Fidelity Asian Values Plc - Half-year Report
Half-Yearly Results for the six months ended
Financial Highlights
-- During the six months ended 31 January 2024 , Fidelity Asian Values PLC
reported a Net Asset Value (NAV) total return of -2.4% and an Ordinary
Share Price total return of -2.5%.
-- The Comparative Index, the MSCI All Countries ex Japan Small Cap Index,
returned +3.6%.
-- The Portfolio Managers remain focused on investing in good business, run
by good management teams, available at a suitable margin of safety.
Contacts
For further information please contact:
Company Secretary
0207 961 4240
PORTFOLIO MANAGERS’ HALF-YEARLY REVIEW
PERFORMANCE REVIEW
Over the six month period ended
COMPANY’S NAV, SHARE PRICE AND COMPARATIVE INDEX TOTAL RETURNS (AS AT
NAV Share Price Comparative
total return total return
Index total
(%) (%)
return (%)
Tenure (since 1 April 2015) +107.4 +123.2 +118.5
5 Years +46.0 +33.1 +63.6
3 Years +28.5 +27.5 +21.9
1 Year -1.5 -2.5 +7.5
6 Months -2.4 -2.5 +3.6
3 Months +0.2 +5.4 +6.0
========= ========= =========
Source:
Our stock selection continued to contribute positively to the Company’s relative performance versus the Comparative Index. However, our market selection was a drag against a backdrop of continued divergence in country performance (see table below on country attribution). Small cap stocks in
COUNTRY ATTRIBUTION OVER 6 MONTHS TO
Average weight (%) Contribution to relative returns (%)
Company Index Relative Stock Market
(%) (%) (%) selection selection Total
Korea +7.8 +16.1 -8.3 +1.4 +1.2 +2.6
(South)
ASEAN +20.7 +15.1 +5.6 +1.8 -1.2 +0.6
Others +12.2 0.0 +12.2 -0.4 0.0 -0.4
Taiwan +1.8 +25.3 -23.5 +0.4 -1.3 -0.9
India +20.0 +30.5 -10.5 -0.6 -2.1 -2.7
China &
Hong +40.6 +13.0 +27.6 +4.5 -9.0 -4.5
Kong
--------------- --------------- --------------- --------------- --------------- ---------------
Total
Primary +103.1 +100.0 +3.1 +7.1 -12.4 -5.3
Assets
Cash & -3.1 0.0 -3.1 -0.7
others
--------------- --------------- --------------- ---------------
Total 100.0 100.0 0.0 -6.0
========= ========= ========= =========
Source:
In contrast to
KEY CONTRIBUTORS OVER SIX MONTHS (AS AT
Average Contribution
Active Weight Gain/Loss to Portfolio
Order Security (%) (%) Returns (%)
Top 5
1 PTC India +2.1 +113.2 +1.5
2 LIC Housing Finance +1.1 +49.5 +0.5
3 Bank Negara Indonesia +2.7 +24.0 +0.5
(Persero)
4 Granules India +2.1 +28.8 +0.5
5 Axis Bank +3.7 +11.9 +0.3
--------------- --------------- ---------------
Total +3.3
=========
Source:
KEY DETRACTORS OVER SIX MONTHS (AS AT
Average Contribution
Active Weight Gain/Loss to Portfolio
Order Security (%) (%) Returns (%)
Top 5
1 China Overseas Grand Oceans +1.2 -53.4 -1.0
Group
2 China Yongda Automobiles +1.1 -41.2 -0.5
Services
3 Zhongsheng Group +0.7 -51.9 -0.5
4 Focus Media Information +1.8 -23.8 -0.5
Technology
5 Arwana Citramulia +1.7 -22.9 -0.5
--------------- --------------- ---------------
Total -3.0
=========
Source:
The detractors were essentially Chinese consumer-related companies (China Yongda Automobile Services, Zhongsheng Group and Focus Media Information Technology) and the real estate company China Overseas Grand Oceans Group, which fell due to weak demand and negative investor sentiment. Indonesia’s largest ceramic tiles maker Arwana Citramulia also suffered weak demand due to project delays ahead of the country’s elections. We believe these to be temporary losses and continue to own the businesses for their longer-term growth prospects and attractive valuations.
