FIDELITY
ASIAN VALUES
PLC
Annual Report for the year ended 31 July 2025
The Company’s objective is to achieve long-term capital growth
principally from the stock markets of the Asian Region excluding Japan.
The Portfolio Manager, Nitin Bajaj, assisted
by the Co-Portfolio Manager, Ajinkya Dhavale,
aims to generate outperformance mainly
through a fundamentals-driven bottom-up
security selection approach within the Asia
Pacific ex Japan smaller companies universe.
The focus is on investing in smaller companies
because they tend to be less well researched,
which leads to greater valuation anomalies.
The Portfolio Managers’ fundamental analysis
involves the evaluation of various factors
including, but not limited to, stock valuation,
financial strength, cash flows, companies’
competitive advantages, business prospects
and earnings potential. Their style is tilted
towards value and a two to three year
investment horizon.
Clare Brady, Chairman,
Fidelity Asian Values PLC
Investment Objective and Overview
Fidelity Asian Values PLC
|
Annual Report 2025
Year at a Glance
Total Return Performance (%)
1
5 years ended 31 July 20253 years ended 31 July 20251 year ended 31 July 2025
+29.2
+87.2
+92.1
+12.4
+17.0
+7.1
+71.9
+34.8
+30.9
NAV per Ordinary Share
Ordinary Share Price
Comparative Index
2
Sources: Fidelity and Datastream.
Past performance is not a guide to future returns.
1
Calculated on the basis that dividends paid to shareholders are reinvested in the Company at the ex-dividend date.
2
MSCI All Countries Asia ex Japan Small Cap Index (net) total return (in sterling terms).
Net Asset Value
(“NAV”) per
Ordinary Share
total return
1,2
+12.4%
2024: +3.2%
Ordinary Share Price
total return
1,2
+17.0%
2024: -1.7%
Dividend
per Ordinary Share
20.5p
2024: 14.5p
Comparative
Index total return
1,3
+7.1%
2024: +13.7%
1 Calculated on the basis that dividends paid to shareholders are reinvested in the Company at the ex-dividend date.
2 Alternative Performance Measures. See pages 79 and 80.
3 MSCI All Countries Asia ex Japan Small Cap Index (net) total return (in sterling terms).
Summary of the key aspects of the Investment Policy
Q The Company invests in securities of companies which the Portfolio Managers consider have fundamental value that has not been
recognised by the market.
Q The Company invests principally in the Asian Region excluding Japan and the Portfolio Managers favour small and medium-sized
companies. There are no restrictions in terms of size or industry of companies included in the portfolio and investments can be
made in unlisted securities.
Q 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.
QThe Company operates a variable management fee arrangement which is calculated by reference to its performance against the
Benchmark Index.
2025 2024
Assets as at 31 July
Gross Asset Exposure
1
£470.2m £442.9m
Net Market Exposure
1
£416.6m £416.2m
Total Shareholders’ Funds £402.7m £392.0m
NAV per Ordinary Share
1,2
604.69p 551.66p
Gross Gearing
1,2
16.8% 13.0%
Net Gearing
1,2
3.4% 6.2%
Share Price and Discount data at 31 July
Ordinary Share Price at year end 564.00p 496.00p
Year high 566.00p 542.00p
Year low 454.00p 476.00p
Discount to NAV per Ordinary Share at year end
1,2
6.7% 10.1%
Discount year high 14.5% 11.9%
Discount year low 6.7% 2.2%
Results for the year ended 31 July
Revenue Return per Ordinary Share
1,2
22.51p 14.24p
Capital Return per Ordinary Share
1,2
40.34p 2.06p
Total Return per Ordinary Share
1,2
62.85p 16.30p
Ongoing Charges for the year to 31 July
1,2
0.95% 0.95%
Variable Element of Management Fee
3
0.14% 0.19%
Ongoing Charges including Variable Element of Management Fee for the year to 31 July
2
1.09% 1.14%
1 See Glossary of Terms on pages 91 to 93.
2 Alternative Performance Measures. See pages 79 and 80.
3 The variable element of the management fee is calculated over a rolling three year period with reference to the Benchmark Index (see Glossary of Terms on page 91 for
details of the Benchmark Index).
Financial Highlights
01
Annual Report 2025
|
Fidelity Asian Values PLC
STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS
Contents
Strategy
Chairman’s Statement 02
Portfolio Managers’ Review 06
Spotlight on the Top 10 Holdings 13
Forty Largest Holdings 15
Distribution of the Portfolio 17
Ten Year Record 20
Strategic Report 21
Governance
Board of Directors 31
Directors’ Report 32
Corporate Governance Statement 36
Directors’ Remuneration Report 39
Statement of Directors’ Responsibilities 42
Report of the Audit Committee 43
Financial
Independent Auditor’s Report 46
Income Statement 53
Statement of Changes in Equity 54
Balance Sheet 55
Notes to the Financial Statements 56
Alternative Performance Measures 79
Financial Calendar 81
Information for Shareholders
Notice of Meeting 82
Appendix 87
Shareholder Information 88
Data Protection 90
Glossary of Terms 91
Alternative Investment Fund Manager’s Disclosure 94
Chairman’s Statement
Read more on pages 02 to 05
Portfolio Managers’ Review
Read more on pages 06 to 12
02
Fidelity Asian Values PLC
|
Annual Report 2025
Chairman’s Statement
I am delighted to report that the year ended 31 July 2025 has
been a rewarding one for our shareholders, both in absolute
terms and relative to the Comparative Index (the MSCI
All Countries Asia ex Japan Small Cap Index (net) total return
(in sterling terms).
In the year under review, the Company’s net asset value (“NAV”)
total return was +12.4% (2024: +3.2%), while the Comparative
Index saw a total return of +7.1% (2024: +13.7%). The share price
total return to shareholders was +17.0% (2024: -1.7%), assisted
by a narrowing in the share price discount to NAV, which moved
from 10.1% on 31 July 2024 to 6.7% at the year end.
It may seem somewhat remarkable that a year that has seen
so many negative headlines globally – from escalating military
conflicts to trade wars – could have turned out so positively
for our shareholders in terms of investment performance. The
fact that your Company has been able to do so well against a
backdrop of turmoil and extreme volatility speaks to the fact that
the fund offers investors excellent risk diversification. Many of its
portfolio holdings are focused on serving their domestic markets
and are therefore not very exposed to global trade. While US
trade tariffs have sparked a decline in the dollar, your Company
has relatively little US dollar exposure, which has proved
beneficial. Furthermore, Nitin Bajaj and Ajinkya Dhavale (your
Portfolio Managers) focus on finding well managed businesses
with strong competitive niches, stable balance sheets and little
debt, which has had an insulating effect. This is enhanced
when investor sentiment turns away from higher-risk, potentially
higher-reward situations. The Portfolio Managers’ strategy has
served shareholders very well over the longer-term: over five
years to the end of July 2025, the Company’s cumulative NAV
total return of 87.2% has beaten the Comparative Index by 15.3%,
while the share price total return of 92.1% has done even better,
outperforming the Index by 21.3%.
You will find detailed information on the Company’s portfolio
and its performance in the Portfolio Managers’ Review on the
following pages. In brief, however, their strategy remains bottom-
up, contrarian and value-focused, which has led them in recent
years to focus more on well-managed Chinese companies and
less so on India, where a spike in investor interest has seen
valuations rise to levels that your Portfolio Managers see as
inflated and unsustainable.
Board’s Strategy Day
Last year, as your incoming Chairman, I arranged for the Board
to undertake a strategy day where we went back to basics to
explore all the factors that independent non-executive directors
of an investment company can and should be influencing. This
year – which has been a busy one in the investment trust world
in terms of both the market backdrop and the level of corporate
activity – we decided to repeat this worthwhile exercise. Among
the topics for discussion were the competitive landscape, trends
towards consolidation in the investment company market,
discount management, distribution, dividends, fees and charges.
As I outline elsewhere in this statement, several actions have
been taken as a result of these discussions, including a more
proactive pace of share buybacks, and a change in cost
allocation that facilitates the payment of an increased dividend
to shareholders.
Clare Brady – I am pleased to
present the Annual Report of Fidelity
Asian Values PLC (the “Company”)
for the year ended 31 July 2025.
£402.7m
(As at 31 July 2025)
Total Shareholders’ Funds
+12.4%
(Year ended 31 July 2025)
Net Asset Value per Ordinary Share
total return
+17.0%
(Year ended 31 July 2025)
Ordinary Share Price total return
+7.1%
(Year ended 31 July 2025)
Comparative Index total return
03
Annual Report 2025
|
Fidelity Asian Values PLC
STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS
Market consolidation continues to be a theme at the forefront
of many investors’ minds, with size increasingly being seen as
a key factor in attracting the interest of professional investors,
such as wealth managers, as well as being beneficial in terms
of economies of scale. We are encouraged by the Company’s
position of strength in the market, and while your Board notes the
Company’s net assets have passed the £400m level, we continue
to scan the horizon for opportunities to optimise the position of
your Company.
Due Diligence Trip
In March 2025, the Board visited Asia on its two-yearly due
diligence trip. We began the visit in Singapore, where Nitin and
Ajinkya are based, meeting with them and members of the
wider Fidelity team, including analysts, traders, risk managers
and capital markets experts, as part of our responsibility for
overseeing the Company’s investment approach and portfolio
management functions. Once again, we were impressed by the
team’s strength and depth, and by the quality of the analyst
team’s ideas and the rigour of their approach. In a focused
and differentiated portfolio, new investment ideas have to be
particularly compelling in order to make the cut, and it was
most illuminating to observe the level of constructive challenge
between Nitin, Ajinkya and the wider team when discussing
potential portfolio purchases. We joined Fidelity’s locally based
teams in Singapore, Shanghai, Guangzhou and Shenzen for
internal and external company meetings. Your portfolio has
a relatively large exposure to Chinese companies, so it was
important for us to scrutinise the attractions of these businesses
and the analytical rigour underpinning our investments on behalf
of both our shareholders and the Board. We met with companies
from a range of sectors and were impressed by the calibre of
their management teams and governance standards, their focus
on shareholder value and long-ranging vision, their focus on
balance sheet strength, and competitive and creative mindsets
even across traditional businesses. As a result of this trip, we can
confidently confirm that we believe the Company is in the best
possible hands.
Discount Management and Share Repurchases
Global stock markets have remained unsettled during the year
under review. Consequently, share price discounts to NAV across
the investment trust universe have remained wide by historical
standards, averaging 14.9% in the 12 months to 31 July 2025.
Against this backdrop, your Company’s discount to NAV has
also seen a degree of volatility, ranging from 14.5% at its widest
to 6.7% at its narrowest. In aggregate, however, the discount
narrowed over the year, from 10.1% at the prior year end to
6.7% on 31 July 2025. It has also been substantially narrower
on average compared with the Company’s Asia Pacific Smaller
Companies peer group, at 9.8% versus 14.8% for the peers. Over
the course of the year, the Company repurchased 4,463,497
ordinary shares (6.3% of the issued share capital; 1.0% in 2024),
at a cost of £22.5m. Since then and up to the latest practicable
date of this document, 2,362,486 shares have been repurchased
as part of the Company’s active and ongoing discount
management strategy. The primary purpose of share buybacks
is to limit discount volatility, and at the Annual General Meeting
(“AGM”) on 26 November 2025 the Board will seek shareholder
approval to renew the annual authority to repurchase up to
14.99% or, in the event that the shares are trading at a premium
to the Company’s NAV, to allot up to 10% of the ordinary shares
in issue.
The timing of repurchases of ordinary shares are made at the
discretion of the Broker, within guidelines set by the Board and
considering prevailing market conditions. Shares will only be
repurchased in the market at prices below the prevailing NAV per
ordinary share, thereby adding to the NAV per ordinary share.
In the reporting year, share repurchases added 0.7% to the NAV
(2024: 0.1%). Until 31 July 2025, shares repurchased were held
in Treasury and these can only be reissued at NAV per ordinary
share or at a premium to NAV per ordinary share. By the year
end, shares held in Treasury exceeded 10% of the total issued
share capital, and so the Board decided that with effect from 1
August 2025, all shares repurchased will be for cancellation, and
this has been the case for all share repurchases carried out since
that date. In addition, since the year end, 822,911 shares already
held in Treasury have been cancelled.
Marketing and Promotion
Your Board remains keenly aware that share buybacks alone
are unlikely to eliminate a persistent discount to NAV; discounts
are a function of supply and demand and, as such, increasing
demand is at least as important as absorbing excess supply.
As I mentioned last year, our newest Director, Lucy Costa Duarte,
has a strong track record in marketing and distribution. During the
review year, she undertook a ‘deep dive’ into Fidelity’s marketing
and PR strategy to understand if it represents good value for
money and is demonstrating returns. Her work gave the Board
confidence that Fidelity is doing the right things to maintain and
increase your Company’s profile. We have discussed the allocation
of resources and made some small changes, but her feedback on
the overall marketing and PR picture was overwhelmingly positive.
While some coverage comes as a direct result of the efforts
of Fidelity and external PR partners, in other cases it arises
naturally as a consequence of your Company’s strong long-term
track record. We were very pleased this year to have been
included on the Association of Investment Companies’ annual
‘ISA millionaires’ list for a third consecutive time. This list looks
at the returns that investors could have achieved by investing
their full ISA allowance year since ISAs were introduced in 1999
(and reinvesting any dividends). A total investment of £326,560 in
your Company over the period from 6 April 1999 to 31 January
2025 would have grown to £1,128,271 – an impressive result
that illustrates the value of investing for the long-term. While
returns from equity investments are always likely to fluctuate, your
Company’s enduring presence on this list – even in a period
of relatively poor performance such as the previous year –
underscores the rewards available to patient long-term investors
in differentiated strategies.
During the year, we have continued to work with Fidelity and
external partners to increase the Company’s profile through digital
and print advertising, sponsorship, events, direct marketing and
press coverage. A third-party research provider, Kepler Partners,
produces regular notes on the Company, which are distributed
widely and made available on the Company’s website. The focus
on reaching both retail and professional (wealth managers)
audiences is evident in the makeup of our share register, with 39%
of our shares owned by direct investors through platforms, and 47%
04
Fidelity Asian Values PLC
|
Annual Report 2025
Chairman’s Statement continued
by wealth managers on behalf of their clients.
Dividend
The Board is pleased to recommend a final dividend of
20.5 pence per share for the year ended 31 July 2025, which
represents a 41.4% increase over the previous year, for approval
by shareholders at the AGM to be held on 26 November 2025.
The dividend will be paid on 11 December 2025.
Partly in response to shareholder feedback, during the year your
Board took a careful look at the allocation of costs between the
Company’s revenue and capital accounts. Historically, 100% of
management fees and finance costs have been charged to the
revenue account. However, as the investment strategy principally
targets capital growth, we felt it was right to consider whether
a greater allocation to the capital account would be more
appropriate. Having discussed the matter at our Board strategy
day (see above) and undertaken a detailed review of our peers
both among Asia Pacific Smaller Companies investment trusts
and in the wider Asia Pacific sector, we concluded that we should
change the allocation to a 75:25 split between the capital and
revenue accounts. The removal of 75% of the management fees
and finance costs from the revenue account has resulted in a
step-change in the level of dividends proposed for the year
ended 31 July 2025.
We would remind shareholders that portfolio dividend income
continues to be an output rather than an aim of the investment
process, and accordingly the level of future dividends for the
Company’s shareholders may vary.
Your Portfolio Managers invest principally for long-term capital
growth of your investment, but their value-oriented investment
style tends to lead them towards unleveraged and cash-
generative businesses. The increase achieved in portfolio
dividend income together with the re-allocation of costs referred
to above has resulted in the dividend per share declared by the
Company more than doubling over the last four years.
Gearing
As an investment trust, your Company has the ability to deploy
additional money (through borrowing or the use of derivative
instruments) to invest on behalf of its shareholders, known
as gearing. This can enhance returns for investors when
performance is positive, although, on the flipside, it can also
amplify losses in a falling market. The level of gross gearing is
directly proportional to the investment opportunities that your
Portfolio Managers see. When they are optimistic about the
outlook and there is a good supply of compelling investment
ideas, then the Company will tend to be more geared.
At the period end, gross gearing was 16.8% (2024: 13.0%) and
net gearing was 3.4% (2024: 6.2%).
Rather than using bank borrowing (which can be expensive
depending on the prevailing interest rate environment and
is often deployed across a portfolio on a pro-rata basis), the
Company’s gearing is achieved using contracts for difference
(“CFDs”). These are a type of derivative instrument, implemented
on a stock-by-stock basis, allowing Nitin and Ajinkya to get
additional exposure to their best ideas. Each year, your Board
reviews the use of CFDs, and we have again concluded that at
the present time they remain a more efficient and flexible form
of financing over secured or unsecured debt, as well as enabling
your Portfolio Managers to be fleet of foot in the deployment of
gearing. We are fortunate that Fidelity has the infrastructure and
capability to allow the use of CFDs in the portfolio; few other
management groups can offer this.
Use of Short Positions
Fidelity’s capability in derivative instruments is also what allows
your Portfolio Managers to ‘short’ stocks, which has again had
a positive impact on returns in the year under review. Ajinkya, in
particular, has a strong background in this area. A short position
is taken on the view that the price of a stock or the value of an
index will go down rather than up. Short positions are limited to
a maximum of 10% of the Company’s portfolio and do not usually
exceed 10 stocks. However, while relatively small in scope,
this additional tool has materially added to the Company’s
performance since its introduction in late 2019, and particularly
so in the year under review, to the tune of 0.4%. Total short
exposure as at 31 July 2025 was 6.7% of net assets (2024: 3.4%).
Board of Directors
Following Michael Warren’s retirement at last year’s Annual
General Meeting (“AGM”) in November 2024 and Lucy Costa
Duarte’s election at that AGM, there have been no changes
to the Board in the period under review. We can now look
forward to a prolonged period of stability under the current
group of Directors, whose tenures to date range from one to
six years. While we believe that your Board has a good mix of
essential qualities and a diverse set of relevant backgrounds,
it is a worthwhile discipline to undergo external challenge and
assessment to ensure that we have all the appropriate skills
necessary to ensure the good governance of your Company. As
such, and in line with best practice, we have been undergoing
a third-party board effectiveness review, the results of which will
have been considered and decided upon by the time of the 2025
AGM. We remain open to challenge and committed to listening
to and doing the best job for our shareholders, something we
hope is evident in measures such as the active management of
the Company’s discount to NAV and our careful consideration
of cost allocation, and its attendant effect on your Company’s
dividend (see ‘Dividend’ section above). Part of the Board’s remit
is to represent the views of the Company’s shareholders, and we
would like to encourage you to engage with the Board either by
contacting us via the Company Secretary or by attendance at
the AGM.
Articles of Association
The Board has undertaken its scheduled review of the Company’s
Articles of Association (the “Articles”) with assistance from our
external legal adviser. The changes proposed to the Articles are
set out in the Directors’ Report on page 34. Shareholders will be
asked to approve these changes at the AGM on 26 November
2025.
05
Annual Report 2025
|
Fidelity Asian Values PLC
STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS
Investment Objective and Investment Policy
The Board has also reviewed the Company’s Investment
Objective and Investment Policy and we are proposing two minor
amendments. The wording of the restriction in relation to unlisted
investments has been simplified and it is also proposed to move
the reference to the Comparative Index from the Investment
Objective to the Investment Policy. These changes are set out
in Directors’ Report on page 35. Shareholders will be asked to
approve these changes at the AGM on 26 November 2025.
Annual General Meeting
The AGM of the Company will be held at 11.00 am on
Wednesday, 26 November 2025. The meeting will once again
be a hybrid format, with online attendance available, however
I hope to see as many of you as possible in person on the
day. Full details of the meeting are below and in the Notice of
Meeting on pages 82 to 87. Items of special business to be
proposed at the AGM are detailed in the Directors’ Report on
pages 34 and 35.
Annual General Meeting – Wednesday, 26 November 2025 at 11:00 am
The AGM of the Company will be held at 11.00 am on Wednesday, 26 November 2025 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 82 to 87.
For those shareholders unable to attend in person, we will live-stream the formal business and presentations of the meeting online.
Nitin Bajaj and Ajinkya Dhavale, the Portfolio Managers, will be making a presentation to shareholders discussing the performance
of the past year and the prospects for the year to come. The Portfolio Managers and the Board will be very happy to answer any
questions that shareholders may have. Copies of their presentation can be requested by email at investmenttrusts@fil.com or in
writing to the Secretary at FIL Investments International, Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey KT20 6RP.
Properly registered shareholders joining the AGM virtually will be able to vote on the proposed resolutions. Please see Note 9 to
the Notes to the Notice of Meeting on page85 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 these will be addressed at an appropriate juncture
during the meeting.
Further information and links to the Lumi platform may be found on the Company’s website at 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://meetings.lumiconnect.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 your online participation as a guest. Once you have accessed https://meetings.lumiconnect.com
from your web browser on a tablet, smartphone or computer, you will need to enter the Lumi Meeting ID which is 100-596-124-635.
You should then select the ‘Guest Access’ option before entering your name and who you are representing, if applicable. This will
allow you to view the meeting and ask questions, but you will not be able to vote.
Further information on how to vote across the most common investment platforms is available at the following link: https://
www.theaic.co.uk/how-to-vote-your-shares
Outlook
Nitin and Ajinkya are fundamentally bottom-up investors, which
means their investment decisions are informed by detailed
company analysis rather than the prevailing market mood. And
so, while the geopolitical backdrop is fractious, your Portfolio
Managers remain committed to their proven long-term investment
approach. They continue to see good prospects for their portfolio
of undervalued, quality businesses, about which you can read
more in their review that follows. In an uncertain world, those with
the courage to continue to steer their course are surely most likely
to reach their desired destination.
Clare Brady
Chairman
16 October 2025
06
Fidelity Asian Values PLC
|
Annual Report 2025
Portfolio Managers’ Review
Nitin Ba
j
a
j
was appointed as the
Portfolio Mana
g
er of Fidelity Asian
Values PLC on 1 A
p
ril 2015. He is based
i
n Sin
g
apore and has over 23 years
o
f investment experience. He is also
t
he Portfolio Mana
g
er for the Fidelity
Asian Smaller Companies Fund as
w
ell as the Fidelity
C
hina Focus Fund.
He
fi
rst joined Fidelity in 2003 as an
Investment Analyst and then took over
t
he Fidelity India
S
pecial
S
ituations Fund
a
n
d
su
b
sequent
l
y starte
d
t
h
e
F
i
d
e
l
ity
India Value Fund. He managed these
funds until November 2012, when Fidelity
d
ecided to sell its India business
.
A
j
inkya Dhavale is the Company’s
C
o-Portfolio
M
ana
g
er, supports and
w
orks closel
y
with
N
itin Ba
j
a
j
. He
h
as extensive ex
p
erience in Asian
m
ar
k
ets an
d
com
p
anies an
d
s
h
ares
a common investment approac
h
an
d
comp
l
ementary investment experience
w
ith the Portfolio Mana
g
er. He has
over 17
y
ears of investment experience.
He ori
g
inally joined Fidelity as an
Investment Analyst in 2011, coverin
g
the
Auto
,
Cement
,
Telecommunications and
Propert
y
sectors. He is also Co-Portfolio
Mana
g
er of the Fidelity Asian
S
maller
C
om
p
anies Fund.
07
Annual Report 2025
|
Fidelity Asian Values PLC
STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS
Question 1
How has the Company performed in the year to 31 July 2025?
Answer
As mentioned in the Chairman’s statement, over the year ended 31 July 2025, the Company’s net asset value (“NAV”) total return was
+12.4% versus the Comparative Index (MSCI All Countries Asia ex Japan Small Cap Index (net) total return (in sterling Terms)) return of
+7.1%. The share price total return for the year was +17.0% due to a narrowing of the discount to NAV.
Our investment process is centred on owning good businesses which are run by trustworthy management teams and buying them only
when we have an ample margin of safety, meaning that we consider the market value of the company to be lower than its intrinsic
value. This strategy often leads us to adopt contrarian positions, as undervalued businesses are more likely to be found in sectors
or geographies that are out of favour. Following this philosophy, we currently have a significant portion of the Company’s portfolio
allocated to China and Indonesia, while exposure to India and Taiwan is substantially lower than the Index. Geographic exposures
reflect bottom up stock picking and had a positive impact on performance as the market began to recognise the intrinsic value of
several Chinese holdings we own.
The Company has benefited from its allocation to Chinese equities over the last year. Although the companies we own in China did
well compared to the rest of Asia, they underperformed the Chinese market, which was predominantly driven by highly valued, more
speculative areas such as technology, biotechnology and new consumption themes. Most of our holdings in China are concentrated in
sectors such as consumer goods, real estate and industrials. Stock selection in Indonesia proved unrewarding in the past year, as the
country remained overlooked by investors despite strong economic fundamentals, albeit in the context of political volatility. We have
largely maintained our positioning in our preferred holdings given their favourable risk-reward profile over the medium to long-term.
In our opinion, 12 months (whether good or bad) is a short period of time over which to judge a portfolio’s performance. It must be
put in the context of longer-term performance, in line with our longer-term investment horizon. Since Nitin took over the management of
the Company’s assets in 2015, the share price total return has been +163.2%, or +9.8% annualised, versus the MSCI All Country Asia ex
Japan Small Cap Index (net) total return (in sterling terms) of +105%, +7.2% annualised.
Question 2
What stocks have been the main drivers of performance during the 12-month review
period and why?
Answer
Our list of top contributors relative to the Index during the 12-month period was well diversified across markets and sectors, with
Taiwan Semiconductor Manufacturing Company (“TSMC”), De Grey Mining, and Crystal International making up the top three.
• TSMC, the world’s largest semiconductor foundry, emerged as the leading contributor over the period. Its shares advanced after
the company reported record-breaking financial results, showcasing its ability to capitalise on the AI boom.
• De Grey Mining, a mid-sized Australia-listed gold miner, was acquired at a premium by Northern Star Resources. We owned
De Grey Mining as its assets included the world-class Hemi Gold project under development – giving us leverage to both
development upside as well as the gold price.
• Crystal International produces apparel at its factories mostly located in Vietnam, for renowned brands such as UNIQLO, Levi’s
and GAP. We have owned Crystal for several years, and it has been a consistent performer as management has executed well
and our entry valuation at a P/E ratio of 6x was very reasonable.
Meanwhile, our largest relative detractors were all from India and Indonesia, the two markets that lagged the regional Asian small
cap index over the past year.
• Axis Bank, the third largest private sector bank in India, was the most significant detractor as the lender saw an increase in
non-performing assets. Its management has taken steps to strengthen underwriting standards, while the bank continues to trade
at relatively low valuations compared to peers. We continue to own the position and have increased it when its share price
weakened.
08
Fidelity Asian Values PLC
|
Annual Report 2025
• IndusInd Bank, India’s fifth-largest private sector bank, performed poorly because of weaknesses in underwriting that our due
diligence did not fully identify. This is a reminder that no matter how deep our due diligence process is, there are always things
that can go wrong, which is why buying businesses whose valuations offer a margin of safety is very important. We continue to
hold the stock as it trades at about a 20% discount to its book value.
• Bank Negara has performed well in past years but did poorly in the last 12 months. This was due to profit pressure from
increased competition for deposits, as well as a mild deterioration in asset quality in Indonesia. We continue to own shares in
Bank Negara given its solid franchise and a valuation that offers a healthy margin of safety.
Question 3
How have you utilised the Company’s structure as an investment trust this year? Has it
been beneficial?
Answer
A key benefit of the structure is the ability to hold smaller, less liquid names, without needing to manage potential outflows. We have
also continued to utilise gearing and the derivative toolset available to the Company, which proved beneficial over the last 12 months.
Our level of gearing remains a function of the number of investment ideas we find – it increases when we see more ideas than
money, and it reduces (or we keep a higher cash balance) when we do not find as many ideas.
In the last 12 months, the Company’s average net exposure was 103.3%. We had +13.7% average exposure to long stock futures over
the review period, which contributed 250 basis points to the Company’s relative performance. The short book, where we had -3.9%
average exposure, contributed 38 basis points. Meanwhile, our stock holdings (+93.6% average exposure) made a +356 basis points
positive contribution. These performance contributions are all relative to the Company’s Comparative Index.
