings

exclude ad hoc meetings for formal approvals.

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 Committee, the Management Engagement Committee

and the Nomination 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 Committee

The Audit Committee is chaired by Grahame Stott and

consists of all of the Directors, except for Kate Bolsover which

is in line with the recommendation of the 2018 UK Corporate

Governance Code. Full details, including the Committee’s role

and responsibilities, are disclosed in the Report of the Audit

Committee on pages 43 and 44.

Management Engagement Committee

Composition

The Management Engagement Committee is chaired by Michael

Warren and consists of all of 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 2022 are in the Directors’

Report on page 33.

Nomination Committee

Composition

The Nomination Committee is chaired by Kate Bolsover and

consists of all of the Directors. In accordance with the AIC

Code, the Board considers Mrs Bolsover to remain independent

notwithstanding the fact that her total tenure on the Board

exceeds nine years as a non-executive Director.

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. This was

the case for the recruitment of Sally Macdonald and Matthew

Sutherland through the services of Odgers Berndston, who had

no connection with the Company. Both Mrs Macdonald and Mr

Sutherland’s appointments were effective from 1 January 2022.

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.

Corporate Governance Statement continued

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Annual Report 2022

Fidelity Asian Values PLC

INFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGYGOVERNANCE

The Committee also considers the election and re-election of

Directors ahead of each AGM. For the forthcoming AGM on

23 November 2022, it has considered the performance and

contribution to the Company of each Director subject to election

and re-election and concluded that each Director has been

effective and continues to demonstrate commitment to their role.

Accordingly, the Committee has recommended their continued

service to the Board, with the exception of Grahame Stott who is

stepping down from the Board at the conclusion of the AGM.

ACCOUNTABILITY AND AUDIT

Financial Reporting

Set out on page 42 is a statement by the Directors of their

responsibilities in respect of the preparation of the Annual Report

and Financial Statements. The Auditor has set out its reporting

responsibilities within the Independent Auditor’s Report to the

Members on pages 45 to 50. 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 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 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 Committee and the Board.

In carrying out its review, the Audit 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 Auditor 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 2022 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

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.

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 Directors, are available to

meet with shareholders to discuss strategy and governance. 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 on 23 November 2022 at which they will have the opportunity

to meet and address questions to the Chairman, other members

of the Board, the Portfolio Manager and representatives of the

Manager.

Nitin Bajaj, the Portfolio Manager, will be making a presentation to

shareholders highlighting the achievements and challenges of the

year past and the prospects for the year to come.

For those shareholders who would prefer not to attend in person,

we will live-stream the formal business and presentations of the

meeting online. Further details of how to join virtually are in Note 8

in the Notes to the Notice of Meeting on page 83.

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Annual General Meeting

The Notice of Meeting on pages 81 to 84 sets out the business of

the AGM and the special business resolutions are explained more

fully on pages 79 and 80. A separate resolution is proposed on

each substantially separate issue including 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

Kate Bolsover

Chairman

11 October 2022

Corporate Governance Statement continued

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Annual Report 2022

Fidelity Asian Values PLC

INFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGYGOVERNANCE

Directors’ Remuneration Report

Directors’ Remuneration

The fee structure with effect from 1 August 2022 is as follows:

Chairman – £42,000 (2021: £37,000); Chairman of the Audit

Committee – £35,000 (2021: £31,000); and Directors – £29,000

(2021: £26,750). Levels of remuneration are reviewed to ensure

that they remain competitive and sufficient to attract and retain

the quality of Directors needed to manage the Company

successfully.

At last year’s AGM, the Company’s Articles of Association were

updated to amend the individual fee cap of £50,000 per annum

per Director to a new fee cap of £300,000 in aggregate per

annum. As a result, the Remuneration Policy below has been

updated to reflect this and an ordinary resolution will be put to

shareholders for approval of the revised Remuneration Policy

at the AGM on 23 November 2022. No other changes have

been made.

An ordinary resolution to approve the Directors’ Remuneration

Report will also be put to shareholders at the AGM on

23November 2022.

The Remuneration Policy

The Company’s Articles of Association limit the aggregate fees

payable to the Directors to £300,000 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 in arrears. 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 (the “Policy”), as set out in last year’s

Annual Report, was approved at the AGM on 8 December

2020 with 99.07% of votes cast in favour, 0.66% of votes cast

against and 0.27% of votes withheld. The current Policy, as set

out above, has been followed throughout the year ended 31 July

2022 and up to the date of this report. The next vote will be

put to shareholders at the AGM on 23 November 2022, and

the votes cast will be disclosed on the Company’s website at:

www.fidelity.co.uk/asianvalues.

Voting on the Directors’ Remuneration Report

At the AGM held on 3 December 2021, 98.88% of votes were

cast in favour of the Directors’ Remuneration Report for the year

ended 31 July 2021, 0.85% of votes were cast against and 0.27%

votes were withheld.

The Directors’ Remuneration Report for the year ended 31 July

2022 will be put to shareholders at the AGM on 23 November

2022, 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 2022 was £172,093 (2021: £144,000). 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.

The fees for 2022 and the forecasted fees for 2023 are higher

than 2021 due to the crossover between Directors’ retirements

and appointments. This is part of the Board’s succession

planning.

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 2023 is

disclosed in the table on the next page.

31 July 2022

31 July 2021

Expenditure on Directors’

Remuneration:

Fees and taxable expenses 172,093 144,000

Distribution to Shareholders:

Dividend payments 6,440,000 6,241,000

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Fidelity Asian Values PLC

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Remuneration of Directors

2023 2022 2022 2022 2021 2021 2021

Projected

Total

Fees

(Audited)

Taxable

Expenses

(Audited)

Total

(Audited)

Fees

(Audited)

Taxable

Expenses

(Audited)

Total

(Audited)

(£) (£) (£) (£) (£) (£) (£)

Kate Bolsover 42,000 37,000 2,443 39,443 36,000 – 36,000

Clare Brady 33,205 26,750 1,256 28,006 26,000 – 26,000

Sally Macdonald

29,000 15,604 1,265 16,869 n/a n/a n/a

Timothy Scholefield

n/a 9,225 – 9,225 26,000 – 26,000

Grahame Stott

11,027 31,000 1,699 32,699 30,000 – 30,000

Matthew Sutherland

29,000 15,604 1,367 16,971 n/a n/a n/a

Michael Warren 29,000 26,750 2,130 28,880 26,000 – 26,000

Total 173,232 161,933 10,160 172,093 144,000 – 144,000

1 Appointed on 1 January 2022.

2 Retired on 3 December 2021.

3 Retiring on 23 November 2022.

Five year change comparison in Directors’ Remuneration

The table below sets out the change in Directors’ fees over the last five years.

2022 2017 Change (%)

Chairman 37,000 30,000 +23.3%

Senior Independent Director 26,750 22,750 +17.6%

Audit Committee Chair 31,000 25,000 +24.0%

Director 26,750 22,750 +17.6%

Performance

The Company’s objective is to achieve capital growth principally from the stockmarkets of the Asian Region excluding Japan. The

graph below shows performance over ten years to 31 July 2022 against its Benchmark Index – which is used for the purposes of

calculating the Variable Management Fee.

Total return performance for ten years to 31 July 2022

+196.0%

+193.1%

+160.7%

Prices rebased to 100.

Sources: Fidelity and Datastream.

Ordinary Share Price

MSCI All Countries Far East ex Japan Index to 31/07/15, MSCI All Countries Asia ex Japan Index to 31/01/2020,

MSCI All Countries Asia ex Japan Small Cap Index thereafter.

NAV per Ordinary Share

100

125

150

175

200

225

250

275

300

325

350

July 12 July 13 July 14 July 15 July 16 July 17 July 18 July 19 July 21 July 22July 20

Directors’ Remuneration Report continued

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Annual Report 2022

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INFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGYGOVERNANCE

Directors’ Interest in the Company’s Ordinary 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 ordinary shares of the Company. All of the shareholdings are beneficial.

The Portfolio Manager also holds shares in the Company.

Directors’ Shareholdings (Audited)

31 July

2022

31 July

2021

Change

during year

Ordinary Shares

Kate Bolsover 15,452 15,452 –

Clare Brady 2,500 2,500 –

Sally Macdonald

2,111 n/a –

Timothy Scholefield

n/a 12,000 –

Grahame Stott

30,000 25,000 5,000

Matthew Sutherland

27,859 n/a –

Michael Warren 10,000 10,000 –

1 Appointed on 1 January 2022. 2,111 shares held at appointment date. A further 623 shares purchased post year end.

2 Retired on 3 December 2021.

3 Purchase of shares.

4 Appointed on 1 January 2022. Shares held at appointment date.

On Behalf of the Board

Kate Bolsover

Chairman

11 October 2022

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Fidelity Asian Values PLC

Annual Report 2022

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 profit or loss 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 11 October 2022 and signed on its behalf by:

Kate Bolsover

Chairman

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Annual Report 2022

Fidelity Asian Values PLC

INFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGYGOVERNANCE

Report of the Audit Committee

I am pleased to present the formal report of the Audit Committee

(the “Committee”) to shareholders.

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 and the

effectiveness of the external audit process and how this has been

assessed for the year ended 31 July 2022.

Composition

The members of the Committee are myself as Chairman, Clare

Brady, Sally Macdonald, Matthew Sutherland and Michael Warren.

The Committee considers that collectively its members have

sufficient recent and relevant financial experience to discharge

their responsibilities fully.

