Fidelity Asian Values Plc - Final Results

Fidelity Asian Values Plc - Final Results

PR Newswire

LONDON, United Kingdom, October 16

Fidelity Asian Values PLC

LEI: 54930094CXNYINSNOQ96

Annual Report for the year ended 31 July 2026

HIGHLIGHTS

• During the twelve-month period ended 31 July 2026, Fidelity Asian Values PLC reported a share price total return of +7.8% and Net Asset Value total return of +6.1%
• The Comparative Index, the MSCI All Country Asia ex Japan Small Cap Index, produced a total return of +9.1% over the same timeframe
• The Board has announced a final dividend of 22.0p, an increase of 7.3% from 2025
• The Company celebrated 30 years since listing on the London Stock Exchange: every £1 invested at IPO would have grown to £8.36 on a share price total return basis, compared with £5.89 from the Index
• Portfolio managers see opportunities in Indonesia and China, away from concentrated artificial intelligence markets

Contacts

For further information, please contact:

George Bayer

Company Secretary

FIL Investments International

[e-mail]

Financial Highlights

	2026	2025
Assets as at 31 July
Gross Asset Exposure1	£487.0m	£470.2m
Net Market Exposure1	£429.0m	£416.6m
Total Shareholders' Funds	£389.9m	£402.7m
NAV per Share1,2	621.46p	604.69p
Gross Gearing1,2	24.9%	16.8%
Net Gearing1,2	10.1%	3.4%
	==========	==========
Share Price and Discount data at 31 July
Share Price at year end	588.00p	564.00p
Year high	672.00p	566.00p
Year low	554.00p	454.00p
Discount to NAV per Share at year end1,2	5.4%	6.7%
Discount year high	8.5%	14.5%
Discount year low	2.1%	6.7%
	==========	==========
Results for the year ended 31 July
Revenue Return per Share1,2	25.18p	22.51p
Capital Return per Share1,2	10.68p	40.34p
Total Return per Share1,2	35.86p	62.85p
	==========	==========
Ongoing Charges for the year ended 31 July
Ongoing Charges1,2	0.95%	0.95%
Variable Element of Management Fee3	(0.20%)	0.14%
Ongoing Charges including Variable Element of Management Fee2	0.75%	1.09%
	==========	==========

1 See Glossary of Terms in Annual Report.

2 Alternative Performance Measures. See below.

3 The variable element of the management fee is calculated over a rolling three-year period with reference to the Benchmark Index.

Chairman's Statement

I am pleased to present the Annual Report of Fidelity Asian Values PLC (the 'Company') for the year ended 31 July 2026.

Given another year of heightened geopolitical volatility - including the unprecedented disruption of energy markets - it is gratifying to report another year of solid absolute returns.

In the period under review, the Company's Share price total return was +7.8% (2025: +17.0%), assisted by a further narrowing of the Share price discount to NAV, from 6.7% at 31 July 2025 to 5.4% at the year end. The Company's net asset value ('NAV') per Share total return was +6.1% (2025: +12.4%), compared with a net total return of +9.1% (2025: +7.1%) from the Comparative Index, the MSCI All Country Asia ex Japan Small Cap Index in sterling terms ('Index').

Several factors influenced the investment outcome on both an absolute and a relative basis. During the year, the weighting of information technology ('IT') stocks in the Index rose from around 19% to approximately 27%. The decision to reduce portfolio exposure to the IT sector early in the period therefore detracted from relative performance, although individual holdings such as Taiwan Semiconductor Manufacturing Company (TSMC), the portfolio's largest position, performed extremely well. Strong general performance from Taiwanese technology stocks meant that the portfolio's substantial underweight position in these stocks detracted relative to the Index. Overweight allocations to China and Indonesia also weighed on performance, with Indonesia's market performance being weak in absolute terms. The greatest positive contributions to relative performance came from the portfolio's underweight position and good stock selection in South Korea, and the underweight position in India, which the Portfolio Managers, Nitin Bajaj and Ajinkya Dhavale, continue to regard as overvalued in aggregate.

You will find detailed information on these points and the portfolio's performance in the Portfolio Managers' Review on the following pages. In a year dominated by narrow market leadership from momentum-driven AI-related stocks, Nitin and Ajinkya have delivered a very good absolute return from a diversified portfolio. Their strategy remains bottom-up, contrarian and value-focused. In thematically driven markets such as these, their approach can make the Company an excellent risk diversifier within a broader portfolio.

30th Anniversary and long-term performance

The Company was launched in June 1996 and recently marked its 30th anniversary with an event at the London Stock Exchange (pictured). Alongside the Board, Nitin and representatives from Fidelity and other service providers, we had the pleasure of welcoming a number of shareholders, including two who had first invested at the IPO and two younger investors who hold the Company in their Junior ISAs.