Question 4
US import tariffs announced in 2025 have been a consideration this year. What impact
have tariffs had or not had on the Company’s portfolio during the review period?
Answer
So far, the impact on our portfolio has been marginal, as tariffs have only just started taking effect. Our primary concern is that tariffs and
related uncertainties present a real risk to global growth. They are likely to affect both the level of consumption in the US and corporate
capital investment decisions worldwide.
We continue to look for both risks and opportunities that may arise from the change in global trading order and structures.
Question 5
The Company’s portfolio is still overweight in China. How does the regulatory
landscape in China affect how you find investment opportunities there?
Answer
Regulatory changes take place in all markets around the world. In the current environment, since April 2025, the rate and pace of
regulatory change has been particularly notable in the US.
Our experience in China has been that government policy aims to support public welfare. Businesses that operate within the rules and do
not exploit their customers tend not to face much interference in the operation of their company.
China’s industrial policy is very focused on capacity creation and provides a platform for Chinese companies to strive for global
competitiveness. This has led to oversupply and hyper-competition in a large number of industries. However, this is a well-advertised and
slow-moving phenomenon, hence we are able to incorporate such factors into our analytical framework when conducting our research on
companies.
Portfolio Managers’ Review continued
09
Annual Report 2025
|
Fidelity Asian Values PLC
STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS
Question 6
Are there any areas in China that are more attractive today than they were last year?
Answer
Yes, in our opinion there are many companies in China that still trade significantly below intrinsic value. Some of these are just small
traditional businesses (advertising, recruitment, event management, dairy farms, etc.) that have tended to be overlooked by the
market, while others are in areas going through a cyclical downturn, such as property, consumer staples and industrials.
Having said that, performance of the Chinese equity market over the last year has been dominated by thematic exposures. Sectors
that are currently in vogue, such as AI-driven technology, biotechnology and electric vehicles, have experienced significant gains. In
contrast, sectors we consider more aligned to the ‘real economy’, including consumer goods, real estate and industrials, have not
gained much.
Consequently, this selective rally has widened the intersectoral valuation gap within Chinese small cap equities. The chart below
illustrates how the disparity between the sector with the highest forward Price to Book ratio and the one with the lowest has become
more pronounced, especially in the past six months.
Rising intersectoral valuation gap in China
)!
(
#
%&
)!
(
#
%&
)!
(
#
%&
)!
(
#
%&
)!
(
#
%&
)!
(
#
%&
)!
(
#
%&
)!
(
#
%&
)!
(
#
%&
)!
(
#
%&
)!
#(&'($&! &($ $$ !)($# % # #'
"!! % '
Source: Fidelity International, LSEG Datastream, 31 July 2025. Index: MSCI China Small cap sector indices in USD terms. Past performance is not an indicator of future returns.
While the market has been enthused by these new-age sectors, we have continued to find good businesses with a meaningful margin
of safety in more traditional sectors.
10
Fidelity Asian Values PLC
|
Annual Report 2025
Question 7
Looking beyond China, where do you currently see the best opportunities?
Answer
We continue to find promising investment opportunities in Indonesia. Indonesia is the third largest economy in the region, following China
and India, with a strong demographic profile, prudent management of public finances and very strong household balance sheets. Our
exposure to Indonesia is well diversified across sectors such as financials, building materials, industrials and consumer businesses, all of
which support sustainable returns with a sufficient margin of safety.
Additionally, as bottom-up investors, we continue to uncover idiosyncratic investment opportunities in other parts of the region. For
instance, in Taiwan, we have invested in Pacific Hospital Supply Company, a manufacturer of medical consumables. Despite being a
small player, its new management is driving market share growth at a pace faster than the c.US$80bn industry, which typically grows at a
mid-single-digit rate. The stock trades at 16x its projected 2026 earnings and offers a 5% dividend yield.
Similarly, in Thailand, we hold a position in Mega Lifesciences, a manufacturer of generic medicines. Most of its revenue stems from
‘nutraceuticals’ or wellness drugs, with the remainder from prescription drugs and over-the-counter medicines. The company’s strong
distribution network across ASEAN, together with its product pipeline and in-house manufacturing, confers competitive advantages,
resulting in higher margins compared with peers. Its management is more agile and flexible than multinational competitors, enhancing its
effectiveness in sales and promotions. The stock trades at 12x its projected 2026 earnings, with a 5.5% dividend yield.
Question 8
How do you assess current valuations relative to historical averages? Is now an
interesting time for Asia?
Answer
The average valuation for the MSCI AC Asia ex Japan Small Cap Index is now above its historical average and cannot be considered
empirically ‘cheap’. However, this average level masks a wide variation between value stocks and growth stocks, as shown in the
chart below.
Relative valuation – Small cap Value at a steep discount to Small cap Growth
.& .& .& .& .& .& .& .& .& .& .&
&.-%)( %, ).(- &.!+)/-$
RU/+ -%)
, %!0*('&&*+)/-$ , %!0*('&&* &.! %, ).(-'&&* &.! '&&*+)/-$%# $-
Source: Fidelity International, LSEG DataStream, 31 July 2025; Index: MSCI All Countries Asia ex Japan Small Cap Indices in USD terms. Past performance is not a reliable
indicator of future results. Returns may increase or decrease as a result of currency fluctuations.
This dispersion in valuation can also be observed between the valuation of stocks we own and the market average. The P/E of the
fund is 10.4x while that of the market is 17x. This reflects Fidelity’s deep research network, which enables us to find high quality
businesses that are currently being overlooked by other investors.
Portfolio Managers’ Review continued
11
Annual Report 2025
|
Fidelity Asian Values PLC
STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS
Portfolio Valuation
Higher quality businesses at a lower price
Lower Price to Earnings Ratio vs. Small Cap Index High Return on Equity vs. Small Cap Index
+,
#+
#
/ '
#!
2
!.
,
/%
)
/)
*0
+,
#+
#
/ '
#!
2
!.
,
/%
)
/)
(''+)"#1 &"#'&.2-&)'/#- &-!*/).
+,
#+
#
/ '
#!
2
!.
,
/%
)
/)
*0
+,
#+
#
/ '
#!
2
!.
,
/%
)
/)
(''+)"#1 &"#'&.2-&)'/#- ,#(&/(
Source: Fidelity International, FactSet, 31 July 2025. Index: MSCI AC Asia ex Japan Small-Cap Index
Price to Earnings (P/E) Ratio is a measure for valuing a company’s share price versus its earnings. Price to Earnings based on FY1 estimates. Low PE can indicate that a
company may currently be undervalued. Return on equity is the measure of a company’s net income divided by its shareholders’ equity. Return on Equity is based on current
fiscal year data.
Question 9
What key risks do you face in the current environment, and how do you mitigate these
in the Company’s portfolio?
Answer
Macro and geopolitical events are not central to our decision-making, but we realise we cannot ignore them entirely, especially in the
current environment. Companies exist within business cycles, and they are impacted by geopolitical events. Therefore, we try to factor
both these into our decision-making, predominantly at the single stock level but also at the portfolio risk level. These give us guardrails
rather than being the main driver of decision-making. Stock picking is the mainstay of the investment process and has always been its
strength, and we feel we are better placed if we ‘stick to our knitting’ rather than becoming distracted by world events.
12
Fidelity Asian Values PLC
|
Annual Report 2025
Question 10
Finally, looking forward, what are the things that excite you the most that you would like
to share with shareholders?
Answer
We are excited by the team we work with – both the regional analyst team at Fidelity and especially the small cap team. Our
performance is in part an outcome of the hard work and insights of Fidelity’s research team, and we are grateful for their help.
We also feel comfortable with our portfolio. We own a basket of good quality businesses, as evidenced by their return on equity (ROE),
and we own them at a significant discount to market valuations. Think of it as owning a house that provides you with a higher rental
income at a substantially lower capital cost than the neighbourhood. Who would not want that?
We do not have a forecast of market returns, and we do not wish to indulge in such speculation. Instead, we continue to focus on
investing in good businesses, led by competent and honest management teams, available at a valuation that offers a suitable margin of
safety. This time-tested approach has delivered sustainable performance for the Company over the long-term, and we are confident that
it will continue to do so well into the future.
Nitin Bajaj Ajinkya Dhavale
Portfolio Manager Co-Portfolio Manager
16 October 2025
Portfolio Managers’ Review continued
13
Annual Report 2025
|
Fidelity Asian Values PLC
STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS
Spotlight on the Top 10 Holdings
as at 31 July 2025
(Based on Asset Exposure expressed as a percentage of Net Assets. Asset Exposure comprises
the value of direct equity investments plus market exposure to derivative instruments.)
Taiwan Semiconductor Manufacturing Company
Position size
Taiwan Semiconductor Manufacturing Company is the world’s largest semiconductor foundry
and leads in advanced nodes like 3nm (an advanced semiconductor manufacturing process)
with unrivalled scale, research and development, and trusted partnerships with Apple, Nvidia
and AMD. Its capital intensity, technological leadership and reliability create high entry barriers,
securing its position as the backbone of global chip manufacturing.
Industry: Semiconductors &
Semiconductor Equipment
5.3%
Axis Bank
Position size
Axis Bank is the third largest private sector lender in India and combines a strong retail and
corporate banking presence with improving asset quality. Lately, it has seen some rise in NPAs
(non-performing assets), however its management has taken steps to strengthen its underwriting
standards. The bank trades at relatively low valuations compared to its peers, offering a
sufficient margin of safety and mid-teens return on equity.
2.9%
Industry: Banks
BOC Aviation
Position size
BOC Aviation is the fourth largest aircraft lessor in the world and has a larger exposure to the
higher growth markets in Asia compared to its peers. Since it is 70% owned by Bank of China, it
enjoys a strong credit rating and lower funding costs compared to its competition. The company
is witnessing a healthy growth in its business driven by cyclical recovery and with a pipeline of
deliveries that should sustain future expansion.
Industry: Trading Companies &
Distributors
2.6%
Bank Negara Indonesia (Persero)
Position size
Bank Negara Indonesia (Persero) is the third largest bank by assets in Indonesia and benefits
from structurally high growth in the Indonesian banking sector. The management team has a
conservative approach, although increased competition for deposits has led to some pressure
on profitability. Its strong execution has aided the bank’s return on equity profile, and it offers a
healthy margin of safety.
2.9%
Industry: Banks
Federal Bank
Position size
Federal Bank is a private sector bank based in the South Indian state of Kerala. It has one
of the strongest liability franchises amongst Indian regional banks. India is one of the largest
international remittance markets in the world with the state of Kerala a leading recipient.
The bank has access to regular flows of money from remittances, leading to stable deposit
growth. On the asset side, it has a strong focus on small and medium enterprises segment.
The management team has a conservative underwriting culture and low-double digit returns
on equity.
Industry: Banks
2.4%
14
Fidelity Asian Values PLC
|
Annual Report 2025
KT
Position size
KT is incumbent fixed line telecommunications services provider and the second largest
mobile services provider in South Korea. It has a sizable real estate leasing business which
the company is selling. The company’s capital allocation is improving under Korea’s ‘value-up’
programme and through higher dividend payouts. KT’s management compensation has also
been aligned to total shareholder returns and paid in the form of shares with a three-year
lock-up.
Industry: Diversified
Telecommunication Services
2.1%
Ciputra Development
Position size
Ciputra Development is a top Indonesian property developer and is known for township
projects and a broad land bank. Its strong brand, diversified portfolio and focus on affordable
housing taps into demographic tailwinds. Its international partnerships and geographic
diversification enhance flexibility, while proven regulatory navigation supports resilience across
property market cycles.
Industry: Real Estate
Management & Development
1.7%
Sinotrans
Position size
Sinotrans is China’s leading logistics provider and benefits from integration with China
Merchants Group, giving it unmatched access to ports and shipping assets. Its scale, end-to-
end services and strong ties with exporters provide a level of resilience. Ongoing investment in
digital logistics enhances its efficiency and competitiveness in the global trade networks.
Industry: Air Freight & Logistics
1.6%
Bank Mandiri (Persero)
Position size
Bank Mandiri (Persero) is the largest bank by assets in Indonesia. It is majority owned by the
market and was a result of the merger of several smaller banks post the Asian Financial Crisis.
It benefits from secular growth due to a growing population, favourable demographics and low
credit penetration.
Industry: Banks
1.5%
Spotlight on the Top 10 Holdings continued
as at 31 July 2025
(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.)
Indofood CBP Sukses Makmur
Position size
The company is the largest instant noodles maker with operations in Indonesia, the Middle
East, Africa and South-Eastern Europe. With its vertically integrated operations that helps secure
input sourcing and a top-of-the-mind ‘Indomie’ brand, the company dominates all geographies
it operates in. It also thrives in an industry that is generally unattractive to be in given high
competitive intensity and low product differentiation. Apart from noodles, the company also
sells dairy, snack foods and seasonings.
Industry: Food Products
2.3%
15
Annual Report 2025
|
Fidelity Asian Values PLC
STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS
Forty Largest Holdings
as at 31 July 2025
The Asset Exposures shown below measure exposure to market price movements as a result of owning shares, corporate bonds and
derivative instruments. The Fair Value is the realisable value of the portfolio as reported in the Balance Sheet. Where the Company holds
shares and corporate bonds, the Asset Exposure and Fair Value will be the same. For derivative instruments, Asset Exposure is the market
value of the underlying asset to which the Company is exposed, while the Fair Value reflects the mark-to-market on the contract since it
was opened, and is based on how much the share price of the underlying asset has moved.
Asset Exposure
Fair
Value
Industry £’000 %
1
£’000
Long Exposures – shares unless otherwise stated
Taiwan Semiconductor Manufacturing Company
Semiconductors & Semiconductor
Equipment 21,468 5.3 21,468
Axis Bank Banks 11,772 2.9 11,772
Bank Negara Indonesia (Persero) Banks 11,492 2.9 11,492
BOC Aviation (long CFDs) Trading Companies & Distributors 10,405 2.6 (482)
Federal Bank Banks 9,538 2.4 9,538
Indofood CBP Sukses Makmur Food Products 9,424 2.3 9,424
KT
Diversified Telecommunication
Services 8,655 2.1 8,655
Ciputra Development
Real Estate Management &
Development 6,927 1.7 6,927
Sinotrans Air Freight & Logistics 6,563 1.6 6,563
Bank Mandiri (Persero) Banks 5,975 1.5 5,975
CapitaLand India Trust
Real Estate Management &
Development 5,664 1.4 5,664
Trip.com Group Hotels, Restaurants & Leisure 5,383 1.3 5,383
Valaris (shares and corporate bond) Energy Equipment & Services 5,343 1.3 5,343
Full Truck Alliance Ground Transportation 5,318 1.3 5,318
ByteDance (unlisted) Interactive Media & Services 5,281 1.3 5,281
Chow Sang Sang Holdings International Textiles, Apparel & Luxury Goods 5,279 1.3 5,279
Qingdao Port International Transportation Infrastructure 5,116 1.3 5,116
Arwana Citramulia Building Products 5,074 1.3 5,074
SIS Commercial Services & Supplies 4,929 1.2 4,929
Xtep International Holdings (long CFD) Textiles, Apparel & Luxury Goods 4,909 1.2 (57)
Pumtech Korea Containers & Packaging 4,836 1.2 4,836
Adaro Andalan Indonesia Oil, Gas & Consumable Fuels 4,785 1.2 4,785
Poly Property Services
Real Estate Management & Devel-
opment 4,704 1.2 4,704
Crystal International Group (shares and long
CFDs) Textiles, Apparel & Luxury Goods 4,643 1.2 2,100
China Overseas Property Holdings (long CFD)
Real Estate Management &
Development 4,618 1.1 (103)
IndusInd Bank Banks 4,533 1.1 4,533
Samsonite Group Textiles, Apparel & Luxury Goods 4,506 1.1 4,506
16
Fidelity Asian Values PLC
|
Annual Report 2025
Asset Exposure
Fair
Value
Industry £’000 %
1
£’000
Shandong Weigao Group Medical Polymer
(long CFD) Health Care Equipment & Supplies 4,358 1.1 681
China Overseas Grand Oceans Group
(shares and long CFD)
Real Estate Management & Devel-
opment 4,199 1.1 927
NAC Kazatomprom Oil, Gas & Consumable Fuels 4,159 1.1 4,159
Genpact Professional Services 4,127 1.0 4,127
Bank Central Asia Banks 4,096 1.0 4,096
ENN Energy Holdings (long CFD) Gas Utilities 4,080 1.0 54
Wynn Macau Hotels, Restaurants & Leisure 4,068 1.0 4,068
Santos Oil, Gas & Consumable Fuels 3,999 1.0 3,999
Perseus Mining Metals & Mining 3,944 1.0 3,944
LIC Housing Finance Financial Services 3,906 1.0 3,906
Hansol Chemical Chemicals 3,830 1.0 3,830
Jingjin Equipment (long CFD) Machinery 3,746 0.9 133
Texwinca Holdings Textiles, Apparel & Luxury Goods 3,746 0.9 3,746
Top forty long exposures 239,398 59.4 201,693
Other long exposures 204,431 50.8 175,139
Total long exposures (152 holdings) 443,829 110.2 376,832
Short exposures
Short CFDs (14 holdings) 21,913 5.5 485
Short futures (3 holdings) 2,353 0.6 (129)
Short put options (1 holding) 2,143 0.5 96
Total short exposures 26,409 6.6 452
Gross Asset Exposure
2
470,238 116.8
Portfolio Fair Value
3
377,284
Net current assets (excluding derivative assets and
liabilities) 25,424
Total Shareholders’ Funds/Net Assets 402,708
1 Asset Exposure (as defined in the Glossary of Terms on page 91) is expressed as a percentage of Total Shareholders’ Funds.
2 Gross Asset Exposure comprises market exposure to investments of £377,051,000 (per Note 10: Investments on page 64) plus market exposure to derivative instruments of
£93,187,000 (per Note 11: Derivative instruments on page 65).
3 Portfolio Fair Value comprises investments of £377,051,000, derivative assets £2,278,000 less derivative liabilities of £2,045,000 (per the Balance Sheet on page 55).
A full list of the Company’s holdings as at 31 July 2025 will be available on the Company’s pages of the Manager’s website at
www.fidelity.co.uk/asianvalues on, or shortly after, 31 October 2025.
Forty Largest Holdings continued
as at 31 July 2025
17
Annual Report 2025
|
Fidelity Asian Values PLC
STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS
Distribution of the Portfolio
as at 31 July 2025
(Asset Exposure expressed as a percentage of Total Shareholders’ Funds)
Portfolio
China &
Hong Kong Indonesia
South
Korea India Other Total
2025
Index
1
2024
Total
Consumer Discretionary
Textiles, Apparel & Luxury Goods 7.0 – – 0.3 2.3 9.6 1.8 6.5
Hotels, Restaurants & Leisure 1.6 0.1 – – 2.2 3.9 2.0 2.0
Automobile Components 0.9 1.0 0.4 – – 2.3 2.6 1.8
Diversified Consumer Services 0.8 – 0.9 – 0.5 2.2 0.3 2.1
Automobiles 0.7 – – 0.3 0.7 1.7 0.4 1.2
Household Durables 0.5 – 0.6 – 0.5 1.6 0.9 –
Specialty Retail 1.2 – – – – 1.2 0.8 1.7
Leisure Products 0.6 – – – 0.3 0.9 0.3 0.7
Broadline Retail – – – – – – 0.5 0.4
13.3 1.1 1.9 0.6 6.5 23.4 9.6 16.4
Financials
Banks – 5.5 – 6.4 0.8 12.7 2.5 13.2
Financial Services – – 0.5 2.0 – 2.5 1.7 3.6
Consumer Finance – – – 1.0 – 1.0 1.3 0.7
Capital Markets 0.5 – – – – 0.5 3.5 1.0
Insurance – – – – 0.3 0.3 1.2 0.9
0.5 5.5 0.5 9.4 1.1 17.0 10.2 19.4
Industrials
Trading Companies & Distributors 2.6 0.4 – – – 3.0 0.3 2.9
Professional Services 0.5 – 0.5 – 1.2 2.2 0.7 3.6
Transportation Infrastructure 1.8 – – – – 1.8 0.9 1.5
Commercial Services & Supplies 0.4 – – 1.2 – 1.6 0.9 2.2
Air Freight & Logistics 1.6 – – – – 1.6 0.4 1.4
Machinery 1.4 – – – – 1.4 4.1 1.1
Building Products – 1.3 – – – 1.3 0.7 1.9
Ground Transportation 1.3 – – – – 1.3 0.4 0.4
Construction & Engineering – – 0.8 – – 0.8 3.4 1.5
Marine Transportation 0.6 – – – – 0.6 0.4 0.5
Electrical Equipment – – – – 0.2 0.2 4.2 0.1
Passenger Airlines – – 0.2 – – 0.2 0.2 0.2
Industrial Conglomerates – – – – – – 1.6 –
Aerospace & Defense – – – – – – 0.8 –
10.2 1.7 1.5 1.2 1.4 16.0 19.0 17.3
The table below and on the next page details the Distribution of the Portfolio based on Asset Exposure which measures the exposure
of the portfolio to market price movements as a result of owning shares, corporate bonds and derivatives instruments.
18
Fidelity Asian Values PLC
|
Annual Report 2025
Continued on the next page.
Portfolio
China &
Hong Kong Indonesia
South
Korea India Other Total
2025
Index
1
2024
Total
Information Technology
Semiconductors & Semiconductor
Equipment 0.3 – 0.9 – 7.3 8.5 7.1 3.3
Technology Hardware Storage &
Peripherals – – 0.8 – 0.7 1.5 1.9 1.7
Information Technology Services 0.2 0.1 – – 0.8 1.1 2.0 –
Electronic Equipment Instruments &
Components – 0.1 – – – 0.1 6.4 1.3
Software – – – – – – 1.1 –
Communications Equipment – – – – – – 0.6 –
0.5 0.2 1.7 – 8.8 11.2 19.1 6.3
Consumer Staples
Food Products 1.4 4.4 0.5 – 0.9 7.2 2.5 11.0
Consumer Staples Distribution & Retail 1.5 – 0.5 – – 2.0 1.0 2.6
Beverages 0.6 – – – 0.5 1.1 0.7 1.2
Household Products – 0.6 – – – 0.6 0.1 0.3
Tobacco – – – – – – 0.2 0.5
Personal Care Products – – – – – – 0.8 –
3.5 5.0 1.0 – 1.4 10.9 5.3 15.6
Materials
Metals & Mining 1.9 – – – 2.5 4.4 2.7 5.0
Chemicals 0.3 – 1.6 0.6 1.2 3.7 5.1 2.5
Containers & Packaging – – 1.2 – – 1.2 0.3 –
Construction Materials – – – – – – 1.0 1.4
Paper & Forest Products – – – – – – 0.4 –
2.2 – 2.8 0.6 3.7 9.3 9.5 8.9
Real Estate
Real Estate Management &
Development 5.2 1.7 – – 1.4 8.3 4.2 8.4
Industrial Real Estate Investment Trusts
(REITS) – – – – – – 0.9 –
Retail Real Estate Investment Trusts
(REITS) – – – – – – 0.7 –
Office Real Estate Investment Trusts
(REITS) – – – – – – 0.7 –
Diversified Real Estate Investment
Trusts (REITS) – – – – – – 0.5 –
Hotel & Resort Real Estate Investment
Trusts (REITS) – – – – – – 0.3 –
Specialized Real Estate Investment
Trusts (REITS) – – – – – – 0.3 –
Health Care Real Estate Investment
Trusts (REITS) – – – – – – 0.1 –
5.2 1.7 – – 1.4 8.3 7.7 8.4
Distribution of the Portfolio continued
as at 31 July 2025
(Asset Exposure expressed as a percentage of Total Shareholders’ Funds)
19
Annual Report 2025
|
Fidelity Asian Values PLC
STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS
Portfolio
China &
Hong Kong Indonesia
South
Korea India Other Total
2025
Index
1
2024
Total
Health Care
Health Care Equipment & Supplies 1.6 – 1.0 – 0.5 3.1 0.9 2.6
Health Care Providers & Services 1.1 – – – 1.9 3.0 2.0 0.3
Pharmaceuticals – – – – 0.1 0.1 5.0 2.5
Life Sciences Tools & Services – – – – – – 1.0 –
Biotechnology – – – – – – 3.1 –
Health Care Technology – – – – – – 0.1 –
2.7 – 1.0 – 2.5 6.2 12.1 5.4
Communications Services
Diversified Telecommunication
Services – – 2.2 – – 2.2 0.9 2.3
Interactive Media & Services 0.6 – – – 1.3 1.9 0.8 0.2
Media 1.0 – – – – 1.0 0.6 2.1
Wireless Telecommunication Services – – – – 0.5 0.5 0.1 0.2
Entertainment – 0.2 – – – 0.2 1.6 –
1.6 0.2 2.2 – 1.8 5.8 4.0 4.8
Energy
Oil, Gas & Consumable Fuels – 1.2 – – 2.3 3.5 1.2 2.0
Energy Equipment & Services 0.7 – – – 1.6 2.3 0.2 3.9
0.7 1.2 – – 3.9 5.8 1.4 5.9
Utilities
Independent Power & Renewable
Electricity Producers – 0.9 – 0.5 – 1.4 1.1 2.1
Gas Utilities 1.0 – – – – 1.0 0.6 1.3
Water Utilities – – – – – – 0.2 0.4
Electric Utilities – – – – – – 0.2 –
1.0 0.9 – 0.5 – 2.4 2.1 3.8
Exposure before options 41.4 17.5 12.6 12.3 32.5 116.3 112.2
Add: options – – 0.5 – – 0.5 0.8
Total Asset Exposure - 2025 41.4 17.5 13.1 12.3 32.5 116.8
Index - 2025 100.0
Total Asset Exposure - 2024 40.8 16.2 13.7 17.3 25.0 113.0
1
MSCI All Countries Asia ex Japan Small Cap Index (net) total return (in sterling terms), the Company’s Comparative Index.
Note: Exposures in the tables above are calculated as a percentage of net assets.
20
Fidelity Asian Values PLC
|
Annual Report 2025
Ten Year Record
For the year ended
31 July 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Gross Asset Exposure (£m)
1
470.2 442.9 440.8 383.7 375.2 276.6 347.4 285.2 273.7 232.0
Total Shareholders’ Funds (£m) 402.7 392.0 394.6 367.6 364.1 269.4 323.0 288.0 280.2 237.5
NAV per Ordinary Share – undiluted (p)
2
604.69 551.66 549.33 507.78 497.50 364.39 447.16 419.36 415.17 351.98
NAV per Ordinary Share – diluted (p)
2
n/a n/a n/a n/a n/a n/a 439.91
3
413.64
3
407.77
3
n/a
Ordinary Share Price (p) 564.00 496.00 520.00 458.00 483.00 335.00 455.50 412.00 386.00 313.00
Subscription Share Price (p) n/a n/a n/a n/a n/a n/a 53.00 23.50 29.50 n/a
(Discount)/Premium – undiluted (%)
2
(6.7) (10.1) (5.3) (9.8) (2.9) (8.1) 1.9 (1.8) (7.0) (11.1)
Premium/(Discount) – diluted (%)
2
n/a n/a n/a n/a n/a n/a 3.5
3
(0.4)
3
(5.3)
3
n/a
Revenue return per Ordinary Share (p)
2
22.51 14.24 15.17 14.21 9.20 8.64 10.70 5.70 6.08 5.36
Dividend per Ordinary Share (p) 20.5 14.5 14.5 14.0 8.8 8.5 8.8 5.5 5.5 4.5
Ongoing Charges (cost of running the
Company) (%)
2
0.95 0.95 0.96 0.95 0.93 0.98 0.98 1.17 1.22 1.33
Gross Gearing (%)
2,4
16.8 13.0 11.7 4.4 3.0 2.7 7.5 (1.0) (2.3) (2.3)
NAV per Ordinary Share total return –
undiluted (%)
2
+12.4 +3.2 +11.4 +3.9 +39.5 -16.7 +8.2 +2.2 +19.3 +33.8
NAV per Ordinary Share total return –
diluted (%)
2
n/a n/a n/a n/a n/a n/a +7.9
3
+2.7
3
+17.2
3
n/a
Ordinary Share Price total return (%)
2
+17.0 -1.7 +17.3 -3.4 +47.6 -24.8 +12.3 +8.2 +24.9 +33.3
Comparative Index total return (%)
5
+7.1 +13.7 +7.5 -5.6 +39.2 -0.8 -4.6 +4.7 +15.6 +13.1
Benchmark Index total return (%)
6
+7.1 +13.7 +7.5 -5.6 +39.2 +2.7 +3.9 +5.7 +28.2 +15.8
1 The value of the portfolio exposed to market price movements.
2 Alternative Performance Measures.
3 The dilution relates to the subscription shares offer that closed in December 2019.
4 Gross Asset Exposure in excess of/(less than) Total Shareholders’ Funds expressed as a percentage of Total Shareholders’ Funds (see Note 18 on page 77).