Role and Responsibilities

The Committee’s authority and duties are clearly 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 Auditor the nature and scope of the

audit, reviewing the Auditor’s quality control procedures and

reporting, the effectiveness of the audit process and the

Auditor’s independence and objectivity with particular regard

to the provision of non-audit services;

• Responsibility for making recommendations on the

appointment, reappointment and removal of the Auditor;

• Reviewing the effectiveness of the Company’s risk

management and internal control systems (including financial,

operational and compliance controls), considering the

scope of work undertaken by the Manager’s internal audit

department* and reviewing the Company’s procedures for

detecting fraud;

• Monitoring the integrity of the Company’s half-yearly and

annual Financial Statements to ensure they are fair, balanced

and understandable;

• Reviewing the existence and performance of all controls

operating in the Company, including the review of internal

controls reporting of its service providers; and

• Reviewing the relationship with and the performance of third-

party service providers (such as the Registrar, Custodian and

Depositary).

Independence and Effectiveness of the Audit Process

Ernst & Young LLP acted as the Company’s Auditor for the year

ended 31 July 2022.

With regard to the independence of the Auditor, the Committee

reviewed:

• The Auditor’s arrangements for managing any conflicts of

interest;

• The fact that no non-audit services were provided to the

Company during the reporting year and as at the date of this

report; and

• The statement by the Auditor that it remains 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 Auditor of the agreed audit plan,

including the audit team and approach to significant risks;

• The audit findings report issued by the Auditor on the audit

of the Annual Report and Financial Statements for the year

ended 31 July 2022; and

• Feedback from the Manager on the audit of the Company.

The Committee concluded that the Auditor continues to remain

independent and the audit process remains effective.

Auditor’s Appointment and Audit Tenure

Ernst & Young LLP was appointed as the Company’s Auditor

on 30 November 2015 following a formal audit tender process.

The Committee has reviewed the Auditor’s independence and

the effectiveness of the audit process prior to recommending

its reappointment for a further year. The Auditor is required to

rotate audit partners every five years and this is the first year that

the current Audit Partner, Ashley Coups, has been in place. The

Committee will continue to review the Auditor’s appointment 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.

Fees paid to the Auditor for the audit of the Company’s Financial

Statements are disclosed in Note 5 on page 59. The audit fee for

the reporting year was £44,750 (2021: £28,000).

* The Committee, on behalf of the Board, has reviewed the work undertaken by the

Manager’s internal audit team and has sufficient reassurance that a sound system

of internal controls is maintained to safeguard shareholders’ investments and the

Company’s assets.

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Fidelity Asian Values PLC

Annual Report 2022

Annual Report And Financial Statements

During its review of the Company’s Financial Statements for the year ended 31 July 2022, the Committee, deliberated and considered

the following significant issues, including consideration of principal and emerging risks and uncertainties and the ongoing impact

of the pandemic and the war in Ukraine, in light of the Company’s activities, and issues communicated by the Auditor during its

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 55.

The Manager provided detailed revenue forecasts which the Committee reviewed and sought

explanations for any significant variances to these forecasts. The Committee also 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, including an additional internal controls report (“AAF” report)

prepared by PricewaterhouseCoopers LLP (“PwC”) on behalf of the Manager, 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 Auditor on its work on the recognition of

investment income.

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 56 and 57. The Committee took comfort

from the Depositary’s regular oversight function that investment related activities are conducted

in accordance with the Company’s investment policy. The Committee received reports from

the Manager, the Depositary and an additional AAF report prepared by PwC on behalf of

the Manager which concluded that controls around the valuation, existence and ownership of

investments operate effectively. The valuation of the Company’s unlisted investments is proposed

by the Manager’s Fair Value Committee (“FVC”) and reviewed by the Audit Committee.

It receives reporting from the FVC and reviews and challenges the proposed valuation

methodologies for all unlisted investments. The FVC’s proposals include recommendations from

Kroll (formerly known as Duff & Phelps), an external company that provides global financial

information and services, and also detailed input from Fidelity analysts covering the unlisted

companies. In addition, the Auditor reviewed the valuations of the unlisted investments in the

Company’s portfolio and reported its findings at the October 2022 Audit Committee meeting.

Management fee

calculation

The Company has a variable management fee arrangement in place. 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 Auditor that the

Company’s variable management fee has been calculated in accordance with the terms of the

Management Agreement.

As a result of the work performed, the Committee has concluded that the Annual Report and Financial Statements for the

year ended 31 July 2022, 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 42.

Grahame Stott

Chairman of the Audit Committee

11 October 2022

Report of the Audit Committee continued

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Customer: Fidelity Project Title: FAV Annual Report 2022 T: 0207 055 6500 F: 020 7055 6600

Annual Report 2022

Fidelity Asian Values PLC

GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY

Independent Auditor’s Report to the Members

of Fidelity Asian Values PLC

Opinion

We have audited the Financial Statements of Fidelity Asian

Values PLC (the Company) for the year ended 31 July 2022 which

comprise the Income Statement, the Statement of Changes in

Equity, the Balance Sheet and the related Notes 1 to 19, including

a summary of significant accounting policies. The financial

reporting framework that has been applied in their preparation

is applicable law and United Kingdom Accounting Standards

including FRS 102 “The Financial Reporting Standard applicable

in the UK and Republic of Ireland” (United Kingdom Generally

Accepted Accounting Practice).

In our opinion, the Financial Statements:

• give a true and fair view of the Company’s affairs as at 31

July 2022 and of its profit for the year then ended;

• have been properly prepared in accordance with United

Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of

the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International

Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our

responsibilities under those standards are further described in the

Auditor’s 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 are independent of the Company in accordance with the

ethical requirements that are relevant to our audit of the Financial

Statements in the UK, including the FRC’s Ethical Standard as

applied to public interest entities, and we have fulfilled our other

ethical responsibilities in accordance with these requirements.

The non-audit services prohibited by the FRC’s Ethical Standard

were not provided to the Company and we remain independent

of the Company in conducting the audit.

Conclusions relating to going concern

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. Our

evaluation of the Directors’ assessment of the Company’s ability

to continue to adopt the going concern basis of accounting

included:

• Confirmation of our understanding of the Company’s going

concern assessment process and engagement with the

Directors and the Company Secretary to determine if all key

factors were considered in their assessment.

• Inspection of the Directors’ assessment of the going concern,

including the revenue forecast, for the period to 31 October

2023 which is at least 12 months from the date the Financial

Statements were authorised for issue. In preparing the

revenue forecast, the Company has concluded that it is able

to continue to meet its ongoing costs as they fall due.

• Reviewing the factors and assumptions, including the

impact of the COVID-19 pandemic and the Russia/Ukraine

conflict, as applied to the revenue forecast. Considering

the appropriateness of the methods used to calculate the

forecast and determine, through testing of the methodology

and calculations, that the methods utilised were appropriate

to be able to make an assessment for the Company.

• Consideration of the mitigating factors included in the

revenue forecasts that are within the control of the Company,

including a review of the Company’s assessment of the

liquidity of investments held and evaluating the Company’s

ability to sell investments in order to cover the working

capital requirements should its revenue decline significantly.

• Reviewing the Company’s going concern disclosures

included in the Annual report in order to assess that the

disclosures were appropriate and in conformity with the

reporting standards.

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 the period

to 31 October 2023 which is at least twelve months from the date

the Financial Statements were authorised for issue.

In relation to the Company’s 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. However, because not all future events or

conditions can be predicted, this statement is not a guarantee as

to the Company’s ability to continue as a going concern.

Overview of our audit approach

Key audit matters

• Risk of incomplete or inaccurate revenue recognition, including the classification of special

dividends as revenue or capital in the Income Statement.

• Risk of incorrect valuation or ownership of the investment portfolio.

Materiality

• Overall materiality of £3.68m which represents 1% of the net asset value of the Company as at

31 July 2022.

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Customer: Fidelity Project Title: FAV Annual Report 2022 T: 0207 055 6500 F: 020 7055 6600

Fidelity Asian Values PLC

Annual Report 2022

AN OVERVIEW OF THE SCOPE OF OUR AUDIT

Tailoring the scope

Our assessment of audit risk, our evaluation of materiality and our allocation of performance materiality determine our audit scope for

the Company. This enables us to form an opinion on the Financial Statements. We take into account size, risk profile, the organisation

of the Company and effectiveness of controls, including controls and changes in the business environment when assessing the level of

work to be performed. All audit work was performed directly by the audit engagement team.

Climate change

There has been increasing interest from stakeholders as to how climate change will impact companies. The Company has determined

that the impact of climate change could affect the Company’s investments and their valuations and potentially shareholder returns.

This is explained on page 28 in the principal and emerging risks section, which forms part of the “Other information,” rather than

the audited Financial Statements. Our procedures on these disclosures therefore consisted solely of considering whether they are

materially inconsistent with the Financial Statements, or our knowledge obtained in the course of the audit or otherwise appear to be

materially misstated.

Our audit effort in considering climate change was focused on the adequacy of the Company’s disclosures in the Financial Statements

as set out in Note 2(a) and the conclusion that there was no further impact of climate change to be taken into account. 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. We also challenged the Directors’

considerations of climate change in their assessment of viability and associated disclosures.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our 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)

that we identified. These matters included 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 were addressed in the context of our audit of the

Financial Statements as a whole, and in our opinion thereon, and we do not provide a separate opinion on these matters.

Risk Our response to the risk Key observations

communicated to the

Audit Committee

Risk of incomplete or inaccurate revenue

recognition, including the classification

of special dividends as revenue or

capital in the Income Statement

Refer to the Report of the Audit Committee

(page 44); Accounting Policies (page 55); and

Note 3 of the Financial Statements (page 58)

The Company has reported revenue of £15.26m

(2021: £10.84m).

During the year, the Company received special

dividends amounting to £0.48m (2021: £4.64m),

of which £0.38m (2021: £0.54m) was classified

as revenue and £0.10m (2021: £4.10m) was

classified as capital.

