TIDMFAS 
 
FIDELITY ASIAN VALUES PLC 
Annual Report for the year ended 31 July 2020 
 
CHAIRMAN'S STATEMENT 
 
Kate Bolsover - I have pleasure in presenting the Annual Report of Fidelity 
Asian Values PLC (the "Company") for the year ended 31 July 2020. 
 
By any standard the year under review has been an extraordinary one, with 
countries around the world experiencing unprecedented challenges in the wake of 
the Coronavirus ("COVID-19") pandemic. Our thoughts are with all those who have 
been affected. 
 
Against a challenging market backdrop, our Portfolio Manager, Nitin Bajaj, 
ranks first among his small cap peers on a five-year view, however recent 
performance has, unfortunately, been weaker. From an investment perspective, 
while 'in-person' company meetings have been paused for now, Nitin undertakes 
virtual meetings with existing and potential investee companies which are 
proving to be effective. 
 
The Manager is keeping its business continuity plans and operational resilience 
strategies under constant review and is taking the necessary steps to meet its 
regulatory obligations and to support its investors. The Company's other third 
party service providers have also implemented similar measures to ensure 
business disruption is kept to a minimum. 
 
In seeking to provide shareholders with a differentiated equity exposure to 
Asian markets, Nitin focuses on buying businesses that have strong management 
but are mispriced. This often leads him to invest in small and medium sized 
companies, the 'winners of tomorrow', before they become well-known. 
Unfortunately, this segment of the market has been disproportionately impacted 
by the prevailing environment and this has weighed on shorter-term performance. 
As Nitin explains in his Portfolio Manager's Review, the value-investing style 
he deploys, and which has historically rewarded investors, is currently out of 
favour, generating excellent longer-term opportunities while demanding patience 
nearer-term. 
 
INVESTMENT AND MARKET REVIEW 
In the 12 months to 31 July 2020, NAV performance was -16.7% compared to a 
return of +2.7% for the Comparative Index*. Share price performance over the 
same period was a disappointing -24.8%, reflecting the fact that the Company 
has moved from trading at a premium to its NAV to a discount in more recent 
times. In addition to the significant impact of COVID-19 on Asian equity 
markets, Nitin also faces dual headwinds in his stylistic bias for value and 
also for smaller and medium sized businesses. 
 
Value, as an investment style, is experiencing the longest and deepest 
underperformance relative to growth since the 1960s. Value stocks considered 
across a range of valuation metrics, including price-to-book and 
price-to-earnings multiples, have not traded so cheaply since 1968. The stocks 
of smaller and medium sized companies meanwhile have been severely punished, 
certainly by historical standards, in a market environment dominated by 
mega-cap names. The Board believes that value investing will return to favour 
and that this is a period of unprecedented opportunity to invest in good 
companies at competitive prices. 
 
*     The Company's Comparative Index changed from the MSCI All Countries Asia 
ex Japan Index (net) total return (in Sterling terms) to the MSCI All Countries 
Asia ex Japan Small Cap Index (net) total return (in Sterling terms) on 1 
February 2020. Therefore, the Comparative Index reported is a blend of the two. 
 
RESPONSE AND OUTLOOK 
In response to this difficult environment and with the Company trading at its 
widest discount in over a decade, the Board initiated a buyback programme in 
March of this year. The Company has bought back 1,648,782 shares over the 
period under review (further details below). At the end of the financial year, 
the Company traded at a discount to NAV of 8.1%. The Board has also carefully 
monitored service providers throughout the pandemic, ensuring operational 
robustness. 
 
In this year, perhaps more than most, predicting the future is difficult. The 
road ahead may be strewn with challenges, but we remain encouraged by the 
extreme valuation differential between "growth" and "value" companies and the 
opportunities inherent in that. As we begin the new financial year, valuations 
are even more extreme in Asia than they were in the run up to the dot com 
bubble, when growth stocks sold at extraordinary multiples. While we continue 
to monitor performance carefully, Nitin continues to have our full support in 
navigating the months and years ahead. We are reassured by the high quality of 
his portfolio and thank shareholders for their ongoing support. 
 
OTHER MATTERS 
 
Gearing 
Increased volatility and risk aversion in the market has created stock picking 
opportunities and Nitin has been able to add new holdings and increase existing 
positions at more attractive valuations. Over his tenure, Nitin has not felt 
the need to use gearing extensively and has reduced gearing slightly from the 
level reported last year. He continues to believe that the main driver of the 
Company's performance will be stock picking. 
 
Management Fee 
The Company has had a variable management fee structure in place since 1 August 
2018. It uses a Comparative Index against which the variable element of the 
management fee is calculated. The change to the Comparative Index from the MSCI 
All Countries Asia ex Japan Index (net) total return (in Sterling terms) to the 
MSCI All Countries Asia ex Japan Small Cap Index (net) total return (in 
Sterling terms) from 1 February 2020 has had no impact on any fees accrued 
until the date of the change. Since then, any over or under performance has 
been measured against the new Comparative Index. 
 
The fee to 31 July 2020 was GBP1,655,000 (2019: GBP2,262,000). Given the relative 
underperformance, the variable management fee represented 0.59% of net assets 
throughout the period (2019: 0.78%). 
 
Discount/Premium and Share Repurchases/Issues 
As reported in the Company's Half-Yearly Report, up until 31 January 2020 the 
Company's shares had mostly traded at a premium and the Board authorised the 
issue of 265,981 ordinary shares from the Company's block listing facility. 
Issuing shares increases the size of the Company, making it more liquid and 
allowing for costs to be spread out over a larger asset base. Since then and as 
at the date of this report, no additional ordinary shares have been issued. 
 
Repurchases of ordinary shares are made at the discretion of the Board and 
within guidelines set by it and in light of prevailing market conditions. 
Shares will only be repurchased when it results in an enhancement to the NAV of 
the ordinary shares. In order to assist in managing the discount, the Board has 
shareholder approval to hold in Treasury any ordinary shares repurchased by the 
Company, rather than cancelling them. Any shares held in Treasury would only be 
re-issued at NAV per share or at a premium to NAV per share. 
 
As I have highlighted above, we have seen an extraordinary level of turmoil in 
the world's financial markets and the Company's premium/discount has been 
commensurately volatile. The Board initiated a buyback program in March whereby 
1,648,782 ordinary shares have been repurchased for holding in Treasury 
(representing 2.18% of the issued share capital). 422,255 shares have been 
repurchased since the end of the reporting period and as at the date of this 
report. 
 
Dividend 
Subject to shareholders' approval at the Annual General Meeting ("AGM") on 8 
December 2020, the Directors recommend a dividend of 8.50 pence per ordinary 
share which represents a decrease of 3.4% over the 8.80 pence paid in 2019. 
This dividend will be payable on 10 December 2020 to shareholders on the 
register at close of business on 23 October 2020 (ex-dividend date 22 October 
2020). Shareholders should be reminded that as the Company's objective is 
long-term capital growth, the level of dividend is a function of a particular 
year's income and it should not be assumed that dividends will continue to be 
paid in the future. 
 
BOARD OF DIRECTORS 
As reported in the Company's Half-Yearly Report, Philip Smiley retired from the 
Board on 30 April 2020. His extensive experience in Asia and unique insights 
about the region were much appreciated by the Board and I would like to take 
this opportunity to thank him for his terrific contribution. 
 
Timothy Scholefield succeeded Philip as Senior Independent Director on 1 May 
2020. 
 
All Directors are subject to annual re-election at the forthcoming AGM. The 
Directors' biographies are included in the Annual Report, and between them, 
they have a wide range of appropriate skills and experience to form a balanced 
Board of the Company. 
 
BOARD SUCCESSION 
The Board has spent a considerable amount of time discussing its succession 
plan for the next four years and wishes to share these with investors. Grahame 
Stott will have completed his nine-year tenure in 2022 and will step down from 
the Board at the AGM in 2022 and he will be replaced as Audit Committee 
Chairman by Clare Brady. By the AGM in 2023, I will have served four years as a 
Director and a further nine years as Chairman and will step down from the Board 
at the AGM in 2023. The Board considers that I continue to be independent. 
 
ANNUAL GENERAL MEETING - TUESDAY, 8 DECEMBER 2020 AT 11.00 AM 
In response to the wide spread of COVID-19, the current Government guidance 
stipulates that large gatherings of people are prohibited. 
 
With this in mind, this year's AGM will be virtual in nature. In accordance 
with the Corporate Governance and Insolvency Act 2020 and with the Company's 
Articles of Association, the AGM will be conducted in closed session via video 
conference. This meeting will be restricted to the formal business of the 
meeting as set out in the Annual Report and voting on the resolutions therein. 
An online presentation by the Chairman and Portfolio Manager which will be 
available online at www.fidelity.co.uk/asianvalues. 
 
Copies of the Portfolio Manager's 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. 
 
It is not the Board's intention to exclude or discount the views of the 
Company's shareholders, but at the moment, the health of all investors, 
workforce and officers must be paramount. We urge all shareholders to make use 
of the proxy form provided. If you hold shares through the Fidelity Platform or 
a nominee (and not directly in your own name) proxy forms are not provided and 
you are advised to contact the company with which you hold your shares to 
determine alternative options (if available) for lodging your voting 
instructions. 
 
We encourage all investors who have any questions or comments to contact the 
Secretary so that she can relay your comments to the Board, and we will respond 
in due course. 
 
We thank you for your cooperation and sincerely hope to resume the meeting's 
usual format in the future. 
 
KATE BOLSOVER 
 
Chairman 
 
13 October 2020 
 
PORTFOLIO MANAGER'S REVIEW 
 
Nitin Bajaj was appointed as the Portfolio Manager of Fidelity Asian Values PLC 
on 1 April 2015. He is based in Singapore and has over 19 years' investment 
experience. He is also the Portfolio Manager for the Fidelity Asian Smaller 
Companies Fund. He first joined Fidelity in 2003 as an Investment Analyst and 
then took over the Fidelity India Special Situations Fund and subsequently 
started the Fidelity India Value Fund. He managed these funds until November 
2012, when Fidelity decided to sell its India business. 
 
QUESTION 
How has the Company performed in the year under review? 
 
ANSWER 
It has been a difficult year and the Company's NAV declined 16.7% over the 
period, compared to an annualised return of 14.1% up to the prior year during 
my tenure as Portfolio Manager of the Company. As always, responsibility for 
performance sits solely with me in both good and bad years. 
 
In order to get a better perspective on performance, I think it's also 
important to understand what happened over the last year and the market 
environment we are operating in. 
 
STOCK PICKING 
There are two kinds of errors that an investor can make: errors of omission and 
errors of commission. Errors of omission are stocks that we don't own that go 
up. Errors of commission are stocks we own that go down. 
 
Errors of omission are inevitable. There will always be stocks that we do not 
own that go up a lot. This year these were concentrated in technology and 
health care - but more generally, in categories of stocks which can be broadly 
labelled as 'momentum'. These are stocks which we are very unlikely to own as 
they are expensive, with high expectations and very little margin of error. 
When they are appreciating, no one questions them. 
 
Unfortunately, we also made a few errors of commission this year - most 
notably, our investment in mortgage companies in India. The country has been in 
a housing downcycle for almost eight years resulting in significantly improved 
housing affordability (house prices compared to household income) - its best 
level in the last 25 years. Our analysis showed that we should be on the cusp 
of a turn in the cycle for the better. In a weak economy the recovery was 
delayed, and it got worse due to COVID-19, which led to unprecedented economic 
hardship and liquidity stress on households, property developers and the 
financial system. I feel our analysis was sound and the risk-reward was in our 
favour when we made the investment - but our bet size was not. At 6% of the 
Company's NAV, it was too big a position. 
 
Position sizing is tricky - when you get it right, you always feel you should 
have had more, and when you get it wrong, it's the opposite. 
 
In addition, there have been a few other stock specific detractors like Cebu 
Air. Cebu Air is a low-cost airline with 55% market share in the Philippines. 
It has an almost insurmountable lead on its competition in terms of its cost 
structure. The management team is best in class and it has a well-funded 
balance sheet. The business has been hit hard by COVID-19, and like most 
airlines, its stock price has declined. I continue to own my position in Cebu 
Air as they should be able to get through this period given the balance sheet 
strength and emerge in a stronger competitive position. 
 