5 MSCI All Countries Asia ex Japan Small Cap Index (net) total return (in sterling terms).
6 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.
21
Annual Report 2025
|
Fidelity Asian Values PLC
STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS
Strategic Report
The Directors have pleasure in presenting the Strategic Report
of the Company. The Chairman’s Statement and the Portfolio
Managers’ Review on pages 2 to 12 form part of the Strategic
Report.
Business and Status
The Company carries on business as an investment trust. Its shares
are listed and traded on the London Stock Exchange. It has been
approved as an investment trust by HM Revenue & Customs under
sections 1158 and 1159 of the Corporation Tax Act 2010 and it is
intended that the Company will continue to conduct its affairs in a
manner that will enable it to retain this status.
The Company is domiciled in the UK and is an investment
company within the meaning of section 833 of the Companies
Act 2006. The Company is not a “close” company for taxation
purposes and has no employees, premises, assets or operations.
INVESTMENT OBJECTIVE AND POLICY
INVESTMENT OBJECTIVE
The Company’s objective is to achieve long-term capital growth
principally from the stock markets of the Asian Region* excluding
Japan. The 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)
1
.
* Asian Region means the continent of Asia (including Hong Kong, South Korea,
Thailand, Singapore, Malaysia, Taiwan, Indonesia, Philippines, China, India,
Pakistan, Vietnam and Sri Lanka, but excluding the countries comprising the
former U.S.S.R. and the Middle East), together with Australasia.
INVESTMENT POLICY
The Company seeks to meet its investment objective through
investment in a diversified portfolio of securities and instruments
issued by or related to companies listed on the stock markets
in the Asian Region excluding Japan but investments may be
made in companies listed elsewhere which, in the opinion of the
Portfolio Managers, have significant interests in the Asian Region
excluding Japan.
In order to diversify the Company’s portfolio, the Board has
set limits for the Manager, which the Board reserves the right
to amend as it sees fit, in respect of the country weightings of
the portfolio. The Company may invest directly in the shares of
companies or indirectly through equity related instruments (such
as derivative contracts, warrants or convertible bonds) and in
debt instruments. The Company may also invest in unquoted
securities and in other investment funds, subject to the investment
restrictions set out below.
Investment Strategy
In order to achieve the Company’s objective, the Company
operates as an investment company and has an actively
managed portfolio of investments. As an investment company, it
is able to gear the portfolio and the Board takes the view that
long-term returns for shareholders can be enhanced by the use
of gearing in a carefully considered and monitored way.
As part of the strategy, the Board has delegated the
management of the portfolio and certain other services to the
Manager (FIL Investment Services (UK) Limited). The Portfolio
Managers, Nitin Bajaj and Ajinkya Dhavale, aim to achieve
a total return on the Company’s net assets over the longer
term in excess of the equivalent return on the Company’s
Comparative Index. The stock selection approach adopted by the
Portfolio Managers is considered to be well-suited to achieving
this objective.
Investment Management Philosophy, Style and Process
The portfolio is built on a stock-by-stock basis following the
Portfolio Managers’ assessment of the fundamental value
available in individual securities. Geographical weightings
are the result of this stock selection process rather than
macroeconomic considerations. The portfolio’s geographical and
industry sector weightings may, therefore, vary significantly from
the weightings in its Comparative Index. Further, the Portfolio
Managers’ concentration on the identification of fundamental
value in individual stocks within the Asian Region excluding Japan
may result in investments that are contrary to prevalent trends
and local conventions.
Investment Restrictions
The Company will invest and manage its assets with an objective
of spreading risk with the following investment restrictions:
• No single or aggregate investment in any one company or
other investment entity shall represent more than 10% of its
Gross Assets, measured at the time of any investment.
• Up to 5% of its Gross Assets, at the time of investment,
in securities which are not listed on any stock exchange.
However, the Portfolio Managers will not normally make
any such investment, except where it is expected that the
securities will become listed on a stock exchange in the
foreseeable future.
2
• Up to 15% of its Gross Assets, at the time of investment, in
other investment funds (whether listed or unlisted) where
such funds offer the only practicable means of gaining
exposure to a particular market in the Asian Region
excluding Japan. Within this limit, no more than 10% of Gross
Assets, at the time of investment, may be invested in funds
that do not have stated policies to invest no more than 15%
of their Gross Assets in other listed closed-ended funds.
• Up to 15% of its Gross Assets, at the time of investment,
in securities which are not listed or domiciled in the Asian
Region, provided the investments have a strong Asian
Region rationale.
The Company is permitted to invest in Non-Voting Depositary
Receipts, American Depositary Receipts, Global Depositary
Receipts and Equity Linked Notes. Any such investment will be
included in the relevant aggregate country weighting.
1. As part of the resolution to amend the Investment Objective and Investment
Policy at the AGM on 26 November 2026, it is proposed to remove the reference
to the Company’s Comparative Index from the Investment Objective and move it
to the Investment Policy. See Appendix to the Notice of Meeting on page 87.
2. As part of the resolution to amend the Investment Objective and Investment
Policy at the AGM on 26 November 2026, it is proposed to shorten this wording
to “Up to 5% of its Gross Assets, at the time of investment, in securities which are
not listed on any stock exchange”.
22
Fidelity Asian Values PLC
|
Annual Report 2025
Use of Derivative Instruments
In order to meet its investment objective, the Company may
utilise derivative instruments, including index-linked notes, futures,
contracts for differences (“CFDs”), call options (including covered
calls), put options and other equity related derivative instruments.
Derivatives usage will focus on, but will not be limited to the
following investment strategies:
• As an alternative form of gearing to bank loans, the
Company can enter into long CFDs which achieve an
equivalent effect to buying an asset financed by bank
borrowing but often at lower financing costs. The Company
does not currently use bank borrowings for gearing
purposes.
• To hedge equity market risks where suitable protection can
be purchased to limit the downside of a falling market at
reasonable costs.
• To enhance the investment returns by taking short exposures
on stocks that the Portfolio Managers consider to be 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 Managers’ investment style and philosophy as well as
the markets they operate in.
The sum of all short exposures of the Company from derivatives,
excluding hedges, will not exceed 10% of total net assets.
It should be stressed that the majority of the Company’s exposure
to equities will be through direct investment and not through
derivatives. In addition, the limits on exposure to individual
companies and groups are calculated after translating all
derivative exposures into economically equivalent amounts of the
underlying assets.
Modification of Investment Objective or Investment Policy
In accordance with the UK Listing Rules, any material change
to the Company’s published Investment Objective or Investment
Policy will require the prior approval of both the Financial
Conduct Authority and the shareholders of the Company (by
way of an ordinary resolution). See page 87 for the proposed
changes to the Investment Objective and Investment Policy
to be submitted for shareholders’ approval at the AGM on
26 November 2025.
KEY PERFORMANCE INDICATORS
The Board’s intention is for the NAV and share price to outperform
the Comparative Index and that the discount should be maintained
in single digits in normal market conditions. It regularly considers
the costs of running the Company to ensure that they are
reasonable and competitive. The key performance indicators
(“KPIs”) used to describe the performance of the Company, and
which are comparable to those reported by other investment
companies, are set out below.
Year ended
31 July
2025
%
Year ended
31 July
2024
%
NAV per Ordinary Share total
1
+12.4 +3.2
Ordinary Share Price total return
1
+17.0 -1.7
Comparative Index total return
2
+7.1 +13.7
Discount to NAV at the year end
1
6.7 10.1
Ongoing Charges Ratio
1,3
0.95 0.95
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 set out in the table 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 2025 can be found in the Chairman’s Statement
and Portfolio Managers’ Review on pages 2 to 12. Long-term
performance is also monitored and this is set out in the Ten Year
Record on page 20.
Strategic Report continued
23
Annual Report 2025
|
Fidelity Asian Values PLC
STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS
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.
The Board considers the risks listed below and on pages 24 to 27 as the principal risks and uncertainties faced by the Company.
Principal Risks
1. Economic, Political and Market Risks
Trend (
from previous year
): Increased
Description and Impact Mitigation
• The Company and its assets may be affected by economic
and market risks. These are market downturns, interest rate
movements, deflation/inflation, exchange rate movements
and market shocks. Inflation and economic instability are
potentially impacting investors’ risk appetite. Emerging
markets are less established and more volatile than
developed markets. They involve higher risks, particularly
market, credit, illiquid security, legal, custody, valuation, and
currency risks, and are more likely to experience risks that
in developed markets are associated with unusual market
conditions.
• The Company is exposed to several geopolitical risks. The
geopolitical landscape continues to change globally and is
largely shaped by the ongoing effects of war conflicts, tariff
wars, deglobalisation trends and significant supply disruption.
The Middle East and Russia are significant net exporters
of oil, natural gas and a variety of soft commodities and
supply limitations have fuelled global inflation and economic
instability, specifically within Western nations. Macro-economic
uncertainty continues to impact Western investment appetite.
• China’s outlook for ‘controlled stabilisation’ remains intact,
supported by targeted policy measures. China’s growth
stabilisation is more credible post-deal (i.e. the government’s
commitment to implementing strategic economic measures
to achieve steady growth and economic resilience): the
agreement with the U.S. reduces pressure on China to deliver
new fiscal easing. Exports and industrial activities continue
to outperform despite the slower than expected recovery in
domestic demand. Whilst investment from mainland China
has increased significantly, driven by favourable government
policies and the high dividends available from some Hong
Kong shares, China’s vulnerabilities remain, with risks related
to the global outlook and geopolitical tensions including the
possibility of global trade conflict, ongoing tensions between
South Korea and North Korea, South China Sea dispute
and implications of China-Taiwan relations. The legal rights
of investors in mainland China are uncertain, government
intervention is common and unpredictable, some of the major
trading and custody systems are unproven, and all types of
investments are likely to have comparatively high volatility
and greater liquidity and counterparty risks.
• The Company’s portfolio is made up mainly of listed
securities. The Portfolio Managers’ success or failure
to protect and increase the Company’s assets against
the economic, political and market background is core
to the Company’s continued success. Their investment
philosophy of stock-picking and investing in attractively
valued companies aims to outperform the Comparative
Index over time. The Board is provided with a detailed
investment review which covers material economic, political
and market risks and legislative changes at each Board
meeting.
• The Board has oversight of the Company’s portfolio,
regularly reviews the impact of gearing and derivatives,
and has comfort that the portfolio is sufficiently diversified
by sector, country and number of holdings.
• 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 68 to 76 together with
summaries of the policies for managing these risks. It is the
Company’s policy not to hedge the underlying currencies of
the holdings in the portfolio but rather to take the currency
risk into consideration when making investment decisions.
24
Fidelity Asian Values PLC
|
Annual Report 2025
• Heightened tensions between the U.S. and global trading
partners, particularly China, continue to impact the markets.
The US/China relationship is also impacted by the dynamic
of the balance between national security and economic
interests and could lead to higher volatility, sanctions for
broader markets, technology and oil in particular, as well as
risk of changes in foreign policies across the globe.
• Most of the Company’s assets and income are denominated
in currencies other than sterling which is the Company’s
functional and presentation currency. As a result, movements
in exchange rates may affect the sterling value of its assets
and income.
2. Competition Risks and Marketplace Threats Impacting Business Growth
Trend (
from previous year
): Increased
Description and Impact Mitigation
• There is increased activity around mergers and acquisitions
across the investment company marketplace and alternative
investment offerings (including passive vehicles) which could
influence the demand for the Company’s shares.
• There is a risk of costly shareholder activism in the investment
company sector, pursuing goals that may not be in the
interests of most shareholders.
• The Board, the Company’s Broker and the Manager closely
monitor industry activity, the peer group and the share
register.
• An annual review of strategy is undertaken by the
Board to ensure that the Company continues to offer a
relevant product to investors. There are also pre-emptive
preparations in the event of an activist investor approach.
3. Changes in Legislation, Taxation or Regulation
Trend (
from previous year
): Increased
Description and Impact Mitigation
• Changes in legislation, taxation or regulation, or other
external influences that require changes to the investment
trust structure of the Company are a significant risk for the
Company.
• A breach of Section 1158 of the Corporation Tax Act 2010
could lead to a loss of investment trust status resulting in the
Company being subject to tax on capital gains.
• There have been increased concerns about investment cost
disclosures and their impact on the industry. There is a risk
that the FCA’s proposed Consumer Composite Investment
(CCI) regime may make investment companies more complex
for consumers and other investors to understand and increase
the regulatory burden imposed on the sector if it proceeds
with some of the proposals as drafted.
• The Board and Manager closely monitor regulatory,
taxation and legislative changes, with developments
impacting the Company summarised in the form of regular
reporting to the Board.
• The Manager monitors Section 1158 status to ensure any
issues are escalated to the Board and addressed promptly.
• The Manager participates in industry discussions regarding
regulatory changes impacting investment companies,
and regulatory developments continue to be monitored
and managed by Fidelity through active lobbying and
negotiations as well as a robust change management
process.
Strategic Report continued
25
Annual Report 2025
|
Fidelity Asian Values PLC
STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS
4. Level of Discount to Net Asset Value
Trend (
from previous year
): Increased
Description and Impact Mitigation
• Due to the nature of investment companies, the price of the
Company’s shares and its discount to NAV are factors which
are not completely within the Company’s control.
• In considering the risk that the discount to NAV poses to
shareholder value and returns, both the absolute level of
the discount and the amount relative to the Company’s peer
group and the wider market are considered.
• While the Company’s discount has narrowed in recent
months, there has been significantly increased market focus
on this issue across the wider investment trust sector over the
past year.
• The Board reviews the investment strategy, investment
performance and the marketing approach, given the
influence of all these factors on the discount.
• The Company’s share price, NAV and discount volatility
are monitored daily by the Manager and the Company’s
Broker and considered by the Board on a regular basis.
The demand for shares can be influenced through good
performance and an active investor relations programme.
• Discretionary repurchases of ordinary shares are made
within guidelines set by the Board, and considering
prevailing market conditions.
5. Investment Performance Risk (including the use of Derivatives and Gearing)
Trend (
from previous year
): Decreased
Description and Impact Mitigation
• 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 objective becoming unattractive to investors.
• The Company gears using derivatives including CFDs which
provide greater flexibility and are generally cheaper than
bank loans. The principal risk is that the Portfolio Managers
fail to use gearing effectively, resulting in a failure to
outperform in a rising market or to underperform in a falling
market.
• Derivative instruments are used to enhance investment returns,
as well as for hedging and efficient portfolio management
purposes. There is a risk that the use of derivatives may lead
to higher volatility in the NAV and the share price than might
otherwise be the case.
• 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. The Board takes comfort from the work of the
Portfolio Construction and Advisory team in reviewing and
challenging the portfolio.
• The Board reviews Fidelity’s compliance with agreed
investment restrictions; investment performance and risk;
relative performance; the portfolio’s risk profile; and
whether appropriate strategies are employed to mitigate
any negative impact of substantial changes in the markets.
The Board also regularly canvasses major shareholders for
their views with respect to company matters.
• The Board has put in place policies and limits to control
the Company’s use of derivatives and exposures. These are
monitored daily by the Manager’s Compliance team and
regular reports are provided to the Board. Further detail
on derivative instruments risk is included in Note 17 to the
Financial Statements on pages 68 to 76.
• The Investment Policy sets the gearing limits within which
the Manager must operate and the Board regularly
considers the level of gearing and gearing risk. The Board
regularly considers the level of gearing and gearing risk.
26
Fidelity Asian Values PLC
|
Annual Report 2025
6. Cybercrime and Information Security
Trend (
from previous year
): Increased
Description and Impact Mitigation
• Cybersecurity risk increased use of artificial intelligence
(AI) and cyberattacks or threats to the functioning of global
markets and to the Manager’s own business model, including
its and the Company’s outsourced suppliers.
• Risk of cybercrime such as phishing, remote access threats,
extortion, and denial-of-service attacks from highly organised
criminal networks and sophisticated ransomware operators,
including threats such as service disruption/extortion attacks
(DDoS, ransomware), financial theft and data breaches,
regulatory non-compliance, reputational damage/loss of
customer trust. The threat environment continues to evolve
rapidly, including the heightened potential threat from nation
state backed threat actor due to geopolitical tensions from
the current wars in Ukraine and Gaza. Ransomware continues
to increase globally and is also becoming a supply chain risk.
• The risk is monitored by the Board with the help of the
Manager’s global cybersecurity team and their extensive
Strategic Cyber and Information Security programme and
assurances from outsourced suppliers.
• The Manager has established a comprehensive framework
of information security policies and standards which
provide a structured approach to identify, prevent, and
respond to information security threats. The framework
ensures consistency in Fidelity’s security measures,
enhances its ability to adapt to evolving/emerging threats,
and compliance with changing regulatory requirements.
The Company’s other service providers also have similar
measures in place.
• Key performance indicators and metrics have been
developed by the Manager to monitor the overall efficacy
of cybersecurity processes and controls and to further
enhance the Manager’s cybersecurity strategy and
operational resilience.
7. Business Continuity and Crisis Management
Trend (
from previous year
): Decreased
Description and Impact Mitigation
• Business process disruption risk from continued threats of
cyberattacks, geopolitical events, outages, fire events and
natural disasters, resulting in financial and/or reputational
impact to the Company affecting the functioning of the
business.
• The Company relies on a number of third-party service
providers, principally the Registrar, Custodian and Depositary
who may be subject to cybercrime.
• Fidelity has Business Continuity and Crisis Management
Frameworks in place to deal with business disruption and
assure operational resilience.
• All third-party service providers are subject to a risk-
based programme of risk oversight and internal audits
by the Manager and their own internal controls reports
are received an annual basis and any concerns are
investigated.
8. Operational Risks
Trend (
from previous year
): Stable
Description and Impact Mitigation
• Financial losses or reputational damage from inadequate
or failed internal processes, people and systems or from
external parties and events.
• Fidelity’s Operational Risk Management Framework is
designed to pro-actively prevent, identify and manage
operational risks inherent in most activities.
• Fidelity uses robust systems and procedures dedicated to
its operational processes. Its risk management structure
is designed according to the FCA’s three lines of defence
model.
Strategic Report continued
27
Annual Report 2025
|
Fidelity Asian Values PLC
STRATEGYFINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS
9. Key Person Risk
Trend (
from previous year
): Stable
Description and Impact Mitigation
• Loss of the Portfolio Manager, Co-Portfolio Manager or other
key individuals could lead to potential performance and/or
operational issues.
• The Portfolio Manager, Nitin Bajaj, has a differentiated style
in relation to his peers. This style is intrinsically linked with
the Company’s investment philosophy and strategy and,
therefore, the Company has a key person dependency on
him.
• There is also a risk that the Manager has inadequate
succession plans for other key operational individuals.
• The Company has a Co-Portfolio Manager, Ajinkya
Dhavale, who supports the Portfolio Manager, and has
extensive experience in the Asian markets and companies
and shares a common investment approach and
complementary investment experience with the Portfolio
Manager. The Portfolio Manager is also supported by
an Investment Director, Himalee Bahl, as a primary
spokesperson for the Company. This helps strengthen the
investment process.
• The Manager identifies key dependencies which are
then addressed through succession plans, particularly for
portfolio managers.
Emerging Risks
The Audit Committee continues to identify any new emerging risks
and take any action necessary to mitigate their potential impact.
The risks identified are placed on the Company’s risk matrix and
appropriately graded. This process, together with the policies
and procedures for the mitigation of existing and emerging risks,
is updated and reviewed regularly in the form of comprehensive
reports by the Audit Committee. The Board determines the nature
and extent of any risks it is willing to take to achieve its strategic
objectives.
Climate change, which refers to a large scale shift in the
planet’s weather patterns and average temperatures, continues
to be a key emerging issue as well as a risk confronting asset
managers and their investors. Globally, climate change effects
are already being experienced in the form of changing weather
patterns. Extreme weather events can potentially impact the
operations of investee companies, their supply chains and their
customers. The Board notes that the Manager has integrated ESG
considerations, including climate change, into the Company’s
investment process. The Board will continue to monitor how this
may impact the Company as a risk to investment valuations and
potentially to shareholder returns.
The Board, together with the Manager, is also monitoring the
emerging risk posted by the rapid advancement of artificial
intelligence (“AI”) and technology and how it may threaten the
Company’s activities and its potential impact on the portfolio and
investee companies. AI can provide asset managers powerful
tools, such as enhancing data analysis risk management, trading
strategies, operational efficiency and client servicing, all of
which can lead to better investment outcomes and more efficient
operations. However, with these advances in computer power
that will impact society, there are risks from its increasing use and
manipulation with the potential to harm, including a heightened
threat to cybersecurity.
The Board and the Manager regularly consider other emerging
risks which may continue to evolve from unforeseen geopolitical
and economic events.
Emerging Risks – Manager’s Role
The Manager also has responsibility for risk management for the
Company. It works with the Board to identify and manage the
principal and emerging risks and related uncertainties to ensure
that the Board can continue to meet its UK corporate governance
obligations.
Annual Review of Full Risk Register
The Company has a full risk register which includes less material
risks which the Board reviews at least annually.
GOING CONCERN STATEMENT
The Directors have considered the Company’s investment
objective, risk management policies, liquidity risk, credit risk,
capital management policies and procedures, the nature of
its portfolio and its expenditure and cash flow projections. The
Directors, having considered the liquidity of the Company’s
portfolio of investments (being mainly securities which are readily
realisable) and the projected income and expenditure, are
satisfied that the Company is financially sound and has adequate
resources to meet all of its liabilities and ongoing expenses
and continue in operational existence for the foreseeable future.
The Board has, therefore, concluded that the Company has
adequate resources to continue to adopt the going concern
basis for the period to 31 October 2026 which is at least twelve
months from the date of approval of the Financial Statements.
This conclusion also takes into account the Board’s assessment of
the ongoing risks from significant global geopolitical and market
events and regulatory changes that could impact the Company’s
performance, prospects and operations.
Accordingly, the Financial Statements of the Company have been
prepared on a going concern basis.
The prospects of the Company over a period longer than twelve
months can be found in the Viability Statement on the next page.
28
Fidelity Asian Values PLC
|
Annual Report 2025
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 that five years is
an appropriate investment horizon to assess the viability of the
Company, although the life of the Company is not intended to be
limited to this or any other period.
In making an assessment on the viability of the Company, the
Board has considered the following:
• The ongoing relevance of the investment objective in
prevailing market conditions;
• The Company’s level of gearing;
• The Company’s NAV and share price performance versus its
Comparative Index;
• The principal and emerging risks and uncertainties facing
the Company and their potential impact as set out on pages
23 to 27;
• The Company’s continuation vote;
• The future demand for the Company’s shares;
• The Company’s share price discount to the NAV;
• The liquidity of the Company’s portfolio;
• The level of income generated by the Company; and
• Future income and expenditure forecasts.
The Board regularly reviews the investment policy and considers
that 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 and potential emerging
risks from the use of artificial intelligence, as detailed on page 27.
The Board has also considered the impact of regulatory changes,
ongoing geopolitical tensions and unforeseen market events, and
how these may affect the Company.
In addition, the Directors’ assessment of the Company’s ability
to operate in the foreseeable future is included in the Going
Concern Statement on the previous page.
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.
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 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 Managers, sets the overall
investment strategy and reviews this at an annual strategy day
which is separate from the regular cycle of board meetings. In
order to ensure good governance of the Company, the Board
has set various limits on the investments in the portfolio, whether
in the maximum size of individual holdings, the use of derivatives,
the level of gearing and others. These limits and guidelines are
regularly monitored and reviewed and are set out on pages 21
and 22.
Strategic Report continued
29
Annual Report 2025
|
Fidelity Asian Values PLC
INFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGYGOVERNANCE
The Board receives regular reports from the Company’s Broker
which covers market activity, and how the Company compares
with its peers in its sector on performance, discount and share
repurchase activity, an analysis of the Company’s share register
and market trends.
The Board places great importance on communication with
shareholders. The Annual General Meeting (“AGM”) provides
the key forum for the Board and the Portfolio Managers to
present to the shareholders on the Company’s performance
and future plans and the Board encourages all shareholders to
attend either in person or virtually and raise any questions or
concerns. The Chairman and other Board members are available
to meet shareholders as appropriate. Shareholders may also
communicate with Board members at any time by writing to
them at the Company’s registered office at FIL Investments
International, Beech Gate, Millfield Lane, Tadworth, Surrey
KT20 6RP or via the Company Secretary in writing at the same
address or by email at investmenttrusts@fil.com.
The Portfolio Managers meet with major shareholders,
potential investors, stock market analysts, journalists and
other commentators during the year. These communication
opportunities help inform the Board in considering how best to
promote the success of the Company over the long-term.
The Board seeks to engage with the Manager and other service
providers and advisers in a constructive and collaborative way,
promoting a culture of strong governance, while encouraging
open and constructive debate, in order to ensure appropriate
and regular challenge and evaluation. This aims to enhance
service levels and strengthen relationships with service providers,
with a view to ensuring shareholders’ interests are best served,
by maintaining the highest standards of commercial conduct
while keeping cost levels competitive.
Whilst the Company’s direct operations are limited, the Board
recognises the importance of considering the impact of the
Company’s investment strategy on the wider community and
environment and considers the Manager’s ESG approach.
In addition to ensuring that the Company’s investment objective
was being pursued, key decisions and actions taken by the
Directors during the reporting year, and up to the date of this
report, have included:
•
The decision to seek shareholder approval at the
forthcoming AGM to amend the Company’s Investment
Objective and Investment Policy;
• The decision to allocate 75% of the base management fee
and finance costs to capital and 25% to revenue with effect
from 1 August 2024;
• The decision to seek shareholder approval at the AGM to
update the Company’s Articles of Association;
• Carrying out an audit tender as the current Auditor will have
been in place for 10 years in November this year.
• The decision to once again hold a hybrid AGM this year
in order to make it more accessible and improve the
shareholder experience;
• Authorising the repurchase of 6,825,983 ordinary shares
since 1 August 2024 and up to the latest practicable date of
this document in line with the Board’s discount management
policy;
• The decision to repurchase shares for cancellation rather
than into Treasury with effect from 1 August 2025. Since that
date, 822,911 shares already held in Treasury have been
cancelled; and
• The decision to recommend the payment of a final dividend
of 20.5 pence per ordinary share.
Board Diversity
The Board’s overriding intention is to ensure that it is made up
of the best combination of people in order to achieve long-term
capital growth for the Company’s shareholders from an actively
managed portfolio of investments. To this effect, the Board, as
part of its succession plan, will continue to appoint individuals
who, together as a Board, will aim to ensure the continued
optimal promotion of the Company in the marketplace. Due
regard will be given to the benefit of diversity on the Board,
including gender and ethnicity.
The Board has taken into consideration the FCA’s Listing Rules
requirements (LR 6.6.6(9), (10) and (11)) regarding the targets on
board diversity that:
• at least 40% of the individuals on the board are women;
• at least one senior board position (chairman, chief executive
officer (“CEO”), senior independent director or chief financial
officer (“CFO”)) is held by a woman; and
• at least one board member is from a minority ethnic
background, as defined by the Office of National Statistics
criteria.
The Board considers that as an externally managed investment
trust, with no CEO or CFO, the Chairman of the Company,
the Senior Independent Director and Chairman of the Audit
Committee to be senior positions.
As required by the FCA’s Listing Rules, the Company’s reporting
against these targets is set out in the tables below. The data was
collected on a self-identifying basis. As at 31 July 2025 and up to
the date of this report, the target of 40% of women on the Board,
the target of at least one senior Board position held by a woman
and for at least one individual to be from an ethnic minority
background have been met.