We have performed the following

procedures:

We obtained an understanding of the processes

and controls surrounding revenue recognition

and classification of special dividends by

performing our walkthrough procedures to

evaluate the design and implementation of

controls;

For a sample of dividends received, we

recalculated the income by multiplying the

investment holdings at the ex-dividend date,

traced from the accounting records, by the

dividend rate as agreed to an independent

data vendor. We agreed the amounts received

to bank statements and, where applicable, we

also agreed the exchange rates to an external

source;

The results of

our procedures

identified no material

misstatement in

relation to the risk

of incomplete or

inaccurate revenue

recognition, including

incorrect classification

of special dividends

as revenue or

capital in the Income

Statement.

Independent Auditor’s Report to the Members

of Fidelity Asian Values PLC continued

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Customer: Fidelity Project Title: FAV Annual Report 2022 T: 0207 055 6500 F: 020 7055 6600

Annual Report 2022

Fidelity Asian Values PLC

GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY

Risk Our response to the risk Key observations

communicated to the

Audit Committee

There is a risk of incomplete or inaccurate

recognition of revenue through failure to

recognise proper income entitlements or to

apply an appropriate accounting treatment.

In addition to the above, the Directors are

required to exercise judgement in determining

whether income receivable in the form of special

dividends should be classified as ‘revenue’ or

‘capital’ in the Income Statement.

To test completeness of recorded income, we

tested that all expected dividends for a sample

of investee companies had been recorded as

income with reference to investee company

announcements obtained from an independent

data vendor;

For all dividends accrued at the year end, we

reviewed the investee company announcements

to assess whether the obligation arose prior to

31 July 2022. We agreed the dividend rate to

corresponding announcements made by the

investee company, recalculated the amount

receivable and agreed the subsequent cash

receipts to post-year end bank statements where

applicable; and

For each of the special dividends above our

testing threshold, we recalculated the amount

received and assessed the appropriateness of

classification as revenue or capital by reviewing

the rationale for the underlying distribution.

Risk of incorrect valuation or ownership

of the investment portfolio

Refer to the Report of the Audit Committee

(page 44); Accounting Policies (pages 56 and

57); and Notes 10 and 11 of the Financial

Statements (pages 62 and 63)

The valuation of the investment portfolio as at the

year-end was £338.51m (2021: £349.33m), which

comprise of £337.25m (2021: £348.78m) of listed

investments, £1.59m (2021: £1.45m) of unlisted

investments and £(0.33)m (2021: £(0.90)m) of net

derivatives.

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 pricing, including incorrect

application of exchange rates, or failure to

maintain proper legal title to the investments

held by the Company could have a significant

impact on the portfolio valuation and return

generated for shareholders.

We have performed the following

procedures:

We obtained an understanding of the processes

and controls surrounding investment pricing

and legal title by performing our walkthrough

procedures;

For all listed investments in the portfolio, we

compared the market prices and exchange rates

applied to an independent pricing vendor. For

all derivatives, we compared the market prices

of the underlying instrument to an independent

pricing vendor and agreed cost price to the

Brokers’ confirmations. We recalculated the

investment and derivative valuations as at the

year-end;

We inspected the stale pricing report to identify

prices that have not changed and verified

whether the quoted price is a valid fair value;

For the unlisted investments, we obtained and

assessed the valuation papers to support the

valuation of the investments as at the year-end;

and

We compared the Company’s investment

holdings at 31 July 2022 to independent

confirmation received directly from the

Company’s Custodian and Depositary. We

agreed all year-end open derivative positions to

confirmations received independently from the

Company’s brokers.

The results of

our procedures

identified no material

misstatement in

relation to the risk of

incorrect valuation

or ownership of the

investment portfolio.

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Fidelity Asian Values PLC

Annual Report 2022

Our application of materiality

We apply the concept of materiality in planning and performing

the audit, in evaluating the effect of identified misstatements on

the audit and in forming our audit opinion.

Materiality

The magnitude of an omission or misstatement that, individually

or in the aggregate, could reasonably be expected to influence

the economic decisions of the users of the financial statements.

Materiality provides a basis for determining the nature and extent

of our audit procedures.

We determined materiality for the Company to be £3.68m (2021:

£3.64m), which is 1% (2021: 1%) of the Company’s net asset value.

We believe that net assets provide us with materiality aligned to

the key measure of the Company’s performance.

Performance materiality

The application of materiality at the individual account

or balance level. It is set at an amount to reduce to an

appropriately low level the probability that the aggregate of

uncorrected and undetected misstatements exceeds materiality.

On the basis of our risk assessments, together with our

assessment of the Company’s overall control environment, our

judgement was that performance materiality was 75% (2021:

75%) of our planning materiality, namely £2.76m (2021: £2.73m).

We have set performance materiality at this percentage due to

our past experience of the audit that indicates a lower risk of

misstatements, both corrected and uncorrected.

Given the importance of the distinction between revenue and

capital for investment trusts, we have also applied a separate

testing threshold for the revenue column of the Income Statement

of £0.57m (2021: £0.38m) being 5% (2021: 5%) of revenue profit

before tax.

Reporting threshold

An amount below which identified misstatements are considered

as being clearly trivial.

We agreed with the Audit Committee that we would report to

them all uncorrected audit differences in excess of £0.18m (2021:

£0.18m), which is set at 5% of planning materiality, as well as

differences below that threshold that, in our view, warranted

reporting on qualitative grounds.

We evaluate any uncorrected misstatements against both the

quantitative measures of materiality discussed above and in light

of other relevant qualitative considerations in forming our opinion.

Other information

The other information comprises the information included in

the Annual Report other than the Financial Statements and our

Auditor’s report thereon. The Directors are responsible for the

other information contained within the Annual Report.

Our opinion on the Financial Statements does not cover the other

information and, except to the extent otherwise explicitly stated in

this report, we do not express any form of assurance conclusion

thereon.

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 course of the audit or otherwise appears to be

materially misstated. If we identify such material inconsistencies

or apparent material misstatements, we are required to

determine whether this gives rise to a material misstatement

in the Financial Statements themselves. If, based on the work

we have performed, we conclude that there is a material

misstatement of the other information, we are required to report

that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act

2006

In our opinion the part of the Directors’ Remuneration Report to

be audited has been properly prepared in accordance with the

Companies Act 2006.

In our opinion, based on the work undertaken in the course of the

audit:

• the information given in the Strategic Report and the

Directors’ Report for the financial year for which the Financial

Statements are prepared is consistent with the Financial

Statements; and

• the Strategic Report and Directors’ Report have been

prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Company

and its environment obtained in the course of the audit, we have

not identified material misstatements in the Strategic Report or

Directors’ Report.

We have nothing to report in respect of the following matters in

relation to which the Companies Act 2006 requires us to report to

you if, in our opinion:

• adequate accounting records have not been kept, or

returns adequate for our audit have not been received from

branches not visited by us; 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; or

• certain disclosures of Directors’ remuneration specified by

law are not made; or

• we have not received all the information and explanations

we require for our audit.

Corporate Governance Statement

We have reviewed the Directors’ statement 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 by the Listing Rules.

Independent Auditor’s Report to the Members

of Fidelity Asian Values PLC continued

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Customer: Fidelity Project Title: FAV Annual Report 2022 T: 0207 055 6500 F: 020 7055 6600

Annual Report 2022

Fidelity Asian Values PLC

GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY

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 or our knowledge obtained during the audit:

• Directors’ statement with regards to the appropriateness of

adopting the going concern basis of accounting and any

material uncertainties identified set out on page 29;

• Directors’ explanation as to its assessment of the Company’s

prospects, the period this assessment covers and why the

period is appropriate set out on page 29;

• Director’s statement on whether it has a reasonable

expectation that the Company will be able to continue in

operation and meets its liabilities set out on page 29;

• Directors’ statement on fair, balanced and understandable

set out on page 42;

• Board’s confirmation that it has carried out a robust

assessment of the emerging and principal risks set out on

page 25;

• The section of the Annual Report that describes the review

of effectiveness of risk management and internal control

systems set out on page 37; and

• The section describing the work of the Audit Committee set

out on page 43.

Responsibilities of Directors

As explained more fully in the Statement of Directors’

Responsibilities set out on page 42, the Directors are responsible

for the preparation of the Financial Statements and for being

satisfied that they give a true and fair view, and for such internal

control as the Directors 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.

Auditor’s 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 Auditor’s 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.

Explanation as to what extent the audit was considered

capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance

with laws and regulations. We design procedures in line with our

responsibilities, outlined above, to detect irregularities, including

fraud. 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. The extent to which our procedures are capable of

detecting irregularities, including fraud is detailed below.

However, the primary responsibility for the prevention and

detection of fraud rests with both those charged with governance

of the Company and management.

• We obtained an understanding of the legal and regulatory

frameworks that are applicable to the Company and

determined that the most significant are the FRS 102,

the Companies Act 2006, the Association of Investment

Companies Code of Corporate Governance, the Association

of Investment Companies’ Statement of Recommended

Practice, the Listing Rules, the Corporate Governance Code,

Section 1158 of the Corporation Tax Act 2010 and the

Companies (Miscellaneous Reporting) Regulations 2018.

• We understood how the Company is complying with those

frameworks through discussions with the Audit Committee

and Company Secretary and review of Board minutes and

the Company’s documented policies and procedures.

• We assessed the susceptibility of the Company’s Financial

Statements to material misstatement, including how fraud

might occur by considering the key risks impacting the

Financial Statements. We identified a fraud risk with respect

to the incomplete or inaccurate revenue recognition through

incorrect classification of special dividends as revenue or

capital items in the Income Statement. Further discussion of

our approach is set out in the section on key audit matters

above.