On the other hand, our holdings in
India’s fourth largest mortgage financier LIC Housing Finance was the second largest contributor to returns and is one of the top 10 positions in the Company. As it is promoted by
INVESTMENT STRATEGY
Our investment strategy is to continue to focus on investing in good businesses, run by good management teams and available at a suitable margin of safety. Our investment process leads us to high quality undervalued businesses and a consistent value tilt.
We believe our approach to investing helps to generate sustainable performance for the Company in the long-term. Although our value style has underperformed the growth style in recent years, we believe this headwind should, at some point, become a tailwind. Small cap value stocks are currently trading at close to all-time high discounts relative to both their large cap and (as can be seen from the chart in the Half-Yearly Report) their small cap growth counterparts. Value stocks also generate superior earnings growth over time compared to growth stocks and provide better cash returns, in terms of dividends.
Macro-economic trends are difficult to forecast for anyone and building a portfolio of stocks based on such views is even more challenging. However, we do believe macro risks are more short-term in nature and owning businesses which are better quality than the market at attractive valuations has been the bedrock of our investment process for over a decade.
It has served us well in the last ten years and should continue to reward us well for the future. As can be seen from the charts in the Half-Yearly Report, the Return on Equity of our portfolio has frequently been at a premium to the market while the Price to Earnings ratio of our holdings is at a significant discount.
OUTLOOK
We are comfortable with the Company’s portfolio as it stands today. We continue to have an overweight exposure to
Portfolio Manager
Co-Portfolio Manager
TWENTY LARGEST HOLDINGS AS AT
The Asset Exposures shown below measure exposure to market price movements as a result of owning shares, corporate bonds, equity linked notes and derivative instruments. The Fair Value is the actual value of the portfolio as reported on the Balance Sheet. Where a contract for difference (“CFD”) is held, the Fair Value reflects the profit or loss on the contract since it was opened and is based on how much the price of the underlying share has moved.
Asset Exposure Fair
Value
£’000 %1 £’000
Long Exposures – shares unless
otherwise stated
Axis Bank
Private sector bank 15,781 4.2 15,781
Bank Negara Indonesia (Persero )
(shares and corporate bond)
Banking institution 13,801 3.7 13,801
HDFC Bank
Private sector bank 12,623 3.4 12,623
Genpact (shares and long CFD)
Global professional services
firm delivering digital 11,120 3.0 7,110
transformation for businesses
Indofood CBP Sukses Makmur
Producer of packaged food 10,753 2.9 10,753
products
Bank Mandiri (Persero )
Banking institution 10,495 2.8 10,495
PTC India
Provider of power trading 9,855 2.6 9,855
solutions in India
LIC Housing Finance
Housing finance company 9,377 2.5 9,377
BOC Aviation (long CFDs)
Global aircraft operating 8,880 2.4 100
leasing company
Granules India
Pharmaceutical manufacturing 8,349 2.2 8,349
company
Galaxy Entertainment Group (long
CFD)
Developer and operator of
integrated entertainment and 7,964 2.1 59
resort facilities
CapitaLand India Trust (shares
and long CFD)
Property trust 7,029 1.9 6,284
Chow Sang Sang Holdings
International (shares and long
CFD)
Jewellery retailer 6,992 1.9 6,311
Gold Road Resources
Gold production and exploration 6,273 1.7 6,273
company
Taiwan Semiconductor
Manufacturing Company (long
CFDs)
Developer, manufacturer and
distributor of semiconductor 6,243 1.7 606
related products
Focus Media Information
Technology (shares and equity
linked notes)
Advertising solution provider 6,223 1.7 6,223
Ciputra Development
Property developer 6,127 1.6 6,127
Arwana Citramulia
Ceramics manufacturer 5,845 1.5 5,845
Crystal International Group
(shares and long CFD)
Manufacturer of clothing 5,702 1.5 5,453
Federal Bank
Private sector bank 5,500 1.5 5,500
--------------- --------------- ---------------
Twenty largest long exposures 174,932 46.8 146,925
Other long exposures 242,569 64.9 220,268
--------------- --------------- ---------------
Total long exposures before 417,501 111.7 367,193
futures (142 holdings)
========= ========= =========
Add: long futures
MSCI All Countries Asia ex Japan 3,773 1.0 (49)
Index Future 15/03/2024 Hang Seng China Enterprises
Index Future 27/09/2024 (call 1,621 0.4 260
option)
--------------- --------------- ---------------
Total long exposures 422,895 113.1 367,404
========= ========= =========
Short exposures
Short CFDs (11 holdings) 12,440 3.3 649
Short future (1 holding) 1,538 0.4 (98)
Call option (1 holding) 16 – –
--------------- --------------- ---------------
Total short exposures 13,994 3.7 551
========= ========= =========
Gross Asset Exposure2 436,889 116.8
========= =========
Portfolio Fair Value3 367,955
Net current assets (excluding
derivative assets and 6,023
liabilities)
---------------
Total Shareholders’ Funds/Net 373,978
Assets
=========
1 Asset Exposure (as defined in the Glossary of Terms in the Half-Yearly Report) is expressed as a percentage of Total Shareholders’ Funds.