In terms of positive stock contribution, our investment in e-bike battery 
company Tianneng Power International performed exceptionally well as the stock 
was discovered by mainstream investors. Also, our investment in rubber glove 
company Riverstone has performed well during COVID-19 due to the huge demand 
for medical grade gloves. I continue to own shares in both these businesses. 
 
Our objective is to not lose money when we are wrong, so that our correct 
decisions can add up. It did not happen this year. In fact, this was the first 
year since I have managed Asian portfolios that I have had negative 
contribution from stock selection. This was partly due to: 1) stock picking; 
and 2) due to the number of business we own being currently unloved in the 
stock market. This meant that our bucket of positive contributors was smaller. 
 
COUNTRY ALLOCATION 
Country allocation for us is an outcome of stock selection rather than a top 
down view. Going into COVID-19 we had a significant portion of our assets 
invested in India, Indonesia and Philippines (38.7% at the end of February 
2020; and 30% at the end of July 2020 as we adjusted some of our positions). We 
have historically found exceptional businesses, with significant growth 
opportunities at attractive valuations in these countries. 
 
However, all three are densely populated countries and have had to impose 
stringent lockdowns. This was essential and does not change the long-term 
dynamics of these economies. However, it has led to a significant stock market 
sell off in these three countries - more than the rest of Asia. Some of this 
stock market correction is justified but I would argue that quite a few stocks 
in these countries have been sold off irrespective of fundamentals. 
 
An example would be Power Grid Corporation of India, our 2nd largest holding. 
Power Grid is a high-quality regulated monopoly for electricity transmission in 
India and has an enviable track record of growth, stability and return on 
equity. Irrespective of the strong fundamentals, the stock has been sold off 
due to COVID-19 and now looks very compelling from a valuation perspective. 
 
I have adjusted the Company's portfolio in these countries to concentrate our 
focus on businesses which can endure this economic hardship even if it lasts 
another two years. COVID-19 will pass, but these businesses will still be 
around, and having enhanced their competitive position through this period, 
emerge stronger. 
 
STYLE BIAS 
Value investing is what I do and investing in interesting but unloved companies 
has been the key driver of returns in every portfolio I have managed over the 
last decade. However, my value bias was a significant headwind to performance 
last year as there was a sentiment swing in favour of growth companies - both 
large and small. On a relative basis, this hit the Company twice - as stocks I 
did not own went up, while the ones I did own fell. A number of stocks in the 
portfolio, despite being attractively valued and delivering good operating 
performance, have not appreciated, as a narrow group of stocks (in a few 
specific sectors) have carried the stock markets in Asia. 
 
Smaller value companies are now trading at a 55% discount to growth companies. 
This compares to a 65% discount seen during the peak of the tech bubble in 
1999-2000 (peak of the previous growth cycle). Similarly, if you compare the 
lowest quintile of stocks in Asia to the most expensive quintile of stocks, the 
valuation discount is even more extreme and stands at 90%. 
 
VALUE DISPERSION OVER THE PAST 20 YEARS 
 
Source: Fidelity International, Bloomberg, 31 July 2020. Index: MSCI All 
Countries Asia ex Japan Small Cap (net) Index. 
 
Active weight denotes differences in fund weighting versus Index weighting. 
Past performance is not an indicator of future returns. 
 
LOWER PRICE TO EARNINGS RATIO VERSUS INDICES 
 
HIGHER RETURNS ON EQUITY VERSUS INDICES 
 
Source: Fidelity International, FactSet, 31 July 2020. Indices: MSCI AC Asia ex 
Japan Small-Cap Index and MSCI AC Asia ex Japan Small-Cap Value 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 P/E can indicate 
that a company may currently be undervalued. Price to Book (P/B) Ratio is a 
measure for valuing a company's share price versus its book value. Low P/B can 
indicate that a company may currently be undervalued. 
 
The most interesting fact for me is that over time "value" companies in Asia 
normally grow earnings faster than "growth" companies. Not only do these stocks 
provide you with a better starting margin of safety but these businesses are 
also able to grow earnings faster. 
 
Hence, it's not surprising that over the long-term it has paid to be invested 
in small cap value stocks. They have outperformed growth companies by a 
significant margin over the last 20 years. 
 
There is no doubt that currently our style is at the wrong end of the pendulum 
swing. But I feel that these extreme valuations offer a unique opportunity, not 
too different from 1999-2000, to invest in these overlooked businesses. 
 
Our investment philosophy is based on owning good businesses, run by competent 
management teams and buying them at a price that leaves a sufficient margin of 
safety. Unloved smaller companies with high-quality underlying business have 
always been a lucrative hunting ground for this philosophy. While the portfolio 
has strong reflections of the small cap value index and is currently trading at 
a 32% discount to the broader small cap index (the valuation discount is much 
bigger versus large cap and growth indices), its return on equity versus the 
indices is substantially higher. 
 
To conclude, style biases are cyclical - an investment process should not be. 
 
QUESTION 
Historically value stocks have tended to perform better than average in market 
dips, but that doesn't seem to have been the case this time round. Why? What 
might trigger a reversal in fortunes for value investors? 
 
ANSWER 
There are two reasons in my opinion. 
 
Firstly, fundamentally 'growth' companies have delivered reasonably good 
operating results during the economic downturn as a lot of them are in the 
technology and health care sectors. These businesses benefited during lockdown 
due to an accelerated shift towards online services as well as the trend 
towards "working from home", which has led to an increase in demand for 
computers and peripherals. 
 
Secondly, the valuations of these businesses have expanded even further. We are 
seeing extreme valuations which approximate to what we witnessed during the 
tech bubble in 1999-2000. In my opinion, this multiple expansion is not 
supported by facts, as on average, there is a big difference in perception of 
growth and actual earnings delivery. 
 
Growth has significantly outperformed value as a style in almost all markets. 
We are looking at a value drawdown which is the most extreme in 200 years. Even 
though data going this far back is bound to have some errors, it is indicative 
of where we stand versus history. These cycles have always levelled out over 
time. It would take a brave man to say that "this time it's different". 
 
QUESTION 
Small caps have lagged large caps quite markedly for some time. What are the 
drivers behind that? What might be the catalyst(s) for small cap 
outperformance? 
 
ANSWER 
This has been primarily driven by huge appreciation in large cap growth stocks. 
If you look at the earnings of small cap value stocks over time, they have 
easily outperformed large cap stocks. Even in the last five years, the earnings 
of small cap value stocks have outperformed the large growth companies despite 
COVID-19. 
 
So fundamentally, I find it hard to justify, based on earnings or cash flows, 
why small cap value stocks in Asia (or small caps in general) have lagged 
materially in the last three years (and particularly in the last 12 months). It 
basically comes down to the price earnings ratio expansion of large growth 
companies. 
 
As a fundamental investor, the primary anchor for valuing any business must be 
earnings and cash flows. This has always been the case and I do not think it is 
different now. I have no doubt, therefore, that this situation will reverse. 
The catalyst for and timing of that change is, however, difficult to forecast. 
 
In the meantime, current market factors are giving us an opportunity to own 
high quality companies at attractive prices. This does not happen often and 
hence it's important to maintain our discipline and take advantage. 
 
I do understand that being patient is not easy, especially when some of the 
growth stocks seem to go up every day. I empathise with our investors (I am one 
of them and have a substantial personal investment in the Company) as it has 
not been easy. But making money in the markets is not easy. If it was, everyone 
would be rich. 
 
QUESTION 
How has COVID-19 impacted your companies - both operationally and from an 
earnings perspective? 
 
ANSWER 
None of the businesses in the Company's portfolio have ever experienced 
anything like COVID-19. 
 
It is a shock that impacts the internal systems of businesses, demand for their 
products, government policy and social structure. I think everyone is still 
learning how to deal with it. 
 
So far, most companies seemed to have managed internal operations quite well 
and productive capacities are starting to normalise, except for a few 
industries such as travel and hospitality. Businesses are now trying to figure 
out the "new normal" in demand, especially once the government support stops. 
We will have to wait and see. 
 
The impact of COVID-19 on earnings has been mixed. Like I said, companies 
operating in technology, health care, consumer staples, infrastructure and 
utilities have not really been impacted materially, while those in 
discretionary consumption, travel and hospitality have seen an adverse impact. 
 
QUESTION 
How have valuations changed in the period under review? 
 
ANSWER 
The last six months have been unprecedented. We went from a financial crisis to 
euphoria in a period of three months. What I see today is a two-speed market 
where we can find stocks at both valuation extremes. 
 
I am excited by our holdings today. We own a portfolio of businesses which are 
dominant in their industries, earn good returns on capital and are available at 
attractive valuations. 
 
QUESTION 
There is a greater focus than ever on ESG matters. How does Fidelity think 
about ESG? 
 
ANSWER 
Fidelity believes that businesses which flout laws or do not respect their 
employees, customers or communities will not be able to sustain high returns 
over time. It is simply not a sustainable way to do business. Fidelity is 
encouraged that the investment community in general is paying more attention to 
these issues. 
 
Adherence by corporates to the principles of sustainability will have a growing 
impact on the demand for those companies' goods and services. Monitoring the 
actions of the corporates and engaging with them to improve, is a core pillar 
of Fidelity's strategy and embedded into the research methodology which we use 
to assess companies. 
 
QUESTION 
As we move through the early stage of a new decade, what should investors be 
focusing on in the months and years ahead? Which stocks look the most promising 
to you? 
 
ANSWER 
I think fundamental analysis and owning good businesses, run by competent 
managements at attractive prices will continue to be important. If you can 
combine businesses which can grow revenues through time while earning high 
returns on capital with attractive purchase prices, then it should go a long 
way towards helping investors attain their financial objectives. 
 
This is what I am focused on and I and the Fidelity analyst team are working 
harder than ever to find these businesses and then test every assumption we are 
making about the business fundamentals going forward. A sound investment 
process, hard work, discipline and patience have always been important for 
investing success. I don't think this will change in this decade. 
 
NITIN BAJAJ 
 
Portfolio Manager 
 
13 October 2020 
 
STRATEGIC REPORT 
 
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. The Board, with the 
assistance of the Alternative Investment Fund Manager (FIL Investment Services 
(UK) Limited/the "Manager"), has developed a risk matrix which identifies the 
key risks that the Company faces and assigns a rating to each risk. This is 
reviewed by the Audit Committee at least once annually. The Board has also 
established associated policies and processes designed to manage and where 
possible, mitigate those risks which are monitored in the form of comprehensive 
reports considered by the Audit Committee. The Board determines the nature and 
extent of any risks it is willing to take in order to achieve its strategic 
objectives. 
 
EMERGING RISKS AND UNCERTAINTIES 
The Board held a strategy meeting on 29 January 2020. Among wider strategic 
matters discussed at this meeting, an exercise was carried out to identify any 
new emerging risks and take any action necessary to mitigate their potential 
impact. The Board identified the pandemic risk as having a material effect on 
the Company and took the decision to include this with its principal risks. 
 
The Board considers the risks listed below to be the principal risks and 
uncertainties faced by the Company. The wording of these risks has been revised 
but they remain unchanged at a high level from those reported in the prior 
year, apart from the addition of the "Pandemic Risk". 
 
Principal Risks               Description and Risk Mitigation 
 
Market, Economic and          The Company's portfolio is made up mainly of listed securities. The principal 
Political risk                risks are, therefore, market related such as market downturn, interest rate 
                              movements and exchange rate movements. Political change or protectionism can 
                              also have an impact on the Company's assets, such as a US-led trade war, North 
                              Korean conflict, political tensions in the Eurozone and Brexit risks. The 
                              Portfolio Manager's success or failure to protect and increase the Company's 
                              value against this background is core to the Company's continued success. 
                              The risk of the likely effects of COVID-19 on the markets is discussed in the 
                              Chairman's Statement and in the Portfolio Manager's Review. These risks are 
                              somewhat lessened by the investment trust structure which means no forced sales 
                              will need to take place to deal with any redemptions. Therefore, investments 
                              can be held over a longer time horizon. 
                              Risks to which the Company is exposed in the market risk category are included 
                              in Note 17 to the Financial Statements together with summaries of the policies 
                              for managing these risks. 
 