• Based on this understanding we designed our audit

procedures to identify non-compliance with such laws

and regulations. Our procedures involved review of the

reporting to the Directors with respect to the application of

the documented policies and procedures and review of the

Financial Statements to ensure compliance with the reporting

requirements of the Company.

A further description of our responsibilities for the audit

of the Financial Statements is located on the Financial

Reporting Council’s website at https://www.frc.org.uk/

auditorsresponsibilities. This description forms part of our

Auditor’s report.

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Customer: Fidelity Project Title: FAV Annual Report 2022 T: 0207 055 6500 F: 020 7055 6600

Fidelity Asian Values PLC

Annual Report 2022

Other matters we are required to address

• Following the recommendation from the Audit Committee,

we were appointed by the Company on 30 November 2015

to audit the Financial Statements for the year ending 31 July

2016 and subsequent financial periods. The period of total

uninterrupted engagement including previous renewals and

reappointments is seven years, covering the years ending 31

July 2016 to 31 July 2022.

• The audit opinion is consistent with the additional report to

the Audit Committee.

Use of our report

This report is made solely to the Company’s members, as a

body, in accordance with Chapter 3 of Part 16 of the Companies

Act 2006. Our audit work has been undertaken so that we might

state to the Company’s members those matters we are required

to state to them in an Auditor’s report and for no other purpose.

To the fullest extent permitted by law, we do not accept or

assume responsibility to anyone other than the Company and

the Company’s members as a body, for our audit work, for this

report, or for the opinions we have formed.

Ashley Coups

Senior Statutory Auditor

For and on Behalf of Ernst & Young LLP, Statutory Auditor

London

11 October 2022

Independent Auditor’s Report to the Members

of Fidelity Asian Values PLC continued

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Annual Report 2022

Fidelity Asian Values PLC

GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY

Income Statement

for the year ended 31 July 2022

The Notes on pages 54 to 75 form an integral part of these Financial Statements.

Year ended 31 July 2022 Year ended 31 July 2021

Notes

Revenue

£’000

Capital

£’000

Total

£’000

Revenue

£’000

Capital

£’000

Total

£’000

Gains on investments 10 – 2,708 2,708 – 94,254 94,254

(Losses)/gains on derivative instruments 11 – (1,815) (1,815) – 6,975 6,975

Income 3 15,256 – 15,256 10,842 – 10,842

Investment management fees 4 (2,564) 732 (1,832) (2,272) 649 (1,623)

Other expenses 5 (905) – (905) (768) (3) (771)

Foreign exchange gains/(losses) – 2,609 2,609 – (1,671) (1,671)

Net return on ordinary activities before finance costs

and taxation 11,787 4,234 16,021 7,802 100,204 108,006

Finance costs 6 (331) – (331) (287) – (287)

Net return on ordinary activities before taxation 11,456 4,234 15,690 7,515 100,204 107,719

Taxation on return on ordinary activities 7 (1,079) (1,085) (2,164) (774) (3,380) (4,154)

Net return on ordinary activities after taxation for the

year 10,377 3,149 13,526 6,741 96,824 103,565

Return per ordinary share 8 14.21p 4.31p 18.52p 9.20p 132.09p 141.29p

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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Customer: Fidelity Project Title: FAV Annual Report T: 0207 055 6500 F: 020 7055 6600

Fidelity Asian Values PLC

Annual Report 2022

Statement of Changes in Equity

for the year ended 31 July 2022

Notes

capital

£’000

premium

account

£’000

Capital

redemption

reserve

£’000

Other non-

distributable

reserve

£’000

Other

reserve

£’000

Capital

reserve

£’000

Revenue

reserve

£’000

Total

shareholders’

funds

£’000

Total shareholders’ funds at

31 July 2021 18,895 50,501 3,197 7,367 719 273,107 10,278 364,064

Net return on ordinary activities

after taxation for the year – – – – – 3,149 10,377 13,526

Repurchase of ordinary shares 14 – – – – (719) (2,808) – (3,527)

Dividend paid to shareholders 9 – – – – – – (6,440) (6,440)

Total shareholders’ funds at

31 July 2022 18,895 50,501 3,197 7,367 – 273,448 14,215 367,623

Total shareholders’ funds at

31 July 2020 18,895 50,501 3,197 7,367 3,379 176,283 9,778 269,400

Net return on ordinary activities

after taxation for the year – – – – – 96,824 6,741 103,565

Repurchase of ordinary shares 14 – – – – (2,660) – – (2,660)

Dividend paid to shareholders 9 – – – – – – (6,241) (6,241)

Total shareholders’ funds at

31 July 2021 18,895 50,501 3,197 7,367 719 273,107 10,278 364,064

The Notes on pages 54 to 75 form an integral part of these Financial Statements.

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Annual Report 2022

Fidelity Asian Values PLC

GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY

Balance Sheet

as at 31 July 2022

Company number 3183919

Notes

2022

£’000

2021

£’000

Fixed assets

Investments 10 338,845 350,225

Current assets

Derivative instruments 11 972 437

Debtors 12 4,568 3,489

Amounts held at futures clearing houses and brokers 2,997 2,825

Cash at bank 25,368 14,128

33,905 20,879

Current liabilities

Derivative instruments 11 (1,302) (1,335)

Other creditors 13 (3,825) (5,705)

(5,127) (7,040)

Net current assets 28,778 13,839

Net assets 367,623 364,064

Capital and reserves

Share capital 14 18,895 18,895

Share premium account 15 50,501 50,501

Capital redemption reserve 15 3,197 3,197

Other non-distributable reserve 15 7,367 7,367

Other reserve 15 – 719

Capital reserve 15 273,448 273,107

Revenue reserve 15 14,215 10,278

Total shareholders’ funds 367,623 364,064

Net asset value per ordinary share 16 507.78p 497.50p

The Financial Statements on pages 51 to 75 were approved by the Board of Directors on 11 October 2022 and were signed on its

behalf by:

Kate Bolsover

Chairman

The Notes on pages 54 to 75 form an integral part of these Financial Statements.

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Fidelity Asian Values PLC

Annual Report 2022

Notes to the Financial Statements

1 Principal Activity

Fidelity Asian Values PLC is an Investment Company incorporated in England and Wales with a premium listing on the London Stock

Exchange. The Company’s registration number is 3183919, 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 July 2022. 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 2023 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. This conclusion also takes into account the Director’s assessment of the continuing risks arising from

COVID-19.

In preparing these Financial Statements the Directors have considered the impact of climate change risk as a principal and an

emerging risk as set out on page 25 and on page 28, 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 29 takes account of all events and conditions up to

31 October 2023 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 each fair value 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) below) 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, 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 have 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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Annual Report 2022

Fidelity Asian Values PLC

GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY

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 Other Price Risk Sensitivity

in Note 17 below 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”) are 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, collateral and bank deposits are accounted for on an accruals basis and credited to the revenue column of

the Income Statement. Interest received on CFDs represent 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 in full to revenue;

• The variable investment management fee, is 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 are 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.

h) Finance costs – Finance costs comprise interest on bank overdrafts and collateral 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 charged in full to the revenue column of the Income

Statement.

Job No: 47909 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

Customer: Fidelity Project Title: FAV Annual Report T: 0207 055 6500 F: 020 7055 6600

Fidelity Asian Values PLC

Annual Report 2022

Notes to the Financial Statements continued

2 Accounting Policies continued

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 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 Manager’s team, meets quarterly to determine

the fair value of unlisted investments. These are based on the principles outlined in Note 2 (b) above.

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 provide 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 also given to the input received from the Fidelity International analyst that covers the company and

valuation reports from a third party 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 below.

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.

Job No: 47909 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

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Annual Report 2022

Fidelity Asian Values PLC

GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY

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, 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 as collateral on behalf

of brokers and are carried at amortised cost.

o) Other creditors – Other creditors include securities purchased for future settlement, amounts payable on share repurchases, capital

gains tax 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.

p) 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 investment management fees;

• Dividends receivable which are capital in nature;

• Other expenses which are capital in nature; and

• Taxation charged or credited relating to items 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 were considered to be readily convertible to cash, with the exception of the level 3 investments which had unrealised

investment holding losses of £188,000 (2021: losses of £57,000). See Note 17 on pages 73 and 74 for further details on the level 3

investments.

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Fidelity Asian Values PLC

Annual Report 2022

Notes to the Financial Statements continued

3 Income

Year ended

31.07.22

£’000

Year ended

31.07.21

£’000

Investment income

Overseas dividends 13,905 9,457

Overseas scrip dividends 114 654

14,019 10,111

Derivative income

Dividends received on long CFDs 1,200 720

Interest received on CFDs 20 9

1,220 729

Other interest

Interest received on collateral and bank deposits 17 2

Total income 15,256 10,842

A special dividend of £97,000 has been recognised in capital during the year (2021: £4,103,000).

4 Investment Management Fees

Year ended 31 July 2022 Year ended 31 July 2021

Revenue

£’000

Capital

£’000

Total

£’000

Revenue

£’000

Capital

£’000

Total

£’000

Investment management fees 2,564 (732) 1,832 2,272 (649) 1,623

1 For the calculation of the variable management fee element, the Company’s NAV return was compared to the Benchmark Index return on a daily basis. The period used

to assess the performance was from 1 August 2018 until a three year history was established. From 1 August 2021 the performance period is on a rolling three year

basis. This has resulted in an underperformance of the NAV and a credit to the Company in the current and prior period.

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.

The Company charges base investment management fees to revenue at an annual rate of 0.70% of net assets. In addition, there is

+/- 0.20% variation fee based on the Company’s NAV per share performance relative to the Company’s Benchmark Index which is

charged to capital. Fees are payable monthly in arrears and are calculated on a daily basis.