2 Gross Asset Exposure comprises market exposure to investments of £368,002,000 plus market exposure to derivative instruments of £68,887,000.
3 Portfolio Fair Value comprises investments of £368,002,000 plus derivative assets of £1,872,000 less derivative liabilities of £1,919,000.
INTERIM MANAGEMENT REPORT AND DIRECTORS’ RESPONSIBILITY STATEMENT
BOARD CHANGES AND SUCCESSION
The Board has a careful succession plan in place. As part of this plan,
As was reported in the Annual Report for the year ended
A recruitment process has been conducted for his replacement as a non-executive Director using the services of
APPOINTMENT OF CO-PORTFOLIO MANAGER
Ajinkya Dhavale has been appointed as the Company’s Co-Portfolio Manager to support and closely work alongside the Portfolio Manager,
DISCOUNT MANAGEMENT AND SHARE REPURCHASES
The Board closely monitors the Company’s share price discount to its NAV and will undertake active discount management where necessary, the primary purpose of which is to limit discount volatility. Repurchases of ordinary shares are made at the discretion of the Board, within guidelines set by it and considering prevailing market conditions. Shares will only be repurchased in the market at prices below the prevailing NAV per ordinary share, thereby resulting in an enhancement to the NAV per ordinary share. In order to assist in managing the discount, the Board has shareholder approval to hold in
There has been market volatility in the reporting period, and at times the Company’s discount has widened in reaction to this. The Board, therefore, approved the repurchase of 137,825 ordinary shares into
PRINCIPAL RISKS AND UNCERTAINTIES
The Board, with the assistance of the Manager (
The Board considers that the principal risks and uncertainties faced by the Company continue to fall into the following categories: economic, political and market; investment performance (including the use of derivatives and gearing); cybercrime and information security; level of discount to net asset value; key person; environmental, social and governance (ESG); business continuity and operational (including third-party service providers); and shareholder relationship risks. Other risks facing the Company are tax and regulatory risks. Information on each of these risks is given on pages 28 to 32 in the Strategic Report section of the Annual Report for the year ended
Whilst the principal risks and uncertainties remain the same as at the last year end, the magnitude of their uncertainty continues to grow with the ongoing conflicts in
Climate change continues to be a key principal risk confronting asset managers and their investors. Globally, climate change effects are already being experienced in the form of changing weather patterns. Climate change can potentially impact the operations of investee companies, their supply chains and their customers. Additional risks may also arise from increased regulations, costs and net-zero programmes which can all impact investment returns. 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, the main risk being the impact on investment valuations and potentially shareholder returns.
Investors should be prepared for market fluctuations and remember that holding shares in the Company should be considered to be a long-term investment.