30
Fidelity Asian Values PLC
|
Annual Report 2025
Gender Reporting as at 31 July 2025
Number
of Board
Members
Percentage
of the
Board
Number of Senior
Board Positions
(Chair, Senior
Independent
Director and Chair
of Audit Committee)
Men 2 40% 2
Women 3 60% 1
Ethnic Background Reporting as at 31 July 2025
Number
of Board
Members
Percentage
of the
Board
Number of Senior
Board Positions
(Chair, Senior
Independent Director
and Chair of Audit
Committee)
White
British or
other White
(including
minority
white
groups)
4 80% 2
Asian/Asian
British
1 20% 1
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 important input into the assessment of the value of
the Company’s investments. The investment universe is
undergoing significant structural change and is likely to be
impacted by increasing regulation as a result of climate
change and other social and governance factors. The
Board is committed to reviewing how the Manager applies
ESG factors in its investment process. The Fidelity group
of companies (including the Manager and Investment
Manager) sets out its commitment to responsible investing
and provides a copy of its detailed Responsible Investing at
www.fidelity.co.uk/sustainable/sustainability-at-fidelity.
Streamlined Energy and Carbon Reporting (SECR)
As an investment company with all its activities outsourced to
third parties, the Company’s own direct environmental impact is
minimal. The Company has no premises, consumes no electricity,
gas or diesel fuel and consequently does not have a measurable
carbon footprint. The Company is categorised as a low energy
user (less than 40MWH) under the Streamlined Energy & Carbon
Reporting regulations and, therefore, is not required to disclose
any energy and carbon information in this Annual Report.
Task Force on Climate-Related Financial Disclosures (TCFD)
Product reports of Task Force on Climate-related Financial
Disclosures (TCFD) issued by the Manager can be obtained via
the Additional Information section on the Company’s pages of
the Manager’s website at www.fidelity.co.uk/asianvalues.
Bribery Act 2010
The Company is committed to carrying out business fairly,
honestly and openly. The Board recognises the benefits this has
to reputation and business confidence. The Board, the Manager,
the Manager’s employees and others acting on the Company’s
behalf, are expected to demonstrate high standards of behaviour
when conducting business.
The Board acknowledges its responsibility for the implementation
and oversight of the Company’s procedures for preventing
bribery, and the governance framework for training,
communication, monitoring, reporting and escalation of
compliance together with enforcing action as appropriate. The
Board has adopted a zero tolerance policy in this regard.
Criminal Finances Act 2017
The Company is subject to the Criminal Finances Act 2017 and
has a zero tolerance policy in respect to tax evasion and its
facilitation. The Directors are fully committed to complying with
all legislation and appropriate guidelines designed to prevent
tax evasion and the facilitation of tax evasion in the jurisdictions
in which the Company, its service providers, counterparties and
business partners operate.
Future Developments
Some trends likely to affect the Company in the future are
common to many investment companies together with the impact
of regulatory change and emerging risks. The factors likely to
affect its future development, performance and position are set
out in the Chairman’s Statement and the Portfolio Managers’
Review on pages 2 to 12.
By Order of the Board
FIL Investments International
Secretary
16 October 2025
Strategic Report continued
31
Annual Report 2025
|
Fidelity Asian Values PLC
INFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGYGOVERNANCE
Board of Directors
Clare Brady
Chairman (since 29 November 2023)
Appointed 1 August 2019
M N
Clare Brady is a chartered governance professional with 35 years’
experience in banking and financial services. She is a non-executive
Director and Audit and Risk Committee Chairman of Bellevue Healthcare
Trust PLC and a Trustee and Nominations and Remuneration Committee
Chair of The Golden Charter Trust Limited. She is also a non-executive
Director, Audit Committee Chairman and member of the Risk Committee
and Conflicts Committee of M&G Group Limited, M&G Investment
Management Limited and M&G Alternatives Investment Management
Limited. Clare was a non-executive director of Credit Suisse until its
merger with UBS. In her executive career, she was a Director of the
International Monetary Fund (IMF) and prior to that, the Auditor General
at the World Bank, based in Washington D.C. Previously, she headed
audit and compliance functions at the Bank of England, Barclays Capital,
HSBC and Deutsche Bank.
Matthew Sutherland
Senior Independent Director
(since 29 November 2023)
Appointed 1 January 2022
A M N
Matthew Sutherland has 32 years’ experience of working in financial
markets, primarily as an equity analyst and head of research, of which
the last twenty-four were spent living in Asia covering Asian markets.
Until 2016, he worked for Fidelity International, running its highly
regarded Asian equity research team of over 70 analysts from its Hong
Kong and Tokyo offices. He was also responsible for hiring and training
analysts in India, China, Korea, Hong Kong, Singapore, Japan and
Australia which included coverage of all the Asian stock markets. Prior to
joining Fidelity, he was Country Head for HSBC Securities in Taiwan and
worked for BNP Paribas in Manila.
Hussein Barma
Chairman of the Audit Committee
(since 24 November 2022)
Appointed 24 November 2022
A M N
Hussein Barma is a non-executive Director and member of the Audit,
Sustainability and Compensation Committees of Eldorado Gold
Corporation. He is an independent Governor and Deputy Chair of
the Audit & Risk Committee of the University of the Arts London and a
Member of the Finance Committee for the Oxford Centre for Islamic
Studies. He was previously a non-executive Director and Chair of the
Audit and Remuneration Committees of Atalaya Mining plc and a non-
executive Director and Audit Chair of Chaarat Gold Holdings Limited.
Between 1998 to 2014, he was the UK-based Chief Financial Officer of
Antofagasta plc. His earlier career was in professional services and
academia and he held positions at the Financial Reporting Council
and Modern Art Oxford. He is a qualified Barrister and Chartered
Accountant and holds a doctorate in corporate law.
Lucy Costa Duarte
Director
Appointed 1 June 2024
A M N
Lucy Costa Duarte is a non-executive Director of Allianz Technology
Trust PLC and MIGO Opportunities Trust plc, as well as a product
specialist for International Biotechnology Trust plc (IBT) at Schroders
and an AIC Marketing Ambassador. Her expertise is in marketing
investment trusts to retail investors, private wealth managers and
institutions. In her earlier career, she was a director at Citigroup,
heading the emerging markets ECM team in London. She left Citigroup
in 2007 and took a career break, before starting work with IBT at SV
Health Investors in 2016 and moving with IBT to Schroders in 2023.
Sally Macdonald
Chairman of the Management
Engagement Committee
(since 3 April 2024)
Appointed 1 January 2022
A M N
Sally Macdonald is a non-executive Director of JP Morgan Japanese
Investment Trust plc, Allianz Global Investors UK Ltd, Thesis Unit Trust
Management and Thesis Fund Solutions Ltd. She has over 40 years’
experience of financial markets, which includes more than 30 years
as an Asian fund manager. She has previously run the Asian desks
for Sanwa, Lazard Brothers Asset Management, Canada Life, Morley
(Aviva), City of London Investment Group and Marlborough Fund
Managers.
Committee membership key
A
Audit
M
Management Engagement
N
Nomination Committee Chair
Serving Directors as at the date of this Annual Report. All Directors are non-executive Directors and all are considered to be independent.
32
Fidelity Asian Values PLC
|
Annual Report 2025
Directors’ Report
The Directors have pleasure in presenting their report and
the audited Financial Statements of the Company for the year
ended 31 July 2025. The Company is a public limited company
incorporated in England and Wales on 2 April 1996 with the
registered number 03183919 and commenced business as an
investment trust on 13 January 2000.
Results and Dividends
The Company’s results for the year ended 31 July 2025 are set
out in the Income Statement on page 53. The revenue return was
22.51 pence and the capital return was 40.34 pence, giving a
total return of 62.85 pence per ordinary share.
The Directors recommend that a final dividend of 20.5 pence
(2024: 14.50 pence) per ordinary share be paid on 11 December
2025 to shareholders who appear on the share register as at
the close of business on 14 November 2025 (ex-dividend date
13 November 2025).
The Board
All Directors served on the Board throughout the year ended
31July 2025 and up to the date of this report, with the exception
of Michael Warren who stepped down from the Board at the
conclusion of the AGM on 21 November 2024. A brief description
of all serving Directors as at the date of this report is shown on
page 31 and indicates their qualifications for Board membership.
Management Company
FIL Investment Services (UK) Limited (“FISL”) is the Company’s
appointed Alternative Investment Fund Manager (the
“AIFM”/“Manager”). FISL, as the Manager, has delegated the
portfolio management of assets and the role of the Company
Secretary to FIL Investments International.
The Alternative Investment Fund Management and Secretarial
Services Agreement (the “Management Agreement”) will
continue unless and until terminated by either party giving to
the other not less than six months’ notice in writing. However,
it may be terminated without compensation if the Company is
liquidated, pursuant to the procedures laid down in the Articles of
Association of the Company. It may also be terminated forthwith
as a result of a material breach of the Management Agreement
or on the insolvency of the Manager or the Company. In addition,
the Company may terminate the Management Agreement by
sixty days’ notice if the Manager ceases to be a subsidiary of FIL
Limited.
FIL Limited, of which FISL and FIL Investments International are
subsidiary group companies, has no beneficial interest in the
shares of the Company (2024: nil).
The Board reviews the Management Agreement at least annually
and details are included in the Corporate Governance Statement
on page 37.
Management Fee
Since 1 August 2018, the Company has had a variable
management fee arrangement which comprises a base
management fee of 0.70% of net assets per annum and a +/-
0.20% variable fee based on the performance of the NAV per
ordinary 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 ordinary
share outperformance or underperformance over the Benchmark
Index up to a maximum of +0.20% or a minimum of -0.20%. The
maximum fee that the Company will pay is 0.90% of net assets,
but if the Company underperforms against the Benchmark Index,
then the overall fee could fall as low as 0.50% of net assets. Any
increase to the NAV from the repurchase or issue of shares is
removed from the fee calculation, so that the Manager cannot
benefit from performance outside of portfolio management
activities.
With effect from 1 August 2024, the base management fee
is allocated 25% to revenue and 75% to capital. The variable
management fee continues to be charged wholly to capital.
In addition, the Company pays the Manager a secretarial and
administration fee of £75,000 per annum.
The total management fee for the year ended 31 July 2025
is detailed in Note 4 on page 60 and the secretarial and
administration fee is detailed in Note 5 on page 61.
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.
Auditor’s Appointment
As the current Auditor, Ernst & Young LLP, will have been in
place for 10 years in November 2025, an audit tender process
was carried out during the year following which the Board
proposes that PricewaterhouseCoopers LLP (“PwC”) should be
selected to act as the Company’s auditor from and including the
financial year ending 31 July 2026. A resolution will be proposed
to appoint PwC as the Company’s auditor at the AGM on
26 November 2025.
Corporate Governance
The Corporate Governance Statement forms part of this report
and can be found on pages 36 to 38.
Registrar, Custodian and Depositary Arrangements
The Company has appointed MUFG Corporate Markets (name
changed from Link Group on 20 January 2025) 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 61.
33
Annual Report 2025
|
Fidelity Asian Values PLC
INFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGYGOVERNANCE
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 2025, the issued share capital of the Company was
75,580,889 ordinary shares (2024: 75,580,889) of which 8,983,830
shares (2024: 4,520,333) are held in Treasury. Therefore, the number
of shares with voting rights was 66,597,059 (2024: 71,060,556).
Subsequent to the year end, 822,911 shares have been cancelled
from those held in Treasury.
Premium/Discount Management: Enhancing Shareholder
Value
The Board recognises the importance of the relationship between
the Company’s share price and the NAV per share and monitors
this closely. It seeks authority from shareholders each year to
issue shares at a premium or to repurchase shares at a discount
to the NAV, either for cancellation or for holding in Treasury. The
Board will only exercise these authorities if deemed to be in the
best interests of shareholders at the time.
Ordinary Share Issues
No ordinary shares were issued during the year ended 31 July
2025 (2024: 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 26 November 2025 and
resolutions to renew these authorities will be put to shareholders
at this AGM.
Ordinary Share Repurchases
During the year ended 31 July 2025, 4,463,497 ordinary shares
(2024: 768,780) were repurchased for holding in Treasury. Since
then and as at the latest practicable date of this document,
2,362,486 ordinary shares have been repurchased for cancellation.
The authority to repurchase ordinary shares expires at the AGM
on 26 November 2025 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 2025 and 30 September 2025, the shareholders
listed in the table below held more than 3% of the issued
ordinary share capital of the Company.
Shareholders
31 July
2025
%
30 September
2025
%
Fidelity Platform 13.71 14.00
Charles Stanley 7.83 8.01
Interactive Investor 7.74 8.01
Hargreaves Lansdown 7.39 7.65
Evelyn Partners 6.45 6.78
RBC Brewin Dolphin 3.72 3.72
Rathbones 3.29 3.38
AJ Bell 3.24 3.41
Additional Information Required in the Directors’ Report
Information on proposed dividends, financial instruments and
disclosure on Streamlined Energy and Carbon Reporting is set
out in the Strategic Report on pages 21 to 30.
ANNUAL GENERAL MEETING – WEDNESDAY, 26 NOVEMBER
2025 AT 11.00 AM
THIS SECTION IS IMPORTANT AND REQUIRES YOUR
IMMEDIATE ATTENTION.
If you are in any doubt as to the action you should take,
you should seek your own personal financial advice from
your stockbroker, bank manager, solicitor or other financial
adviser authorised under the Financial Services and Markets
Act 2000.
The AGM of the Company will be held at 11.00 am on
Wednesday, 26 November 2025 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 82 to 87.
The Notice of Meeting and related papers are sent to
shareholders at least 20 working days before the AGM. We
look forward to welcoming you to the AGM in person. For those
shareholders who are not able to attend in person, we will live-
stream the formal business and presentations of the meeting
online.
Properly registered shareholders joining the AGM virtually will be
able to vote on the proposed resolutions. Please see Note 9 to
the Notes to the Notice of Meeting on page 85 for details on how
to vote virtually. Investors viewing the AGM online will be able
to submit live written questions to the Board and the Portfolio
Managers and we will answer as many of these as possible at
an appropriate juncture during the meeting.
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 at https://meetings.lumiconnect/100-596-124-635.
We urge shareholders to vote and make use of the proxy form
provided. Please note that investors on platforms such as Fidelity
Personal Investing, Hargreaves Lansdown, Interactive Investor
or AJ Bell Youinvest will need to request attendance at the
AGM in accordance with the policies of your chosen platform.
They may request that you submit electronic votes in advance
of the meeting. If you are unable to obtain a unique IVC and
PIN from your nominee or platform, we will also welcome
online participation as a guest. Once you have accessed
https://meetings.lumiconnect/100-596-124-635 from your web
browser on a tablet or computer, you should then select the
‘Guest Access’ option before entering your name and who you
are representing, if applicable. This will allow you to view the
meeting and ask questions but you will not be able to vote.
34
Fidelity Asian Values PLC
|
Annual Report 2025
Fidelity Platform Investors – Voting at AGMs
If you hold your shares in the Company through the Fidelity
Platform, then Fidelity passes on to you the right to vote on the
proposed resolutions at the Company’s AGM. Fidelity Platform
Investors are advised to vote online via the Broadridge Service
(a company that specialises in investor voting facilities). Investors
can sign up to this facility via their Fidelity Investor Account.
Proxy Voting
Paper Proxy Forms will be sent to all shareholders who hold
shares on the main share register. This will assist shareholders to
vote in advance of the meeting should they decide not to attend
in person.
If you have sold, transferred or otherwise disposed of all your
shares in the Company, you should pass this document, together
with any accompanying documents, as soon as possible to the
purchaser or transferee, or to the stockbroker, bank or other
agent through whom the sale or transfer was effected, for
onward transmission to the purchaser or transferee.
At the AGM on 26 November 2025, resolutions will be proposed
relating to the items of business set out in the Notice of Meeting
on pages 82 and 83, 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 £1,809,887. If passed,
this resolution will enable the Directors to allot a maximum
of 7,239,548 ordinary shares which represents approximately
10% of the issued ordinary share capital of the Company
(including Treasury shares) at the latest practicable date of this
document, and to impose any limits or restrictions and make any
arrangements which they consider necessary or appropriate to
deal with Treasury shares, fractional entitlements, record dates,
legal, regulatory or practical problems in, or under the laws
of, any territory or any other matter. The Directors would not
intend to use this power unless they considered that it was in
the interests of shareholders to do so. Any shares issued would
be at NAV per 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 Annual General Meeting aggregate nominal value of
£1,809,887 (including Treasury shares) (approximately 10% of
the issued ordinary share capital of the Company at the latest
practicable date of this document and equivalent to 7,239,548
ordinary shares).
Authority to Repurchase Shares
Resolution 14 is a special resolution which renews the
Company’s authority to purchase up to 14.99% (9,628,760) of
the ordinary shares in issue (excluding Treasury shares) at the
latest practicable date of this document, either for immediate
cancellation or for retention as Treasury shares, at the
determination of the Directors. Once shares are held in Treasury,
the Directors may only dispose of them in accordance with the
relevant legislation by subsequently selling the shares for cash
or by cancelling the shares. Purchases of 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.
Proposed Changes to the Company’s Articles of Association
Resolution 15 is a special resolution regarding the adoption of
the New Articles of Association (“New Articles”) by the Company.
Summarised below are the principal changes proposed to be
introduced through the adoption of the New Articles by the
Company. A copy of the proposed New Articles showing all the
changes as against the current Articles of Association is available
for inspection at www.fidelity.co.uk/asianvalues, together with
a copy of the current Articles of Association and a ‘clean’ copy
of the New Articles (which do not highlight the amendments),
from the date of this report and until the end of the AGM (and
at the AGM itself for the duration of the meeting and for at
least 15 minutes prior to the meeting). The documents are also
available for inspection at Simmons & Simmons LLP, Citypoint,
1 Ropemaker Street, London, EC2Y 9SS until the close of the AGM.
Directors’ fees
The Board considers it is appropriate to increase the limit on
Directors’ fees (“Fee Cap”), which was set at the Company’s
Annual General Meeting in 2021 at £300,000 in aggregate per
annum. The proposed new Fee Cap is £350,000 in aggregate
per annum. The Board considers that the increase will provide
sufficient head-room to enable the Board to execute any
succession plans for the future. The Board is satisfied that this
new Fee Cap is in-keeping with current market practice.
Period to draw up and submit proposals following a
continuation vote
The Board also considers it appropriate to extend the time
period within which proposals for the Company’s voluntary
liquidation, unitisation or other reorganisation must be drawn
up and a general meeting held at which they are submitted
to members following an unsuccessful continuation vote
(“Shareholder Deadline”). The Shareholder Deadline is currently
set at three months after the date of the general meeting
at which the continuation vote was unsuccessful. The Board
proposes that the Shareholder Deadline be extended to six
months from this date. The Board considers that this extension
is in line with market practice and will allow the Board a more
appropriate period of time to consider, prepare and submit its
proposals to shareholders following the continuation vote.
Clarificatory, administrative and technical changes
Various changes of a minor, clarificatory or technical nature
are not commented on separately. This includes in relation to
arrangements for validity of proxies, to provide for if there are too
few directors following retirements at annual general meetings
and clarifications in relation to hybrid general meetings to follow
how practice has developed. The Board does not however
Directors’ Report continued
35
Annual Report 2025
|
Fidelity Asian Values PLC
INFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGYGOVERNANCE
have any plans at this stage to allow general meetings to be
held purely by electronic means, and so no provision has been
included in the New Articles to provide for fully virtual meetings.
Proposed Changes to Amend the Company’s Investment
Objective and Investment Policy
Resolution 16 is an ordinary resolution and provides the
Directors with an authority to amend the Investment Objective
to remove the reference to the Comparative Index (the MSCI
All Countries Asia ex Japan Small Cap Index (net) total return
(in sterling terms) and move it to be part of the Investment
Policy. In addition, an amendment is proposed to change an
investment restriction, which will enable the Portfolio Managers to
allocate, “Up to 5% of its Gross Assets, at the time of investment,
in securities which are not listed on any stock exchange.” The
restriction has been simplified and does not increase the unlisted
investments limit. The change removes the wording that “the
Portfolio Managers will not normally make any such investments
except where it is expected that the securities will become listed
on a stock exchange in the foreseeable future.” The Directors
would not expect to see a significant change to the portfolio
in the near term as a result of this change. See Appendix on
page 87.
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
16 October 2025
36
Fidelity Asian Values PLC
|
Annual Report 2025
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 6.6.6
(6) of the UK 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 Clare Brady, consists of five non-executive
Directors as at the date of this Annual Report. The Directors
believe that, between them, they have good knowledge
and wide experience of business in Asia and of investment
companies and that the Board has an appropriate balance of
skills, experience, independence and knowledge of the Company
and length of service to discharge its duties and provide effective
strategic leadership and proper governance of the Company.
Matthew Sutherland is the Senior Independent Director and fulfils
the role as a sounding board for the Chairman, intermediary
for the other Directors as necessary and acts as a channel of
communication for shareholders in the event that contact through
the Chairman is inappropriate.
Biographical details of all the Directors are on page 31.
Training, Development and Board Evaluation
On appointment, Directors receive a full, formal and tailored
induction. Directors are also regularly provided with key
information on the Company’s policies, regulatory and statutory
requirements and internal controls. Changes affecting Directors’
responsibilities are advised to the Board as they arise. Directors
also regularly participate in relevant training and industry
seminars. Training and development needs are considered
as part of the evaluation process and are agreed with the
Chairman.
In line with best practice, the Board carried out an externally
facilitated Board effectiveness review this year using the services
of Lintstock Ltd. which has no connection with the Company or the
Manager. The process is effective in terms of identifying areas
of improving the functioning and performance of the Board and
its Committees so that action can be taken based on results.
The results of this evaluation will be considered and acted upon
ahead of the AGM on 26 November 2025.
Directors’ and Officers’ Liability Insurance
In addition to the benefits under the Manager’s global Directors’
and Officers’ liability insurance arrangements, the Company
maintains additional insurance cover for its Directors under its
own policy as permitted by the Companies Act 2006.
Professional negligence liability risks
The requirement to cover potential liability risks arising from
professional negligence is covered by the Manager’s own funds.
Sufficient capital above the regulatory limit is held which is
monitored by the board of the Manager.
Board Responsibilities and Board Meetings
The Board has overall responsibility for the Company’s affairs
and for promoting the long-term success of the Company. All
matters which are not delegated to the Company’s Manager
under the Management Agreement are reserved for the Board’s
decision. The Board also considers shareholder issues including
communication and investor relations.
The Board has approved a policy on Directors’ conflicts of
interest. Under this policy, Directors are required to disclose
all actual and potential conflicts of interest as they arise for
consideration and approval. The Board may impose restrictions
or refuse to authorise such conflicts if deemed appropriate.
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 undertakes an annual strategy meeting,
and a due diligence trip to Asia every other year. During the last
trip, held in March 2025, the Board met with the management of
existing and potential investee companies alongside the Portfolio
Managers. The Board also met with Fidelity’s research and
analyst teams. Details of this trip are in the Chairman’s Statement
on page 3.
37
Annual Report 2025
|
Fidelity Asian Values PLC
INFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGYGOVERNANCE
Board’s Attendance Record for the Reporting Year
Regular
Board
Meetings
Audit
Committee
Meetings
Management
Engagement
Committee
Meetings
Nomination
Committee
Meetings
Clare Brady
1
4/4 n/a 1/1 1/1
Hussein Barma 4/4 3/3 1/1 1/1
Lucy Costa Duarte 4/4 3/3 1/1 1/1
Sally Macdonald 4/4 3/3 1/1 1/1
Matthew Sutherland 4/4 3/3 1/1 1/1
Michael Warren
2
2/2 1/1 1/1 n/a
1 As Chairman of the Board, Clare Brady is not a Member of the Audit Committee but is invited to attend meetings.
2 Retired on 21 November 2024.
Figures indicate those meetings for which each Director was eligible to attend and attended in the year. Regular Board meetings
exclude the Board Strategy Day and ad hoc meetings for other Board business.
Since the end of the reporting period, the Directors have also had a Management Engagement Committee meeting at which they
reviewed the performance of the Manager and the terms of the Company’s Management Agreement.
BOARD COMMITTEES
The Board has three Committees through which it discharges
certain of its corporate governance responsibilities. These are
the Audit 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 Hussein Barma and
consists of all of the Directors, except for Clare Brady, 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 to 45.
Management Engagement Committee
Composition
The Management Engagement Committee is chaired by Sally
Macdonald 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 2025 are in the Directors’
Report on page 32.
Nomination Committee
Composition
The Nomination Committee is chaired by Clare Brady and
consists of all of the Directors.
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.
The Committee meets at least once a year and reviews
the composition, size and structure of the Board and makes
recommendations to the Board as appropriate. It is also responsible
for succession planning and for Directors’ appointments.
The Committee makes recommendations to the Board for the
continuation or cessation of service of Directors and reviews the
tenure of Directors. It also considers the election and re-election
of Directors ahead of each AGM. For the forthcoming AGM on
26 November 2025, it has considered the performance and
contribution to the Company of each Director and concluded
that each Director seeking re-election has been effective and
continues to demonstrate commitment to their role. This has been
endorsed by the Board, which recommends their reappointment
by shareholders at the AGM on 26 November 2025.
38
Fidelity Asian Values PLC
|
Annual Report 2025
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 46 to 52.
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 financial,
operational and compliance controls and risk management.
Clear lines of accountability have been established between the
Board and the Manager. The Manager provides regular reports
on controls and compliance issues to the Audit 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 2025 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 Board
Directors, are available to meet with shareholders to discuss
strategy and governance. In addition, the Portfolio Manager
also meets with major shareholders and investors in the UK. The
Board regularly monitors the shareholder profile of the Company
and receives regular reports from the Manager on meetings
attended with shareholders and any concerns raised in such
meetings. The Board aims to provide the maximum opportunity
for dialogue between the Company and shareholders. If
any shareholder wishes to contact a member of the Board
directly, they should either email the Company Secretary at
investmenttrusts@fil.com or in writing at FIL Investments
International, Beech Gate, Millfield Lane, Lower Kingswood,
Tadworth, Surrey KT20 6RP. The Company Secretary will attend to
any enquiries promptly and ensure that they are directed to the
Chairman, Senior Independent Director or the Board as a whole,
as appropriate.
The Board encourages all shareholders to attend the Company’s
AGM on 26 November 2025, details of which can be found on
page 5. Nitin Bajaj, the Portfolio Manager and Ajinka Dhavale,
the Co-Portfolio Manager, will be making a presentation.
Annual General Meeting
The Notice of Meeting on pages 82 to 87 sets out the business
of the AGM and the special business resolutions are explained
more fully on pages 33 to 35. A separate resolution is proposed
on each substantially separate issue including the approval of the
Annual Report and Financial Statements. The Notice of Meeting
and related papers are sent to shareholders at least 20 working
days before the AGM.
On behalf of the Board
Clare Brady
Chairman
16 October 2025
Corporate Governance Statement continued
39
Annual Report 2025
|
Fidelity Asian Values PLC
INFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGYGOVERNANCE
Chairman’s Statement
The Directors’ Remuneration Report for the year ended 31 July
2025 has been prepared in accordance with the Large & Medium-
sized Companies & Groups (Accounts & Reports) (Amendment)
Regulations 2013 (the “Regulations”). As the Board is comprised
entirely of Non-Executive Directors and has no chief executive
officer and employees, many parts of the Regulations, in particular
those relating to chief executive officer pay and employee pay, do
not apply and are therefore not disclosed in this report.
Ordinary resolutions to approve the Directors’ Remuneration Report
and the Remuneration Policy will be put to shareholders at the AGM
on 26 November 2025. The Company’s Auditor is required to audit
certain sections of this report and where such disclosures have
been audited, the specific section has been indicated as such. The
Auditor’s opinion is included in its report on pages 46 to 52.
Directors’ Remuneration
The annual fee structure with effect from 1 August 2025 is as follows:
Role
1 August
2025
1 August
2024
Chairman £47,500 £46,000
Chairman of the Audit Committee £39,500 £38,000
Senior Independent Director £34,500 £33,500
Directors £32,500 £31,500
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.
The Remuneration Policy stated in last year’s Annual Report is
proposed to be updated at this year’s AGM for the aggregate
fees payable to the Directors to a total of £350,000 per annum.
No other changes are proposed. The proposed Policy is below.