Investment Performance risk   The Portfolio Manager's investment strategy, if inappropriate, may result in 
                              the Company underperforming the market and/or peer group companies, leading to 
                              the Company and its objectives becoming unattractive to investors. In order to 
                              manage this risk, the Board reviews Fidelity's compliance with agreed 
                              investment restrictions; investment performance and risk; relative performance; 
                              the portfolio's risk profile; and whether appropriate strategies are employed 
                              to mitigate any negative impact of substantial changes in markets. The Board 
                              also regularly canvasses major shareholders for their views with respect to 
                              company matters. 
 
Key Person risk               The Portfolio Manager 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 Nitin 
                              Bajaj. Fidelity has succession plans in place for its portfolio managers which 
                              have been discussed with the Board and provide some assurance in this regard. 
 
Discount Control risk         The price of the Company's shares and its premium or discount to NAV are 
                              factors which are not within the Company's total control. The Board has a 
                              discount management policy in place and some short-term influence over the 
                              discount may be exercised by the use of share repurchases at acceptable prices 
                              within the parameters set by the Board. The Company's share price, NAV and 
                              discount volatility are monitored daily by the Manager and considered by the 
                              Board on a regular basis. 
 
Gearing risk                  The Company has the option to invest up to the total of any loan facilities or 
                              to use CFDs to invest in equities. The principal risk is that while in a rising 
                              market the Company will benefit from gearing, in a falling market the impact 
                              would be detrimental. Other risks are that the cost of gearing may be high or 
                              that the term of the gearing inappropriate in relation to market conditions. 
                              The Company currently has no bank loans and gears through the use of long CFDs 
                              which provide greater flexibility and are currently cheaper than bank loans. 
                              The Board regularly considers the level of gearing and gearing risk and sets 
                              limits within which the Manager must operate. 
 
Derivatives risk              Derivative instruments are used to enable both the protection and enhancement 
                              of investment returns. There is a risk that the use of derivatives may lead to 
                              higher volatility in the NAV and the share price than might otherwise be the 
                              case. The Board has put in place policies and limits to control the Company's 
                              use of derivatives and exposures. These are monitored on a daily basis by the 
                              Manager's Compliance team and regular reports are provided to the Board. 
                              Further details on derivative instruments risk is included in Note 17 to the 
                              Financial Statements. 
 
Currency risk                 The base currency of the Company is Sterling. Most of its assets and its income 
                              are denominated in other currencies. Consequently, it is subject to currency 
                              risk on exchange rate movements between Sterling and these other currencies. 
                              The Company has no formal policy for hedging currency risk but may use foreign 
                              currency contracts to limit exposure. 
                              Further details can be found in Note 17 to the Financial Statements. 
 
Cybercrime risk               Cybercrime threats evolve rapidly and consequently the risk is regularly 
                              re-assessed and the Board receives regular updates from the Manager in respect 
                              of the type and possible scale of cyberattacks. The Manager's technology team 
                              has developed a number of initiatives and controls in order to provide enhanced 
                              mitigating protection to this ever increasing threat and the Board is updated 
                              on these as part of the reporting it receives from the Manager. 
                              Risks are increased due to the COVID-19 crisis, primarily related to phishing, 
                              remote access threats, extortion and DDoS (Distributed Denial of Service) 
                              attacks. The Manager has a dedicated detect and respond resource specifically 
                              to monitor the cyber threats associated with COVID-19. 
 
Pandemic risk                 As the COVID-19 outbreak continues to spread, there has been increased focus 
                              from financial services regulators around the world on the contingency plans of 
                              regulated financial firms. The Manager reviews its business continuity plans 
                              and operational resilience strategies on an ongoing basis and will take all 
                              reasonable steps to continue meeting its regulatory obligations and to assess 
                              operational risks, the ability to continue operating and the steps it needs to 
                              take to serve and support its clients, including the Board. For example, to 
                              enhance its resilience, the Manager has mandated work from home arrangements 
                              and implemented split team working for those whose work is deemed necessary to 
                              be carried out in an office. The Manager has also imposed self-isolation 
                              arrangements on staff in line with Government recommendations and guidance. 
                              Investment team key activities, including portfolio managers, analysts and 
                              trading/support functions, are performing well despite the operational 
                              challenges posed by working from home or split team arrangements. 
                              The Company's other third party service providers have also confirmed the 
                              implementation of similar measures to ensure no business disruption. 
 
Other risks facing the Company include: 
 
TAX AND REGULATORY RISKS 
A breach of Section 1158 of the Corporation Tax Act 2010 could lead to a loss 
of investment trust status resulting in the Company being subject to tax on 
capital gains. The Board monitors tax and regulatory changes at each Board 
meeting and through active engagement with regulators and trade bodies by the 
Manager. 
 
OPERATIONAL RISKS 
The Company relies on a number of third party service providers, principally 
the Manager, Registrar, Custodian and Depositary. It is dependent on the 
effective operation of the Manager's control systems and those of its service 
providers with regard to the security of the Company's assets, dealing 
procedures, accounting records and the maintenance of regulatory and legal 
requirements. The Registrar, Custodian and Depositary are all subject to a 
risk-based programme of internal audits by the Manager. In addition, service 
providers' own internal control reports are received by the Board on an annual 
basis and any concerns investigated. 
 
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 (being mainly securities which are 
readily realisable) and its expenditure and cash flow projections and have 
concluded that the Company has adequate resources to continue to adopt the 
going concern basis for at least twelve months from the date of this Annual 
Report. This conclusion also takes into account the Board's assessment of the 
risks arising from COVID-19 as set out in the Pandemic Risk. The prospects of 
the Company over a period longer than twelve months can be found in the 
Viability Statement below. 
 
VIABILITY STATEMENT 
In accordance with provision 31 of the 2018 UK Corporate Governance Code, the 
Directors have assessed the prospects of the Company over a longer period than 
the twelve month period required by the "Going Concern" basis above. The Board 
considers long-term to be at least five years, and accordingly, the Directors 
believe that five years is an appropriate investment horizon to assess the 
viability of the Company, although the life of the Company is not intended to 
be limited to this or any other period. 
 
In making an assessment on the viability of the Company, the Board has 
considered the following: 
 
·      The ongoing relevance of the investment objective in prevailing market 
conditions; 
 
·      The Company's NAV and share price performance; 
 
·      The principal and emerging risks and uncertainties facing the Company 
and their potential impact; 
 
·      The future demand for the Company's shares; 
 
·      The Company's share price relative 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 Company's performance over the five year reporting period to 31 July 2020, 
was a NAV total return of 47.0%, a share price total return of 51.9% and a 
Comparative Index return of 67.5%. The Board regularly reviews the investment 
policy and considers it to be 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 Manager's compliance with the Company's investment 
objective, its investment strategy and asset allocation; 
 
·              The fact that the portfolio comprises sufficient 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 addition, the Company is subject to a continuation vote at the AGM in 2021 
and the Board expect that the vote, when due, will be approved. 
 
PROMOTING THE SUCCESS OF THE COMPANY 
Under Section 172(1) of the Companies Act, the Directors have a duty to promote 
the success of the Company for the benefit of its stakeholders. This includes 
having regard (amongst other matters) to fostering relationships with the 
Company's stakeholders and maintaining a reputation for high standards of 
business conduct. The Company has no employees, premises, assets or operations. 
The shareholders in the Company are its key stakeholders and while the Board 
holds the Manager to account in managing the Company's assets, it recognises 
that this is also a key relationship. The Directors recognise that carrying out 
their statutory duty is fundamental to achieving longer-term success, and to 
this effect continue to work closely with the Manager to further develop the 
Company's investment strategy and underlying policies. The intention is not 
simply to achieve the Company's investment objective but to ensure that it is 
done in an effective and responsible way in the interests of shareholders, 
future investors and society at large. 
 
It is one of the Board's long-term intentions that the share price should trade 
at a level close to the underlying net asset value of the shares. In order to 
achieve this, the Board has implemented a discount policy in order to reduce 
discount volatility and will, when appropriate, execute share repurchases (in 
normal market conditions). 
 
The Board is mindful that investors expect their assets to be managed for a 
competitive fee. The Board negotiated a variable management fee with Fidelity 
in 2018. The Board believes that this fee arrangement fairly rewards the 
Manager for any outperformance against the Comparative Index while remaining 
competitive against fees charged by the Company's peer group. The Board, 
therefore, believes that this fee also benefits shareholders. Fees for the 
reporting year were GBP1,655,000 (2019: GBP2,262,000). Further information about 
the variable fee arrangement can be found in the Directors' Report. 
 
It is important that shareholders have access to both the Portfolio Manager and 
the Board. The Portfolio Manager meets with major shareholders, stock market 
analysts, journalists and other commentators during the year. Since COVID-19, 
most of these meetings have been virtual in nature. In the run-up to the final 
subscription share exercise in November 2019, the Chairman, through the Broker, 
proactively offered to meet with major shareholders without representatives 
from Fidelity present to discuss any concerns investors may have had. However, 
no concerns were raised and shareholders did not feel the need to meet with the 
Chairman privately. 
 
Long-term investors look to the future - the Portfolio Manager in constructing 
the portfolio and the Board in governing the Company. The performance of the 
Company and its reputation for transparency and good governance are paramount 
to its long-term success. 
 
STATEMENT OF DIRECTORS' RESPONSIBILITIES 
 
The Directors are responsible for preparing the Annual Report and the Financial 
Statements in accordance with applicable law and regulations. 
 
Company law requires the Directors to prepare financial statements for each 
financial year. Under that law they have elected to prepare the Financial 
Statements in accordance with UK Generally Accepted Accounting Practice, 
including FRS 102: The Financial Reporting Standard applicable in the UK and 
Republic of Ireland. The Financial Statements are required by law to give a 
true and fair view of the state of affairs of the Company and of the profit or 
loss for the period. 
 
In preparing these Financial Statements the Directors are required to: 
 
·      select suitable accounting policies and then apply them consistently; 
 
·      make judgements and estimates that are reasonable and prudent; 
 
·      state whether applicable UK Accounting Standards 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 assume that the Company will continue in business. 
 
The Directors are responsible for ensuring that adequate accounting records are 
kept which disclose with reasonable accuracy at any time the financial position 
of the Company and to enable them to ensure that 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 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 jurisdictions. 
 
The Directors confirm that to the best of their knowledge: 
 
·      The Financial Statements, prepared in accordance with the applicable set 
of accounting standards, give a true and fair view of the assets, liabilities, 
financial position and loss of the Company; and 
 
·      The Annual 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. 
 
The Directors consider that 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. 
 
Approved by the Board on 13 October 2020 and signed on its behalf by: 
 
KATE BOLSOVER 
Chairman 
 
INCOME STATEMENT FOR THE YEARED 31 JULY 2020 
 
                                     year ended 31 July 2020    year ended 31 July 2019 
 
                             Notes 
 
                                    revenue  capital    total  revenue  capital    total 
                                      GBP'000    GBP'000    GBP'000    GBP'000    GBP'000    GBP'000 
 
(Losses)/gains on               10        -  (66,743) (66,743)       -   16,606   16,606 
investments 
 
Gains/(losses) on               11        -    6,285    6,285        -     (573)    (573) 
derivative instruments 
 
Income                           3   10,602        -   10,602   11,481        -   11,481 
 
Investment management fees       4   (1,967)     312   (1,655)  (2,030)    (232)  (2,262) 
 
Other expenses                   5     (797)       -     (797)    (772)     (39)    (811) 
 
Foreign exchange (losses)/                -   (1,532)  (1,532)       -      879      879 
gains 
 
                                    ======== ======== ======== ======== ======== ======== 
 
 
Net return/(loss) on                  7,838  (61,678) (53,840)   8,679   16,641   25,320 
ordinary activities before 
finance costs and taxation 
 
Finance costs                    6     (686)       -     (686)    (678)       -     (678) 
 
                                    ======== ======== ======== ======== ======== ======== 
 
 
Net return/(loss) on                  7,152  (61,678) (54,526)   8,001   16,641   24,642 
ordinary activities before 
taxation 
 
Taxation on return/(loss)        7     (731)       7     (724)    (492)       4     (488) 
on ordinary activities 
 
                                    ======== ======== ======== ======== ======== ======== 
 
 
Net return/(loss) on                  6,421  (61,671) (55,250)   7,509   16,645   24,154 
ordinary activities after 
taxation for the year 
 
                                    ======== ======== ======== ======== ======== ======== 
 
 
Basic return/(loss) per          8    8.64p  (82.95p) (74.31p)  10.70p   23.71p   34.41p 
ordinary share 
 
                                    ======== ======== ======== ======== ======== ======== 
 
 
Diluted return per               8      n/a      n/a      n/a   10.58p   23.46p   34.04p 
ordinary share 
 
                                    ======== ======== ======== ======== ======== ======== 
 
 
The Company does not have any other comprehensive income. Accordingly, the net 
return/(loss) 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. 
 