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Annual Report 2022

Fidelity Asian Values PLC

GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY

5 Other Expenses

Year ended

31.07.22

£’000

Year ended

31.07.21

£’000

Allocated to revenue:

AIC fees 20 16

Custody fees 148 128

Depositary fees 31 29

Directors’ expenses 23 13

Directors’ fees* 162 144

Legal and professional fees 109 99

Marketing expenses 157 124

Printing and publication expenses 79 66

Registrars’ fees 37 31

Secretarial and administration fees payable to the Investment Manager 75 75

Sundry other expenses 19 15

Fees payable to the Company’s Independent Auditor for the audit of the Financial Statements 45 28

905 768

Allocated to capital:

Legal and professional fees – 3

Other expenses 905 771

* Details of the breakdown of Directors’ fees are disclosed in the Directors’ Remuneration Report on page 40.

6 Finance Costs

Year ended

31.07.22

£’000

Year ended

31.07.21

£’000

Interest on bank overdrafts and collateral 5 3

Interest paid on CFDs 255 225

Dividends paid on short CFDs 71 59

331 287

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Fidelity Asian Values PLC

Annual Report 2022

Notes to the Financial Statements continued

7 Taxation on Return on Ordinary Activities

Year ended 31 July 2022 Year ended 31 July 2021

Revenue

£’000

Capital

£’000

Total

£’000

Revenue

£’000

Capital

£’000

Total

£’000

a) Analysis of the taxation charge for

the year

Overseas taxation 1,079 – 1,079 774 – 774

Indian capital gains tax – 1,085 1,085 – 3,380 3,380

Taxation charge for the year

(see Note 7b) 1,079 1,085 2,164 774 3,380 4,154

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 19% (2021:

19%). A reconciliation of the standard rate of UK corporation tax to the taxation charge for the year is shown below:

Year ended 31 July 2022 Year ended 31 July 2021

Revenue

£’000

Capital

£’000

Total

£’000

Revenue

£’000

Capital

£’000

Total

£’000

Net return on ordinary activities before

taxation 11,456 4,234 15,690 7,515 100,204 107,719

Net return on ordinary activities before

taxation multiplied by the standard rate of

UK corporation tax of 19% (2021: 19%) 2,177 804 2,981 1,428 19,039 20,467

Effects of:

Capital gains not taxable* – (665) (665) – (18,916) (18,916)

Income not taxable (2,617) – (2,617) (1,866) – (1,866)

Excess management expenses 441 – 441 438 – 438

Excess interest paid – (139) (139) – (123) (123)

Expense relief for overseas taxation (1) – (1) – – –

Overseas taxation 1,079 – 1,079 774 – 774

Indian capital gains tax – 1,085 1,085 – 3,380 3,380

Taxation charge for the year (Note 7a) 1,079 1,085 2,164 774 3,380 4,154

* 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.

c) Deferred taxation

A deferred tax asset of £7,858,000 (2021: £7,460,000), in respect of excess management expenses of £29,162,000 (2021: £26,837,000)

and excess interest paid of £2,271,000 (2021: £3,003,000), has not been recognised as it is unlikely that there will be sufficient future

taxable profits to utilise these expenses.

In the Spring Budget of 2021, the UK Government announced that from 1 April 2023 the corporation tax rate will increase to 25%.

Although this rate has been substantively enacted at the balance sheet date and has therefore been applied to calculate the

unrecognised deferred tax asset for the current year, the Chancellor of the Exchequer subsequently announced on 23 September 2022

that the corporation tax rate will remain at 19% from 1 April 2023. This reversal in the tax rate increase has not been substantively

enacted and accordingly has no impact on the tax balances at 31 July 2022. The potential impact of this change on the unrecognised

deferred tax asset at 31 July 2022 would be £1,886,000.

Job No: 47909 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

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Annual Report 2022

Fidelity Asian Values PLC

GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY

8 Return per Ordinary Share

Year ended

31.07.22

Year ended

31.07.21

Revenue return per ordinary share 14.21p 9.20p

Capital return per ordinary share 4.31p 132.09p

Total return per ordinary share 18.52p 141.29p

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 in issue during the year, as shown below:

£’000 £’000

Net revenue return on ordinary activities after taxation 10,377 6,741

Net capital return on ordinary activities after taxation 3,149 96,824

Net total return on ordinary activities after taxation 13,526 103,565

Number Number

Weighted average number of ordinary shares held outside Treasury 73,039,011 73,297,971

9 Dividends Paid to Shareholders

Year ended

31.07.22

£’000

Year ended

31.07.21

£’000

Dividend paid

Dividend of 8.80 pence per ordinary share paid for the year ended 31 July 2021 6,440 –

Dividend of 8.50 pence per ordinary share paid for the year ended 31 July 2020 – 6,241

6,440 6,241

Dividend proposed

Dividend proposed of 14.00 pence per ordinary share for the year ended 31 July 2022 10,086 –

Dividend proposed of 8.80 pence per ordinary share for the year ended 31 July 2021 – 6,440

10,086 6,440

The Directors have proposed the payment of a dividend for the year ended 31 July 2022 of 14.00 pence per ordinary share which is

subject to approval by shareholders at the Annual General Meeting on 23 November 2022 and has not been included as a liability in

these Financial Statements. The dividend will be paid on 7 December 2022 to shareholders on the register at the close of business on

28 October 2022 (ex-dividend date 27 October 2022).

Job No: 47909 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

Customer: Fidelity Project Title: FAV Annual Report T: 0207 055 6500 F: 020 7055 6600

Fidelity Asian Values PLC

Annual Report 2022

Notes to the Financial Statements continued

10 Investments at Fair Value through Profit or Loss

2022

£’000

2021

£’000

Listed investments 337,254 348,779

Unlisted investments 1,591 1,446

Investments at fair value 338,845 350,225

Opening book cost 321,813 266,633

Opening investment holding gains/(losses) 28,412 (25,362)

Opening fair value 350,225 241,271

Movements in the year

Purchases at cost 165,463 201,449

Sales – proceeds (179,551) (186,749)

Gains on investments 2,708 94,254

Closing fair value 338,845 350,225

Closing book cost 336,727 321,813

Closing investment holding gains 2,118 28,412

Closing fair value 338,845 350,225

The Company received £179,551,000 (2021: £186,749,000) from investments sold in the year. The book cost of these investments when

they were purchased was £150,549,000 (2021: £146,269,000). 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

31.07.22

£’000

Year ended

31.07.21

£’000

Purchases transaction costs 245 265

Sales transaction costs 390 377

635 642

The portfolio turnover rate of the year was 49.6% (2021: 66.1%).

Job No: 47909 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

Customer: Fidelity Project Title: FAV Annual Report T: 0207 055 6500 F: 020 7055 6600

Annual Report 2022

Fidelity Asian Values PLC

GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY

11 Derivative Instruments

Year ended

31.07.22

£’000

Year ended

31.07.21

£’000

(Losses)/gains on derivative instruments

Realised (losses)/gains on long CFD positions closed (3,796) 13,998

Realised gains/(losses) on short CFD positions closed 2,584 (910)

Realised (losses)/gains on futures contracts closed (1,222) 970

Realised gains on options contracts closed 193 –

Realised gains/(losses) on forward currency contracts 126 (35)

Movement in investment holding gains/(losses) on long CFDs 464 (6,357)

Movement in investment holding (losses)/gains on short CFDs (451) 71

Movement in investment holding gains/(losses) on futures 184 (779)

Movement in investment holding gains on options 49 –

Movement in investment holding gains on forward currency contracts 54 17

(1,815) 6,975

2022

Fair value

£’000

2021

Fair value

£’000

Derivative instruments recognised on the Balance Sheet

Derivative instrument assets 972 437

Derivative instrument liabilities (1,302) (1,335)

(330) (898)

2022 2021

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 (218) 29,861 (682) 13,024

Long future (88) 3,997 (336) 4,384

Short CFDs (275) 7,277 176 5,942

Short futures (20) 682 44 1,589

Call option 317 3,034 – –

Forward currency contracts (46) – (100) –

(330) 44,851 (898) 24,939

Job No: 47909 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

Customer: Fidelity Project Title: FAV Annual Report T: 0207 055 6500 F: 020 7055 6600

Fidelity Asian Values PLC

Annual Report 2022

Notes to the Financial Statements continued

12 Debtors

2022

£’000

2021

£’000

Securities sold for future settlement 1,848 1,384

Accrued income 1,991 1,595

Taxation recoverable 640 425

Other debtors and prepayments 89 85

4,568 3,489

13 Other Creditors

2022

£’000

2021

£’000

Securities purchased for future settlement 948 2,402

Amount payable on share repurchases 276 –

Indian capital gains tax payable 2,170 2,902

Creditors and accruals 431 401

3,825 5,705

14 Share Capital

2022 2021

Number of

shares £’000

Number of

shares £’000

Issued, allotted and fully paid

Ordinary shares of 25 pence each held outside Treasury

Beginning of the year 73,178,879 18,295 73,932,107 18,483

Ordinary shares repurchased into Treasury (780,543) (195) (753,228) (188)

End of the year 72,398,336 18,100 73,178,879 18,295

Ordinary shares of 25 pence each held in Treasury

Beginning of the year 2,402,010 600 1,648,782 412

Ordinary shares repurchased into Treasury 780,543 195 753,228 188

End of the year 3,182,553 795 2,402,010 600

Total share capital 18,895 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 £3,527,000 (2021: £2,660,000).