The Manager has appropriate business continuity and operational resilience plans in place to ensure the continued provision of services. This includes investment team key activities, which also covers portfolio managers, analysts and trading/support functions. The Manager reviews its operational resilience strategies on an ongoing basis and continues to take all reasonable steps in meeting its regulatory obligations, assess its ability to continue operating and the steps it needs to take to serve and support its clients, including the Board. It has an appropriate control environment in place.
The Company’s other third-party service providers also have similar measures in place to ensure that business disruption is kept to a minimum.
TRANSACTIONS WITH THE MANAGER AND RELATED PARTIES
The Manager has delegated the Company’s portfolio management of assets and company secretariat services to
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, 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 can continue in operational existence for a period of at least twelve months from the date of this Half-Yearly Report.
This conclusion also takes into account the Board’s assessment of the ongoing risks as outlined above.
Accordingly, the Financial Statements of the Company have been prepared on a going concern basis.
Continuation votes are held every five years and the next continuation vote will be put to shareholders at the AGM in 2026.
DIRECTORS’ RESPONSIBILITY STATEMENT
The Disclosure and Transparency Rules (“DTR”) of the
The Directors confirm to the best of their knowledge that:
a) the condensed set of Financial Statements contained within the Half-Yearly Report has been prepared in accordance with the Financial Reporting Council’s Standard FRS 104: Interim Financial Reporting; and
b) the Portfolio Managers’ Half-Yearly Review and the Interim Management Report above include a fair review of the information required by DTR 4.2.7R and 4.2.8R.
The Half-Yearly Report has not been audited or reviewed by the Company’s Independent Auditor.
The Half-Yearly Report was approved by the Board on
BY ORDER OF THE BOARD
FINANCIAL STATEMENTS
INCOME STATEMENT FOR THE SIX MONTHS ENDED
Six months ended 31 January 2024 Six months ended 31 January 2023 Year ended 31 July 2023
unaudited unaudited audited
Revenue Capital Total Revenue Capital Total Revenue Capital Total
Notes £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
(Losses)/gains – (4,905) (4,905) – 26,445 26,445 – 29,025 29,025
on investments
(Losses)/gains
on derivative – (6,058) (6,058) – 5,111 5,111 – 1,781 1,781
instruments
Income 4 6,960 – 6,960 7,032 – 7,032 17,773 – 17,773
Investment
management 5 (1,362) (389) (1,751) (1,316) 77 (1,239) (2,644) (281) (2,925)
fees
Other expenses (522) – (522) (484) – (484) (988) – (988)
Foreign – 327 327 – 1,386 1,386 – 1,089 1,089
exchange gains
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Net return/
(loss) on
ordinary
activities 5,076 (11,025) (5,949) 5,232 33,019 38,251 14,141 31,614 45,755
before finance
costs and
taxation
Finance costs 6 (1,220) – (1,220) (829) – (829) (1,997) – (1,997)
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Net return/
(loss) on
ordinary 3,856 (11,025) (7,169) 4,403 33,019 37,422 12,144 31,614 43,758
activities
before
taxation
Taxation on
return/(loss) 7 (409) (1,945) (2,354) (437) (1,059) (1,496) (1,238) (2,882) (4,120)
on ordinary
activities
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Net return/
(loss) on
ordinary 3,447 (12,970) (9,523) 3,966 31,960 35,926 10,906 28,732 39,638
activities
after taxation
for the period
========= ========= ========= ========= ========= ========= ========= ========= =========
Return/(loss)
per ordinary 8 4.80p (18.07p) (13.27p) 5.51p 44.39p 49.90p 15.17p 39.95p 55.12p
share
========= ========= ========= ========= ========= ========= ========= ========= =========
The Company does not have any other comprehensive income. Accordingly, the net return/(loss) on ordinary activities after taxation for the period is also the total comprehensive income for the period 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 period and all items in the above statement derive from continuing operations.
STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED
Share Capital Other non- Total
Share premium redemption distributable Capital Revenue shareholders’
capital account reserve reserve reserve reserve funds
Notes £’000 £’000 £’000 £’000 £’000 £’000 £’000
Six months
ended 31
January 2024
(unaudited)
Total
shareholders’ 18,895 50,501 3,197 7,367 299,562 15,055 394,577
funds at 31
July 2023
Net
(loss)/return
on ordinary
activities – – – – (12,970) 3,447 (9,523)
after
taxation for
the period
Repurchase of
ordinary 11 – – – – (677) – (677)
shares
Dividend paid
to 9 – – – – – (10,399) (10,399)
shareholders
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total
shareholders’ 18,895 50,501 3,197 7,367 285,915 8,103 373,978
funds at 31
January 2024
========= ========= ========= ========= ========= ========= =========
Six months
ended 31
January 2023
(unaudited)
Total
shareholders’ 18,895 50,501 3,197 7,367 273,448 14,215 367,623
funds at 31
July 2022
Net return on
ordinary
activities – – – – 31,960 3,966 35,926
after
taxation for
the period
Repurchase of
ordinary 11 – – – – (2,603) – (2,603)
shares
Dividend paid
to 9 – – – – – (10,066) (10,066)
shareholders
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total
shareholders’ 18,895 50,501 3,197 7,367 302,805 8,115 390,880
funds at 31
January 2023
========= ========= ========= ========= ========= ========= =========
Year ended 31
July 2023
(audited)
Total
shareholders’ 18,895 50,501 3,197 7,367 273,448 14,215 367,623
funds at 31
July 2022
Net return on
ordinary
activities – – – – 28,732 10,906 39,638
after
taxation for
the year
Repurchase of
ordinary 11 – – – – (2,618) – (2,618)
shares
Dividend paid
to 9 – – – – – (10,066) (10,066)
shareholders
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total
shareholders’ 18,895 50,501 3,197 7,367 299,562 15,055 394,577
funds at 31
July 2023
========= ========= ========= ========= ========= ========= =========
BALANCE SHEET AS AT
Company number 3183919
31.01.24 31.07.23 31.01.23
unaudited audited unaudited
Notes £’000 £’000 £’000
Fixed assets
Investments 10 368,002 377,631 368,054
--------------- --------------- ---------------
Current assets
Derivative instruments 10 1,872 1,758 1,988
Debtors 3,054 3,556 2,638
Amounts held at futures
clearing houses and 2,882 3,820 2,220
brokers
Cash at bank 5,877 13,029 21,799
--------------- --------------- ---------------
13,685 22,163 28,645
--------------- --------------- ---------------
Current liabilities
Derivative instruments 10 (1,919) (1,665) (872)
Other creditors (5,790) (3,552) (4,947)
--------------- --------------- ---------------
(7,709) (5,217) (5,819)
--------------- --------------- ---------------
Net current assets 5,976 16,946 22,826
========= ========= =========
Net assets 373,978 394,577 390,880
========= ========= =========
Capital and reserves
Share capital 11 18,895 18,895 18,895
Share premium account 50,501 50,501 50,501
Capital redemption reserve 3,197 3,197 3,197
Other non-distributable 7,367 7,367 7,367
reserve
Capital reserve 285,915 299,562 302,805
Revenue reserve 8,103 15,055 8,115
--------------- --------------- ---------------
Total shareholders’ funds 373,978 394,577 390,880
========= ========= =========
Net asset value per 12 521.65p 549.33p 544.18p
ordinary share
========= ========= =========
NOTES TO THE FINANCIAL STATEMENTS
1 PRINCIPAL ACTIVITY
2 PUBLICATION OF NON-STATUTORY ACCOUNTS
The Financial Statements in this Half-Yearly Report have not been audited by the Company’s Independent Auditor and do not constitute statutory accounts as defined in section 434 of the Companies Act 2006 (the “Act”). The financial information for the year ended
3 ACCOUNTING POLICIES
(i) Basis of Preparation
The Company prepares its Financial Statements on a going concern basis and in accordance with
(ii) Going Concern
The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for a period of at least twelve months from the date of approval of these Financial Statements. Accordingly, the Directors consider it appropriate to adopt the going concern basis of accounting in preparing these Financial Statements. This conclusion also takes into account the Directors’ assessment of the risks faced by the Company as detailed in the Interim Management Report above.