The Notes form an integral part of these Financial Statements. 
 
STATEMENT OF CHANGES IN EQUITY FOR THE YEARED 31 JULY 2020 
 
                                                                                                 Other 
                                                                 share         capital            non-                                                           total 
                                                 share         premium      redemption   distributable           other         capital         revenue   shareholders' 
                                               capital         account         reserve         reserve         reserve         reserve         reserve           funds 
                                 Notes           GBP'000           GBP'000           GBP'000           GBP'000           GBP'000           GBP'000           GBP'000           GBP'000 
 
Total shareholders' funds at 31                 18,058          38,073           3,197           7,367           8,613         237,954           9,737         322,999 
July 2019 
 
Net (loss)/return on ordinary                        -               -               -               -               -         (61,671)          6,421         (55,250) 
activities after taxation for 
the year 
 
Repurchase of ordinary shares       14               -               -               -               -          (5,234)              -               -          (5,234) 
 
Issue of ordinary shares on the     14             770          11,332               -               -               -               -               -          12,102 
exercise of rights attached to 
subscription shares 
 
Issue of new ordinary shares        14              67           1,096               -               -               -               -               -           1,163 
 
Dividend paid to shareholders        9               -               -               -               -               -               -          (6,380)         (6,380) 
 
                                        --------------  --------------  --------------  --------------  --------------  --------------  --------------  -------------- 
 
Total shareholders' funds at 31                 18,895          50,501           3,197           7,367           3,379         176,283           9,778         269,400 
July 2020 
 
                                              ========        ========        ========        ========        ========        ========        ========        ======== 
 
Total shareholders' funds at 31                 17,167          24,316           3,197           7,367           8,613         221,309           6,005         287,974 
July 2018 
 
Net return on ordinary                               -               -               -               -               -          16,645           7,509          24,154 
activities after taxation for 
the year 
 
Issue of ordinary shares on the     14             303           4,327               -               -               -               -               -           4,630 
exercise of rights attached to 
subscription shares 
 
Issue of new ordinary shares        14             588           9,430               -               -               -               -               -          10,018 
 
Dividend paid to shareholders        9               -               -               -               -               -               -          (3,777)         (3,777) 
 
                                        --------------  --------------  --------------  --------------  --------------  --------------  --------------  -------------- 
 
Total shareholders' funds at 31                 18,058          38,073           3,197           7,367           8,613         237,954           9,737         322,999 
July 2019 
 
                                              ========        ========        ========        ========        ========        ========        ========        ======== 
 
The Notes form an integral part of these Financial Statements. 
 
BALANCE SHEET AS AT 31 JULY 2020 
 
Company number 3183919 
 
                                                                                 2020            2019 
                                                                Notes           GBP'000           GBP'000 
 
Fixed assets 
 
Investments                                                        10         241,271         312,681 
 
Current assets 
 
Derivative instruments                                             11           7,299           1,537 
 
Debtors                                                            12           1,886           3,325 
 
Amounts held at futures clearing houses and brokers                             1,115           2,905 
 
Cash at bank                                                                   21,262           5,796 
 
                                                                       --------------  -------------- 
 
                                                                               31,562          13,563 
 
                                                                             ========        ======== 
 
Creditors 
 
Derivative instruments                                             11          (1,149)         (2,192) 
 
Other creditors                                                    13          (2,284)         (1,053) 
 
                                                                       --------------  -------------- 
 
                                                                               (3,433)         (3,245) 
 
                                                                             ========        ======== 
 
Net current assets                                                             28,129          10,318 
 
                                                                             ========        ======== 
 
Net assets                                                                    269,400         322,999 
 
                                                                             ========        ======== 
 
Capital and reserves 
 
Share capital                                                      14          18,895          18,058 
 
Share premium account                                              15          50,501          38,073 
 
Capital redemption reserve                                         15           3,197           3,197 
 
Other non-distributable reserve                                    15           7,367           7,367 
 
Other reserve                                                      15           3,379           8,613 
 
Capital reserve                                                    15         176,283         237,954 
 
Revenue reserve                                                    15           9,778           9,737 
 
                                                                       --------------  -------------- 
 
Total shareholders' funds                                                     269,400         322,999 
 
                                                                             ========        ======== 
 
Net asset value per ordinary share                                 16         364.39p         447.16p 
 
                                                                             ========        ======== 
 
Diluted net asset value per ordinary share                         16             n/a         439.91p 
 
                                                                             ========        ======== 
 
The Financial Statements were approved by the Board of Directors on 13 October 
2020 and were signed on its behalf by: 
 
KATE BOLSOVER 
Chairman 
 
The Notes on form an integral part of these Financial Statements. 
 
NOTES TO THE FINANCIAL STATEMENTS 
 
1 PRINCIPAL ACTIVITY 
Fidelity Asian Values PLC is an Investment Company incorporated in England and 
Wales with a premium listing on the London Stock Exchange. The Company's 
registration number is 3183919, and its registered office is Beech Gate, 
Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP. The Company has 
been approved by HM Revenue & Customs as an Investment Trust under Section 1158 
of the Corporation Tax Act 2010 and intends to conduct its affairs so as to 
continue to be approved. 
 
2 ACCOUNTING POLICIES 
The Company has prepared its Financial Statements in accordance with UK 
Generally Accepted Accounting Practice ("UK GAAP"), including FRS 102 "The 
Financial Reporting Standard applicable in the UK and Republic of Ireland", 
issued by the Financial Reporting Council ("FRC"). The Financial Statements 
have also been prepared in accordance with the Statement of Recommended 
Practice: Financial Statements of Investment Trust Companies and Venture 
Capital Trusts ("SORP") issued by the Association of Investment Companies 
("AIC") in October 2019. 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 
Company's Going Concern Statement in the Strategic Report takes account of all 
events and conditions up to the date of approval of these Financial Statements 
and includes the Company's investment objective, risk management policies, 
liquidity risk, credit risk, capital management policies and procedures, the 
nature of its portfolio (being mainly securities which are readily realisable) 
and its expenditure and cash flow projections and have concluded that the 
Company has adequate resources to adopt the going concern basis for at least 
twelve months from the date of this Annual Report. 
 
b) Significant accounting estimates and judgements - The Directors make 
judgements and estimates concerning the future. Estimates and judgements are 
continually evaluated and are based on historical experience and other factors, 
such as expectations of future events, and are believed to be reasonable under 
the circumstances. Actual results may differ from these estimates. The 
judgements required in order to determine the appropriate valuation methodology 
of level 3 financial instruments have a risk of causing an adjustment to the 
carrying amounts of assets. These judgements include making assessments of the 
possible valuations in the event of a listing or other marketability related 
risks. 
 
c) Segmental reporting - The Company is engaged in a single segment business 
and, therefore, no segmental reporting is provided. 
d) Presentation of the Income Statement - In order to reflect better the 
activities of an investment company and in accordance with guidance issued by 
the AIC, supplementary information which analyses the Income Statement between 
items of a revenue and capital nature has been prepared alongside the Income 
Statement. The net revenue return after taxation for the year is the measure 
the Directors believe appropriate in assessing the Company's compliance with 
certain requirements set out in Section 1159 of the Corporation Tax Act 2010. 
 
e) Income - Income from equity investments is accounted for on the date on 
which the right to receive the payment is established, normally the ex-dividend 
date. Overseas dividends are accounted for gross of any tax deducted at source. 
Amounts are credited to the revenue column of the Income Statement. Where the 
Company has elected to receive its dividends in the form of additional shares 
rather than cash, the amount of the cash dividend foregone is recognised in the 
revenue column of the Income Statement. Any excess in the value of the shares 
received over the amount of the cash dividend is recognised in the capital 
column of the Income Statement. Special dividends are treated as a revenue 
receipt or a capital receipt depending on the facts and circumstances of each 
particular case. 
 
Derivative instrument income received from dividends on long contracts for 
difference ("CFDs") are accounted for on the date on which the right to receive 
the payment is established, normally the ex-dividend date. The amount net of 
tax is credited to the revenue column of the Income Statement. 
 
Interest received on CFDs, collateral and bank deposits are accounted for on an 
accruals basis and credited to the revenue column of the Income Statement. 
 
f) Investment management fees and other expenses - Investment management fees 
and other expenses are accounted for on an accruals basis and are charged as 
follows: 
 
·      The base investment management fee is allocated in full to revenue; 
 
·      The variable investment management fee, which took effect from 1 
November 2018, is charged/credited to capital as it is based on the performance 
of the net asset value per share relative to the Comparative Index; and 
 
·      All other expenses are allocated in full to revenue with the exception 
of those directly attributable to share issues or other capital events. 
 
g) Functional currency and foreign exchange - The functional and reporting 
currency of the Company is UK Sterling, which is the currency of the primary 
economic environment in which the Company operates. Transactions denominated in 
foreign currencies are reported in UK Sterling at the rate of exchange ruling 
at the date of the transaction. Assets and liabilities in foreign currencies 
are translated in the rates of exchange ruling at the Balance Sheet date. 
Foreign exchange gains and losses arising on the translation are recognised in 
the Income Statement as a revenue or a capital item depending on the nature of 
the underlying item to which they relate. 
 
h) Finance costs - Finance costs comprise interest on bank overdrafts and 
interest paid on CFDs, which are accounted for on an accruals basis, and 
dividends paid on short CFDs, which are accounted for on the date on which the 
obligation to incur the cost is established, normally the ex-dividend date. 
Finance costs are charged in full to the revenue column of the Income 
Statement. 
 
i) Taxation - The taxation charge represents the sum of current taxation and 
deferred taxation. 
 
Current taxation is taxation suffered at source on overseas income less amounts 
recoverable under taxation treaties. Taxation is charged or credited to the 
revenue column of the Income Statement, except where it relates to items of a 
capital nature, in which case it is charged or credited to the capital column 
of the Income Statement. Where expenses are allocated between revenue and 
capital any tax relief in respect of the expenses is allocated between revenue 
and capital returns on the marginal basis using the Company's effective rate of 
corporation tax for the accounting period. The Company is an approved 
Investment Trust under Section 1158 of the Corporation Tax Act 2010 and is not 
liable for UK taxation on capital gains. 
 
Deferred taxation is the taxation expected to be payable or recoverable on 
timing differences between the treatment of certain items for accounting 
purposes and their treatment for the purposes of computing taxable profits. 
Deferred taxation is based on tax rates that have been enacted or substantively 
enacted when the taxation is expected to be payable or recoverable. Deferred 
tax assets are only recognised if it is considered more likely than not that 
there will be sufficient future taxable profits to utilise them. 
 
j) Dividend paid - Dividends payable to equity shareholders are recognised when 
the Company's obligation to make payment is established. 
 
k) Investments - The Company's business is investing in financial instruments 
with a view to profiting from their total return in the form of income and 
capital growth. This portfolio of investments is managed and its performance 
evaluated on a fair value basis, in accordance with a documented investment 
strategy, and information about the portfolio is provided on that basis to the 
Company's Board of Directors. Investments are measured at fair value with 
changes in fair value recognised in profit or loss, in accordance with the 
provisions of both Section 11 and Section 12 of FRS 102. The fair value of 
investments is initially taken to be their cost and is subsequently measured as 
follows: 
 
·      Listed investments are valued at bid prices, or last market prices, 
depending on the convention of the exchange on which they are listed; and 
 
·      Unlisted investments, are investments which are not quoted, or are not 
frequently traded, and are stated at the Directors' best estimate of fair 
value. The Manager's Fair Value Committee, which is independent of the 
Portfolio Manager's team, provide a recommendation of fair values to the 
Directors based on recognised valuation techniques that take account of the 
cost of the investment, recent arm's length transactions in the same or similar 
investments and financial performance of the investment since purchase. 
Consideration is also given to the valuations received from an external valuer. 
 