Job No: 47909 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

Customer: Fidelity Project Title: FAV Annual Report T: 0207 055 6500 F: 020 7055 6600

Annual Report 2022

Fidelity Asian Values PLC

GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY

15 Capital and Reserves

capital

£’000

premium

account

£’000

Capital

redemption

reserve

£’000

Other non-

distributable

reserve

£’000

Other

reserve

£’000

Capital

reserve

£’000

Revenue

reserve

£’000

Total

shareholders’

funds

£’000

At 1 August 2021 18,895 50,501 3,197 7,367 719 273,107 10,278 364,064

Gains on investments (see Note 10) – – – – – 2,708 – 2,708

Losses on derivative instruments

(see Note 11) – – – – – (1,815) – (1,815)

Foreign exchange gains – – – – – 2,609 – 2,609

Investment management fees (see

Note 4) – – – – – 732 – 732

Indian capital gains tax (see Note 7) – – – – – (1,085) – (1,085)

Revenue return on ordinary activities

after taxation for the year – – – – – – 10,377 10,377

Dividend paid to shareholders (see

Note 9) – – – – – – (6,440) (6,440)

Repurchase of ordinary shares (see

Note 14) – – – – (719) (2,808) – (3,527)

At 31 July 2022 18,895 50,501 3,197 7,367 – 273,448 14,215 367,623

The capital reserve balance at 31 July 2022 includes investment holding gains of £2,118,000 (2021: gains of £28,412,000) as detailed

in Note 10 above. See Note 2 (p) above for further details. The revenue and capital reserves are distributable by way of dividend.

16 Net Asset Value per Ordinary Share

2022 2021

Total shareholders’ funds £367,623,000 £364,064,000

Ordinary shares held outside of Treasury at year end 72,398,336 73,178,879

Net asset value per ordinary share 507.78p 497.50p

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.

Job No: 47909 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

Customer: Fidelity Project Title: FAV Annual Report T: 0207 055 6500 F: 020 7055 6600

Fidelity Asian Values PLC

Annual Report 2022

Notes to the Financial Statements continued

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.

Principal risks identified are economic, political and market, discount management, cybercrime and information security, investment

performance (including the use of derivatives and gearing), shareholder relationship, key person, environmental, social and

governance (“ESG”) and business continuity and operational risks, including third party service providers risks. Other risks identified

are tax and regulatory risks. Risks are identified and graded in this process, together with steps taken in mitigation, and are updated

and reviewed on an ongoing basis. These risks and how they are identified, evaluated and managed are shown in the Strategic

Report on pages 25 to 29.

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) and equity linked notes 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 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 Manager. 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:

2022

£’000

2021

£’000

Exposure to financial instruments that earn interest

Cash at bank 25,368 14,128

Short CFDs – exposure plus fair value 7,002 6,118

Amounts held at futures clearing houses and brokers 2,997 2,825

35,367 23,071

Exposure to financial instruments that bear interest

Long CFDs – exposure less fair value 30,079 13,706

Net exposure to financial instruments that earn interest 5,288 9,365

Job No: 47909 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

Customer: Fidelity Project Title: FAV Annual Report T: 0207 055 6500 F: 020 7055 6600

Annual Report 2022

Fidelity Asian Values PLC

GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY

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 Manager 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

£’000

Debtors

£’000

Cash at

bank

£’000

2022

Total

£’000

Hong Kong dollar 90,764 25,443 1,318 287 117,812

Indian rupee 87,206 – 3,783 620 91,609

US dollar 12,367 9,783 1,063 23,801 47,014

Indonesian rupiah 41,649 – 4 – 41,653

South Korean won 31,895 – 68 6 31,969

Taiwan dollar 19,940 – 1,059 64 21,063

Australian dollar 19,035 – – – 19,035

Chinese renminbi 13,063 – – 97 13,160

Singapore dollar 11,149 1,666 – – 12,815

Philippine peso 4,810 (46) 33 – 4,797

Sri Lankan rupee 3,109 – 148 – 3,257

Vietnamese dong 1,173 – – 493 1,666

Other overseas currencies 2,685 – – – 2,685

UK Sterling – – 89 – 89

338,845 36,846 7,565 25,368 408,624

1 The exposure to the market of long CFDs, long futures and call option after the netting of the forward currency contract.

2 Debtors include amounts held at futures clearing houses and brokers.

Job No: 47909 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

Customer: Fidelity Project Title: FAV Annual Report T: 0207 055 6500 F: 020 7055 6600

Fidelity Asian Values PLC

Annual Report 2022

Notes to the Financial Statements continued

17 Financial Instruments continued

Currency

Investments

at fair value

£’000

Long

exposure to

derivative

instruments

£’000

Debtors

£’000

Cash at

bank

£’000

2021

Total

£’000

Hong Kong dollar 93,093 10,693 1,104 137 105,027

Indian rupee 80,078 – 2,524 1,979 84,581

Taiwan dollar 37,202 – 865 28 38,095

South Korean won 35,849 – 2 6 35,857

Indonesian rupiah 25,135 – – – 25,135

US dollar 7,576 5,113 1,140 11,028 24,857

Australian dollar 21,055 – – 24 21,079

Chinese renminbi 14,606 – – 261 14,867

Singapore dollar 8,562 1,602 – – 10,164

Philippine peso 7,330 (87) 480 – 7,723

Sri Lankan rupee 6,157 – – – 6,157

Vietnamese dong 4,364 – 115 665 5,144

Other overseas currencies 7,651 (13) – – 7,638

UK Sterling 1,567 – 84 – 1,651

350,225 17,308 6,314 14,128 387,975

1 The exposure to the market of long CFDs and long futures after the netting of the forward currency contract.

2 Debtors include amounts held at futures clearing houses and brokers.

Currency exposure of financial liabilities

The Company finances its investment activities through its ordinary share capital and reserves. The Company’s financial liabilities

comprise short positions on derivative instruments and other payables. The currency profile of these financial liabilities is shown below:

Currency

Short

exposure to

derivative

instruments

£’000

Other

creditors

£’000

2022

Total

£’000

US dollar 5,091 7 5,098

Indian rupee 682 2,744 3,426

Hong Kong dollar 2,186 311 2,497

Philippine peso – 27 27

Malaysian ringgit – 25 25

Taiwan dollar – 18 18

UK Sterling – 693 693

7,959 3,825 11,784

1 The exposure to the market of short CFDs and short futures.

Job No: 47909 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

Customer: Fidelity Project Title: FAV Annual Report T: 0207 055 6500 F: 020 7055 6600

Annual Report 2022

Fidelity Asian Values PLC

GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY

17 Financial Instruments continued

Currency

Short

exposure to

derivative

instruments

£’000

Other

creditors

£’000

2021

Total

£’000

Hong Kong dollar 4,025 2,166 6,191

Indian rupee 1,589 2,987 4,576

US dollar 1,917 – 1,917

Australian dollar – 98 98

Indonesian rupiah – 53 53

Taiwan dollar – 9 9

UK Sterling – 392 392

7,531 5,705 13,236

1 The exposure to the market of short CFDs and short futures.

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 Manager is responsible for actively monitoring the existing portfolio selected in accordance with the overall asset

allocation parameters described above and seeks 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 2022, the undiscounted gross cash outflows of the financial liabilities were all repayable within one year and consisted of

derivative instrument liabilities of £1,302,000 (2021: £1,335,000) and other creditors of £3,825,000 (2021: £5,705,000).

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.

Job No: 47909 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

Customer: Fidelity Project Title: FAV Annual Report T: 0207 055 6500 F: 020 7055 6600

Fidelity Asian Values PLC

Annual Report 2022

Notes to the Financial Statements continued

17 Financial Instruments continued

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. At 31 July 2022, £254,000 (2021: £129,000) was held by the brokers in cash

denominated in US dollars in a segregated collateral account on behalf of the Company, to reduce the credit risk exposure of the

Company. This collateral comprised: J.P. Morgan Securities plc £213,000 (2021: £129,000) and Morgan Stanley & Co International plc

£41,000 (2021: £nil). £2,997,000 (2021: £2,825,000), shown as amounts held at futures clearing houses and brokers on the Balance

Sheet, was held by the Company in a segregated collateral account, on behalf of the brokers, to reduce the credit risk exposure of the

brokers. This collateral is comprised of: UBS AG £2,574,000 (2021: £2,559,000) in cash and HSBC Bank Plc £423,000 (2021: £266,000)

in cash.

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.

Derivative instruments 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 Manager believes to be over valued. 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 2022, an increase of 0.25% in interest rates throughout the year,

with all other variables held constant, would have increased the net return on ordinary activities after taxation for the year and

increased the net assets of the Company by £13,000 (2021: increased the net return and increased the net assets by £23,000). A

decrease of 0.25% in interest rates throughout the year would have had an equal but opposite effect.

Job No: 47909 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

Customer: Fidelity Project Title: FAV Annual Report T: 0207 055 6500 F: 020 7055 6600

Annual Report 2022

Fidelity Asian Values PLC

GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY

17 Financial Instruments continued

Foreign currency risk sensitivity analysis

Based on the financial instruments held and currency exchange rates as at the Balance Sheet date, 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 (2021: decreased the net return and decreased the net assets) by the following amounts:

Currency

2022

£’000

2021

£’000

Hong Kong dollar 10,483 8,986

Indian rupee 8,017 7,273

Indonesian rupiah 3,787 2,280

US dollar 3,811 2,085

South Korean won 2,906 3,260

Taiwan dollar 1,913 3,462

Australian dollar 1,730 1,907

Chinese renminbi 1,196 1,352

Singapore dollar 1,165 924

Philippine peso 434 702

Sri Lankan rupee 296 560

Vietnamese dong 151 468

Other overseas currencies 241 693

36,130 33,952

Job No: 47909 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

Customer: Fidelity Project Title: FAV Annual Report T: 0207 055 6500 F: 020 7055 6600

Fidelity Asian Values PLC

Annual Report 2022

Notes to the Financial Statements continued

17 Financial Instruments continued

Based on the financial instruments held and currency exchange rates as at the Balance Sheet date, 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 (2021: increased the net return and increased the net assets) by the following amounts:

Currency

2022

£’000

2021

£’000

Hong Kong dollar 12,813 10,982

Indian rupee 9,798 8,889

Indonesian rupiah 4,628 2,787

US dollar 4,657 2,549

South Korean won 3,552 3,984

Taiwan dollar 2,338 4,232

Australian dollar 2,115 2,331

Chinese renminbi 1,462 1,652

Singapore dollar 1,424 1,129

Philippine peso 530 858

Sri Lankan rupee 362 684

Vietnamese dong 185 572

Other overseas currencies 296 848

44,160 41,497

Other price risk – exposure to investments sensitivity analysis

Based on the listed investments held and share prices at 31 July 2022, 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 £33,725,000 (2021: increased the net return and increased the net assets by £34,878,000). 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 2022 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 £159,000 (2021: increased the net return

and increased the net assets by £145,000). 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 2022, 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 £2,893,000 (2021: increased the net return and increased

the net assets by £988,000). 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) above, 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.