4 INCOME
Six months Six months Year
ended ended ended
31.01.24 31.01.23 31.07.23
unaudited unaudited audited
£’000 £’000 £’000
Investment income
Overseas dividends 5,501 5,953 14,847
Overseas scrip dividends 50 244 266
Interest on securities 227 35 164
--------------- --------------- ---------------
5,778 6,232 15,277
--------------- --------------- ---------------
Derivative income
Dividends received on long CFDs 580 487 1,743
Interest received on CFDs 236 106 258
--------------- --------------- ---------------
816 593 2,001
--------------- --------------- ---------------
Other interest
Interest received on collateral 366 207 495
and deposits
--------------- --------------- ---------------
Total income 6,960 7,032 17,773
========= ========= =========
No special dividends have been recognised in capital during the period (six months ended
5 INVESTMENT MANAGEMENT FEES
Six months Six months Year
ended ended ended
31.01.24 31.01.23 31.07.23
unaudited unaudited audited
£’000 £’000 £’000
Investment management fees – 1,362 1,316 2,644
base (charged to revenue)
Investment management fees –
variable (charged/(credited) to 389 (77) 281
capital)1
--------------- --------------- ---------------
1,751 1,239 2,925
========= ========= =========
1 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.
The Company charges base investment management fees to revenue at an annual rate of 0.70% of net assets. In addition, there is +/- 0.20% variation fee based on the Company’s NAV per 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.
6 FINANCE COSTS
Six months Six months Year
ended ended ended
31.01.24 31.01.23 31.07.23
unaudited unaudited audited
£’000 £’000 £’000
Interest on bank overdrafts 1 1 2
Interest paid on CFDs1 1,140 703 1,788
Dividends paid on short CFDs 79 125 207
--------------- --------------- ---------------
1,220 829 1,997
========= ========= =========
1 Increased compared to the prior six months due to an increase in both exposure to CFDs and interest rates.
7 TAXATION ON RETURN/(LOSS) ON ORDINARY ACTIVITIES
Six months Six months Year
ended ended ended
31.01.24 31.01.23 31.07.23
unaudited unaudited audited
£’000 £’000 £’000
Revenue – taxation on overseas 409 437 1,238
dividends
Capital – Indian capital gains 1,945 1,059 2,882
tax
--------------- --------------- ---------------
Total taxation charge for the 2,354 1,496 4,120
period
========= ========= =========
8 RETURN/(LOSS) PER ORDINARY SHARE
Six months Six months Year
ended ended ended
31.01.24 31.01.23 31.07.23
unaudited unaudited audited
Revenue return per ordinary 4.80p 5.51p 15.17p
share
Capital (loss)/return per (18.07p) 44.39p 39.95p
ordinary share
--------------- --------------- ---------------
Total (loss)/return per ordinary (13.27p) 49.90p 55.12p
share
========= ========= =========
The return/(loss) per ordinary share is based on the net return/(loss) on ordinary activities after taxation for the period divided by the weighted average number of ordinary shares in issue during the period, as shown below:
£’000 £’000 £’000
Net revenue return on ordinary 3,447 3,966 10,906
activities after taxation
Net capital (loss)/return on
ordinary activities after (12,970) 31,960 28,732
taxation
--------------- --------------- ---------------
Net total (loss)/return on
ordinary activities after (9,523) 35,926 39,638
taxation
========= ========= =========
Number Number Number
Weighted average number of ordinary shares held 71,752,985 71,993,981 71,912,335
outside Treasury during the period
========= ========= =========
9 DIVIDENDS PAID TO SHAREHOLDERS
Six months Six months Year
ended ended ended
31.01.24 31.01.23 31.07.23
unaudited unaudited audited
£’000 £’000 £’000
Dividend of 14.50 pence per
ordinary share paid for the year 10,399 – –
ended 31 July 2023
Dividend of 14.00 pence per
ordinary share paid for the year – 10,066 10,066
ended 31 July 2022
--------------- --------------- ---------------
10,399 10,066 10,066
========= ========= =========
No dividend has been declared in respect of the six months ended
10 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
Valued by reference to inputs other than quoted prices included
Level 2 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 as disclosed in the Company’s Annual Report for the year ended