In accordance with the AIC SORP, the Company includes transaction costs, 
incidental to the purchase or sale of investments, within (losses)/gains on 
investments in the capital column of the Income Statement and has disclosed 
these costs in Note 10 below. 
 
l) Derivative instruments - When appropriate, permitted transactions in 
derivative instruments are used. Derivative transactions into which the Company 
may enter include long and short CFDs, futures, options and forward currency 
contracts. Derivatives are classified as other financial instruments and are 
initially accounted and measured at fair value on the date the derivative 
contract is entered into and subsequently measured at fair value as follows: 
 
·      Long and short CFDs - the difference between the strike price and the 
value of the underlying shares in the contract; 
 
·      Futures - the difference between the contract price and the quoted trade 
price; 
 
·      Options - valued based on similar instruments or 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. 
 
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 creditors. 
 
m) Debtors - Debtors include securities sold for future settlement, accrued 
income and other debtors and prepayments incurred in the ordinary course of 
business. If collection is expected in one year or less (or in the normal 
operating cycle of the business, if longer) they are classified as current 
assets. If not, they are presented as non-current assets. They are recognised 
initially at fair value and, where applicable, subsequently measured at 
amortised cost using the effective interest rate method. 
 
n) Amounts held at futures clearing houses and brokers - These are amounts held 
in segregated accounts as collateral on behalf of brokers and are carried at 
amortised cost. 
 
o) Other creditors - Other creditors include securities purchased for future 
settlement, investment management fees, secretarial and administration fees and 
other creditors and expenses accrued in the ordinary course of business. If 
payment is due within one year or less (or in the normal operating cycle of the 
business, if longer) they are classified as current liabilities. If not, they 
are presented as non-current liabilities. They are recognised initially at fair 
value and, where applicable, subsequently measured at amortised cost using the 
effective interest rate method. 
 
p) Capital reserve - The following are accounted for in the capital reserve: 
 
·      Gains and losses on the disposal of investments and derivative 
instruments; 
 
·      Changes in the fair value of investments and derivative instruments held 
at the year end; 
 
·      Foreign exchange gains and losses of a capital nature; 
 
·      Variable investment management fees; 
 
·      Dividends receivable which are capital in nature; 
 
·      Other expenses which are capital in nature; and 
 
·      Taxation charged or credited relating to items which are capital in 
nature. 
 
As a result of technical guidance issued by the Institute of Chartered 
Accountants in England and Wales in TECH 02/17BL, 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 
losses of GBP68,000 (2019: gains of GBP393,000). See Note 17 for further details on 
the level 3 investments. 
 
3 INCOME 
 
                                                                           year ended      year ended 
                                                                             31.07.20        31.07.19 
                                                                                GBP'000           GBP'000 
 
Investment income 
 
Overseas dividends                                                              9,817          10,694 
 
Overseas scrip dividends                                                           45             370 
 
                                                                       --------------  -------------- 
 
                                                                                9,862          11,064 
 
                                                                             ========        ======== 
 
Derivative income 
 
Dividends received on long CFDs                                                   536             126 
 
Interest received on short CFDs                                                   154             201 
 
                                                                       --------------  -------------- 
 
                                                                                  690             327 
 
                                                                             ========        ======== 
 
Other income 
 
Interest received on collateral and deposits                                       50              90 
 
                                                                       --------------  -------------- 
 
Total income                                                                   10,602          11,481 
 
                                                                             ========        ======== 
 
No special dividends have been recognised in capital (2019: GBPnil). 
 
4 INVESTMENT MANAGEMENT FEES 
 
                                                  year ended 31 July 2020   year ended 31 July 2019 
 
                                                  revenue  capital1  total  revenue  capital1  total 
                                                    GBP'000     GBP'000  GBP'000    GBP'000     GBP'000  GBP'000 
 
Investment management fees                          1,967      (312) 1,655    2,030       232  2,262 
 
                                                  ======== ========  ====== ======== ========  ====== 
                                                                        ==                        == 
 
1     For the calculation of the variable management fee element, the Company's 
NAV return was compared to the Comparative Index return for the period from 1 
August 2018 to the relevant reporting dates. This has resulted in an 
underperformance of the NAV and, therefore, a credit to the Company in the 
current period. Further details of the Fee Arrangement are given in the 
Directors' Report. 
 
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. 
 
Since 1 August 2018, the Company pays base investment management fees at a rate 
of 0.70% of net assets per annum. In addition, with effect from 1 November 
2018, there is +/- 0.20% variation fee based on the NAV per share performance 
relative to the Comparative Index. Fees are payable monthly in arrears and are 
calculated on a daily basis. 
 
5 OTHER EXPENSES 
 
                                                        year ended 31 July 2020         year ended 31 July 2019 
 
                                                            revenue         capital         revenue         capital 
                                                              GBP'000           GBP'000           GBP'000           GBP'000 
 
AIC fees                                                         21               -              21               - 
 
Custody fees                                                    134               -             133               - 
 
Depositary fees                                                  26               -              27               - 
 
Directors' expenses                                               9               -              26               - 
 
Directors' fees*                                                164               -             137               - 
 
Legal and professional fees                                      93               -              63               - 
 
Marketing expenses                                              118               -             146               - 
 
Printing and publication expenses                                74               -              68               - 
 
Registrars' fees                                                 34               -              35               - 
 
Secretarial and administration fees payable to the               75               -              75               - 
Investment Manager 
 
Sundry other expenses                                            16               -              13               - 
 
Fees payable to the Company's Independent Auditor                33               -              28               - 
for the audit of the  Financial Statements 
 
Cost of the issue of new ordinary shares                          -               -               -              39 
 
                                                     --------------  --------------  --------------  -------------- 
 
                                                                797               -             772              39 
 
                                                           ========        ========        ========        ======== 
 
*     Details of the breakdown of Directors' fees are disclosed in the 
Directors' Remuneration Report. 
 
6 FINANCE COSTS 
 
                                                                           year ended      year ended 
                                                                             31.07.20        31.07.19 
                                                                                GBP'000           GBP'000 
 
Interest on bank overdrafts                                                         2               4 
 
Interest paid on CFDs                                                             428             341 
 
Dividends paid on short CFDs                                                      256             333 
 
                                                                       --------------  -------------- 
 
                                                                                  686             678 
 
                                                                             ========        ======== 
 
7 TAXATION ON RETURN/(LOSS) ON ORDINARY ACTIVITIES 
 
                                               year ended 31 July 2020                         year ended 31 July 2019 
 
                                           revenue         capital           total         revenue         capital           total 
                                             GBP'000           GBP'000           GBP'000           GBP'000           GBP'000           GBP'000 
 
a) Analysis of the taxation charge 
 
for the year 
 
Overseas taxation                              731               -             731             492               -             492 
 
Indian capital gains tax received                -              (7)             (7)              -              (4)             (4) 
 
                                    --------------  --------------  --------------  --------------  --------------  -------------- 
 
Taxation charge for the year (see              731              (7)            724             492              (4)            488 
Note 7b) 
 
                                          ========        ========        ========        ========        ========        ======== 
 
b) Factors affecting the taxation charge for the year 
The taxation charge for the year is lower than the standard rate of UK 
corporation tax for an investment trust company of 19.00% (2019: 19.00%). A 
reconciliation of the standard rate of UK corporation tax to the taxation 
charge for the year is shown below: 
 
                                               year ended 31 July 2020                          year ended 31 July 2019 
 
                                           revenue         capital           total         revenue         capital           total 
                                             GBP'000           GBP'000           GBP'000           GBP'000           GBP'000           GBP'000 
 
Net return/(loss) on ordinary                7,152         (61,678)        (54,526)          8,001          16,641          24,642 
activities before taxation 
 
                                    --------------  --------------  --------------  --------------  --------------  -------------- 
 
Net return/(loss) on ordinary                1,359         (11,719)        (10,360)          1,520           3,162           4,682 
activities  before taxation 
multiplied by the standard  rate of 
UK corporation tax of 19% (2019: 
19%) 
 
Effects of: 
 
Capital losses/(gains) not taxable*              -          11,778          11,778               -          (3,213)         (3,213) 
 
Income not taxable                          (1,826)              -          (1,826)         (2,058)              -          (2,058) 
 
Excess management expenses                     467             (44)            423             488              44             532 
 
Expenses not deductible                          -               -               -               -               7               7 
 
Excess interest paid                             -             (15)            (15)             50               -              50 
 
Overseas taxation                              731               -             731             492               -             492 
 
Indian capital gains tax received                -              (7)             (7)              -              (4)             (4) 
 
Taxation charge for the year (see              731              (7)            724             492              (4)            488 
Note 7a) 
 
                                          ========        ========        ========        ========        ========        ======== 
 
*     The Company is exempt from UK corporation tax on capital gains as it 
meets the HM Revenue & Customs criteria for an investment company set out in 
Section 1159 of the Corporation Tax Act 2010. 
 
c) Deferred taxation 
A deferred tax asset of GBP5,354,000 (2019: GBP4,425,000), in respect of excess 
management expenses of GBP24,531,000 (2019: GBP22,304,000) and excess interest paid 
of GBP3,648,000 (2019: GBP3,728,000), has not been recognised as it is unlikely 
that there will be sufficient future taxable profits to utilise these expenses. 
 
8 RETURN/(LOSS) PER ORDINARY SHARE 
 
                                    year ended 31 July 2020    year ended 31 July 2019 
 
                                   revenue  capital    total  revenue  capital    total 
 
Basic return/(loss) per ordinary     8.64p  (82.95p) (74.31p)  10.70p   23.71p   34.41p 
share 
 
Diluted return per ordinary share      n/a      n/a      n/a   10.58p   23.46p   34.04p 
 
                                   ======== ======== ======== ======== ======== ======== 
 
 
The basic return/(loss) per ordinary share are based on, respectively; the net 
revenue return on ordinary activities after taxation for the year of GBP6,421,000 
(2019: GBP7,509,000), the net capital loss on ordinary activities after taxation 
for the year of GBP61,671,000 (2019: return of GBP16,645,000), and the net total 
loss on ordinary activities after taxation for the year of GBP55,250,000 (2019: 
return of GBP24,154,000), and on 74,348,836 ordinary shares (2019: 70,193,856), 
being the weighted average number of ordinary shares held outside Treasury 
during the year. 
 
There is no diluted return/(loss) per ordinary share for the current period as 
all the subscription shares were exercised or cancelled (see Note 14 for 
further details). 
 
In the prior year, the diluted returns per ordinary share reflected the 
notional dilutive effect that would have occurred if the rights attached to 
subscription shares had been exercised and additional ordinary shares had been 
issued. The returns on ordinary activities after taxation used in the prior 
year diluted calculation are the same as those for the basic returns above. 
These returns are divided by the notional weighted average number of ordinary 
shares in issue of 70,964,574. This number of shares reflected the additional 
number of ordinary shares that could have been purchased at the average 
ordinary share price for the year with the proceeds from the excess of the 
subscription share rights exercise price over the average ordinary share price. 
 
9 DIVIDS PAID TO SHAREHOLDERS 
 
                                                                           year ended      year ended 
                                                                             31.07.20        31.07.19 
                                                                                GBP'000           GBP'000 
 
Dividend paid 
 
Dividend paid of 8.80 pence per Ordinary Share paid for the year ended          6,380               - 
31 July 2019 
 
Dividend paid of 5.50 pence per ordinary share for the year ended 31                -           3,777 
July 2018 
 
                                                                       --------------  -------------- 
 
                                                                                6,380           3,777 
 
                                                                             ========        ======== 
 
Dividend proposed 
 
Dividend proposed of 8.50 pence per Ordinary Share paid for the year             6,250              - 
ended 31 July 2020 
 
Dividend proposed of 8.80 pence per Ordinary Share paid for the year                -           6,380 
ended 31 July 2019 
 
                                                                       --------------  -------------- 
 
                                                                                 6,250          6,380 
 
                                                                             ========        ======== 
 
The Directors have proposed the payment of a dividend for the year ended 31 
July 2020 of 8.50 pence per ordinary share which is subject to approval by 
shareholders at the Annual General Meeting on 8 December 2020 and has not been 
included as a liability in these Financial Statements. The dividend will be 
paid on 10 December 2020 to shareholders on the register at the close of 
business on 23 October 2020 (ex-dividend date 22 October 2020). 
 