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.

Job No: 47909 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

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Annual Report 2022

Fidelity Asian Values PLC

GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY

17 Financial Instruments continued

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) above. 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

2022

Total

£’000

Investments 330,119 7,135 1,591 338,845

Derivative instrument assets 317 655 – 972

330,436 7,790 1,591 339,817

Financial liabilities at fair value through profit or loss

Derivative instrument liabilities (108) (1,194) – (1,302)

Financial assets at fair value through profit or loss

Level 1

£’000

Level 2

£’000

Level 3

£’000

2021

Total

£’000

Investments 346,634 1,869 1,722 350,225

Derivative instrument assets 44 393 – 437

346,678 2,262 1,722 350,662

Financial liabilities at fair value through profit or loss

Derivative instrument liabilities (336) (999) – (1,335)

The table below sets out the movements in level 3 financial instruments during the year:

Year ended

31.07.22

£’000

Year ended

31.07.21

£’000

Beginning of the year 1,722 339

Purchases at cost – 1,049

Transfer into level 3 at cost – Salt Lake Potash* – 323

Movement in investment holding (losses)/gains (131) 11

End of the year 1,591 1,722

* Financial instruments are transferred into level 3 on the date they are suspended, delisted or when they have not traded for thirty days.

Job No: 47909 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

Customer: Fidelity Project Title: FAV Annual Report T: 0207 055 6500 F: 020 7055 6600

Fidelity Asian Values PLC

Annual Report 2022

Notes to the Financial Statements continued

17 Financial Instruments continued

Below are details of the four investments which fall into level 3 of which the first three investments are unlisted and the last investment

is suspended from trading.

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. The valuation at 31 July 2022 is based on the company’s financial information, the macro-environment and benchmarking

the position to a range of comparable market data. As at 31 July 2022, its fair value was £317,000 (2021: £321,000).

Chime Biologics

Chime Biologics is a China-based Contract Development and Manufacturing Organization (CDMO) that provides a solution supporting

customers from early-stage biopharmaceutical development through to late-stage clinical and commercial manufacturing and is

an unlisted company. The valuation at 31 July 2022 is based on the company’s financial information, the macro-environment and

benchmarking the position to a range of comparable market data. As at 31 July 2022, its fair value was £73,000 (2021: £76,000).

Tuhu Car

Tuhu Car is an online retailer of auto spare parts and is an unlisted company. The valuation at 31 July 2022 is based on the

company’s financial information, the macro-environment and benchmarking the position to a range of comparable market data.

As at 31 July 2022, its fair value was £1,201,000 (2021: £1,049,000).

Salt Lake Potash

Salt Lake Potash is a mineral exploration company. The company was suspended from trading on the Australian Stock Exchange on

27 July 2021 and in October 2021 it announced that it would be entering voluntary administration. As at 31 July 2022, its fair value was

£nil (2021: £276,000).

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 53 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 page 24. The principal risks and their management are disclosed in

the Strategic Report on pages 25 to 29 and in Note 17 above.

The Company’s gearing at the year end is set out below:

2022

Asset

exposure

£’000

2021

Asset

exposure

£’000

Long exposure to shares and equity linked notes 338,845 350,225

Long CFDs 29,861 13,024

Long future 3,997 4,384

Call option 3,034 –

Total long exposures 375,737 367,633

Short CFDs 7,277 5,942

Short futures 682 1,589

Gross Asset Exposure 383,696 375,164

Total Shareholders’ Funds 367,623 364,064

Gross gearing* 4.4% 3.0%

* Gross Asset Exposure less Total Shareholders’ Funds expressed as a percentage of Total Shareholders’ Funds.

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Annual Report 2022

Fidelity Asian Values PLC

GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY

19 Transactions with the Manager 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 33. During the year, management fees of

£1,832,000 (2021: £1,623,000), and secretarial and administration fees of £75,000 (2021: £75,000) were payable to FII. At the Balance

Sheet date, management fees of £156,000 (2021: £156,000), and secretarial and administration fees of £25,000 (2021: £25,000) were

accrued and included in other creditors. FII also provides the Company with marketing services. The total amount payable for these

services during the year was £157,000 (2021: £124,000). At the Balance Sheet date, marketing services of £20,000 (2021: £25,000)

were accrued and included in other creditors.

Disclosures of the Directors’ interests in the ordinary shares of the Company and Director’s 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, £18,000 (2021: £14,000) of employers’ National

Insurance contributions were paid by the Company. At the Balance Sheet date, Directors’ fees of £15,000 (2021: £12,000) were

accrued and payable.

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Customer: Fidelity Project Title: FAV Annual Report T: 0207 055 6500 F: 020 7055 6600

Fidelity Asian Values PLC

Annual Report 2022

Alternative Performance Measures

Discount/Premium

The discount/premium is considered to be an Alternative Performance Measure. It is the difference between the NAV of the Company

and the share price and is expressed as a percentage of the NAV. Details of the Company’s discount/premium are on the Financial

Highlights page and are both defined in the Glossary of Terms on page 88 and page 90.

Gross Gearing

Gross Gearing is considered to be an Alternative Performance Measure. See Note 18 on page 74 for details of the Company’s

gearing.

Net Asset Value (“NAV”) per Ordinary Share

The NAV per Ordinary Share is considered to be an Alternative Performance Measure. See the Balance Sheet on page 53 and Note

16 on page 65 for further details.

Ongoing charges

Ongoing charges are considered to be an Alternative Performance Measure. The ongoing charges ratio has been calculated in

accordance with guidance issued by the AIC as the total of management fees and other expenses expressed as a percentage of the

average net assets throughout the year.

2022

£’000

2021

£’000

Investment management fees (£’000) 2,564 2,272

Other expenses (£’000) 905 771

Ongoing charges (£’000) 3,469 3,043

Variable management fees (£’000) (732) (649)

Average net assets (£’000) 366,346 325,111

Ongoing charges ratio 0.95% 0.93%

Ongoing charges ratio including variable management fees 0.75% 0.73%

Revenue, Capital and Total Returns per Share

Revenue, capital and total returns per share are considered to be Alternative Performance Measures. See the Income Statement on

page 51 and Note 8 on page 61 for further details.

Total Return Performance

Total return performance is considered to be an Alternative Performance Measure. NAV per ordinary share total return includes

reinvestment of the dividend in the NAV of the Company on the ex-dividend date. Ordinary share price total return includes the

reinvestment of the net dividend in the month that the ordinary share price goes ex-dividend.

The tables below provide information relating to the NAV per ordinary share and the ordinary share price of the Company and the

impact of the dividend reinvestments and the total returns for the years ended 31 July 2022 and 31 July 2021.

2022

Net asset

value per

ordinary

Ordinary

price

31 July 2021 497.50p 483.00p

31 July 2022 507.78p 458.00p

Change in year +2.1% -5.2%

Impact of dividend reinvestment +1.8% +1.8%

Total return for the year +3.9% -3.4%

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Annual Report 2022

Fidelity Asian Values PLC

GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY

Total Return Performance continued

2021

Net asset

value per

ordinary

Ordinary

price

31 July 2020 364.39p 335.00p

31 July 2021 497.50p 483.00p

Change in year +36.5% +44.2%

Impact of dividend reinvestment +3.0% +3.4%

Total return for the year +39.5% +47.6%

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Customer: Fidelity Project Title: FAV Annual Report T: 0207 055 6500 F: 020 7055 6600

Fidelity Asian Values PLC

Annual Report 2022

Financial Calendar

The key dates in the Company’s calendar are:

31 July 2022

Financial Year End

October 2022

Announcement of results for the year ended 31 July 2022

October 2022

Publication of the Annual Report

27 October 2022

Ex-Dividend Date

28 October 2022

Dividend Record Date

23 November 2022

Annual General Meeting

7 December 2022

Payment of the Dividend

31 January 2023

Half-Year End

April 2023

Announcement of the Half-Yearly results for the six months ended 31 January 2023

April 2023

Publication of the Half-Yearly Report

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Annual Report 2022

Fidelity Asian Values PLC

FINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS STRATEGY

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, 23 November 2022 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 81 to 84.

Appropriate social distancing and hygiene measures will be in

place for those shareholders attending the AGM in person. For

those shareholders who would prefer not to attend in person or

for whom travel is not convenient, we will live-stream the formal

business and presentations of the meeting online.

Nitin Bajaj, the Portfolio Manager, will be making a presentation

to shareholders highlighting the achievements and challenges

of the year past and the prospects for the year to come. He

and the Board will be very happy to answer any questions

that shareholders may have. Copies of his 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 8 to

the Notes to the Notice of Meeting on page 83 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

Manager and we will answer as many of these as possible at an

appropriate juncture during the meeting.

Further information and links to the Lumi platform may be found

on the Company’s website www.fidelity.co.uk/asianvalues.