Level 1 Level 2 Level 3 Total
31 January 2024 £’000 £’000 £’000 £’000
(unaudited)
Financial assets
at fair value
through profit
or loss
Investments 345,128 22,139 735 368,002
Derivative
instrument 260 1,612 – 1,872
assets
--------------- --------------- --------------- ---------------
345,388 23,751 735 369,874
--------------- --------------- --------------- ---------------
Financial
liabilities at
fair value
through profit
or loss
Derivative
instrument (691) (1,228) – (1,919)
liabilities
========= ========= ========= =========
Level 1 Level 2 Level 3 Total
31 July 2023 £’000 £’000 £’000 £’000
(audited)
Financial assets
at fair value
through profit
or loss
Investments 367,312 9,439 880 377,631
Derivative
instrument 172 1,586 – 1,758
assets
--------------- --------------- --------------- ---------------
367,484 11,025 880 379,389
--------------- --------------- --------------- ---------------
Financial
liabilities at
fair value
through profit
or loss
Derivative
instrument (341) (1,324) – (1,665)
liabilities
========= ========= ========= =========
Level 1 Level 2 Level 3 Total
31 January 2023 £’000 £’000 £’000 £’000
(unaudited)
Financial assets
at fair value
through profit
or loss
Investments 360,555 6,135 1,364 368,054
Derivative
instrument 729 1,259 – 1,988
assets
--------------- --------------- --------------- ---------------
361,284 7,394 1,364 370,042
--------------- --------------- --------------- ---------------
Financial
liabilities at
fair value
through profit
or loss
Derivative
instrument – (872) – (872)
liabilities
========= ========= ========= =========
11 SHARE CAPITAL
31 January 2024 31 July 2023 31 January 2023
unaudited audited unaudited
Nominal Nominal Nominal
Number of value Number of value Number of value
shares £’000 shares £’000 shares £’000
Issued,
allotted
and fully
paid
Ordinary
shares of
25 pence
each held
outside of
Treasury
Beginning
of the 71,829,336 17,958 72,398,336 18,100 72,398,336 18,100
period
Ordinary
shares
repurchased (137,825) (34) (569,000) (142) (569,000) (142)
into
Treasury
--------------- --------------- --------------- --------------- --------------- ---------------
End of the 71,691,511 17,924 71,829,336 17,958 71,829,336 17,958
period
========= ========= ========= ========= ========= =========
Ordinary shares of25 pence each held in Treasury1 Beginning of the 3,751,553 937 3,182,553 795 3,182,553 795 period Ordinary shares repurchased 137,825 34 569,000 142 569,000 142 into Treasury --------------- --------------- --------------- --------------- --------------- --------------- End of the 3,889,378 971 3,751,553 937 3,751,553 937 period ========= ========= ========= ========= ========= ========= Total share 18,895 18,895 18,895 capital ========= ========= =========
1
Ordinary shares held in
The cost of ordinary shares repurchased into
12 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
31.01.24 31.07.23 31.01.23
unaudited audited unaudited
Total shareholders’ £373,978,000 £394,577,000 £390,880,000
funds
Ordinary shares held
outside of Treasury at 71,691,511 71,829,336 71,829,336
the period end
------------------ ------------------ ------------------
Net asset value per 521.65p 549.33p 544.18p
ordinary share
=========== =========== ===========
It is the Company’s policy that shares held in
13 TRANSACTIONS WITH THE MANAGER AND RELATED PARTIES
Details of the fee arrangements are given in Note 5. During the period, management fees of £1,751,000 (six months ended
As at
The financial information contained in this Half-Yearly Results Announcement does not constitute statutory accounts as defined in section 435 of the Companies Act 2006. The financial information for the six months ended
The information for the year ended
Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.
A copy of the Half-Yearly Report will shortly be submitted to the National Storage Mechanism and will be available for inspection at www.morningstar.co.uk/uk/NSM
The Half-Yearly Report will also be available on the Company's website at www.fidelity.co.uk/asianvalues where up to date information on the Company, including daily NAV and share prices, factsheets and other information can also be found.