10 INVESTMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS 
 
                                                                                 2020            2019 
                                                                                GBP'000           GBP'000 
 
Listed investments                                                            240,932         312,139 
 
Unlisted investments                                                              339             542 
 
                                                                       --------------  -------------- 
 
Investments at fair value                                                     241,271         312,681 
 
                                                                             ========        ======== 
 
Opening book cost                                                             289,167         260,237 
 
Opening investment holding gains                                               23,514          13,477 
 
                                                                       --------------  -------------- 
 
Opening fair value                                                            312,681         273,714 
 
                                                                             ========        ======== 
 
Movements in the year 
 
Purchases at cost                                                             173,591         157,608 
 
Sales - proceeds                                                             (178,258)       (135,247) 
 
(Losses)/gains on investments                                                 (66,743)         16,606 
 
                                                                       --------------  -------------- 
 
Closing fair value                                                            241,271         312,681 
 
                                                                             ========        ======== 
 
Closing book cost                                                             266,633         289,167 
 
Closing investment holding (losses)/gains                                     (25,362)         23,514 
 
                                                                       --------------  -------------- 
 
Closing fair value                                                            241,271         312,681 
 
                                                                             ========        ======== 
 
The Company received GBP178.3m (2019: GBP135.2m) from investments sold in the year. 
The book cost of these investments when they were purchased was GBP196.1m (2019: 
GBP128.7m). 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 (losses)/gains on the investments above, were as 
follows: 
 
                                                                           year ended      year ended 
                                                                             31.07.20        31.07.19 
                                                                                GBP'000           GBP'000 
 
Purchases transaction costs                                                       268             207 
 
Sales transaction costs                                                           360             292 
 
                                                                       --------------  -------------- 
 
                                                                                  628             499 
 
                                                                             ========        ======== 
 
The portfolio turnover rate of the year was 67.0% (2019: 52.2%). 
 
11 DERIVATIVE INSTRUMENTS 
 
                                                                           year ended      year ended 
                                                                             31.07.20        31.07.19 
                                                                                GBP'000           GBP'000 
 
Gains/(losses) on derivative instruments 
 
Realised losses on long CFD positions closed                                   (1,741)            (36) 
 
Realised gains on short CFD positions closed                                      430             636 
 
Realised gains on futures contracts closed                                        142             284 
 
Realised gains/(losses) on options contracts closed                             1,162          (2,506) 
 
Realised losses on forward currency contracts                                    (238)           (431) 
 
Movement in investment holding gains/(losses) on long CFDs                      6,745            (903) 
 
Movement in investment holding (losses)/gains on short CFDs                      (757)            497 
 
Movement in investment holding gains/(losses) on futures                          732            (245) 
 
Movement in investment holding (losses)/gains on options                         (142)          2,230 
 
Movement in investment holding (losses)/gains on forward currency                 (48)             26 
contracts 
 
Movement in investment holding losses on warrants                                   -            (125) 
 
                                                                       --------------  -------------- 
 
                                                                                6,285            (573) 
 
                                                                             ========        ======== 
 
 
 
                                                                                 2020            2019 
                                                                           fair value      fair value 
                                                                                GBP'000           GBP'000 
 
Derivative instruments recognised on the Balance Sheet 
 
Derivative instrument assets                                                    7,299           1,537 
 
Derivative instrument liabilities                                              (1,149)         (2,192) 
 
                                                                       --------------  -------------- 
 
                                                                                6,150            (655) 
 
                                                                             ========        ======== 
 
 
 
                                                                  2020                            2019 
 
                                                                        gross asset                     gross asset 
                                                         fair value        exposure      fair value        exposure 
                                                              GBP'000           GBP'000           GBP'000           GBP'000 
 
At the year end the Company held the following 
derivative instruments 
 
Long CFDs                                                     5,675          23,230          (1,070)          5,654 
 
Long future                                                     487           6,791            (330)         13,532 
 
Short CFDs                                                      105           5,393             862          13,055 
 
Short futures                                                     -               -              85           1,401 
 
Written put option                                                -               -            (133)          1,101 
 
Forward currency contracts (hedging exposure)                  (117)           (117)            (69)            (69) 
 
                                                     --------------  --------------  --------------  -------------- 
 
                                                              6,150          35,297            (655)         34,674 
 
                                                           ========        ========        ========        ======== 
 
12 DEBTORS 
 
                                                                                 2020            2019 
                                                                                GBP'000           GBP'000 
 
Securities sold for future settlement                                             619           1,559 
 
Accrued income                                                                  1,183           1,499 
 
Other debtors and prepayments                                                      84             267 
 
                                                                       --------------  -------------- 
 
                                                                                1,886           3,325 
 
                                                                             ========        ======== 
 
13 OTHER CREDITORS 
 
                                                                                 2020            2019 
                                                                                GBP'000           GBP'000 
 
Securities purchased for future settlement                                      1,780             644 
 
Creditors and accruals                                                            504             409 
 
                                                                       --------------  -------------- 
 
                                                                                2,284           1,053 
 
                                                                             ========        ======== 
 
14 SHARE CAPITAL 
 
                                                                        2020                                         2019 
 
                                                                number of                                     number of 
                                                                   shares                  GBP'000                 shares                 GBP'000 
 
Issued, allotted and fully paid 
 
Ordinary shares of 25 pence each held outside 
Treasury 
 
Beginning of the year                                          72,233,453                 18,058             68,669,402                17,167 
 
Ordinary shares issued on the exercise of rights                3,081,455                    770              1,213,003                   303 
 
New ordinary shares issued                                        265,981                     67              2,351,048                   588 
 
Ordinary shares repurchased into Treasury                      (1,648,782)                  (412)                     -                     - 
 
                                                     --------------------   --------------------  --------------------  -------------------- 
 
End of the year                                                73,932,107                 18,483             72,233,453                18,058 
 
                                                              ===========            ===========           ===========           =========== 
 
Ordinary shares of 25 pence each held in Treasury1 
 
Beginning of the year                                                   -                      -                      -                     - 
 
Ordinary shares repurchased into Treasury                       1,648,782                    412                      -                     - 
 
                                                     --------------------   --------------------  --------------------  -------------------- 
 
End of the year                                                 1,648,782                    412                      -                     - 
 
                                                              ===========           ===========            ===========           =========== 
 
Subscription shares of 0.001 pence 
 
Beginning of the year                                          11,103,030                      -             12,316,033                     - 
 
Cancellation of subscription shares on the exercise            (3,081,455)                     -            (1,213,003)                     - 
of rights 
 
Cancellation of subscription shares                            (8,021,575)                     -  -                                         - 
 
                                                     --------------------  --------------------   --------------------  -------------------- 
 
End of the year                                                         -                      -             11,103,030                     - 
 
                                                              ===========           ===========            ===========           =========== 
 
Total share capital                                                                       18,895                                       18,058 
 
                                                                                    ===========                                  =========== 
 
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 GBP 
5,234,000 (2019: GBPnil). 
 
A bonus issue of subscription shares to ordinary shareholders on the basis of 
one subscription share for every five ordinary shares held took place on 5 
December 2016. Each subscription share gave the holder the right, but not the 
obligation, to subscribe for one ordinary share upon payment of the 
subscription price. The subscription price was based on the published unaudited 
NAV per ordinary share at 2 December 2016, plus a premium (rounded to the 
nearest quarter penny) depending upon the year in which the right was 
exercised. The subscription share rights could have been exercised annually in 
the 25 business days prior to the relevant subscription date (on which the 
exercise would take effect). The subscription dates, subscription prices and 
premiums were as follows: 
 
                                                              Exercise Exercise Premium 
                                                              date     price 
 
First exercise date                                           30       370.75p  1% 
                                                              November 
                                                              2017 
 
Second exercise date                                          30       381.75p  4% 
                                                              November 
                                                              2018 
 
Final exercise date                                           29       392.75p  7% 
                                                              November 
                                                              2019 
 
After the final subscription date of 29 November 2019, the Company appointed a 
Trustee to exercise any rights remaining that were not exercised by 
shareholders, providing that by doing so a profit could be realised. To realise 
a profit, the sale proceeds from selling the resulting ordinary shares in the 
market would need to be in excess of the 392.75 pence per share price of 
exercising the rights, plus any related expenses and fees. On 13 December 2019, 
the Board announced that the Trustee had not exercised any of the unexercised 
subscription rights of the 8,021,575 outstanding subscription shares. The 
Trustee determined the net proceeds of sale, after deduction of all costs and 
expenses, would not have exceeded the costs of exercising the subscription 
share rights. Therefore, all subscription share rights for the outstanding 
subscription shares lapsed with nil value. 
 
During the year, the Company issued 3,081,455 ordinary shares (2019: 1,213,003 
shares) on the exercise of rights attached to subscription shares. The 
subscription share price of 392.75 pence per ordinary share issued represented 
a premium of 367.75 pence per share over the 25 pence nominal value of each 
share. The total premium received in the year on the issue of ordinary shares 
of GBP11,332,000 (2019: GBP4,327,000) was credited to the share premium account. 
 
The Company issued 265,981 new ordinary shares during the year (2019: 2,351,048 
shares). The total premium received in the year on the issue of new ordinary 
shares of GBP1,096,000 (2019: GBP9,430,000) was credited to the share premium 
account. 
 
15 RESERVES 
The "share premium account" represents the amount by which the proceeds, from 
the issue of new 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 dividend. It cannot 
be used to fund share repurchases. 
 
The "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 dividend. It cannot be used to fund share 
repurchases. 
 
The "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 dividend. It cannot be used to fund share repurchases. 
 
The "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 dividend. It can be used to fund 
share repurchases. 
 
The "capital reserve" reflects realised gains or losses on investments and 
derivative instruments sold, unrealised increases and decreases in the fair 
value of investments and derivative instruments held and other income and costs 
recognised in the capital column of the Income Statement. Refer to Notes 10 and 
11 for information on investment holding gains/(losses) included in this 
reserve. See Note 2(p) above for further details. It can be used to fund share 
repurchases and it is distributable by way of dividend. The Board has stated 
that it has no current intention to pay dividends out of capital. 
 
The "revenue reserve" represents retained revenue surpluses recognised through 
the revenue column of the Income Statement. It is distributable by way of 
dividend. 
 
16 NET ASSET VALUE PER ORDINARY SHARE 
The basic net asset value per ordinary share is based on net assets of GBP 
269,400,000 (2019: GBP322,999,000) and on 73,932,107 (2019: 72,233,453) ordinary 
shares, being the number of ordinary shares of 25 pence each held outside of 
Treasury at the year end. 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. 
 
There is no diluted net asset value per ordinary share as all the subscription 
shares were exercised or cancelled during the year (see Note 14 for further 
details). 
 
The diluted net asset value per ordinary share at 31 July 2019 reflects the 
potential dilution in the net asset value per ordinary share if the rights of 
the 11,103,030 subscription shares in issue had been exercised on 31 July 2019 
at the next exercise date price of 392.75 pence per share. The basis of the 
calculation is in accordance with the guidelines laid down by the AIC. 
 
17 FINANCIAL INSTRUMENTS 
 
Management of risk 
The Company's investing activities in pursuit of its investment objective 
involve certain inherent risks. The Board confirms that there is an ongoing 
process for identifying, evaluating and managing the risks faced by the 
Company. The Board with the assistance of the Manager, has developed a risk 
matrix which, as part of the internal control process, identifies the risks 
that the Company faces. Principal risks identified are market, economic and 
political, investment performance, key person, discount control, gearing, 
derivatives, currency, cybercrime and pandemic risks. Other risks identified 
are tax and regulatory and operational risks, including those relating to third 
party service providers covering investment management, marketing and business 
development, company secretarial, fund administration and operations and 
support functions. Risks are identified and graded in this process, together 
with steps taken in mitigation, and are updated and reviewed on an ongoing 
basis. These risks and how they are identified, evaluated and managed are shown 
in the Strategic Report. 
 
This Note refers to the identification, measurement and management of risks 
potentially affecting the value of financial instruments. The Company's 
financial instruments may comprise: 
 
·      Equity shares (listed and unlisted) and equity linked notes held in 
accordance with the Company's investment objective and policies; 
 
·      Derivative instruments which comprise CFDs, forward currency contracts, 
futures and options on listed stocks and equity indices; and 
 
·      Cash, liquid resources and short-term debtors and creditors that arise 
from its operations. 
 