The Remuneration Policy
The Company’s Articles of Association limit the aggregate fees
payable to the Directors to £350,000 per annum. Subject to this
overall limit, it is the Board’s policy to determine the level of
Directors’ fees having regard to the time spent by them on the
Company’s affairs; the level of fees payable to non-executive
directors in the industry generally; the requirement to attract
and retain individuals with suitable knowledge and experience;
and the role that individual Directors fulfil. Other than fees and
reasonable out-of-pocket expenses incurred in attending to the
affairs of the Company, the Directors are not eligible for any
performance related pay or benefits, pension related benefits,
share options, long-term incentive schemes or other taxable
benefits. The Directors are not entitled to exit payments and are
not provided with any compensation for loss of office. Directors
fees are paid monthly 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 stated in last year’s
Annual Report, was approved at the AGM held on 23 November
2022 with 99.34% of votes cast in favour, 0.54% of votes cast
against and 0.12% of votes withheld. The proposed Policy, as
set out above, will be put to shareholders at this year’s AGM on
26 November 2025, 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 21 November 2024, 99.44% of votes were
cast in favour of the Directors’ Remuneration Report for the year
ended 31 July 2024, 0.36% of votes were cast against and 0.20%
of votes were withheld.
The Directors’ Remuneration Report for the year ended 31 July
2025 will be put to shareholders at the AGM on 26 November
2025, 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 2025 was £190,298 (2024: £190,118). This includes
expenses incurred by Directors in attending to the affairs of the
Company and which are considered by HMRC to be a taxable
expense. Information on individual Directors’ fees and taxable
Directors’ expenses are shown in the table on the next page.
Expenditure on Remuneration and Distributions to
Shareholders
The table below shows the total amount paid out in Directors’
remuneration and distributions to shareholders. The projected
Directors’ remuneration for the year ending 31 July 2026 is
disclosed in the table on the next page.
31 July 2025
£
31 July 2024
£
Expenditure on Directors’
Remuneration:
Fees and taxable expenses £190,298 190,118
Distribution to Shareholders:
Dividend payments 10,147,000 10,399,000
Directors’ Remuneration Report
40
Fidelity Asian Values PLC
|
Annual Report 2025
Remuneration of Directors
2026 2025 2025 2025 2024 2024 2024
Projected
Total
Fees
(Audited)
Taxable
Expenses
(Audited)
Total
(Audited)
Fees
(Audited)
Taxable
Expenses
(Audited)
Total
(Audited)
(£) (£) (£) (£) (£) (£) (£)
Clare Brady
1
47,500 46,000 – 46,000 40,323 – 40,323
Hussein Barma 39,500 38,000 – 38,000 36,750 – 36,750
Kate Bolsover
2
n/a n/a n/a n/a 14,417 – 14,417
Lucy Costa Duarte
3
32,500 31,500 – 31,500 5,083 – 5,083
Sally Macdonald 32,500 31,500 106 31,606 30,500 651 31,151
Matthew Sutherland
4
34,500 33,500 – 33,500 31,849 45 31,894
Michael Warren
5
n/a 9,692 – 9,692 30,500 – 30,500
Total 186,500 190,192 106 190,298 189,422 696 190,118
1 Appointed as Chairman on 29 November 2023.
2 Retired on 29 November 2023.
3 Appointed on 1 June 2024.
4 Appointed as Senior Independent Director on 29 November 2023.
5 Retired on 21 November 2024.
Five year change comparison in Directors’ Remuneration
The table below sets out the change in Directors’ fees over the last five years.
2025 2020 Change (%)
Chairman 46,000 36,000 27.8%
Chairman of the Audit Committee 38,000 30,000 26.7%
Senior Independent Director 33,500 26,000 28.8%
Director 31,500 26,000 21.2%
Performance
The Company’s objective is to achieve long-term capital growth principally from the stock markets of the Asian Region excluding
Japan. The graph below shows performance over ten years to 31 July 2025 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 2025
+188.0%
+175.2%
+191.9%
Prices rebased to 100.
Sources: Fidelity and Datastream.
Ordinary Share Price
MSCI AC FE ex Japan to 31/07/2015, MSCI AC Asia ex Japan to the 31/01/2020, MSCI AC Asia ex Japan Small cap thereafter.
NAV per Ordinary Share
50
75
100
125
150
175
200
225
250
275
300
July 25July 15 July 16 July 17 July 18 July 19 July 20 July 21 July 23 July 24July 22
Directors’ Remuneration Report continued
41
Annual Report 2025
|
Fidelity Asian Values PLC
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
2025
31 July
2024
Change
during year
Ordinary Shares
Clare Brady
1
13,073 10,589 2,484
Hussein Barma 2,500 2,500 –
Lucy Costa Duarte
1
3,800 – 3,800
Sally Macdonald 2,734 2,734 –
Matthew Sutherland 27,859 27,859 –
Michael Warren
2
n/a 10,000 –
1 Purchase of shares.
2 Retired on 21 November 2024.
On Behalf of the Board
Clare Brady
Chairman
16 October 2025
42
Fidelity Asian Values PLC
|
Annual Report 2025
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 16 October 2025 and signed on its behalf by:
Clare Brady
Chairman
43
Annual Report 2025
|
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 (see page
38 for further details) and the effectiveness of the external audit
process and how this has been assessed for the year ended
31July 2025.
Composition of the Committee
The members of the Committee are myself as Chairman, Lucy
Costa Duarte, Sally Macdonald and Matthew Sutherland. In line
with the recommendation of the 2018 UK Corporate Governance
Code, Clare Brady, as Chairman of the Board, is not a member of
the Committee, but is invited to attend the Committee meetings as
a guest. All Committee members are independent non-executive
Directors and collectively have sufficient recent and relevant
financial experience to discharge their responsibilities fully.
Role and Responsibilities of the Committee
The Committee’s authority and duties are defined in its terms of
reference which are available on the Company’s pages of the
Manager’s website at www.fidelity.co.uk/asianvalues.
These duties include:
•
Establishing with the 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) and considering
the scope and obtaining sufficient assurance of the work
undertaken by the Manager’s Internal Audit function;
•
Monitor
ing the integrity of the Company’s half-yearly and
annual Financial Statements and to ensure they are fair,
balanced and understandable; and
•
Re
viewing the existence and performance of material controls
operating in the Company, including the review of internal
controls reporting of its service providers.
Meetings and business considered by the Committee
Since the date of the last Annual Report (11 October 2024), the
Committee has met three times and the Auditor attended two of
these meetings.
The following matters were reviewed at each Committee
meeting:
•
The C
ompany’s risk management and internal controls
framework;
• The Company’s compliance with its investment policy and
Board limits;
• The v
aluation of unlisted investments;
•
The D
epositary’s oversight reporting;
• The Company’s revenue and expenses forecasts and its
Balance Sheet; and
• The variable management fee accruals.
In addition, the following matters were considered at the
Committee’s meetings:
March 2025
•
The Half-Yearly Report and Financial Statements and
recommendation of its approval to the Board.
• The decision to allocate 75% of the base management fees
and finance costs to capital and 25% to revenue.
•
The G
oing Concern Statement.
•
The Mana
ger’s Task Force on Climate-Related Financial
Disclosures (TCFD) Reporting process.
June 2025
•
Re
view of the risk and internal control environment.
• The Auditor’s audit plan and the proposed fee for the
Company’s year ending 31July 2025.
•
Fide
lity’s Internal Audit Reporting, including review of the
execution of the internal audit plan.
• Cybersecurity and potential threats and attacks and the
controls in place to mitigate the risks.
•
Re
view of the Task Force on Climate-Related Financial
Disclosures (TCFD).
• Review of the audit tender process.
October 2025
• The Auditor’s findings from the audit of the Company.
•
The A
uditor’s performance, independence and the proposed
appointment of PricewaterhouseCoopers LLP (“PwC”) as
the Company’s auditor from and including the financial year
ending 31 July 2026.
•
Com
pliance with Corporate Governance and regulatory
requirements.
•
The Annual R
eport and Financial Statements and
recommendation of its approval to the Board following
review and conclusion by the Committee that they are fair,
balanced and understandable.
•
The V
iability and Going Concern Statements.
•
The f
inal dividend payment to be recommended to the
Board and shareholders for approval.
• The C
ommittee’s Terms of Reference.
44
Fidelity Asian Values PLC
|
Annual Report 2025
Annual Report And Financial Statements
In the review of the Company’s Financial Statements for the year ended 31 July 2025, the Committee deliberated and considered many
significant issues, including consideration of the principal and emerging risks and uncertainties on the Company’s activities and those
issues communicated by the 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 57.
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 agreed upon procedures report in
connection with investment trusts specific controls operated by FIL Investment Services (UK) Limited
(the Manager), prepared by PwC, 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, including the allocation of special
dividends.
Valuation, existence and
ownership of investments
(including derivatives
and unlisted investments)
The valuation of investments (including derivatives and unlisted investments) is in accordance
with Accounting Policy Notes 2 (k) and 2 (l) on pages 58 and 59. The Committee took comfort
from the Depositary’s regular oversight reports that investment related activities are conducted
in accordance with the Company’s investment policy. The Committee received reports from
the Manager, the Depositary and an additional agreed upon procedures report in connection
with investment trusts specific controls operated by FIL Investment Services (UK) Limited (the
Manager), prepared by PwC, which concluded that the controls around the valuation, existence
and ownership of investments operate effectively. The valuation of the Company’s unlisted
investments is appraised by the Manager’s Fair Value Committee (“FVC”) in accordance with
UK GAAP and International Private Equity Valuation Guidelines and reviewed by the Audit
Committee. It receives reporting information from the FVC and reviews and challenges the
proposed valuation methodologies for all unlisted investments. The FVC’s proposals include
recommendations from Kroll, an external company that provides global financial information and
services, and detailed input from the Fidelity analysts covering the unlisted companies, as well
as Fidelity’s unlisted investments specialist. The Committee also reviewed the reports provided
by the Auditor on its work on the valuations of the listed and unlisted investments held in the
Company’s portfolio and reported its findings at the October 2025 Audit Committee meeting.
Management fee
calculation
The Company has a variable management fee arrangement in place, details of which are on
page 32. At each Committee meeting, the Manager reports on the accruals for the variable
part of the fee that have been included in the Company’s NAV and confirms that it has been
calculated in accordance with the Management Agreement. These variable management fee
accruals are reviewed by the Committee. It also receives reporting on the work carried out by
the Auditor that the Company’s variable management fee has been calculated in accordance
with the terms of the Management Agreement.
Allocation of the base
management fees and
finance costs between
capital and revenue
With effect from 1 August 2024, the Board elected under the Statement of Recommended
Practice: Financial Statements of Investment Trust Companies and Venture Capital Trusts
(“SORP”) issued by the Association of Investment Trust Companies, to charge 75% of base
management fees and finance costs to capital and 25% to revenue, reflecting the Company’s
focus on capital growth to generate returns.
The treatment of the variable management fee and other expenses remains unchanged.
As a result of the work performed, the Committee has concluded that the Annual Report and Financial Statements for the
year ended 31 July 2025, 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.
Report of the Audit Committee continued
45
Annual Report 2025
|
Fidelity Asian Values PLC
INFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGYGOVERNANCE
Independence and Effectiveness of the Audit Process
Ernst & Young LLP acted as the Company’s Auditor for the year
ended 31 July 2025.
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 up to 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 2025; and
• Feedback from the Manager on the audit of the Company.
The Committee concluded that the Auditor remained independent
and the audit process was effective.
Auditor’s Appointment and Audit Tenure
Ernst & Young LLP was appointed as the Company’s Auditor on
30 November 2015 and will have been in place for 10 years in
November 2025. Accordingly, the Company conducted an audit
tender process during the year. From the shortlisted firms who
presented to a subcommittee of the Audit Committee, a range of
criteria was covered, including industry experience and credentials;
team experience and continuity; audit approach; quality assurance;
transition planning and fees and value for money. As a result of
this, PricewaterhouseCoopers LLP (“PwC”) has been proposed by
the Board as the auditor to the Company from and including the
financial year ending 31 July 2026. A resolution to appoint PwC as
auditor to the Company will accordingly be proposed at the AGM
on 26 November 2025.
The Committee will continue to review the appointment of the
auditor each year to ensure that the Company continues to receive
an optimal level of service. There are no contractual obligations
which restrict the Company’s choice of auditor.
Audit Fees
Fees paid to the Auditor for the audit of the Company’s Financial
Statements are disclosed in Note 5 on page 61. The audit fee
for the reporting year was £57,783 (2024: £50,993). Included in
the current year’s audit fee is an amount of £3,750 in respect of
additional scope of work relating to the transition of reporting
functions to JP Morgan and has been settled by the Manager
(FIL Investment Services (UK) Limited).
Hussein Barma
Chairman of the Audit Committee
16 October 2025
46
Fidelity Asian Values PLC
|
Annual Report 2025
Opinion
We have audited the Financial Statements of Fidelity Asian
Values PLC (the ‘Company’) for the year ended 31 July 2025
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 2025 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 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:
• Confirmed our understanding of the Company’s going
concern assessment process by engaging with the Directors
and the company secretary to determine if all key factors
were considered in their assessment;
• Inspected the Directors’ assessment of going concern,
including the revenue and expense forecast, for the period to
31 October 2026 which is at least 12 months from the date
of approval of these Financial Statements. In preparing the
revenue and expense forecast, the Company has concluded
that it is able to continue to meet its ongoing costs as they
fall due;
• Reviewed the factors and assumptions, including the impact
of the current economic environment and other significant
events that could give rise to market volatility, as applied
to the revenue and expense forecast and the liquidity
assessment of the investments and determined, through
testing of the methodology and calculations, that the
methods, inputs and assumptions utilised are appropriate to
be able to make an assessment for the Company;
• Consideration of the mitigating factors included in the
revenue and expense forecast that are within the control
of the Company. We reviewed the Company’s assessment
of the liquidity of investments held and evaluated the
Company’s ability to sell those investments in order to
cover working capital requirements should revenue decline
significantly; and
• Reviewed 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 a period to
31 October 2026 which is at least twelve months from the date of
approval of these Financial Statements.
In relation to the Company’s ’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.
Independent Auditor’s Report to the Members
of Fidelity Asian Values PLC
47
Annual Report 2025
|
Fidelity Asian Values PLC
GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY
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 items in the Income Statement.
• Risk of incorrect valuation and resultant impact on the unrealised gains/(losses) of the
unlisted investments
• Risk of incorrect valuation of the listed investments or ownership of the entire investment
portfolio, including derivatives
Materiality
• Overall materiality of £4.03m which represents 1% of Net Asset Value of the Company as of
31 July 2025.
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, the potential impact of climate change 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
Stakeholders are increasingly interested in how climate change will impact the 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 27 in the emerging risks section, which form part of the “Other information,” rather than the audited Financial
Statements. Our procedures on the 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 conclusion 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 UK adopted international accounting standards, 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. Based on our work we have not identified the impact of climate change on the
Financial Statements to be a key audit matter or to impact a key audit matter.
48
Fidelity Asian Values PLC
|
Annual Report 2025
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 items in the Income Statement
Refer to the Report of the Audit Committee
(page 44); Accounting policies (page 57); and
Note 3 of the Financial Statements (page 60).
The Company has reported revenue of £19.42m
(2024: £17.61m).
During the year, the Company received special
dividends amounting to £0.95m (2024: £2.27m),
of which £0.95m (2024: £0.44m) was classified
as revenue and £Nil (2024: £1.83m) was
classified as capital.
There is a risk of incomplete or inaccurate
recognition of revenue through the failure to
recognise proper income entitlements or to
apply an appropriate accounting treatment.
In addition to the above, the Directors may be
required to exercise judgement in determining
whether income received in the form of special
dividends should be classified as ‘revenue’ or
‘capital’ in the Income Statement.
We have performed the following
procedures:
We obtained an understanding of the processes
and controls surrounding the revenue recognition
and classification of special dividends by
performing our walkthrough procedures to
evaluate the design and implementation of
controls;
For all dividends received and accrued, 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 also agreed all exchange
rates to an external source and, for a sample of
dividends received and dividends accrued, we
agreed amounts to bank statements;
For all dividends accrued, we assessed whether
the dividend obligations arose prior to 31 July
2025 with reference to an external source;
To test completeness of recorded income, we
tested that all expected dividends for each of
the investee companies had been recorded as
income with reference to an external source; and
For all investments held during the year, we
reviewed the type of dividends paid with
reference to an external data source to
identify those which were special dividends.
There were three special dividends above
our testing threshold; we have assessed the
appropriateness of the Company’s classification
as either revenue or capital by reviewing the
rationale for the underlying distribution.
The results of
our procedures
identified no material
misstatement in
relation to the risk
of incomplete or
inaccurate revenue
recognition, including
the classification of
special dividends as
revenue or capital
items in the Income
Statement.
Independent Auditor’s Report to the Members
of Fidelity Asian Values PLC
continued
49
Annual Report 2025
|
Fidelity Asian Values PLC
GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY
Risk Our response to the risk Key observations
communicated to the
Audit Committee
Risk of incorrect valuation and resultant
impact on the unrealised gains/(losses)
of the unlisted investments
Refer to the Report of the Audit Committee
(page 44); Accounting policies (page 58); and
Note 10 of the Financial Statements (page 64).
At 31 July 2025, the Company held three unlisted
investments with a total value of £5.33m (2024:
two unlisted investments with a value of £0.06m)
and an unrealised gain of £2.76m (2024:
unrealised loss £0.19m).
We considered that the degree of subjectivity,
including the level of management judgement
and the risk that the valuation does not reflect
the most up to date information, results in a fraud
risk over misstatement of the valuation of unlisted
investments.
The unlisted investments are approved by the
Manager’s Fair Value Committee and these are
reviewed and challenged by the Directors. The
Manager engages Kroll to perform a valuation
which is then considered by the Manager’s
Fair Value Committee. The unlisted investment
policy applies methodologies consistent with the
International Private Equity and Venture Capital
Valuation guidelines (“IPEV”).
We have performed the following
procedures:
We obtained an understanding of the processes
and controls surrounding unlisted investment
pricing by performing walkthrough procedures
to evaluate the design and implementation of
controls;
For unlisted investments above our testing
threshold, held at the year-end, our specialist
valuations team reviewed and challenged the
valuations. This included:
• Reviewing the latest valuation papers by
Kroll, a third party service provider;
• Assessing whether the valuations have been
performed in line with the IPEV guidelines;
• Assessing the appropriateness of the data
inputs and challenging the assumptions
used to support the valuations; and
• Assessing other facts and circumstances,
such as market movement and comparative
information, that could have an impact on
the fair market value of the investments.
We obtained and assessed the Manager’s
Fair Valuation Committee papers including the
assumptions and judgements in determining the
fair value of the unlisted investments held by the
Company at the year-end;
Agreed the cost of the new unlisted investment
to the supporting sale purchase agreement and
traced the payments to bank statement;
Agreed 100% of exchange rates to a relevant
independent data vendor; and
We recalculated the total unrealised gains/
losses on unlisted investments as at the year-end
using the book-cost reconciliation.
The results of
our procedures
identified no material
misstatement in
relation to the risk of
incorrect valuation and
resultant impact on
the unrealised gains/
(losses) of the unlisted
investments.
50
Fidelity Asian Values PLC
|
Annual Report 2025
Risk Our response to the risk Key observations
communicated to the
Audit Committee
Risk of incorrect valuation of the
listed investments or ownership of the
entire investment portfolio, including
derivatives
Refer to the Report of the Audit Committee
(page 44); Accounting policies (pages 58 and
59); and Notes 10 and 11 of the Financial
Statements (pages 64 and 65).
At 31 July 2025, the Company held listed
investments with a value of £371.72m (2024:
£378.52m). The Company also has net derivative
assets amounting to £0.23m (2024: net derivative
liabilities amounting to £0.75m).
The valuation of the assets held in the investment
portfolio, including derivatives, is the key driver
of the Company’s net asset value and total
return. Incorrect investment pricing, or a failure
to maintain proper legal title to the investments
held by the Company could have a significant
impact on the portfolio valuation and the return
generated for shareholders.
The fair value of the listed investments and
derivatives is determined using quoted market
prices at close of business on the reporting date.
Investments which are unlisted are priced using
market-based valuation approaches.
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 had not changed and verified
whether the quoted price is a valid fair value;
and
We compared the Company’s investment
holdings as at 31 July 2025 to the independent
confirmation received directly from the
Company’s Custodian and Depositary. We
agreed all open year-end 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 of
the listed investments
or the ownership of
the entire investment
portfolio, including
derivatives.
In the prior year, our Auditor’s report did not include a key audit
matter in relation to incorrect valuation and resultant impact on
the unrealised gains/(losses) of the unlisted investments. This
matter has been raised in the current year due to a significant
change in the value of unlisted investments.
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 £4.03 million
(2024: £3.92 million), which is 1% (2024: 1%) of the Company’s
Net Assets. We believe that the Net Assets provides 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% (2024: 75%)
of our planning materiality, namely £3.02m (2024: £2.94m). 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 £0.85m (2024: £0.57m) being 5% (2024: 5%) of revenue profit
before tax.
Reporting threshold
An amount below which identified misstatements are considered
as being clearly trivial.
Independent Auditor’s Report to the Members
of Fidelity Asian Values PLC
continued
51
Annual Report 2025
|
Fidelity Asian Values PLC
GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY
We agreed with the Audit Committee that we would report
to them all uncorrected audit differences in excess of £0.20m
(2024: £0.20m), 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’ Reports 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 UK Listing Rules.
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 27;
• 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 28;
• 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 27;
• 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 23;
• The section of the Annual Report that describes the review
of effectiveness of risk management and internal control
systems set out on page 38; and
• The section describing the work of the audit committee set
out on page 43.
Responsibilities of Directors
As explained more fully in the Directors’ responsibilities statement
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.
52
Fidelity Asian Values PLC
|
Annual Report 2025
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 United Kingdom
Generally Accepted Accounting Practice, 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 UK 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.
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 nine years,
covering the years ending 31 July 2016 to 31 July 2025.
• 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
16 October 2025
Independent Auditor’s Report to the Members
of Fidelity Asian Values PLC
continued
53
Annual Report 2025
|
Fidelity Asian Values PLC
GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY
Income Statement
for the year ended 31 July 2025
The Notes on pages 56 to 78 form an integral part of these Financial Statements.
Year ended 31 July 2025 Year ended 31 July 2024
Notes
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Gains on investments 10 – 21,141 21,141 – 10,399 10,399
Gains/(losses) on derivative instruments 11 – 12,024 12,024 – (5,073) (5,073)
Income 3 19,419 – 19,419 17,605 – 17,605
Investment management fees 4 (673) (2,577) (3,250) (2,749) (744) (3,493)
Other expenses 5 (963) (6) (969) (992) – (992)
Foreign exchange (losses)/gains – (761) (761) – 107 107
Net return on ordinary activities before finance costs
and taxation 17,783 29,821 47,604 13,864 4,689 18,553
Finance costs 6 (688) (2,065) (2,753) (2,473) – (2,473)
Net return on ordinary activities before taxation 17,095 27,756 44,851 11,391 4,689 16,080
Taxation on return on ordinary activities 7 (1,563) 85 (1,478) (1,203) (3,215) (4,418)
Net return on ordinary activities after taxation for the
year 15,532 27,841 43,373 10,188 1,474 11,662
Return per ordinary share 8 22.51p 40.34p 62.85p 14.24p 2.06p 16.30p
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.
54
Fidelity Asian Values PLC
|
Annual Report 2025
Statement of Changes in Equity
for the year ended 31 July 2025
Notes
Share
capital
£’000
Share
premium
account
£’000
Capital
redemption
reserve
£’000
Other non–
distributable
reserve
£’000
Capital
reserve
£’000
Revenue
reserve
£’000
Total
shareholders’
funds
£’000
Total shareholders’ funds at
31 July 2024 18,895 50,501 3,197 7,367 297,210 14,844 392,014
Net return on ordinary activities after
taxation for the year – – – – 27,841 15,532 43,373
Repurchase of ordinary shares 14 – – – – (22,532) – (22,532)
Dividend paid to shareholders 9 – – – – – (10,147) (10,147)
Total shareholders’ funds at
31 July 2025 18,895 50,501 3,197 7,367 302,519 20,229 402,708
Total shareholders’ funds at
31 July 2023 18,895 50,501 3,197 7,367 299,562 15,055 394,577
Net return on ordinary activities after
taxation for the year – – – – 1,474 10,188 11,662
Repurchase of ordinary shares 14 – – – – (3,826) – (3,826)
Dividend paid to shareholders 9 – – – – – (10,399) (10,399)
Total shareholders’ funds at
31 July 2024 18,895 50,501 3,197 7,367 297,210 14,844 392,014
The Notes on pages 56 to 78 form an integral part of these Financial Statements.
55
Annual Report 2025
|
Fidelity Asian Values PLC
GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY
Balance Sheet
as at 31 July 2025
Company number 03183919
Notes
2025
£’000
2024
£’000
Fixed assets
Investments 10 377,051 378,577
Current assets
Derivative instruments 11 2,278 1,297
Debtors 12 1,839 4,379
Amounts held at futures clearing houses and brokers 2,674 4,413
Cash and cash equivalents 25,407 9,070
32,198 19,159
Current liabilities
Derivative instruments 11 (2,045) (2,045)
Other creditors 13 (4,494) (3,242)
Bank overdrafts (2) (435)
(6,541) (5,722)
Net current assets 25,657 13,437
Net assets 402,708 392,014
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
Capital reserve 15 302,519 297,210
Revenue reserve 15 20,229 14,844
Total shareholders’ funds 402,708 392,014
Net asset value per ordinary share 16 604.69p 551.66p
The Financial Statements on pages 53 to 78 were approved by the Board of Directors on 16 October 2025 and were signed on its
behalf by:
Clare Brady
Chairman
The Notes on pages 56 to 78 form an integral part of these Financial Statements.
56
Fidelity Asian Values PLC
|
Annual Report 2025
Notes to the Financial Statements
1 Principal Activity
Fidelity Asian Values PLC is an Investment Company incorporated in England and Wales that is listed on the London Stock Exchange.
The Company’s registration number is 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 2026, 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 risks faced by the Company as
detailed in the Going Concern Statement on page 27.
In preparing these Financial Statements the Directors have considered the impact of climate change risk as an emerging risk as set
out on page 27, 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 Directors’ Report on page 27 takes account of all events and conditions up to
31October 2026 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)) for determining the fair value of each unlisted investment
can have a significant impact upon the valuation.
Estimates
The key estimate in the Financial Statements is the determination of the fair value of the unlisted investments by the Manager’s Fair
Value Committee (“FVC”), with support from the external valuer and Fidelity’s unlisted investments specialists, for detailed review and
appropriate challenge by the Directors. This estimate is key as it significantly impacts the valuation of the unlisted investments at the
Balance Sheet date. When no recent primary or secondary transaction in the company’s shares 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;
57
Annual Report 2025
|
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 the Other Price Risk
Sensitivity in Note 17, to illustrate the effect on the Financial Statements of an over or under estimation of fair value.
The risk of an over or under estimation of fair value is greater when methodologies are applied using more subjective inputs.
c) Segmental reporting – The Company is engaged in a single segment business and, therefore, no segmental reporting is
provided.
d) Presentation of the Income Statement – In order to reflect better the activities of an investment company and in accordance
with guidance issued by the AIC, supplementary information which analyses the Income Statement between items of a revenue and
capital nature has been prepared alongside the Income Statement. The net revenue return after taxation for the year is the measure
the Directors believe appropriate in assessing the Company’s compliance with certain requirements set out in Section 1159 of the
Corporation Tax Act 2010.
e) Income – Income from equity investments is accounted for on the date on which the right to receive the payment is established,
normally the ex-dividend date. Overseas dividends are accounted for gross of any tax deducted at source. Amounts are credited to
the revenue column of the Income Statement. Where the Company has elected to receive its dividends in the form of additional shares
rather than cash, the amount of the cash dividend foregone is recognised in the revenue column of the Income Statement. Any excess
in the value of the shares received over the amount of the cash dividend is recognised in the capital column of the Income Statement.
Special dividends are treated as a revenue receipt or a capital receipt depending on the facts and circumstances of each particular
case.