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://web.lumiagm.com.

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://web.

lumiagm.com from your web browser on a tablet or computer,

you will need to enter the Lumi Meeting ID which is 118-640-628.

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

Link Group, the Registrar, introduced a paperless proxy voting

process in 2018. However, for ease of voting, we are sending

a paper Proxy Form 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 on 23 November 2022, resolutions will be proposed

relating to the items of business set out in the Notice of Meeting

on pages 81 and 82, including the items of special business

summarised below and on the next page.

Authority to Allot Shares

Resolution 12 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 £1,889,522. If passed,

this resolution will enable the Directors to allot a maximum of

7,558,088 ordinary shares which represents approximately 10%

of the issued ordinary share capital of the Company (including

Treasury shares) as at 11 October 2022, 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 ordinary share or at

a premium to NAV per ordinary share.

Authority to Disapply Pre-Emption Rights

Resolution 13 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 £1,889,522 (including Treasury

shares) (approximately 10% of the issued ordinary share capital

of the Company as at 11 October 2022 and equivalent to

7,558,088 ordinary shares).

Authority to Repurchase Shares

Resolution 14 is a special resolution which renews the Company’s

authority to purchase up to 14.99% (10,799,623) of the ordinary

shares in issue (excluding Treasury shares) on 11 October 2022,

either for immediate cancellation or for retention as Treasury

Annual General Meeting

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Customer: Fidelity Project Title: FAV Annual Report T: 0207 055 6500 F: 020 7055 6600

Fidelity Asian Values PLC

Annual Report 2022

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

ordinary 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 ordinary share.

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 you vote in favour of the resolutions as they

intend to do in respect of their own beneficial holdings.

By Order of the Board

FIL Investments International

Secretary

11 October 2022

Annual General Meeting continued

Job No: 47909 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

Customer: Fidelity Project Title: FAV Annual Report T: 0207 055 6500 F: 020 7055 6600

Annual Report 2022

Fidelity Asian Values PLC

FINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS STRATEGY

Notice is hereby given that the Annual General Meeting

of Fidelity Asian Values PLC will be held 4 Cannon Street,

London EC4M 5AB and virtually via the online Lumi AGM

meeting platform on Wednesday, 23 November 2022 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 2022.

2. To declare that a final dividend for the year ended

31 July 2022 of 14.00 pence per ordinary share be paid

to shareholders on the register as at close of business on

28 October 2022.

3. To re-elect Kate Bolsover as a Director.

4. To re-elect Clare Brady as a Director.

5. To elect Sally Macdonald as a Director.

6. To elect Matthew Sutherland as a Director.

7. To re-elect Michael Warren as a Director.

8. To approve the Directors’ Remuneration Report (excluding

the section headed “The Remuneration Policy” set out on

page 39) for the year ended 31 July 2022.

9. To approve the Remuneration Policy as stated in the

Directors’ Remuneration Report on page 39).

10 To reappoint Ernst & Young LLP as Auditor of the Company to

hold office until the conclusion of the next general meeting at

which Financial Statements are laid before the Company.

11. To authorise the Directors to determine the Auditor’s

remuneration.

To consider and, if thought fit, pass the following special

business resolutions of which Resolution 12 will be proposed

as an ordinary resolution and Resolutions 13 and 14 as special

resolutions.

Authority to Allot Ordinary Shares and Disapply Pre-Emption

Rights

Resolutions 12 and 13 will, if approved, authorise the Directors to

allot a limited number of ordinary shares (or to sell any ordinary

shares which the Company elects to hold in Treasury) for cash

without first offering such shares to existing ordinary shareholders

pro rata to their existing holdings. The limit set by the Board is

10% of the number of ordinary shares of the Company (including

Treasury shares) in issue on 11 October 2022. The Directors will

only issue new ordinary shares, or dispose of ordinary 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 ordinary shares held in Treasury would be re-issued

at net asset value (“NAV”) per ordinary share or at a premium

to NAV per ordinary share. This would ensure that the net effect

of repurchasing and then re-issuing the ordinary shares would

enhance NAV per ordinary share.

12. 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 shares in the Company 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 £1,889,522 (approximately

10% of the aggregate nominal amount of the issued share

capital of the Company (including Treasury shares) as at

11October 2022) 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.

13. THAT, subject to the passing of Resolution 12, 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 12

and/or to sell ordinary 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

£1,889,522 (approximately 10% of the aggregate

nominal amount of the issued share capital of the

Company (including Treasury shares) as at 11 October

2022); and

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 Ordinary Shares

Resolution 14 is special resolution which, if approved, will renew

the Company’s authority to purchase up to 14.99% respectively

of the number of ordinary shares in issue (excluding Treasury

shares) on 11 October 2022 either for immediate cancellation

or for retention as Treasury shares, at the determination of the

Board. Once shares are held In Treasury, the Directors may

Notice of Meeting

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Fidelity Asian Values PLC

Annual Report 2022

Notice of Meeting continued

only dispose of them in accordance with the relevant legislation

by subsequently selling the shares for cash or cancelling the

shares. Purchases of ordinary 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 ordinary share, thereby resulting in an increased NAV per

ordinary share.

14. 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 (the “shares”) in the

capital of the Company provided that:

a) the maximum number of shares hereby authorised to be

purchased shall be 10,799,623;

b) the minimum price 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 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.

By Order of the Board

FIL Investments International

Secretary

11 October 2022

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 share portal at

www.signalshares.com, you will need to log in to your

share portal account or register if you have not previously

done so. To register you will need your Investor Code which

can be found on your Form of Proxy.

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 am on Monday, 21 November 2022. 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, Link Group,

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. To appoint a proxy or to give or amend an instruction to

a previously appointed proxy via the CREST system, the

CREST message must be received by the issuer’s agent

RA10 by 11.00 am on Monday, 21 November 2022. For this

purpose, the time of receipt will be taken to be the time (as

determined by the timestamp applied to the message by

the CREST Applications Host) from which the issuer’s agent

is able to retrieve the message. After this time any change

of instructions to a proxy appointed through CREST should

be communicated to the proxy by other means. CREST

Personal Members or other CREST sponsored members and

those CREST Members who have appointed voting service

provider(s) should contact their CREST sponsor or voting

service provider(s) for assistance with appointing proxies

via CREST. For further information on CREST procedures,

limitations and systems timings please refer to the CREST

Manual. We may treat as invalid a proxy appointment sent

by CREST in the circumstances set out in Regulation 35(5)

of the Uncertificated Securities Regulations 2001. In any

case your proxy form must be received by the Company’s

Registrar no later than 11.00 am on Monday, 21 November

2022.

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Annual Report 2022

Fidelity Asian Values PLC

FINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS STRATEGY

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 am on Monday, 21 November 2022 in order to

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.

7. 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, 21 November 2022.

Shareholders are urged to vote using the proxy form

provided or electronically where permitted by your nominee

or platform.

8. 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 ask questions via

the platform, shareholders will need to connect to the following

site: https://web.lumiagm.com. 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 PC or smartphone device.

Once you have accessed https://web.lumiagm.com from

your web browser on a tablet or computer, you will be asked

to enter the Lumi Meeting ID which is 118-640-628. You

will then 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. Signal Shares users

(www.signalshares.com) will find this under ‘Manage your

account’ when logged in to the Signal Shares portal. You can

also obtain this by contacting Link, 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 Link Group 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 Link

Group, 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.

I f 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://web.lumiagm.com from your web browser

on a tablet or computer, you will need to enter the

Lumi Meeting ID which is 118-640-628. 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 9.00 a.m. to 5.30 p.m. 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.

9. 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.

10. 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.

Job No: 47909 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

Customer: Fidelity Project Title: FAV Annual Report T: 0207 055 6500 F: 020 7055 6600

Fidelity Asian Values PLC

Annual Report 2022

11. 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, 21 November 2022. 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.

12. As at 11 October 2022 (the latest practicable date prior to

the publication of this document), the Company’s issued

share capital consisted of 75,580,889 ordinary shares

carrying one vote each. The number of shares held by the

Company in Treasury was 3,535,369. Therefore, the total

number of shares with voting rights in the Company was

72,045,520.

13. Any corporation which is a member can appoint one or

more corporate representative 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.

14 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.

15. 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 Auditor’s 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 Auditor 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.

16. No Director has a service contract with the Company.

17. 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.

Notice of Meeting continued

Job No: 47909 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

Customer: Fidelity Project Title: FAV Annual Report T: 0207 055 6500 F: 020 7055 6600

Annual Report 2022

Fidelity Asian Values PLC

FINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS STRATEGY

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, share shop 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.fidelityinvestmenttrusts.com.

Shareholders on the main share register

Contact Link Group, Registrar to Fidelity Asian Values PLC, 10th

Floor, Central Square, 29 Wellington Street, Leeds LS1 4DL.

Email: enquiries@linkgroup.co.uk

Telephone: 0371 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 Share Portal at

www.signalshares.com. Shareholders are able to manage their

shareholding online by registering for the Share Portal, a free

and secure online access service. 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 Link Share Portal,

contact the helpline on 0371 664 0391 (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.

Telephone: 01737 834798

Email: investmenttrusts@fil.com

Website: www.fidelityinvestmenttrusts.com

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.

Job No: 47909 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA

Customer: Fidelity Project Title: FAV Annual Report T: 0207 055 6500 F: 020 7055 6600

Fidelity Asian Values PLC

Annual Report 2022

Shareholder Information continued

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 Auditor

Ernst & Young LLP

25 Churchill Place

London

E14 5EY

Lawyer

Charles Russell Speechlys LLP

5 Fleet Place

London

EC4M 7RD

Registrar

Link Group

10th Floor, Central Square

29 Wellington Street

Leeds

LS1 4DL