The risks identified arising from the Company's financial instruments are 
market price risk (which comprises interest rate risk, foreign currency risk 
and other price risk), liquidity risk, counterparty risk, credit risk and 
derivative instrument risk. The Board reviews and agrees policies for managing 
each of these risks, which are summarised below. These policies are consistent 
with those followed last year. 
 
Market price risk 
 
Interest rate risk 
The Company finances its operations through its share capital and reserves. In 
addition, the Company has gearing through the use of derivative instruments. 
The level of gearing is reviewed by the Board and the Portfolio Manager. The 
Company is exposed to a financial risk arising as a result of any increases in 
interest rates associated with the funding of the derivative instruments. 
 
Interest rate risk exposure 
The values of the Company's financial instruments that are exposed to movements 
in interest rates are shown below: 
 
                                                                                 2020            2019 
                                                                                GBP'000           GBP'000 
 
Exposure to financial instruments that earn interest 
 
Cash at bank                                                                   21,262           5,796 
 
Short CFDs - exposure plus fair value                                           5,498          13,917 
 
Amounts held at futures clearing houses and brokers                             1,115           2,905 
 
                                                                       --------------  -------------- 
 
                                                                               27,875          22,618 
 
                                                                             ========        ======== 
 
Exposure to financial instruments that bear interest 
 
Long CFDs - exposure less fair value                                           17,555           6,724 
 
                                                                       --------------  -------------- 
 
Net exposure to financial instruments that earn interest                       10,320          15,894 
 
                                                                             ========        ======== 
 
Foreign currency risk 
The Company's net return/(loss) on ordinary activities after taxation for the 
year and its net assets can be affected by foreign exchange rate movements 
because the Company has income, assets and liabilities which are denominated in 
currencies other than the Company's functional currency which is UK Sterling. 
The Portfolio Manager may seek to manage exposure to currency movements by 
using forward and spot foreign exchange contracts. The Company can also be 
subject to short-term exposure to exchange rate movements, for example, between 
the date when an investment is purchased or sold and the date when settlement 
of the transaction occurs. 
 
Three principal areas have been identified where foreign currency risk could 
impact the Company: 
 
·      Movements in currency exchange rates affecting the value of investments 
and derivative instruments; 
 
·      Movements in currency exchange rates affecting short-term timing 
differences; and 
 
·      Movements in currency exchange rates affecting income received. 
 
Currency exposure of financial assets 
The currency exposure profile of the Company's financial assets is shown below: 
 
                                                                      long 
                                                               exposure to 
                                               investments       derivative                         cash at 
                                             at fair value    instruments1         debtors2            bank      2020 Total 
Currency                                             GBP'000           GBP'000            GBP'000           GBP'000           GBP'000 
 
Hong Kong dollar                                    59,135          15,730              474              50          75,389 
 
Indian rupee                                        51,163               -            1,234             162          52,559 
 
South Korean won                                    31,527               -              106             150          31,783 
 
Taiwan dollar                                       23,098               -              312              89          23,499 
 
Indonesian rupiah                                   21,064               -              362               -          21,426 
 
Australian dollar                                   15,230           2,755              117               -          18,102 
 
US dollar                                            9,616           9,549               66          19,665          38,896 
 
Philippine peso                                      6,390            (117)             216               -           6,489 
 
Singapore dollar                                     5,672           1,987               30               -           7,689 
 
Sri Lankan rupee                                     4,948               -                -               -           4,948 
 
Thai baht                                            3,809               -                -               -           3,809 
 
Other overseas currencies                            8,562               -                -           1,146           9,708 
 
UK Sterling                                          1,057               -               84               -           1,141 
 
                                            --------------  --------------  --------------  --------------  -------------- 
 
                                                   241,271          29,904            3,001          21,262         295,438 
 
                                                  ========        ========        ========        ========        ======== 
 
1     The exposure to the market of long CFDs and long futures after the 
netting of hedging exposures. 
 
2     Debtors include amounts held at futures clearing houses and brokers. 
 
                                               investments            long 
                                                      held     exposure to                            cash            2019 
                                             at fair value      derivative        debtors2         at bank           total 
Currency                                             GBP'000   instruments1 GBP          GBP'000           GBP'000           GBP'000 
                                                                      '000 
 
Hong Kong dollar                                    74,204           5,654             776               -          80,634 
 
Indian rupee                                        69,495               -           1,016             446          70,957 
 
Indonesian rupiah                                   33,872               -               5               -          33,877 
 
South Korean won                                    29,967               -               -               7          29,974 
 
Taiwan dollar                                       28,157               -           1,475             282          29,914 
 
Philippine peso                                     17,359             (69)             27               -          17,317 
 
Singapore dollar                                    13,419               -              25               -          13,444 
 
Australian dollar                                   11,777               -              20               -          11,797 
 
Thai baht                                           10,562               -               -               -          10,562 
 
Sri Lankan rupee                                     6,504          14,633           2,255           3,035          26,427 
 
US dollar                                            6,429               -               -               -           6,429 
 
Other overseas currencies                           10,936               -             365           1,867          13,168 
 
UK Sterling                                              -               -             266             159             425 
 
                                            --------------  --------------  --------------  --------------  -------------- 
 
                                                   312,681          20,218           6,230           5,796         344,925 
 
                                                  ========        ========        ========        ========        ======== 
 
1     The exposure to the market of long CFDs, long futures and options after 
the netting of hedging exposures. 
 
2     Debtors include amounts held at futures clearing houses and brokers. 
 
Currency exposure of financial liabilities 
The Company finances its investment activities through its ordinary share 
capital and reserves. The Company's financial liabilities comprise short 
positions on derivative instruments and other payables. The currency profile of 
these financial liabilities is shown below: 
 
                                                                       short 
                                                                 exposure to 
                                                                  derivative           other            2020 
                                                                instruments1       creditors           total 
Currency                                                               GBP'000           GBP'000           GBP'000 
 
US dollar                                                              1,834           1,440           3,274 
 
Hong Kong dollar                                                       1,756             188           1,944 
 
Australian dollar                                                      1,114              83           1,197 
 
Singapore dollar                                                         689               -             689 
 
Indian rupee                                                               -              69              69 
 
UK Sterling                                                                -             504             504 
 
                                                              --------------  --------------  -------------- 
 
                                                                       5,393           2,284           7,677 
 
                                                                    ========        ========        ======== 
 
1     The exposure to the market of short CFDs. 
 
Currency                                                               short           other            2019 
                                                                 exposure to       creditors           total 
                                                                  derivative           GBP'000           GBP'000 
                                                                instruments1 
                                                                       GBP'000 
 
US dollar                                                              6,680              90           6,770 
 
Australian dollar                                                      3,341               -           3,341 
 
Hong Kong dollar                                                       3,034              54           3,088 
 
Indian rupee                                                           1,401             366           1,767 
 
Other overseas currencies                                                  -             134             134 
 
UK Sterling                                                                -             409             409 
 
                                                              --------------  --------------  -------------- 
 
                                                                      14,456           1,053          15,509 
 
                                                                    ========        ========        ======== 
 
1     The exposure to the market of short CFDs and short futures. 
 
Other price risk 
Other price risk arises mainly from uncertainty about future prices of 
financial instruments used in the Company's business. It represents the 
potential loss the Company might suffer through holding market positions in the 
face of price movements. 
 
The Board meets quarterly to consider the asset allocation of the portfolio and 
the risk associated with particular industry sectors within the parameters of 
the investment objective. 
 
The Portfolio Manager is responsible for actively monitoring the existing 
portfolio selected in accordance with the overall asset allocation parameters 
described above and seeks to ensure that individual stocks also meet an 
acceptable risk/reward profile. Other price risks arising from derivative 
positions, mainly due to the underlying exposures, are estimated using Value at 
Risk and Stress Tests as set out in the Company's internal Derivative Risk 
Measurement and Management 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 is achieved by the use of a bank overdraft, if required. 
 
Liquidity risk exposure 
At 31 July 2020, the undiscounted gross cash outflows of the financial 
liabilities were all repayable within one year and consisted of derivative 
instrument liabilities of GBP1,149,000 (2019: GBP2,192,000) and creditors of GBP 
2,284,000 (2019: GBP1,053,000). 
 
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. 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 Over The Counter ("OTC") derivative transactions, collateral is used to 
reduce the risk of both parties to the contract. Collateral is managed on a 
daily basis for all relevant transactions. At 31 July 2020, GBP5,758,000 (2019: GBP 
nil) was held by the brokers in cash in a segregated collateral account on 
behalf of the Company, to reduce the credit risk exposure of the Company. This 
collateral comprised: Goldman Sachs International Ltd GBP350,000 in cash 
denominated in US dollars, HSBC Bank plc GBP1,424,000 in cash denominated in US 
dollars and UBS AG GBP3,984,000 in cash denominated in US dollars. GBP1,115,000 
(2019: GBP2,905,000), shown as amounts held at futures clearing houses and 
brokers on the Balance Sheet, was held by the Company in a segregated 
collateral account, on behalf of the brokers, to reduce the credit risk 
exposure of the brokers. This collateral is comprised of: UBS AG GBP1,115,000 
(2019: GBP2,610,000) in cash and HSBC Bank Plc GBPnil (2019: GBP295,000) in cash. 
 
Credit risk 
Financial instruments may be adversely affected if any of the institutions with 
which money is deposited suffer insolvency or other financial difficulties. All 
transactions are carried out with brokers that have been approved by the 
Manager and are settled on a delivery versus payment basis. Limits are set on 
the amount that may be due from any one broker and are kept under review by the 
Manager. Exposure to credit risk arises on unsettled security transactions and 
derivative instrument contracts and cash at bank. 
 
Derivative instruments risk 
The risks and risk management processes which result from the use of derivative 
instruments, are set out in a documented Derivative Risk Measurement and 
Management Document. Derivative instruments are used by the Manager for the 
following purposes: 
 
·      to gain unfunded long exposure to equity markets, sectors or single 
stocks. Unfunded exposure is exposure gained without an initial flow of 
capital; 
 
·      to hedge equity market risk using derivatives with the intention of at 
least partially mitigating losses in the exposures of the Company's portfolio 
as a result of falls in the equity market; and 
 
·      to position short exposures in the Company's portfolio. These uncovered 
exposures benefit from falls in the prices of shares which the Portfolio 
Manager believes to be over valued. These positions, therefore, distinguish 
themselves from other short exposures held for hedging purposes since they are 
expected to add risk to the portfolio. 
 