Derivative instrument income received from dividends on long contracts for difference (“CFDs”) 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, bank deposits, collateral and money market funds are accounted for on an accruals basis and credited
to the revenue column of the Income Statement. Interest received on CFDs 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:
• With effect from 1 August 2024, the base investment management fee is allocated 25% to revenue and 75% to capital in line with
the Board’s expected long-term split of revenue and capital returns from the Company’s portfolio of investments. Prior to 1August
2024, the base investment management fee were allocated in full to revenue;
• The variable investment management fee continues to be charged/credited to capital as it is based on the performance of the
net asset value per share relative to the Benchmark Index; and
• All other expenses continue to be allocated in full to revenue with the exception of those directly attributable to share issues or
other capital events.
g) Functional currency and foreign exchange – The functional and reporting currency of the Company is UK sterling, which is the
currency of the primary economic environment in which the Company operates. Transactions denominated in foreign currencies are
reported in UK sterling at the rate of exchange ruling at the date of the transaction. Assets and liabilities in foreign currencies are
translated in the rates of exchange ruling at the Balance Sheet date. Foreign exchange gains and losses arising on the translation
are recognised in the Income Statement as a revenue or a capital item depending on the nature of the underlying item to which
they relate.
58
Fidelity Asian Values PLC
|
Annual Report 2025
Notes to the Financial Statements continued
2 Accounting Policies continued
h) Finance costs – Finance costs comprise interest on bank overdrafts and finance costs paid on CFDs, which are accounted for on
an accruals basis, and dividends paid on short CFDs, which are accounted for on the date on which the obligation to incur the cost
is established, normally the ex-dividend date. With effect from 1 August 2024, finance costs are allocated 25% to revenue and 75% to
capital in line with the Board’s expected long-term split of revenue and capital returns from the Company’s portfolio of investments.
Prior to 1 August 2024, finance costs were allocated in full to revenue.
i) Taxation – The taxation charge represents the sum of current taxation and deferred taxation.
Current taxation is taxation suffered at source on overseas income less amounts recoverable under taxation treaties. Taxation is
charged or credited to the revenue column of the Income Statement, except where it relates to items of a capital nature, in which case
it is charged or credited to the capital column of the Income Statement. Where expenses are allocated between revenue and capital
any tax relief in respect of the expenses is allocated between revenue and capital returns on the marginal basis using the Company’s
effective rate of corporation tax for the accounting period. The Company is an approved Investment Trust under Section 1158 of the
Corporation Tax Act 2010 and is not liable for UK taxation on capital gains.
Deferred taxation is the taxation expected to be payable or recoverable on timing differences between the treatment of certain items
for accounting purposes and their treatment for the purposes of computing taxable profits. Deferred taxation is based on tax rates that
have been enacted or substantively enacted when the taxation is expected to be payable or recoverable. Deferred tax assets are
only recognised if it is considered more likely than not that there will be sufficient future taxable profits to utilise them.
j) Dividend paid – Dividends payable to equity shareholders are recognised when the Company’s obligation to make payment is
established.
k) Investments – The Company’s business is investing in financial instruments with a view to profiting from their total return in the form
of income and long-term capital growth. This portfolio of investments is managed and its performance evaluated on a fair value basis,
in accordance with a documented investment strategy, and information about the portfolio is provided on that basis to the Company’s
Board of Directors. Investments are measured at fair value with changes in fair value recognised in profit or loss, in accordance with
the provisions of both Section 11 and Section 12 of FRS 102. The fair value of investments is initially taken to be their cost and is
subsequently measured as follows:
• Listed investments are valued at bid prices, or last market prices, depending on the convention of the exchange on which they
are listed, and
• Unlisted investments are not quoted, or are not frequently traded, and are stated at the best estimate of fair value. The
Manager’s Fair Value Committee (“FVC”), which is independent of the Portfolio Managers’ team, meets quarterly to determine
the fair value of unlisted investments. These are based on the principles outlined in Note 2 (b).
The unlisted investments are valued at fair value following a detailed review and appropriate challenge by the Directors of the pricing
methodology proposed by the FVC.
The FVC 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 given to the input received from the Fidelity International analyst that covers the company, the
external valuer and Fidelity’s unlisted investments specialist.
In accordance with the AIC SORP, the Company includes transaction costs, incidental to the purchase or sale of investments, within
gains on investments in the capital column of the Income Statement and has disclosed these costs in Note 10.
l) Derivative instruments – When appropriate, permitted transactions in derivative instruments are used. Derivative transactions into
which the Company may enter include long and short CFDs, futures, options and forward currency contracts. Derivatives are classified
as other financial instruments and are initially accounted and measured at fair value on the date the derivative contract is entered into
and subsequently measured at fair value as follows:
• Long and short CFDs – the difference between the strike price and the value of the underlying shares in the contract;
• Futures – the difference between the contract price and the quoted trade price;
• Forward currency contracts – valued at the appropriate quoted forward foreign exchange rate ruling at the Balance Sheet date;
and
• Options - the quoted trade price for the contract.
59
Annual Report 2025
|
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, amounts receivable on the settlement of derivatives, accrued
income, taxation recoverable and other debtors and prepayments incurred in the ordinary course of business. If collection is expected
in one year or less (or in the normal operating cycle of the business, if longer) they are classified as current assets. If not, they
are presented as non-current assets. They are recognised initially at fair value and, where applicable, subsequently measured at
amortised cost using the effective interest rate method.
n) Amounts held at futures clearing houses and brokers – These are amounts held in segregated accounts on behalf of brokers as
collateral against open derivative contracts. These are carried at amortised cost.
o) Cash and cash equivalents – Cash and cash equivalents may comprise cash at bank and money market funds which are short-
term, highly liquid and are readily convertible to a known amount of cash. These are subject to an insignificant risk of changes in
value.
p) Other creditors – Other creditors include securities purchased for future settlement, amounts payable for repurchase of shares,
Indian capital gains tax payable, short CFD dividends payable, investment management fees, secretarial and administration fees and
other creditors and expenses accrued in the ordinary course of business. If payment is due within one year or less (or in the normal
operating cycle of the business, if longer) they are classified as current liabilities. If not, they are presented as non-current liabilities.
They are recognised initially at fair value and, where applicable, subsequently measured at amortised cost using the effective interest
rate method.
q) Capital reserve – The following are accounted for in the capital reserve:
• Gains and losses on the disposal of investments and derivative instruments;
• Changes in the fair value of investments and derivative instruments, held at the year end;
• Foreign exchange gains and losses of a capital nature;
• Variable element of management fee;
• With effect from 1 August 2024, 75% of base investment management fees;
• With effect from 1 August 2024, 75% of finance costs;
• Dividends receivable which are capital in nature;
• Taxation charged or credited relating to items which are capital in nature; and
• Other expenses which are capital in nature.
Technical guidance issued by the Institute of Chartered Accountants in England and Wales in TECH 02/17BL, guidance on the
determination of realised profits and losses in the context of distributions under the Companies Act 2006, states that changes in
the fair value of investments which are readily convertible to cash, without accepting adverse terms at the Balance Sheet date, can
be treated as realised. Capital reserves realised and unrealised are shown in aggregate as capital reserve in the Statement of
Changes in Equity and the Balance Sheet. At the Balance Sheet date, the portfolio of the Company consisted of investments listed
on a recognised stock exchange and derivative instruments contracted with counterparties having an adequate credit rating, and
the portfolio was considered to be readily convertible to cash, with the exception of the level 3 investments which had unrealised
investment holding gains of £1,676,000 (2024: losses of £1,088,000). See Note 17 on pages 75 and 76 for further details on the
level 3 investments.
60
Fidelity Asian Values PLC
|
Annual Report 2025
Notes to the Financial Statements continued
3 Income
Year ended
31.07.25
£’000
Year ended
31.07.24
£’000
Investment income
Overseas dividends 15,258 14,009
Overseas scrip dividends 40 172
Interest on securities 625 584
15,923 14,765
Derivative income
Dividends received on long CFDs 2,529 1,797
Interest received on CFDs 360 462
2,889 2,259
Other interest
Interest received on bank deposits, collateral and money market funds 607 581
Total income 19,419 17,605
No special dividends have been recognised in capital during the year (2024: £1,827,000).
4 Investment Management Fees
Year ended 31 July 2025 Year ended 31 July 2024
Revenue
1
£’000
Capital
1
£’000
Total
£’000
Revenue
1
£’000
Capital
1
£’000
Total
£’000
Investment management fees – base 673 2,020 2,693 2,749 – 2,749
Investment management fees – variable
2
– 557 557 – 744 744
673 2,577 3,250 2,749 744 3,493
1 As disclosed in Note 2, base investment management fees for the year ended 31 July 2025 are charged 25% to revenue and 75% to capital. For the year ended 31 July
2024, base investment management fees were charged 100% to revenue.
2 For the calculation of the variable management fee, the Company’s NAV return was compared to the Benchmark Index return on a rolling three year basis.
FIL Investment Services (UK) Limited is the Company’s Alternative Investment Fund Manager and has delegated portfolio management
to FIL Investments International (“FII”). Both companies are Fidelity group companies.
FII charges base investment management fees at an annual rate of 0.70% of net assets. In addition, there is +/-0.20% variation fee
based on the Company’s NAV per ordinary share performance relative to the Company’s Benchmark Index which is charged/credited
to capital. Fees are payable monthly in arrears and are calculated on a daily basis.
61
Annual Report 2025
|
Fidelity Asian Values PLC
GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY
5 Other Expenses
Year ended
31.07.25
£’000
Year ended
31.07.24
£’000
Allocated to revenue:
AIC fees 18 21
Custody fees 72 73
Depositary fees 31 31
Directors’ expenses 72 54
Directors’ fees
1
190 189
Legal and professional fees 120 189
Marketing expenses 181 172
Printing and publication expenses 89 73
Registrars’ fees 40 44
Secretarial and administration fees payable to the Investment Manager 75 75
Sundry other expenses 17 20
Fees payable to the Company’s Independent Auditor for the audit of the Financial Statements
2
58 51
963 992
Allocated to capital:
Legal and professional fees 6 –
Other expenses 969 992
1 Details of the breakdown of Directors’ fees are disclosed in the Directors’ Remuneration Report on page 40.
2 Included in the current year’s audit fee is an amount of £3,750 in respect of additional scope of work relating to the transition of reporting functions to JP Morgan and has
been settled by the Manager (FIL Investment Services (UK) Limited). This amount has been offset against sundry other expenses for 2025 in the table above.
6 Finance Costs
Year ended 31 July 2025 Year ended 31 July 2024
Revenue
1
£’000
Capital
1
£’000
Total
£’000
Revenue
1
£’000
Capital
1
£’000
Total
£’000
Interest on bank overdrafts 72229 1 – 1
Interest paid on CFDs 447 1,340 1,787 2,147 – 2,147
Dividends paid on short CFDs 234 703 937 325 – 325
688 2,065 2,753 2,473 – 2,473
1 As disclosed in Note 2, finance costs for the year ended 31 July 2025 are charged 25% to revenue and 75% to capital. For the year ended 31 July 2024, finance costs
were charged 100% to revenue.
62
Fidelity Asian Values PLC
|
Annual Report 2025
Notes to the Financial Statements continued
7 Taxation on Return on Ordinary Activities
Year ended 31 July 2025 Year ended 31 July 2024
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
a) Analysis of the taxation charge for
the year
Overseas taxation 1,563 – 1,563 1,203 – 1,203
Indian capital gains tax – (85) (85) – 3,215 3,215
Taxation charge for the year
(see Note 7b) 1,563 (85) 1,478 1,203 3,215 4,418
b) Factors affecting the taxation charge for the year
The taxation charge for the year is lower than the standard rate of UK corporation tax for an investment trust company of 25%
(2024: 25%). A reconciliation of the standard rate of UK corporation tax to the taxation charge for the year is shown below:
Year ended 31 July 2025 Year ended 31 July 2024
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Net return on ordinary activities before
taxation 17,095 27,756 44,851 11,391 4,689 16,080
Net return on ordinary activities before
taxation multiplied by the standard rate
of UK corporation tax of 25% (2024: rate
of 25%) 4,274 6,939 11,213 2,848 1,172 4,020
Effects of:
Capital gains not taxable
1
– (8,101) (8,101) – (1,358) (1,358)
Income not taxable (3,780) – (3,780) (3,464) – (3,464)
Expenses not deductible – 511 511 – – –
Excess management expenses (494) 651 157 620 186 806
Expense relief for overseas taxation –––(4) – (4)
Overseas taxation 1,563 – 1,563 1,203 – 1,203
Indian capital gains tax
2
– (85) (85) – 3,215 3,215
Taxation charge for the year
(see Note 7a) 1,563 (85) 1,478 1,203 3,215 4,418
1 The Company is exempt from UK corporation tax on capital gains as it meets the HM Revenue & Customs criteria for an investment company set out in Section 1159 of
the Corporation Tax Act 2010.
2 The Indian capital gains tax charge is composed of £581,000 (2024: charge of £1,081,000) credited in the year and £496,000 (2024: £2,134,000) deferred until such time
as the Indian investments are sold.
c) Deferred taxation
A deferred tax asset of £9,589,000 (2024: £9,432,000), in respect of excess management expenses of £36,087,000 (2024: £35,457,000)
and excess interest paid of £2,271,000 (2024: £2,271,000), has not been recognised as it is unlikely that there will be sufficient future
taxable profits to utilise these expenses.
63
Annual Report 2025
|
Fidelity Asian Values PLC
GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY
8 Return per Ordinary Share
Year ended
31.07.25
Year ended
31.07.24
Revenue return per ordinary share 22.51p 14.24p
Capital return per ordinary share 40.34p 2.06p
Total return per ordinary share 62.85p 16.30p
The return per ordinary share is based on the net return on ordinary activities after taxation for the year divided by the weighted
average number of ordinary shares held outside of Treasury during the year, as shown below:
£’000 £’000
Net revenue return on ordinary activities after taxation 15,532 10,188
Net capital return on ordinary activities after taxation 27,841 1,474
Net total return on ordinary activities after taxation 43,373 11,662
Number Number
Weighted average number of ordinary shares held outside of Treasury 69,010,726 71,551,097
9 Dividends Paid to Shareholders
Year ended
31.07.25
£’000
Year ended
31.07.24
£’000
Dividend paid
Dividend of 14.5 pence per ordinary share paid for the year ended 31 July 2024 10,147 –
Dividend of 14.5 pence per ordinary share paid for the year ended 31 July 2023 – 10,399
10,147 10,399
Dividend proposed
Dividend of 20.5 pence per ordinary share proposed for the year ended 31 July 2025 13,168 –
Dividend of 14.5 pence per ordinary share proposed for the year ended 31 July 2024 – 10,204
13,168 10,204
The Directors have proposed the payment of a dividend for the year ended 31 July 2025 of 20.5 pence per ordinary share which is
subject to approval by shareholders at the Annual General Meeting on 26 November 2025 and has not been included as a liability in
these Financial Statements. If approved, the dividend will be paid on 11 December 2025 to shareholders on the register at the close
of business on 14 November 2025 (ex-dividend date 13 November 2025).
64
Fidelity Asian Values PLC
|
Annual Report 2025
Notes to the Financial Statements continued
10 Investments at Fair Value through Profit or Loss
2025
£’000
2024
£’000
Listed investments 371,717 378,517
Unlisted investments 5,334 60
Investments at fair value 377,051 378,577
Opening book cost 406,135 374,514
Opening investment holding (losses)/gains (27,558) 3,117
Opening fair value 378,577 377,631
Movements in the year
Purchases at cost 209,010 217,080
Sales – proceeds (231,677) (226,533)
Gains on investments 21,141 10,399
Closing fair value 377,051 378,577
Closing book cost 377,392 406,135
Closing investment holding losses (341) (27,558)
Closing fair value 377,051 378,577
The Company received £231,677,000 (2024: £226,533,000) from investments sold in the year. The book cost of these investments when
they were purchased was £237,753,000 (2024: £185,459,000). 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
31.07.25
£’000
Year ended
31.07.24
£’000
Purchases transaction costs 241 249
Sales transaction costs 338 410
579 659
65
Annual Report 2025
|
Fidelity Asian Values PLC
GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY
11 Derivative Instruments
Year ended
31.07.25
£’000
Year ended
31.07.24
£’000
Gains/(losses) on derivative instruments
Realised gains/(losses) on long CFD positions closed 9,504 (6,842)
Realised gains on short CFD positions closed 1,245 2,417
Realised gains/(losses) on futures contracts closed 718 (62)
Realised (losses)/gains on options contracts closed (467) 1,136
Realised gains on forward currency contracts 70 –
Movement in investment holding gains/(losses) on long CFDs 1,143 (2,113)
Movement in investment holding gains on short CFDs 112 909
Movement in investment holding losses on futures (129) (162)
Movement in investment holding losses on options (172) (356)
12,024 (5,073)
2025
Fair value
£’000
2024
Fair value
£’000
Derivative instruments recognised on the Balance Sheet
Derivative instrument assets 2,278 1,297
Derivative instrument liabilities (2,045) (2,045)
233 (748)
2025 2024
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 (172) 66,384 (1,315) 48,144
Call options (long exposure) – – 208 2,805
Short CFDs 485 21,913 373 12,995
Short futures (129) 2,353 – –
Put options (short exposure) 96 2,143 – –
Call options (short exposure) (47) 394 (14) 374
233 93,187 (748) 64,318
66
Fidelity Asian Values PLC
|
Annual Report 2025
Notes to the Financial Statements continued
12 Debtors
2025
£’000
2024
£’000
Securities sold for future settlement 108 2,733
Amounts receivable on settlement of derivatives 699 66
Accrued income 874 1,162
Taxation recoverable 28 302
Other debtors and prepayments 130 116
1,839 4,379
13 Other Creditors
2025
£’000
2024
£’000
Securities purchased for future settlement 2,449 201
Amounts payable for repurchase of shares 172 –
Indian capital gains tax payable 496 2,134
Amounts payable on short CFD dividends 442 214
Finance costs payable 18 –
Creditors and accruals 917 693
4,494 3,242
14 Share Capital
2025 2024
Number of
shares
Nominal
value
£’000
Number of
shares
Nominal
value
£’000
Issued, allotted and fully paid
Ordinary shares of 25 pence each held outside of Treasury
Beginning of the year 71,060,556 17,766 71,829,336 17,958
Ordinary shares repurchased into Treasury (4,463,497) (1,116) (768,780) (192)
End of the year 66,597,059 16,650 71,060,556 17,766
Ordinary shares of 25 pence each held in Treasury
1
Beginning of the year 4,520,333 1,129 3,751,553 937
Ordinary shares repurchased into Treasury 4,463,497 1,116 768,780 192
End of the year 8,983,830 2,245 4,520,333 1,129
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 £22,532,000 (2024: £3,826,000).
67
Annual Report 2025
|
Fidelity Asian Values PLC
GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY
15 Capital and Reserves
Share
capital
£’000
Share
premium
account
£’000
Capital
redemption
reserve
£’000
Other non-
distributable
reserve
£’000
Capital
reserve
£’000
Revenue
reserve
£’000
Total
shareholders’
funds
£’000
At 1 August 2024 18,895 50,501 3,197 7,367 297,210 14,844 392,014
Gains on investments (see Note 10) – – – – 21,141 – 21,141
Gains on derivative instruments (see Note 11) – – – – 12,024 – 12,024
Foreign exchange gains – – – – 761 – 761
Investment management fees (see Note 4) – – – – (2,577) – (2,577)
Other expenses (see Note 5) – – – – (6) – (6)
Finance cost (see Note 6) – – – – (2,065) – (2,065)
Indian capital gains tax (see Note 7) – – – – 85 – 85
Revenue return on ordinary activities after
taxation for the year – – – – – 15,532 15,532
Dividend paid to shareholders (see Note 9) – – – – – (10,147) (10,147)
Repurchase of ordinary shares (see Note 14) – – – – (22,532) – (22,532)
At 31 July 2025 18,895 50,501 3,197 7,367 302,519 20,229 402,708
At 1 August 2023 18,895 50,501 3,197 7,367 299,562 15,055 394,577
Gains on investments (see Note 10) – – – – 10,399 – 10,399
Losses on derivative instruments (see Note 11) – – – – (5,073) – (5,073)
Foreign exchange gains – – – – 107 – 107
Investment management fees (see Note 4) – – – – (744) – (744)
Indian capital gains tax (see Note 7) – – – – (3,215) – (3,215)
Revenue return on ordinary activities after
taxation for the year – – – – – 10,188 10,188
Dividend paid to shareholders (see Note 9) – – – – – (10,399) (10,399)
Repurchase of ordinary shares (see Note 14) – – – – (3,826) – (3,826)
At 31 July 2024 18,895 50,501 3,197 7,367 297,210 14,844 392,014
The capital reserve balance at 31 July 2025 includes investment holding losses of £341,000 (2024: losses of £27,558,000) as detailed
in Note 10. See Note 2 (q) for further details. The revenue and capital reserves are distributable by way of dividend.
16 Net Asset Value per Ordinary Share
The calculation of the net asset value per ordinary share is based on the total shareholders’ funds divided by the number of ordinary
shares held outside of Treasury.
2025 2024
Total shareholders’ funds £402,708,000 £392,014,000
Ordinary shares held outside of Treasury at year end 66,597,059 71,060,556
Net asset value per ordinary share 604.69p 551.66p
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.
68
Fidelity Asian Values PLC
|
Annual Report 2025
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. Risks
are identified and graded in this process, together with steps taken in mitigation, and are updated and reviewed on an ongoing
basis. Risks identified are shown in the Strategic Report on pages 23 to 27.
This Note refers to the identification, measurement and management of risks potentially affecting the value of financial instruments.
The Company’s financial instruments may comprise:
• Equity shares (listed and unlisted), equity linked notes and corporate bonds held in accordance with the Company’s investment
objective and policies;
• Derivative instruments which comprise CFDs, forward currency contracts, futures and options on listed stocks and equity indices;
and
• Cash, liquid resources and short-term debtors and creditors that arise from its operations.
The risks identified arising from the Company’s financial instruments are market price risk (which comprises interest rate risk, foreign
currency risk and other price risk), liquidity risk, counterparty risk, credit risk and derivative instruments risk. The Board reviews and
agrees policies for managing each of these risks, which are summarised below. These policies are consistent with those followed last
year.
Market price risk
Interest rate risk
The Company principally finances its operations through its share capital and reserves. In addition, the Company has gearing through
the use of derivative instruments. The level of gearing is reviewed by the Board and the Portfolio Managers. The Company is exposed
to a financial risk arising as a result of any increases in interest rates associated with the funding of the derivative instruments.
Interest rate risk exposure
The values of the Company’s financial instruments that are exposed to movements in interest rates are shown below:
2025
£’000
2024
£’000
Exposure to financial instruments that bear interest
Long CFDs – exposure less fair value 66,556 49,459
Bank overdrafts 2 435
66,558 49,894
Exposure to financial instruments that earn interest
Short CFDs – exposure plus fair value 22,398 13,368
Cash and cash equivalents 25,407 9,070
Amounts held at futures clearing houses and brokers 2,674 4,413
50,479 26,851
Net exposure to financial instruments that bear interest (16,079) (23,043)
69
Annual Report 2025
|
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 Managers may seek to manage exposure to currency movements by using
forward and spot foreign exchange contracts. The Company can also be subject to short-term exposure to exchange rate movements,
for example, between the date when an investment is purchased or sold and the date when settlement of the transaction occurs.
Three principal areas have been identified where foreign currency risk could impact the Company:
• Movements in currency exchange rates affecting the value of investments and derivative instruments;
• Movements in currency exchange rates affecting short-term timing differences; and
• Movements in currency exchange rates affecting income received.
Currency exposure of financial assets
The currency exposure profile of the Company’s financial assets is shown below:
Currency
Investments
at fair value
£’000
Long
exposure to
derivative
instruments
1
£’000
Debtors
2
£’000
Cash
and cash
equivalents
3
£’000
2025
Total
£’000
Hong Kong dollar 97,377 54,327 881 615 153,200
US dollar 33,706 12,057 546 23,939 70,248
Indonesian rupiah 66,419 – 108 – 66,527
Indian rupee 48,177 – 1,892 47 50,116
South Korean won 48,834 – 706 – 49,540
Taiwan dollar 25,682 – 106 – 25,788
Australian dollar 16,507 – 84 – 16,591
Thai baht 11,614 – – – 11,614
Singapore dollar 9,626 – – – 9,626
Sri Lankan rupee 6,161 – – – 6,161
Vietnamese dong 5,456 – – – 5,456
Philippine peso 4,875 – 60 – 4,935
Other overseas currencies 1,657 – – 806 2,463
UK sterling 960 – 130 – 1,090
377,051 66,384 4,513 25,407 473,355
1 The exposure to the market of long CFDs.
2 Debtors include amounts held at futures clearing houses and brokers.
3 Cash and cash equivalents are made up of £5,689,000 cash at bank and £19,718,000 held in Fidelity Institutional Liquidity Fund.
70
Fidelity Asian Values PLC
|
Annual Report 2025
Notes to the Financial Statements continued
17 Financial Instruments continued
Currency
Investments
at fair value
£’000
Long
exposure to
derivative
instruments
1
£’000
Debtors
2
£’000
Cash at
bank
£’000
2024
Total
£’000
Hong Kong dollar 85,219 42,392 648 – 128,259
Indian rupee 67,191 – 4,493 19 71,703
Indonesian rupiah 62,226 – – – 62,226
US dollar 41,115 3,358 2,307 8,851 55,631
South Korean won 51,091 – 14 89 51,194
Australian dollar 18,557 3,223 926 – 22,706
Singapore dollar 10,789 1,976 – – 12,765
Taiwan dollar 11,113 – 301 86 11,500
Chinese renminbi 9,900 – – – 9,900
Philippine peso 6,928 – 3 – 6,931
Thai baht 4,109 – – – 4,109
Sri Lankan rupee 3,959 – – – 3,959
Other overseas currencies 6,380 – – – 6,380
UK sterling – – 100 25 125
378,577 50,949 8,792 9,070 447,388
1 The exposure to the market of long CFDs and call options.
2 Debtors include amounts held at futures clearing houses and brokers.
71
Annual Report 2025
|
Fidelity Asian Values PLC
GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY
17 Financial Instruments continued
Currency exposure of financial liabilities
The currency profile of these financial liabilities is shown below:
Currency
Short
exposure to
derivative
instruments
1
£’000
Other
creditors
£’000
Bank
overdrafts
£’000
2025
Total
£’000
US dollar 17,697 1,496 – 19,193
South Korean won 3,366 135 – 3,501
Hong Kong dollar 2,666 18 – 2,684
Australian dollar 1,944 – – 1,944
Indian rupee 1,130 496 – 1,626
Indonesian rupiah – 916 – 916
Thai baht – 320 – 320
Vietnamese dong – 303 – 303
Singapore dollar – 99 – 99
UK sterling – 711 2 713
26,803 4,494 2 31,299
1 The exposure to the market of short CFDs, futures and call/put options.
Currency
Short
exposure to
derivative
instruments
1
£’000
Other
creditors
£’000
Bank
overdrafts
£’000
2024
Total
£’000
US dollar 9,665 230 – 9,895
Hong Kong dollar 3,704 216 435 4,355
Indian rupee – 2,134 – 2,134
Korean won – 31 – 31
Singapore dollar – 1 – 1
UK sterling – 630 – 630
13,369 3,242 435 17,046
1 The exposure to the market of short CFDs and call options.
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.
72
Fidelity Asian Values PLC
|
Annual Report 2025
Notes to the Financial Statements continued
17 Financial Instruments continued
The Portfolio Managers are 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 2025, the undiscounted gross cash outflows of the financial liabilities were all repayable within one year and consisted of
derivative instrument liabilities of £2,045,000 (2024: £2,045,000), other creditors of £4,494,000 (2024: £3,242,000) and bank overdrafts
of £2,000 (2024: £435,000).
Counterparty risk
Certain derivative instruments in which the Company may invest are not traded on an exchange but instead will be traded between
counterparties based on contractual relationships, under the terms outlined in the International Swaps and Derivatives Association’s
(“ISDA”) market standard derivative legal documentation. These are known as Over the Counter (“OTC”) trades. As a result, the
Company is subject to the risk that a counterparty may not perform its obligations under the related contract. In accordance with the
risk management process which the Manager employs, the Manager will seek to minimise such risk by only entering into transactions
with counterparties which are believed to have an adequate credit rating at the time the transaction is entered into, by ensuring that
formal legal agreements covering the terms of the contract are entered into in advance, and through adopting a counterparty risk
framework which measures, monitors and manages counterparty risk by the use of internal and external credit agency ratings and by
evaluating derivative instrument credit risk exposure.
For OTC and exchange traded derivative transactions, collateral is used to reduce the risk of both parties to the contract. Collateral is
managed on a daily basis for all relevant transactions.
Collateral
2025 2024
collateral
received
£’000
collateral
pledged
£’000
collateral
received
£’000
collateral
pledged
£’000
HSBC Bank plc – 121 288 –
Goldman Sachs International Ltd 181 – 117 –
UBS AG – 2,553 – 3,019
J.P. Morgan Securities plc 1,073 – – 1,394
Morgan Stanley & Co. International Ltd 242 – – –
Total 1,496 2,674 405 4,413
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 instrument risk
The risks and risk management processes which result from the use of derivative instruments, are set out in a documented Risk
Management Process Document. Derivative instruments are used by the Manager for the following purposes:
• To gain unfunded long exposure to equity markets, sectors or single stocks. Unfunded exposure is exposure gained without an
initial flow of capital;
73
Annual Report 2025
|
Fidelity Asian Values PLC
GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY
17 Financial Instruments continued
• To hedge equity market risk using derivatives with the intention of at least partially mitigating losses in the exposures of the
Company’s portfolio as a result of falls in the equity market; and
• To position short exposures in the Company’s portfolio. These uncovered exposures benefit from falls in the prices of shares which
the Portfolio Managers 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 2025, an increase of 1.00% in interest rates throughout the year,
with all other variables held constant, would have decreased the net return on ordinary activities after taxation for the year and
decreased the net assets of the Company by £161,000 (2024: decreased the net return and decreased the net assets by £230,000). A
decrease of 1.00% in interest rates throughout the year would have had an equal but opposite effect.
Foreign currency risk sensitivity analysis
Based on the financial instruments held and currency exchange rates as at the Balance Sheet date, with all other variables held
constant, a 10% strengthening of the UK sterling exchange rate against other currencies would have decreased the Company’s net
return on ordinary activities after taxation for the year and decreased the net assets (2024: decreased the net return and decreased
the net assets) by the following amounts:
Currency
2025
£’000
2024
£’000
Hong Kong dollar 13,683 11,264
Indonesian rupiah 5,965 5,657
US dollar 4,641 4,158
Indian rupee 4,408 6,324
South Korean won 4,185 4,651
Taiwan dollar 2,344 1,045
Australian dollar 1,331 2,064
Thai baht 1,027 374
Singapore dollar 866 1,160
Sri Lankan rupee 560 360
Vietnamese dong 468 279
Philippine peso 449 630
Other overseas currencies 223 1,201
40,150 39,167
74
Fidelity Asian Values PLC
|
Annual Report 2025
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, with all other variables held
constant, a 10% weakening of the UK sterling exchange rate against other currencies would have increased the Company’s net return
on ordinary activities after taxation for the year and increased the net assets (2024: increased the net return and increased the net
assets) by the following amounts:
Currency
2025
£’000
2024
£’000
Hong Kong dollar 16,724 13,767
Indonesian rupiah 7,290 6,914
US dollar 5,673 5,082
Indian rupee 5,388 7,730
South Korean won 5,115 5,685
Taiwan dollar 2,865 1,278
Australian dollar 1,627 2,523
Thai baht 1,255 457
Singapore dollar 1,059 1,418
Sri Lankan rupee 685 440
Vietnamese dong 573 341
Philippine peso 548 770
Other overseas currencies 274 1,468
49,076 47,873
Other price risk – exposure to investments sensitivity analysis
Based on the listed investments held and share prices at 31 July 2025, 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 £37,172,000 (2024: increased the net return and increased the net assets by £37,852,000). 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 2025, 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 £533,000 (2024: increased the net return
and increased the net assets by £6,000). 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 2025, 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 £3,958,000 (2024: increased the net return and increased
the net assets by £3,758,000). A decrease of 10% in share prices would have had an equal and opposite effect.
Fair Value of Financial Assets and Liabilities
Financial assets and liabilities are stated in the Balance Sheet at values which are not materially different to their fair values. As
explained in Notes 2 (k) and (l), investments and derivative instruments are shown at fair value. In the case of cash and cash
equivalents, book value approximates to fair value due to the short maturity of the instruments.
75
Annual Report 2025
|
Fidelity Asian Values PLC
GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY
17 Financial Instruments continued
Fair Value Hierarchy
The Company is required to disclose the fair value hierarchy that classifies its financial instruments measured at fair value at one of
three levels, according to the relative reliability of the inputs used to estimate the fair values.
Classification Input
Level 1
Valued using quoted prices in active markets for identical assets
Level 2
Valued by reference to inputs other than quoted prices included in level 1 that are observable
(i.e. developed using market data) for the asset or liability, either directly or indirectly
Level 3
Valued by reference to valuation techniques using inputs that are not based on observable
market data
Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the fair value
measurement of the relevant asset. The valuation techniques used by the Company are explained in Notes 2 (k) and (l). The table
below sets out the Company’s fair value hierarchy:
Financial assets at fair value through profit or loss
Level 1
£’000
Level 2
£’000
Level 3
£’000
2025
Total
£’000
Investments 366,943 4,774 5,334 377,051
Derivative instrument assets 124 2,154 – 2,278
367,067 6,928 5,334 379,329
Financial liabilities at fair value through profit or loss
Derivative instrument liabilities (157) (1,888) – (2,045)
Financial assets at fair value through profit or loss
Level 1
£’000
Level 2
£’000
Level 3
£’000
2024
Total
£’000
Investments 358,503 19,028 1,046 378,577
Derivative instrument assets 131 1,166 – 1,297
358,634 20,194 1,046 379,874
Financial liabilities at fair value through profit or loss
Derivative instrument liabilities (14) (2,031) – (2,045)
76
Fidelity Asian Values PLC
|
Annual Report 2025
Notes to the Financial Statements continued
17 Financial Instruments continued
The table below sets out the movements in level 3 financial instruments during the year:
2025
£’000
2024
£’000
Beginning of the year 1,046 880
Purchase at cost – ByteDance 3,001 –
Sales proceeds – ByteDance (86) –
Sales gain – ByteDance 13 –
Transfers into level 3 at cost – Interojo
1
– 1,404
Transfers out level 3 at cost – Interojo
2
(1,404) –
Transfers out of level 3 at cost – Tuhu Car
2
– (1,049)
Movement in investment holding gain/(losses) 2,764 (189)
End of the year 5,334 1,046
1 Financial instruments are transferred into level 3 on the date they are suspended or when they have not traded for thirty days.
2 Financial instruments are transferred out of level 3 when they become listed.
Below are details of the four investments which fall into level 3 of which the first three investments are unlisted and the latter one is
suspended from trading.
ByteDance
ByteDance is a technology company that develops applications for smart phones and is an unlisted company. The valuation is based
on the company’s financial performance, the macro-environment and benchmarking the position to a range of comparable market
data. As at 31 July 2025, its fair value was £5,281,000.
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 2025 is based on the company’s financial information, the macro-environment and the
Probability-Weighted Expected Return Model (“PWERM”). As at 31 July 2025, its fair value was £53,000 (2024: £60,000).
Eden Biologics
Eden Biologics develops biosimilars and is also engaged in providing process development and contract manufacturing solutions
to the biopharmaceutical industry and is an unlisted company. On 26 February 2018, the company voluntarily delisted from the
Taipei Exchange. In September 2023, there was a potential voluntary liquidation of the company which was subsequently postponed
indefinitely. The company is attempting to restructure, and the future outcome is uncertain. Given the distressed nature of the company
a decision was made for the price to be written down to nil as of the 16 April 2024. As at 31 July 2025, its fair value was £nil (2024:
£nil).
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 2025, its fair value
was £nil (2024: £nil).
77
Annual Report 2025
|
Fidelity Asian Values PLC
GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY
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 55 and any gearing, which is managed by the use of derivative
instruments. Financial resources are managed in accordance with the Company’s investment policy and in pursuit of its investment
objective, both of which are detailed in the Strategic Report on pages 21 and 22. The principal risks and their management are
disclosed in the Strategic Report on pages 23 to 27.
The Company’s gross and net gearing at the year end is set out below:
2025
Gross gearing Net gearing
Asset
exposure
£’000 %
1
Asset
exposure
£’000 %
1
Investments 377,051 93.6 377,051 93.6
Long CFDs 66,384 16.5 66,384 16.5
Total long exposures 443,435 110.1 443,435 110.1
Short CFDs 21,913 5.5 (21,913) (5.5)
Short Futures 2,353 0.6 (2,353) (0.6)
Put options (short exposure) 2,143 0.5 (2,143) (0.5)
Call options (short exposure) 394 0.1 (394) (0.1)
Gross asset exposure/net market exposure 470,238 116.8 416,632 103.4
Shareholders’ funds 402,708 402,708
Gearing
2
16.8% 3.4%
1 Asset exposure to the market expressed as a percentage of shareholders’ funds.
2 Gearing is the amount by which gross asset exposure/net market exposure exceeds shareholders’ funds expressed as a percentage of shareholders’ funds.
2024
Gross gearing Net gearing
Asset
exposure
£’000 %
1
Asset
exposure
£’000 %
1
Investments 378,577 96.6 378,577 96.6
Long CFDs 48,144 12.3 48,144 12.3
Call options (long exposure) 2,805 0.7 2,805 0.7
Total long exposures 429,526 109.6 429,526 109.6
Short CFDs 12,995 3.3 (12,995) (3.3)
Call options (short exposure) 374 0.1 (374) (0.1)
Gross asset exposure/net market exposure 442,895 113.0 416,157 106.2
Shareholders’ funds 392,014 392,014
Gearing
2
13.0% 6.2%
1 Asset exposure to the market expressed as a percentage of shareholders’ funds.
2 Gearing is the amount by which gross asset exposure/net market exposure exceeds shareholders’ funds expressed as a percentage of shareholders’ funds.
78
Fidelity Asian Values PLC
|
Annual Report 2025
19 Transactions with the Managers and Related Parties
FIL Investment Services (UK) Limited is the Company’s Alternative Investment Fund Manager and has delegated portfolio management
and the role of company secretary to FIL Investments International (“FII”). Both companies are Fidelity group companies.
Details of the current fee arrangements are given in the Directors’ Report on page 32. During the year, the following expenses were
payable to FII:
31 July
2025
£’000
31 July
2024
£’000
Management fees 3,250 3,493
Secretarial and administration fees 75 75
Marketing services
1
181 172
1 Marketing services includes costs paid to FII to reimburse it for third party costs it has incurred on behalf of the Company in providing marketing services.
At the Balance Sheet date, the following balances payable to FII were accrued and included in other creditors:
31 July
2025
£’000
31 July
2024
£’000
Management fees 217 277
Secretarial and administration fees 44 6
Marketing services – 77
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, £21,000 (2024: £19,000) of employers’ National
Insurance contributions were paid by the Company. At the Balance Sheet date, Directors’ fees of £17,000 (2024: £20,000) were
accrued and payable.
Notes to the Financial Statements continued
79
Annual Report 2025
|
Fidelity Asian Values PLC
GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGY
Alternative Performance Measures
The Company uses the following as Alternative Performance Measures which are all defined in the Glossary of Terms on pages 91
to 93.
Discount/Premium
Details of the Company’s discount are on the Financial Highlights page.
Gearing
See Note 18 on page 77 for details of the Company’s gearing (both gross and net).
Net Asset Value (“NAV”) per Ordinary Share
See the Balance Sheet on page 55 and Note 16 on page 67 for further details.
Ongoing Charges Ratio
The ongoing charges ratio has been calculated in accordance with guidance issued by the AIC as the total of investment
management fees and other expenses expressed as a percentage of the average net asset values throughout the year.
2025 2024
Investment management fees (£’000) 2,693 2,749
Other expenses (£’000) 969 992
Ongoing charges (£’000) 3,662 3,741
Variable element of management fee (£’000) 557 744
Average net assets (£’000) 386,444 392,271
Ongoing charges ratio 0.95% 0.95%
Ongoing charges ratio including variable element of management fee 1.09% 1.14%
Revenue, Capital and Total Returns per Share
See the Income Statement on page 53 and Note 8 on page 63 for further details.
Total Return Performance
The NAV per ordinary share total return includes reinvestment of the dividend in the NAV of the Company on the ex-dividend date.
The ordinary share price total return includes the reinvestment of the net dividend in the month that the share price goes ex-dividend.
The tables below and on the next page provide information relating to the NAV per ordinary share and ordinary share price of the
Company and the impact of the dividend reinvestments and the total returns for the years ended 31 July 2025 and 31 July 2024.
2025
Net asset
value per
ordinary
share
Ordinary
share
price
31 July 2024 551.66p 496.00p
31 July 2025 604.69p 564.00p
Change in year +9.6% +13.7%
Impact of dividend reinvestment +2.8% +3.3%
Total return for the year +12.4% +17.0%
80
Fidelity Asian Values PLC
|
Annual Report 2025
Total Return Performance continued
2024
Net asset
value per
ordinary
share
Ordinary
share
price
31 July 2023 549.33p 520.00p
31 July 2024 551.66p 496.00p
Change in year +0.4% -4.6%
Impact of dividend reinvestment +2.8% +2.9%
Total return for the year +3.2% -1.7%
Alternative Performance Measures continued
81
Annual Report 2025
|
Fidelity Asian Values PLC
FINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS STRATEGY
Financial Calendar
The key dates in the Company’s calendar are:
31 July 2025
Financial Year End
October 2025
Announcement of results for the year ended 31 July 2025
October 2025
Publication of the Annual Report
13 November 2025
Ex-Dividend Date
14 November 2025
Dividend Record Date
26 November 2025
Annual General Meeting
11 December 2025
Payment of the Dividend
31 January 2026
Half-Year End
March/April 2026
Announcement of the Half-Yearly results for the six months ended 31 January 2026
April 2026
Publication of the Half-Yearly Report
82
Fidelity Asian Values PLC
|
Annual Report 2025
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, 26 November 2025 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 2025.
2. To declare that a final dividend for the year ended
31 July 2025 of 20.5 pence per ordinary share be paid to
shareholders on the register as at close of business on
14 November 2025.
3. To re-elect Clare Brady as a Director.
4. To re-elect Hussein Barma as a Director.
5. To re-elect Lucy Costa Duarte as a Director.
6. To re-elect Sally Macdonald as a Director.
7. To re-elect Matthew Sutherland as a Director.
8. To approve the Directors’ Remuneration Report (excluding
the section headed “The Remuneration Policy” set out on
page 39) for the year ended 31 July 2025.
9. To approve the Remuneration Policy as stated in the
Directors’ Remuneration Report on page 39.
10. To appoint PricewaterhouseCoopers 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 Resolutions 12 and 16 will be proposed as
ordinary resolutions and Resolutions 13, 14 and 15 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 at the latest practicable date of this
document. 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 £1,809,887 (approximately
10% of the aggregate nominal amount of the issued share
capital of the Company (including Treasury shares) at the
latest practicable date of this document) and so that the
Directors may impose any limits or restrictions and make any
arrangements which they consider necessary or appropriate
to deal with Treasury shares, fractional entitlements, record
dates, legal, regulatory or practical problems in, or under
the laws of, any territory or any other matter, such authority
to expire at the conclusion of the next Annual General
Meeting (“AGM”) of the Company or the date 15 months
after the passing of this resolution, whichever is the earlier,
but so that this authority shall allow the Company to make
offers or agreements before the expiry of this authority which
would or might require relevant securities to be allotted after
such expiry as if the authority conferred by this resolution
had not expired. All previous unexpired authorities are
revoked, but without prejudice to any allotment of shares or
grant of rights already made, offered or agreed to be made
pursuant to such authorities.
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
£1,809,887 (approximately 10% of the aggregate
nominal amount of the issued share capital of the
Company (including Treasury shares) at the latest
practicable date of this document); and
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.
Notice of Meeting
83
Annual Report 2025
|
Fidelity Asian Values PLC
FINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS STRATEGY
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) at the latest practicable date of this document 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 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 9,628,760;
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 or the date
15 months after the passing of this resolution, whichever
is the earlier, unless such authority is renewed prior to
such time; and
e) the Company may make a contract to purchase shares
under the authority hereby conferred prior to the expiry
of such authority which will or may be executed wholly
or partly after the expiration of such authority and
may make a purchase of shares pursuant to any such
contract.
Adoption of New Articles of Association by the Company
Resolution 15 is a special resolution that relates to the adoption
of new Articles of Association by the Company to make changes
in relation to the cap on Directors’ fees, the period for submitting
proposals to members following a continuation vote and other
clarificatory, administrative and technical changes, as described
further in the Directors’ Report on page 34.
15. THAT with effect from the passing of this resolution, the draft
Articles of Association produced to the meeting and, for
the purpose of identification, initialled by the Chairman, be
adopted as the Articles of Association of the Company in
substitution for, and to the exclusion of, the existing Articles of
Association of the Company.
Authority to Amend the Company’s Investment Objective and
Investment Policy
Resolution 16 will authorise the Directors to amend the Investment
Objective to remove the reference to the Comparative Index (the
MSCI All Countries Asia ex Japan Small Cap Index (net) total
return (in sterling terms) and move it to be part of the Investment
Policy. In addition, an amendment is proposed to the investment
restriction in relation to unlisted investments to state that the
Company may invest, “Up to 5% of its Gross Assets, at the time
of investment, in securities which are not listed on any stock
exchange.” The restriction has been simplified and does not
increase the unlisted investments limit. The change removes the
wording that “the Portfolio Managers will not normally make any
such investments except where it is expected that the securities
become listed on a stock exchange in the foreseeable future.”
The Directors would not expect to see a significant change to the
portfolio structure in the near term as a result of this change. See
Appendix on page 87.
16.
THAT the Directors be and they are hereby authorised to
amend the Company’s Investment Objective and Investment
Policy.
By Order of the Board
FIL Investments International
Secretary
16 October 2025
84
Fidelity Asian Values PLC
|
Annual Report 2025
Notice of Meeting continued
Notes to the Notice of Meeting:
1. A member of the Company entitled to attend and vote at
the Annual General Meeting may appoint a proxy or proxies
to attend and to speak and vote instead of him. A member
may appoint more than one proxy in relation to the Annual
General Meeting provided that each proxy is appointed to
exercise the rights attached to a different share or shares
held by that member. A proxy need not be a member of
the Company. To appoint a proxy via the Investor Centre
at https://uk.investorcentre.mpms.mufg.com/, you will
need to log in to your Investor Centre 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. Alternatively, shareholders can vote via the Investor
Centre app, which is a free app for smartphone and tablet
provided by MUFG Corporate Markets (the company’s
Registrar). It allows you to securely manage and monitor
your shareholdings in real time, take part in online voting,
keep your details up to date, access a range of information
including payment history and much more. The app is
available to download on both the Apple App Store and
Google Play, or by scanning the relevant QR code below.
2. A Form of Proxy is enclosed and must be returned to the
Registrar at the address on the form to arrive not later than
11:00 on Monday, 24 November 2025. Completion and
return of the form of proxy will not prevent a shareholder
from subsequently attending the meeting and voting in
person if they so wish.
3. To be effective, the instrument appointing a proxy, and
any power of attorney or other authority under which it is
signed (or a copy of any such authority certified notarially
or in some other way approved by the Directors), must
be deposited with the Company’s Registrar, PXS 1, MUFG
Corporate Markets, Central Square, 29 Wellington Street,
Leeds LS1 4DL not less than 48 hours before the time for
holding the meeting or adjourned meeting or, in the case of
a poll taken more than 48 hours after it is demanded, not
less than 24 hours before the time appointed for the taking
of the poll at which it is to be used.
4. In the case of joint holders, the vote of the senior who
tenders the vote shall be accepted to the exclusion of the
votes of the other joint holders and for this purpose, seniority
shall be determined by the order in which the names stand
in the Register of Members.
5. 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 on Monday, 24 November 2025. 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 on Monday, 24 November
2025.
6.
Proxymity Voting – If you are an institutional investor,
you may also be able to appoint a proxy electronically
via the Proxymity platform, a process which has been
agreed by the Company and approved by the Registrar.
For further information regarding Proxymity, please go to
www.proxymity.io. Your proxy must be lodged by no later
than 11:00 on Monday, 24 November 2025 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. An
electronic proxy appointment via the Proxymity Platform
may be revoked completely by sending an authenticated
message via the platform instructing the removal of your
proxy vote.
7.
Unless otherwise indicated on the Form of Proxy, CREST,
Proxymity or any other electronic voting instruction, the proxy
will vote as they think fit or, at their discretion, withhold from
voting.
8. All members are entitled to attend and vote at the AGM
and ask questions. The right to vote at the meeting will
be determined by reference to the Register of Members
as at close of business on Monday, 24 November 2025.
Shareholders are urged to vote using the proxy form
provided or electronically where permitted by your nominee
or platform.
85
Annual Report 2025
|
Fidelity Asian Values PLC
FINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS STRATEGY
9. The Company is pleased to be able to offer facilities for
shareholders to attend, ask questions and vote at the AGM
electronically in real time should they wish to do so. The
details are set out below.
In order to join the AGM electronically and to vote
and ask questions via the platform, shareholders
will need to connect to the following site
https://meetings.lumiconnect.com/100-596-124-635. Lumi
is available as a mobile web client, compatible with the
latest browser versions of Chrome, Firefox, Edge and Safari
and can be accessed using any web browser on a tablet,
smartphone or computer.
Once you have accessed
https://meetings.lumiconnect.com/100-596-124-635 from
your device, you will be prompted to enter your unique
11 digit Investor Code (“IVC”) including any leading zeros
and ‘PIN’. Your PIN is the last 4 digits of your IVC. This will
authenticate you as a shareholder.
Your IVC can be found on your share certificate or as
detailed on your proxy form. You can also obtain this by
contacting MUFG Corporate Markets, our Registrar, by
calling +44 (0) 371 277 1020*
Access to the AGM will be available from 30 minutes
before the meeting start time, although the voting
functionality will not be enabled until the Chairman of the
meeting declares the poll open. During the AGM, you must
ensure you are connected to the internet at all times in
order to vote when 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 available on the Company’s
pages of the Manager’s website at: www.fidelity.co.uk/
asianvalues.
If you wish to appoint a proxy other than the Chairman of
the meeting and for them to attend the virtual meeting on
your behalf, please submit your proxy appointment in the
usual way before contacting MUFG Corporate Markets on
+44 (0) 371 277 1020* in order to obtain their IVC and PIN.
It is suggested that you do this as soon as possible and
at least 48 hours (excluding non-business days) before the
meeting.
If your shares are held within a nominee/platform and
you wish to attend the electronic meeting, you will need to
contact your nominee as soon as possible. Your nominee
will need to present a corporate letter of representation to
MUFG Corporate Markets, the Registrar, as soon as possible
and at least 72 hours (excluding non-business days) before
the meeting, in order that they can obtain for you your
unique IVC and PIN to enable you to attend the electronic
meeting.
If you are unable to obtain a unique IVC and PIN from
your nominee or platform, we will also welcome online
participation as a guest. Once you have accessed
https://meetings.lumiconnect.com/100-596-124-635 from
your web browser on a tablet, smartphone or computer, you
should then select the ‘Guest Access’ option before entering
your name and who you are representing, if applicable. This
will allow you to view the meeting and ask questions, but you
will not be able to vote.
* Lines are open from 09:00 to 17:30 Monday to Friday, excluding public
holidays in England and Wales. Calls are charged at the standard
geographic rate and will vary by provider. Calls outside the UK will be
charged at the applicable international rate.
10. Any person to whom this notice is sent who is a person
nominated under Section 146 of the Companies Act 2006 to
enjoy information rights (a “Nominated Person”) may, under
an agreement between him and the member by whom he
was nominated, have a right to be appointed (or to have
someone else appointed) as a proxy for the meeting. If a
Nominated Person has no such proxy appointment right
or does not wish to exercise it, he may, under any such
agreement, have a right to give instructions to the member
as to the exercise of voting rights. The statement of the rights
of members in relation to the appointment of proxies in
Note 1 above does not apply to Nominated Persons. The
right described in that paragraph can only be exercised by
members of the Company.
11. If the Chairman, as a result of any proxy appointments, is
given discretion as to how the votes which are the subject
of those proxies are cast and the voting rights in respect
of those discretionary proxies, when added to the interests
in the Company’s securities already held by the Chairman,
result in the Chairman holding such number of voting rights
that he has a notifiable obligation under the Disclosure and
Transparency Rules, the Chairman will make the necessary
notifications to the Company and the Financial Conduct
Authority. As a result, any member holding 3% or more of
the voting rights in the Company who grants the Chairman a
discretionary proxy in respect of some or all of those voting
rights and so would otherwise have a notification obligation
under the Disclosure and Transparency Rules, need not make
separate notification to the Company and the Financial
Conduct Authority.
12. Pursuant to Regulation 41 of the Uncertificated Securities
Regulations 2001, the Company has specified that to be
entitled to attend and vote at the AGM (and for the purpose
of determining the number of votes they may cast), members
must be entered on the Register of Members by close of
business on Monday, 24 November 2025. If the meeting is
adjourned then, to be so entitled, members must be entered
on the Register of Members by close of business on the day
two days before the time fixed for the adjourned meeting,
or, if the Company gives notice of the adjourned meeting, at
any other time specified in that notice.
13. As at the latest practicable date prior to the publication of
this document, the Company’s issued share capital consisted
of 72,395,492 ordinary shares carrying one vote each. The
number of shares held by the Company in Treasury was
8,160,919. Therefore, the total number of shares with voting
rights in the Company was 64,234,573.
86
Fidelity Asian Values PLC
|
Annual Report 2025
14. 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.
15. Shareholders and any proxies or representatives they
appoint understand that by attending the meeting they
are expressly agreeing that they are willing to receive any
communications, including communications relating to the
Company’s securities, made at the meeting.
16. It is possible that, pursuant to requests made by members of
the Company under Section 527 of the Companies Act 2006,
the Company may be required to publish on its website a
statement setting out any matter relating to the audit of the
Company’s accounts (including the 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.
17. No Director has a service contract with the Company.
18. A copy of this notice and other information required by
Section 311A of the Companies Act 2006 is published on the
Company’s website at www.fidelity.co.uk/asianvalues.
Registered office: Beech Gate, Millfield Lane, Lower Kingswood,
Tadworth, Surrey KT20 6RP.
Notice of Meeting continued
87
Annual Report 2025
|
Fidelity Asian Values PLC
FINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS STRATEGY
Appendix
AMENDMENTS TO THE COMPANY’S INVESTMENT OBJECTIVE
AND INVESTMENT POLICY
The proposed amendments to the Company’s Investment Objective
and Investment Policy, as proposed in resolution 15 on page 83 of
the Notice of Meeting, are set out below. Changes are marked in
black-line or blue font.
INVESTMENT OBJECTIVE
The Company’s objective is to achieve long-term capital growth
principally from the stockmarkets
stock markets 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).
* Asian Region means the continent of Asia (including Hong Kong, South Korea,
Thailand, Singapore, Malaysia, Taiwan, Indonesia, Philippines, China, India,
Pakistan, Vietnam and Sri Lanka, but excluding the countries comprising the former
U.S.S.R. and the Middle East), together with Australasia.
INVESTMENT POLICY
The Company seeks to meet its investment objective through
investment in a diversified portfolio of securities and instruments
issued by or related to companies listed on the stockmarkets
stock
markets in the Asian Region excluding Japan but investments may
be made in companies listed elsewhere which, in the opinion
of the Portfolio Managers’, have significant interests in the Asian
Region excluding Japan.
The Company’s performance is measured against the return of its
Comparative Index, the MSCI All Countries Asia ex Japan Small
Cap Index (net) total return (in sterling terms).
In order to diversify the Company’s portfolio, the Board has set
broad guidelines for the Manager, which the Board reserves the right
to amend as it sees fit, in respect of the country weightings of the
portfolio. The Company may invest directly in the shares of companies
or indirectly through equity related instruments (such as derivative
contracts, warrants or convertible bonds) and in debt instruments.