RISK SENSITIVITY ANALYSIS 
 
Interest rate risk sensitivity analysis 
Based on the financial instruments held and interest rates at 31 July 2020, an 
increase of 0.25% in interest rates throughout the year, with all other 
variables held constant, would have decreased the net loss on ordinary 
activities after taxation for the year and increased the net assets of the 
Company by GBP26,000 (2019: increased the net return and net assets by GBP40,000). 
A decrease of 0.25% 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 at the 
Balance Sheet date, a 10% strengthening of the UK Sterling exchange rate 
against other currencies would have increased the Company's net loss on 
ordinary activities after taxation for the year and decreased the net assets 
(2019: decreased the net return and net assets) by the following amounts: 
 
                                                                                 2020            2019 
Currency                                                                        GBP'000           GBP'000 
 
Hong Kong dollar                                                                6,677           7,611 
 
Indian rupee                                                                    4,772           6,611 
 
US dollar                                                                       3,238           3,018 
 
South Korean won                                                                2,889           2,729 
 
Taiwan dollar                                                                   2,136           2,721 
 
Indonesian rupiah                                                               1,948           3,080 
 
Australian dollar                                                               1,537           1,376 
 
Singapore dollar                                                                  636           1,222 
 
Philippine peso                                                                   590           1,574 
 
Sri Lankan rupee                                                                  450             584 
 
Thai baht                                                                         346             960 
 
Other overseas currencies                                                         883           1,204 
 
                                                                       --------------  -------------- 
 
                                                                               26,102          32,690 
 
                                                                             ========        ======== 
 
Based on the financial instruments held and currency exchange rates at the 
Balance Sheet date, a 10% weakening of the UK Sterling exchange rate against 
other currencies would have decreased the Company's net loss on ordinary 
activities after taxation for the year and increased the net assets (2019: 
increased the net return and net assets) by the following amounts: 
 
                                                                                 2020            2019 
Currency                                                                        GBP'000           GBP'000 
 
Hong Kong dollar                                                                8,161           9,302 
 
Indian rupee                                                                    5,832           8,080 
 
US dollar                                                                       3,958           3,689 
 
South Korean won                                                                3,531           3,335 
 
Taiwan dollar                                                                   2,611           3,325 
 
Indonesian rupiah                                                               2,381           3,764 
 
Australian dollar                                                               1,878           1,682 
 
Singapore dollar                                                                  778           1,494 
 
Philippine peso                                                                   721           1,924 
 
Sri Lankan rupee                                                                  550             714 
 
Thai baht                                                                         423           1,174 
 
Other overseas currencies                                                       1,079           1,471 
 
                                                                       --------------  -------------- 
 
                                                                               31,903          39,954 
 
                                                                             ========        ======== 
 
Other price risk - exposure to investments sensitivity analysis 
Based on the investments held and share prices at 31 July 2020, an increase of 
10% in share prices, with all other variables held constant, would have 
decreased the Company's net loss on ordinary activities after taxation for the 
year and increased the net assets of the Company by GBP24,127,000 (2019: 
increased the net return and net assets by GBP31,268,000). A decrease of 10% in 
share prices 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 2020, an 
increase of 10% in the share prices underlying the derivative instruments, with 
all other variables held constant, would have decreased the Company's net loss 
on ordinary activities after taxation for the year and increased the net assets 
of the Company by GBP2,463,000 (2019: increased the net return and net assets by 
GBP583,000). A decrease of 10% in share prices would have had an equal and 
opposite effect. 
 
Fair Value of Financial Assets and Liabilities 
Financial assets and liabilities are stated in the Balance Sheet at values 
which are not materially different to their fair values. As explained in Notes 
2 (k) and (l) above, investments and derivative instruments are shown at fair 
value. In the case of cash at bank, book value approximates to fair value due 
to the short maturity of the instruments. 
 
Fair Value Hierarchy 
The Company is required to disclose the fair value hierarchy that classifies 
its financial instruments measured at fair value at one of three levels, 
according to the relative reliability of the inputs used to estimate the fair 
values. 
 
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 within 
                 level 1 that are observable (i.e. developed using market data) for the 
                 asset or liability, either directly or indirectly. 
 
Level 3          Valued by reference to valuation techniques using inputs that are not 
                 based on observable market data 
 
Categorisation within the hierarchy has been determined on the basis of the 
lowest level input that is significant to the fair value measurement of the 
relevant asset. The valuation techniques used by the Company are explained in 
Notes 2 (k) and (l) above. The table below sets out the Company's fair value 
hierarchy: 
 
                                                                                                               2020 
                                                            level 1         level 2         level 3           total 
Financial assets at fair value through profit or              GBP'000           GBP'000           GBP'000           GBP'000 
loss 
 
Investments                                                 238,836           2,096             339         241,271 
 
Derivative instrument assets                                    487           6,812               -           7,299 
 
                                                     --------------  --------------  --------------  -------------- 
 
                                                            239,323           8,908             339         248,570 
 
                                                           ========        ========        ========        ======== 
 
Financial liabilities at fair value through profit 
or loss 
 
Derivative instrument liabilities                                 -          (1,149)              -          (1,149) 
 
                                                           ========        ========        ========        ======== 
 
 
 
                                                                                                               2019 
                                                            level 1         level 2         level 3           total 
Financial assets at fair value through profit or              GBP'000           GBP'000           GBP'000           GBP'000 
loss 
 
Investments                                                 311,753             386             542         312,681 
 
Derivative instrument assets                                     85           1,194             258           1,537 
 
                                                     --------------  --------------  --------------  -------------- 
 
                                                            311,838           1,580             800         314,218 
 
                                                           ========        ========        ========        ======== 
 
Financial liabilities at fair value through profit 
or loss 
 
Derivative instrument liabilities                              (463)         (1,729)              -          (2,192) 
 
                                                           ========        ========        ========        ======== 
 
The table below sets out the movements in level 3 financial instruments during 
the year: 
 
                                                                           year ended      year ended 
                                                                             31.07.20        31.07.19 
                                                                                GBP'000           GBP'000 
 
Beginning of the year                                                             800             407 
 
Transfer into level 3 - China Ding Yi Feng Holdings (Short CFD)*                    -             258 
 
Proceeds from closing of the China Ding Yi Feng Holdings (Short CFD)             (208)              - 
position 
 
(Losses)/gains on investments                                                    (253)            135 
 
                                                                       --------------  -------------- 
 
End of the year                                                                   339             800 
 
                                                                             ========        ======== 
 
*     Financial instruments are transferred into level 3 on the date they are 
suspended, delisted or when they have not traded for thirty days. 
 
JHL Biotech Inc 
JHL Biotech Inc develops biosimilars and is also engaged in providing process 
development and contract manufacturing solutions to the biopharmaceutical 
industry. On 26 February 2018, JHL Biotech voluntarily delisted from the Taipei 
Exchange. The valuation at 31 July 2020 is based on the company's financial 
information and benchmarking the position to a range of comparable companies. 
 
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. The valuation at 31 July 2020 is based on the price 
of the shares when US$277 million of funding was raised in February 2020. 
 
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, 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. The principal risks and their 
management are disclosed in the Strategic Report and in Note 17 above. 
 
The Company's gearing at the year end is set out below: 
 
                                                                                 2020            2019 
                                                                          gross asset     gross asset 
                                                                             exposure        exposure 
                                                                                GBP'000           GBP'000 
 
Long exposure to shares and equity linked notes                               241,271         312,681 
 
Long CFDs                                                                      23,230           5,654 
 
Long future                                                                     6,791          13,532 
 
Written put option                                                                  -           1,101 
 
                                                                       --------------  -------------- 
 
Total long exposures                                                          271,292         332,968 
 
Less: hedging exposure to forward currency contracts                             (117)            (69) 
 
                                                                       --------------  -------------- 
 
Total long exposures after the netting of hedges                              271,175         332,899 
 
Short CFDs                                                                      5,393          13,055 
 
Short futures                                                                       -           1,401 
 
                                                                       --------------  -------------- 
 
Gross Asset Exposure                                                          276,568         347,355 
 
                                                                             ========        ======== 
 
Total Shareholders' Funds                                                     269,400         322,999 
 
                                                                             ========        ======== 
 
Gearing*                                                                         2.7%            7.5% 
 
                                                                             ========        ======== 
 
*     Gross Asset Exposure less Total Shareholders' Funds expressed as a 
percentage of Total Shareholders' Funds. 
 
19 TRANSACTIONS WITH THE MANAGER AND RELATED PARTIES 
FIL Investment Services (UK) Limited is the Company's Alternative Investment 
Fund Manager and has delegated portfolio management and the role of company 
secretary to FIL Investments International ("FII"). Both companies are Fidelity 
group companies. 
 
Details of the current fee arrangements are given in the Directors' Report. 
During the year, management fees of GBP1,655,000 (2019: GBP2,262,000), and 
secretarial and administration fees of GBP75,000 (2019: GBP75,000) were payable to 
FII. At the Balance Sheet date, management fees of GBP117,000 (2019: GBP217,000), 
and secretarial and administration fees of GBP6,000 (2019: GBP6,000) were accrued 
and included in other creditors. FII also provides the Company with marketing 
services. The total amount payable for these services was GBP118,000 (2019: GBP 
146,000). At the Balance Sheet date, GBP25,000 (2019: GBP20,000) for marketing 
services was accrued and included in other creditors. 
 
Disclosures of the Directors' interests in the ordinary shares of the Company 
and Director's fees and taxable expenses relating to reasonable travel expenses 
payable to the Directors are given in the Directors' Remuneration Report. In 
addition to the fees and taxable expenses disclosed in the Directors' 
Remuneration Report, GBP16,000 (2019: GBP13,000) of employers' National Insurance 
contributions were paid by the Company. At the Balance Sheet date, Directors' 
fees of GBP12,000 (2019: GBP11,000) were accrued and payable. 
 
ALTERNATIVE PERFORMANCE MEASURES 
 
TOTAL RETURN 
Total return is considered to be an Alternative Performance Measure. NAV and 
diluted NAV total return includes reinvestment of the dividend in the NAV/ 
diluted NAV of the Company on the ex-dividend date. Share price total return 
includes the reinvestment of the net dividend in the month that the share price 
goes ex-dividend. 
 
The tables below provide information relating to the NAVs and share prices of 
the Company, the impact of the dividend reinvestments and the total returns for 
the years ended 31 July 2020 and 31 July 2019. 
 
                                                                   Net asset       Net asset 
                                                                   value per       value per 
                                                                    ordinary        ordinary 
                                                                     share -         share -           Share 
2020                                                               undiluted         diluted           price 
 
31 July 2019                                                         447.16p         439.91p         455.50p 
 
31 July 2020                                                         364.39p             n/a         335.00p 
 
Change in year                                                        -18.5%             n/a          -26.5% 
 
Impact of dividend reinvestment                                        +1.8%             n/a           +1.7% 
 
                                                              --------------  --------------  -------------- 
 
Total return for the year                                             -16.7%             n/a          -24.8% 
 
                                                                    ========        ========        ======== 
 
 
 
                                                                   Net asset       Net asset 
                                                                   value per       value per 
                                                                    ordinary        ordinary 
                                                                     share -         share -           Share 
2019                                                               undiluted         diluted           price 
 
31 July 2018                                                         419.36p         413.64p         412.00p 
 
31 July 2019                                                         447.16p         439.91p         455.50p 
 
Change in year                                                         +6.6%           +6.4%          +10.6% 
 
Impact of dividend reinvestment                                        +1.6%           +1.5%           +1.7% 
 
                                                              --------------  --------------  -------------- 
 
Total return for the year                                              +8.2%           +7.9%          +12.3% 
 
                                                                    ========        ========        ======== 
 
ONGOING CHARGES 
Ongoing charges are considered to be an Alternative Performance Measure. The 
ongoing charges ratio has been calculated in accordance with guidance issued by 
the AIC as the total of investment management fees and other expenses expressed 
as a percentage of the average net asset values throughout the year. 
 
                                                                          2020     2019 
 
Investment management fees (GBP'000)                                       1,967    2,030 
 
Other expenses (GBP'000)                                                     797      811 
 
Ongoing charges (GBP'000)                                                  2,764    2,841 
 
Variable element of management fees (GBP'000)                               (312)     232 
 
Average net assets (GBP'000)                                             280,521  289,809 
 
Ongoing charges ratio                                                    0.98%    0.98% 
 
Ongoing charges ratio including variable element of management fee       0.87%    1.06% 
 
                                                                       ======== ======== 
 
 
GEARING 
Gearing is considered to be an Alternative Performance Measure. See Note 18 for 
details of the Company's gearing. 
 
The Annual Financial Report Announcement is not the Company's statutory 
accounts. The above results for the year ended 31 July 2020 are an abridged 
version of the Company's full Annual Report and Financial Statements, which 
have been approved and audited with an unqualified report. The 2019 and 2020 
statutory accounts received unqualified reports from the Company's Auditor and 
did not include any reference to matters to which the Auditor drew attention by 
way of emphasis without qualifying the reports, and did not contain a statement 
under s.498 of the Companies Act 2006. The financial information for 2019 is 
derived from the statutory accounts for 2018 which have been delivered to the 
Registrar of Companies. The 2020 Financial Statements will be filed with the 
Registrar of Companies in due course. 
 
A copy of the Annual Report will shortly be submitted to the National Storage 
Mechanism and will be available for inspection at www.morningstar.co.uk/uk/NSM 
 
The Annual Report will be posted to shareholders in due course and additional 
copies will be available from the registered office of the Company and on the 
Company's website: www.fidelityinvestmenttrusts.com where up to date 
information on the Company, including daily NAV and share prices, factsheets 
and other information can also be found. 
 
The Annual General Meeting will be held at 11.00 on 8 December 2020 
 
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. 
 
ENDS 
 
 
 
END 
 

(END) Dow Jones Newswires

October 13, 2020 09:38 ET (13:38 GMT)

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