The Company may also invest in unquoted securities and in other
investment funds, subject to the investment restrictions set out below.
INVESTMENT RESTRICTIONS
The Company will invest and manage its assets with an objective
of spreading risk with the following investment restrictions:
•
No single or aggregate investment in any one company or
other investment entity shall represent more than 10% of its
Gross Assets, measured at the time of any investment.
• Up to 5% of its Gross Assets, at the time of investment, in
securities which are not listed on any stock exchange. However,
the Portfolio Managers will not normally make any such
investment, except 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 no more than 15% of their Gross
Assets in other listed closed-ended funds.
• Up to 15% of its Gross Assets, at the time of investment, in
securities which are not listed or domiciled in the Asian Region,
provided the investments have a strong Asian Region rationale.
The Company is permitted to invest in Non-Voting Depositary
Receipts, American Depositary Receipts, Global Depositary
Receipts and Equity Linked Notes. Any such investment will be
included in the relevant aggregate country weighting.
* Asian Region means the continent of Asia (including Hong Kong, South Korea,
Thailand, Singapore, Malaysia, Taiwan, Indonesia, Philippines, China, India,
Pakistan, Vietnam and Sri Lanka, but excluding 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 achieve an equivalent effect
to buying an asset financed by bank borrowing but often at
lower financing costs. The Company does not currently use
bank borrowings for gearing purposes.
• To hedge equity market risks where suitable protection can
be purchased to limit the downside of a falling market at
reasonable costs.
• To enhance the investment returns by taking short exposures on
stocks that the Portfolio Managers considers to be overvalued.
The Board has created strict policies and exposure limits and sub-
limits to manage derivatives.
Derivative use is limited in terms of the value of the total portfolio
to which the Company is exposed, whether through direct or
indirect investment. The Board adopts the policy that:
• Net Market Exposure will not exceed the NAV of the Company
by more than 30%; and
• Gross Asset Exposure will not exceed the NAV of the Company
by more than 40%.
Notwithstanding the Board’s intention in the medium to long-term
to maintain a Net Market Exposure within a range of between 90%
-115%, in the short-term the Net Market Exposure may fall outside
of this range from time to time, having regard to the Portfolio
Managers’ investment style and philosophy as well as the markets
they operate in.
The sum of all short exposures of the Company from derivatives,
excluding hedges, will not exceed 10% of total net assets.
It should be stressed that the majority of the Company’s exposure
to equities will be through direct investment and not through
derivatives. In addition, the limits on exposure to individual
companies and groups are calculated after translating all
derivative exposures into economically equivalent amounts of the
underlying assets.
88
Fidelity Asian Values PLC
|
Annual Report 2025
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.fidelity.co.uk/its
Shareholders on the main share register
Contact MUFG Corporate Markets, Registrar to Fidelity Asian
Values PLC, Central Square, 29 Wellington Street, Leeds LS1 4DL.
Email: shareholderenquiries@cm.mpms.mufg.com
Telephone: +44 (0) 371 664 0300 (calls are charged at the
standard geographic rate and will vary by provider. Calls
outside the United Kingdom will be charged at the applicable
international rate. Lines are open 9:00 – 17:30, Monday to Friday
excluding public holidays in England and Wales).
Details of individual shareholdings and other information can
also be obtained online from the Registrar’s Investor Centre at
https://uk.investorcentre.mpms.mufg.com/. Shareholders are
able to manage their shareholding online by registering for the
Investor Centre, 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 Investor Centre,
contact the helpline on +44 (0) 371 664 0300 (calls are charged
at the standard geographic rate and will vary by provider. Calls
outside the United Kingdom will be charged at the applicable
international rate. Lines are open 9:00 – 17:30, Monday to Friday
excluding public holidays in England and Wales).
Fidelity Platform Investors
Contact Fidelity, using the freephone numbers given below, or by
writing to: UK Customer Service, Fidelity, PO Box 391, Tadworth,
Surrey KT20 9FU.
Website: www.fidelity.co.uk
Private investors: call free on 0800 41 41 10, 9:00 – 18:00,
Monday to Saturday.
Financial advisers: call free on 0800 41 41 81, 8:00 – 18:00,
Monday to Friday.
General Enquiries
General enquiries should be made to the Secretary, at the
Company’s registered office: FIL Investments International,
Investment Trusts, Beech Gate, Millfield Lane, Lower Kingswood,
Tadworth, Surrey KT20 6RP.
Telephone: 0207 961 4240
Email: investmenttrusts@fil.com
Website: www.fidelity.co.uk/its
If you hold Fidelity Asian Values PLC shares in an account
provided by Fidelity International, you will receive a report every
six months detailing all of your transactions and the value of your
shares.
ShareGift
You may donate your shares to charity free of charge through
ShareGift. Further details are available at www.sharegift.org.uk.
89
Annual Report 2025
|
Fidelity Asian Values PLC
FINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS STRATEGY
Managers and Advisors
Alternative Investment Fund Manager
(AIFM/the Manager)
FIL Investment Services (UK) Limited
Beech Gate
Millfield Lane
Lower Kingswood
Tadworth
Surrey
KT20 6RP
Investment Manager, Secretary and
Registered Office
FIL Investments International
Beech Gate
Millfield Lane
Lower Kingswood
Tadworth
Surrey
KT20 6RP
Email: investmenttrusts@fil.com
Banker and Custodian
JPMorgan Chase Bank
125 London Wall
London
EC2Y 5AJ
Depositary
J.P.Morgan Europe Limited
25 Bank Street
London
E14 5JP
Financial Adviser and Stockbroker
Jefferies International Limited
100 Bishopsgate
London EC2N 4JL
Independent Auditor
Ernst & Young LLP
25 Churchill Place
London
E14 5EY
Lawyer
Simmons and Simmons LLP
1 Ropemaker Street
London
EC2Y 9SS
Registrar
MUFG Corporate Markets
Central Square
29 Wellington Street
Leeds
LS1 4DL
Company Information
The Company was launched on 13 June 1996 with one warrant attached to every five shares. The original subscription price for
each share was £1 (the final subscription date for the warrants was December 2006). On 4 March 2010, the Company issued one
subscription share for every five ordinary shares held with a final subscription date of May 2013. A further subscription share issue was
made on 2 December 2016 on the basis of one subscription share for every five held with a final exercise date of 29 November 2019.
The Company is a member of The Association of Investment Companies (the “AIC”) from whom general information on investment
trusts can be obtained by telephoning +44 (0) 207 282 5555 (email address: enquiries@theaic.co.uk).
Price Information
The share price of Fidelity Asian Values PLC is published daily in The Financial Times under the heading “Investment
Companies”. It is also published in The Times and The Daily Telegraph. Price and performance information is also available at
www.fidelity.co.uk/asianvalues.
Investors can also obtain current price information by telephoning Fidelity for free on 0800 41 41 10 or FT Cityline on 0905 817 1690,
(voice activated service) (calls charged at 60p per minute on a per second basis from a BT landline. Charges for other telephone
networks may vary). The Reuters code for Fidelity Asian Values PLC’s ordinary shares is FAS.L, the sedol is 0332231 and the ISIN is
GB0003322319.
Net Asset Value (“NAV”) Information
The Company’s NAV is calculated and released to the London Stock Exchange on a daily basis.
Capital Gains Tax
All UK individuals under present legislation are permitted to have £3,000 of capital gains in the current tax year 2025/2026
(2024/2025: £3,000) before being liable for capital gains tax. Capital gains tax is charged at 18% and 24% dependent on the total
amount of taxable income.
90
Fidelity Asian Values PLC
|
Annual Report 2025
General Data Protection Regulation (“GDPR”)
What personal data is collected and how it is used
The Company is an investment trust which is a public limited company and has certain regulatory obligations such as the requirement to
send documents to its shareholders, for example, the Annual Report and other documents that relate to meetings of the Company. The
Company will, therefore, collect shareholders’ personal data such as names, addresses and identification numbers or investor codes
and will use this personal data to fulfil its statutory obligations.
Any personal data collected will be kept securely on computer systems and in some circumstances on paper. Personal information is
kept secure in line with Fidelity’s Information Security policies and standards. If you are unhappy with how we have used your personal
data, you can complain by contacting the UK Data Protection Officer at Fidelity International, Beech Gate, Millfield Lane, Lower
Kingswood, Tadworth, Surrey KT20 6RP.
Sharing personal data
In order to assist the Company in meeting its statutory requirements, the Company delegates certain duties around the processing
of this data to its third party service providers, such as the Company’s Registrar and Printers. The Company has appointed
Fidelity to undertake marketing activities for the Company and their privacy statement can be found on the Company website at
https://investment-trusts.fidelity.co.uk/security-privacy/
The Company’s agreements with the third party service providers have been updated to be compliant with GDPR requirements.
The Company confirms to its shareholders that their data will not be shared with any third party for any other purpose, such as for
marketing purposes. In some circumstances, it may be necessary to transfer shareholders’ personal data across national borders
to Fidelity Group entities operating in the European Economic Area (“EEA”). Where this does occur, the European standard of
protections will be applied to the personal data that is processed. Where personal data is transferred within the Fidelity group but
outside of the EEA, that data will subsequently receive the same degree of protection as it would in the EEA.
Retention period
Personal data will be kept for as long as is necessary for these purposes and no longer than legally permitted to do so.
Requesting access, making changes to personal data and other important information
Shareholders can access the information that the Company holds about them or ask for it to be corrected or deleted by contacting
Fidelity’s UK Data Protection Officer, Fidelity International, Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey KT20 6RP.
Fair treatment of investors
The legal and regulatory regime to which the Company and the Directors are subject ensures the fair treatment of investors. The Listing
Rules require that the Company treats all shareholders of the same class of shares equally. In particular, the Directors have certain
statutory duties under the Companies Act 2006 with which they must comply. These include a duty upon each Director to act in the way
she or he considers, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a
whole.
Data Protection
91
Annual Report 2025
|
Fidelity Asian Values PLC
FINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS STRATEGY
Glossary of Terms
AAF Report
A report prepared in accordance with the Audit and Assurance
Faculty guidance issued by the Institute of Chartered Accountants
in England and Wales.
ADR (American Depositary Receipt)
A negotiable certificate issued by a US bank representing a
specified number of shares in a foreign stock that is traded on a
US Exchange.
AIC
The Association of Investment Companies (“AIC”). The Company
is a member of the AIC.
AIF
Alternative Investment Fund (“AIF”). The Company is an AIF.
AIFM
Alternative Investment Fund Manager (“AIFM”). The Board has
appointed FIL Investment Services (UK) Limited to act as the
Company’s AIFM (the Manager).
AIFMD
The Alternative Investment Fund Managers Directive (“AIFMD”) is
a European Union Directive implemented on 22 July 2014.
Alternative Performance Measures
The Company uses the following Alternative Performance
Measures which are all defined in this Glossary:
• Discount/Premium;
• Gearing;
• Net Asset Value (NAV) per Ordinary Share;
• Ongoing Charges Ratio;
• Revenue, Capital and Total Returns; and
• Total Return Performance (Net Asset Value Total Return and
Ordinary Share Price Total Return).
Asset Exposure
The value of an underlying security or instrument to which
the Company is exposed, whether through direct or indirect
investment (including the economic value of the exposure in the
underlying asset of derivatives).
Benchmark Index
The MSCI All Countries Asia ex Japan Small Cap Index (net) total
return (in sterling terms). This is used to calculate the Company’s
Variable Management Fee, in accordance with the European
Benchmark Directive.
Capital Gains Tax (CGT)
The tax that may be payable if shares are sold at a profit.
Collateral
Asset provided as security for the unrealised gain or loss under a
contract for difference.
Comparative Index
The MSCI All Countries Asia ex Japan Small Cap Index (net) total
return (in sterling terms) against which the performance of the
Company is measured.
Contract For Difference (CFD)
A contract for difference is a derivative. It is a contract between
the Company and an investment house at the end of which the
parties exchange the difference between the opening price and
the closing price of an underlying asset of the specified financial
instrument. It does not involve the Company buying or selling the
underlying asset, only agreeing to receive or pay the movement
in its share price. A contract for difference allows the Company
to gain access to the movement in the share price by depositing
a small amount of cash known as collateral. The Company may
reason that the asset price will rise, by buying (“long” position)
or fall, by selling (“short” position). If the Company holds long
positions, dividends are received and interest is paid. If the
Company holds short positions, dividends are paid and interest
is received.
Corporation Tax
The tax the Company may have to pay on its profits for a year. As
an investment trust, the Company is exempt from corporation tax
on its capital gains and does not pay tax on any UK dividends.
It can also offset expenses against any taxable income and
consequently it is tax efficient for the Company.
Custodian
An entity that holds (as intermediary) the Company’s assets,
arranges the settlement of transactions and administers income,
proxy voting and corporate actions. The Company’s Custodian is
JPMorgan Chase Bank.
Depositary
An entity that oversees the custody, cash arrangements and other
AIFM responsibilities of the Company. J.P.Morgan Europe Limited
act as the Company’s Depositary.
Derivatives
Financial instruments (such as futures, options and contracts
for difference) whose value is derived from the value of an
underlying asset.
Diluted Net Asset Value per Ordinary Share
The diluted net asset value per ordinary share reflects what
the net asset value per ordinary share would have been if all
the rights attached to any outstanding subscription shares had
been exercised at a particular date. A dilution occurs when the
exercise price of the subscription share rights is less than the net
asset value per ordinary share.
Discount
If the share price of the Company is lower than the net asset
value per ordinary share, the Company is said to be trading at a
discount. The discount is shown as a percentage of the net asset
value per ordinary share.
92
Fidelity Asian Values PLC
|
Annual Report 2025
Glossary of Terms continued
Equity Linked Notes (ELNS)
Debt instruments whose return on investment is linked to specific
equities or equity markets. The return on
equity linked notes may
be determined by an equity index, a basket of equities, or a
single equity.
Fair Value
The fair value is the best estimate of the value of the investments,
including
derivatives, at a point in time and this is measured as:
• Listed investments – valued at bid prices or last market
prices, where available, otherwise at published price
quotations;
• Unlisted investments – valued using an appropriate
valuation technique in the absence of an active market;
• Contracts for difference – valued as the difference
between the settlement price of the contract and the value
of the underlying shares in the contract (unrealised gains or
losses);
• Futures and options – valued at the quoted trade price for
the contract; and
• Forward currency contracts – valued at the appropriate
quoted forward foreign exchange rate ruling at the Balance
Sheet date.
Fidelity International (Fidelity)
FIL Limited and its subsidiary group companies including FIL
Investment Services (UK) Limited and FIL Investments International
which act as AIFM, Secretary and Investment Manager.
Forward Currency Contract
An agreement to buy or sell a currency at a specified future date
and at a pre-agreed price.
Future
An agreement to buy or sell a fixed amount of an asset at a fixed
future date and at a fixed price.
Gearing
The economic exposure of the portfolio to its underlying assets in
excess of total net assets. It represents the additional exposure to
the market above
Shareholders’ Funds. The Company uses two
measures of
gearing (Gross Gearing and Net Gearing).
Gross Assets
Net Assets plus borrowings. The Company does not have any
borrowings.
Gross Asset Exposure
The value of the portfolio to which the Company is exposed,
whether through direct or indirect investment (including the
economic value of the exposure in the underlying asset of the
derivatives but excluding forward currency contracts). It is the sum
total of all Asset Exposures.
Gross Gearing
The amount by which Gross Asset Exposure exceeds of
Shareholders’ Funds expressed as a percentage of Shareholders’
Funds.
Growth Stocks
Companies which are considered to have the potential to
outperform the overall market over time because of their future
potential.
Hedging
A strategy aimed at minimising or eliminating the risk or loss
through adverse movements normally involving taking a position
in a derivative such as a future or an option.
Independent Valuer
Kroll who provide an objective and independent assessment on
the value of unlisted and hard to price assets using sophisticated
valuation methodologies.
Initial Public Offering (IPO)
An initial public offering (“IPO”) is the first sale of stock by a
private company to the public. IPOs are often issued by smaller,
younger companies seeking the capital to expand, but can also
be done by large privately owned companies looking to become
publicly traded.
Investment Manager
FIL Investments International.
Manager
FIL Investment Services (UK) Limited is the appointed Manager
under the AIFMD. It has delegated the investment management
of the Company to the
Investment Manager.
Net Assets or Net Asset Value (NAV)
Sometimes also described as “Shareholders’ Funds”, net assets
represent the total value of the Company’s assets less the total
value of its liabilities. For valuation purposes it is common to
express the
net asset value on a per ordinary share basis.
Net Asset Value per Ordinary Share
The net asset value divided by the number of ordinary shares in
issue.
Net Gearing
The amount by which Net Market Exposure in excess of
Shareholders’ Funds expresses as a percentage of Shareholders’
Funds.
Net Market Exposure
Net Market Exposure is the total of all long exposures, less short
exposures and less exposures hedging the portfolio.
Ongoing Charges Ratio (excluding variable management
fee)
Total operational expense (excluding finance costs and taxation)
incurred by the Company as a percentage of average net asset
values for the reporting year.
93
Annual Report 2025
|
Fidelity Asian Values PLC
FINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS STRATEGY
Option
An option is a contract which gives the right but not the
obligation to buy or sell an underlying asset at an agreed price
on or before an agreed date.
Options may be calls (buy) or puts
(sell) and are used to gain or reduce exposure to the underlying
asset on a conditional basis.
Portfolio Managers
Nitin Bajaj, Portfolio Manager, and Ajinkya Dhavale, Co-Portfolio
Manager, are responsible for managing the Company’s assets.
Pre-Emption Rights
Section 561 of the Companies Act 2006 provides that a company
offering a new issue of shares must first make an offer of these
shares, on the same or more favourable terms, in proportion
to the nominal value held to existing shareholders. At each
Annual General Meeting, the Board seeks shareholder approval
to disapply pre-emption rights provision, up to 10% of the
Company’s issued share capital.
Premium
If the share price of the Company is higher than the net asset
value per ordinary share, the Company’s shares are said to be
trading at a premium. The premium is shown as a percentage of
the net asset value per ordinary share.
Price to Book Ratio
The Price to Book Ratio (also known as P/B ratio) is a measure of
valuing a company’s share price versus its book value.
Price to Earnings Ratio
The Price to Earnings Ratio (also known as P/E ratio) is a
measure of valuing a company’s share price versus its earnings.
Registrar
An entity that manages the Company’s shareholder register.
The Company’s
Registrar is MUFG Corporate Markets (name
changed from Link Group on 20 January 2025).
Reserves
•
Share premium account represents the amount by which
the proceeds from the issue of ordinary shares or the issue
of ordinary shares on the exercise of rights attached to
subscription shares, exceeded the nominal value of those
ordinary shares. It is not distributable by way of dividends
and cannot be used to fund share repurchases.
• Capital redemption reserve maintains the equity share
capital of the Company and represents the nominal value
of shares repurchased and cancelled. It is not distributable
by way of dividends and it cannot be used to fund share
repurchases.
• Other non-distributable reserve represents amounts
transferred from the warrant reserve in prior years with High
Court approval. It is not distributable by way of dividends
and it cannot be used to fund share repurchases.
• Other reserve represents amounts transferred from the
share premium account and the capital redemption reserve
in prior years with High Court approval. It is not distributable
by way of dividends. It can be used to fund share
repurchases.
• Capital reserve represents realised gains or losses on
investments and derivatives sold, unrealised increases and
decreases in the fair value of investments and derivatives
held and other income and costs recognised in the capital
column of the Income Statement. It is distributable by way of
dividends. It can be used to fund share repurchases.
• Revenue reserve represents retained revenue surpluses
recognised through the revenue column of the Income
Statement. It is distributable by way of dividends.
Return
The return generated in a given period from investments:
• Revenue Return – reflects the dividends and interest from
investments and other income net of expenses, finance costs
and taxation;
• Capital Return – reflects the return on capital, excluding any
revenue return; and
• Total Return – reflects the aggregate of revenue and capital
returns.
Return on Equity
Return on Equity (ROE) is a measure of the return on a company’s
stock. The higher the percentage, the more income the company
is generating and adding to shareholder value.
Shareholders’ Funds
Shareholders’ funds are also described as “net asset value” and
represent the total value of the Company’s assets less the total
value of its liabilities as shown in the balance sheet.
Total Return Performance
The return on the share price or net asset value per ordinary
share taking into account the rise and fall of share prices and the
dividends paid to shareholders. Any dividends received by the
shareholder are assumed to have been reinvested in additional
shares (for share price total return) or the Company’s assets (for
net asset value total return).
Treasury Shares
Ordinary shares of the Company that have been repurchased
by the Company and not cancelled but held in Treasury. These
shares do not pay dividends, have no voting rights and are
excluded from the
net asset value per ordinary share calculation.
Value Stocks
Usually companies that are currently trading below what they are
really worth and will thus theoretically provide a superior future
return.
94
Fidelity Asian Values PLC
|
Annual Report 2025
Alternative Investment Fund Manager’s
Disclosure
In compliance with the Alternative Investment Fund Managers’ Directive (“AIFMD”), the Board has appointed FIL Investment Services
(UK) Limited (“FISL”) as the Company’s Alternative Investment Fund Manager (“AIFM”). FISL has delegated the portfolio management
and company secretarial function to FIL Investments International. Details of the current Management Agreement can be found in the
Directors’ Report on page 32.
The table below discloses information required by the Alternative Investment Fund Managers Regulations 2013.
Function AIFM Role and Responsibility AIFMD Disclosure
Investment
management
The AIFM provides portfolio management of
assets and investment advice in relation to the
assets of the Company. It has delegated this
function to FIL Investments International.
The Board remains responsible for setting the
investment strategy, investment policy and
investment guidelines and the AIFM operates
within these guidelines.
Details of the Company’s investment objective, its
strategy and investment policy, including limits, are
on pages 21 and 22.
Risk
management
The AIFM has a responsibility for risk
management for the Company which is in
addition to the Board’s corporate governance
responsibility for risk management.
The Company has a Risk Management
Process Document which demonstrates that
risk management is separated functionally
and hierarchically from operating units and
demonstrates independence safeguards. The
Manager maintains adequate risk management
systems in order to identify, measure and monitor
all risks at least annually under AIFMD. The
Manager is responsible for the implementation
of various risk activities such as risk systems, risk
profile, risk limits and testing.
The Board, as part of UK corporate governance,
remain responsible for the identification of
significant risks and for the ongoing review of the
Company’s risk management and internal control
processes.
The AIFM has an ongoing process for identifying,
evaluating and managing the principal risks faced
by the Company and this is regularly reviewed
by the Board. The Board remains responsible for
the Company’s system of risk management and
internal controls and for reviewing its effectiveness.
Further details can be found in the Strategic Report
on pages 23 to 27, in the Corporate Governance
Statement on page 38 and in Note 17 to the
Financial Statements on pages 68 to 76.
Valuation of
illiquid assets
The AIFMD requires the disclosure of the
percentage of the Alternative Investment Fund’s
assets which are subject to special arrangements
arising from their illiquid nature and any new
arrangements for managing the liquidity of the
Company.
As at the date of this report, none of the Company’s
assets are subject to special arrangements arising
from its illiquid nature.
95
Annual Report 2025
|
Fidelity Asian Values PLC
FINANCIAL GOVERNANCEINFORMATION FOR SHAREHOLDERS STRATEGY
Function AIFM Role and Responsibility AIFMD Disclosure
Leverage
The Company uses leverage to increase its
exposure to the stock markets of the Asian Region
(excluding Japan) and currently holds derivative
instruments to achieve this. The AIFM has set
maximum levels of leverage that are reasonable.
It has implemented systems to calculate and
monitor compliance against these limits and has
ensured that the limits have been complied with
at all times.
There are two methods of calculating leverage
– the Gross Method which does not reduce
exposure for hedging; and the Commitment
Method which does reduce exposure for hedging.
The maximum leverage limits are 1.80 for the Gross
Method and 1.50 for the Commitment Method.
At 31 July 2025, actual leverage was 1.23 for the
Gross Method and 1.23 for the Commitment Method.
Liquidity
management
The AIFM, in consultation with the Board,
maintains a liquidity management policy which is
considered at least annually.
No new arrangements for managing the liquidity of
the Company have been made. Further details can
be found in Note 17 on page 72.
Remuneration
of the AIFM
The AIFM operates under the terms of Fidelity
International’s Global Remuneration Policy
Statement. This ensures that the AIFM complies
with the requirements of the FCA’s Remuneration
Code (SYSC19A); the AIFM Remuneration Code
(SYSC19B); and the BIPRU Remuneration Code
(SYSC19C).
Details of Fidelity International’s Global Remuneration
Policy can be found at www.fidelityinternational.
com/global/remuneration/default.page.
EU Securities Financing Transactions Regulations (“SFTR”)
Securities Financing Transactions (Unaudited)
The following disclosures relate to contracts for difference (“CFDs”) held by the Company which may be considered Total Return Swaps
under the SFTR which came into force on 12 January 2016.
As at 31 July 2025, all CFDs were contracted bilaterally with open maturities:
Broker
Fair Value
£’000
Percentage
of
Net Assets
Collateral
held by the
broker
£’000
Collateral
held by the
Company
£’000
Goldman Sachs International (UK) (198) (0.05%) 181 –
HSBC Bank plc (UK) (216) (0.05%) – 121
J.P. Morgan Securities plc (UK) 867 0.22% 1,073 –
Morgan Stanley & Co International plc (UK) 728 0.18% 242 –
UBS AG (UK) (869) (0.22%) – –
Collateral held by the broker was held in a segregated account on behalf of the Company with a maturity of one day. The total return
for the year ended 31 July 2025 from CFDs was a gain of £12,169,000.
Activate my investment company updates
So that you do not miss out on your exclusive content, all you
need to do is follow these three simple steps:
Scan this QR code, or go to fidelity.co.uk/asianvalues
Enter your email address
Click the button to opt-in and you are done!
You will always have the option to opt-out at any time. For more on how we will use
your personal information, see our privacy statement at fidelity.co.uk/its/privacy.
Investment Companies
Dear Shareholder,
Would you like updates directly from your Portfolio Managers?
As a valued shareholder in Fidelity Asian Values PLC we are writing to let you know
that you can now choose to have access to exclusive updates about your current
investment and the five other investment companies Fidelity manage. While you may
be tracking your investment online already, we believe the additional information we
can send you, direct from your Portfolio Managers, is the best way to keep you
updated with the latest news, views and insights.
How will I benefit from my investment company updates?
Insights from the desks of
your Portfolio Managers
outlining their latest
thinking on your investment.
Exclusive invitations to
events, including AGMs,
plus notification of annual
reports and results.
Topical and relevant
market updates from
the wider Fidelity
investment team.
All in a quick-read format, once a month
Thank you for continuing to trust us with your investments. We are excited to be building our
relationship with you.
FIL Investments International (Company No. 1448245) FIL Investment Services (UK) Limited (Company No. 2016555) Financial Administration
Services Limited (Company No. 1629709) FIL Pensions Management (Company No. 2015142) and FIL Life Insurance Limited (Company No.
3406905). All these companies are registered in England and Wales with their registered office being Beech Gate, Millfield Lane, Lower
Kingswood, Tadworth, Surrey KT20 6RP. All these companies are authorised and regulated by the Financial Conduct Authority with the
exception of FIL Life Insurance Limited which is authorised by the Prudential Regulation Authority and regulated by the Financial
Conduct Authority and the Prudential Regulation Authority. UKM1024/388153/
Fidelity, Fidelity International, the Fidelity International logo and symbol are trademarks of FIL Limited
Printed by Park Communications on FSC® certified paper.
Park works to the EMAS standard and its Environmental Management System is certified to ISO 14001.
This publication has been manufactured using 100% offshore wind electricity sourced from UK wind.
100% of the inks used are vegetable oil based, 95% of press chemicals are recycled for further use and,
on average 99% of any waste associated with this production will be recycled and the remaining 1% used
to generate energy.
This document is printed on Revive 100 Silk, a white triple coated sheet that is manufactured from FSC®
Recycled certified fibre derived from 100% pre- and post-consumer wastepaper containing 100% recycled
fibre. The FSC® label on this product ensures responsible use of the world’s forest resources.
www.fidelityinvestmenttrusts.com