As I noted on the day, Asia's place in the world economy has transformed over the past 30 years. China is now the world's second largest economy and economic development has lifted around one billion people out of poverty across the region. Every £1 invested in the Company at IPO, assuming all dividends were reinvested, would have grown to £8.44 on a NAV basis and £8.36 on a Share price basis by the end of July 2026. This is particularly notable given the Asian financial crisis in 1997, during which the Share price fell to 33p at its lowest. The comparable return from the Index - which would have seen £1 grow into £5.89 - while still impressive, is substantially lower.

The strength of the long-term performance has also seen the Company feature for the fourth successive year in the Association of Investment Companies' ("AIC") ISA Millionaire list. This considers the outcome for investors who invested their full ISA allowance each year from 1999 and reinvested dividends. A total investment of £346,560 in the Company from 6 April 1999 to 31 January 2026 would have grown to £1,486,912 on a Share price total return basis.

Board Strategy Day

Since I became your Chairman, my fellow Directors and I have held an annual Board Strategy Day to consider all the factors that we, as non-executive Directors of an investment company, can and should be influencing. A particular focus at this year's event was the strength and depth of the teams supporting Nitin and Ajinkya in Singapore, both in research and in portfolio construction and risk. We met with John Stavis and Sherry Tsoi, who respectively lead the research and portfolio construction and risk teams in Asia. These discussions reinforced our understanding of the depth of research provided to your Portfolio Managers by Fidelity's exceptional team of analysts, and of the constructive challenge applied to their stock selection and trading decisions. With a value-focused investment style, there is always a risk of 'value traps', where stocks appear cheap not because the market has failed to recognise their inherent value, but because they face genuine difficulties that may be hard to overcome. It is therefore reassuring to know that robust checks and balances are in place to ensure that only the most compelling opportunities - on both the long and the short side - are included in the portfolio, and that holding periods are optimised for the best returns.

As in previous years, we also discussed the competitive landscape, the use of gearing, distribution, marketing and PR, as well as service provision and investment restrictions.

Discount Management and Share Repurchases

Share repurchases by the Company were higher than usual in the first half of the financial year, with 2,816,450 Shares repurchased, representing 4.2% of the Shares in issue at the beginning of the year, while the discount narrowed from 6.7% to 3.3%. Discount volatility in the wider market increased in the second half amid heightened geopolitical uncertainty. Despite this, the discount was largely contained between 3% and 6%. Repurchases were significantly lower in the second half with 1,044,674 Shares bought back, representing 1.6% of the Shares in issue at the beginning of the year.

Some shareholders may be concerned that buybacks could reduce the Company's scale and, over time, its appeal to larger investors. While the Board recognises this trade-off, repurchases at a discount to NAV are accretive to NAV per Share and can also help limit discount volatility and provide additional liquidity when natural demand is weak. In the reporting year, share repurchases enhanced NAV per Share by 0.4% (2025: 0.7%). This should also be seen in context of the broader industry which saw £10.2 billion of shares bought back in 2025, a 36% increase on the year before. The Board therefore continues to use buybacks, balancing these benefits against the impact on the Company's scale.

At the Annual General Meeting ('AGM') on 25 November 2026, the Board will seek shareholder approval to renew the annual authorities to repurchase up to 14.99% of its Shares in issue (excluding Treasury Shares) and to allot up to 10% of the Shares in issue where the Shares trade at a premium to NAV. The Board's policy is to repurchase Shares only at prices below the prevailing NAV per Share and Treasury Shares will only be re-issued at NAV per Share or at a premium to NAV per Share.

Marketing and Promotion

Share buybacks alone are unlikely to eliminate a persistent discount to NAV; discounts are a function of supply and demand and, as such, increasing demand is at least as important as absorbing excess supply. Your Board continues to work with Fidelity and external partners to raise the profile of the Company through digital and print advertising, sponsorship, events, direct marketing and press coverage. Kepler Partners produce regular research notes on the Company, which are distributed widely and made available on the Company's website. During the year, we also increased the use of social media marketing and promotion, extending our reach beyond traditional channels.

Dividend

The Board is pleased to recommend a final dividend of 22.0 pence per Share for the year ended 31 July 2026, which represents a 7.3% increase over the previous year, for approval by shareholders at the AGM on 25 November 2026. The dividend will be paid on 4 December 2026 to shareholders on the register at the close of business on 30 October 2026.

This year's increase is supported by an increase of approximately 12% in net revenue return per Share. Your Portfolio Managers invest principally for the long-term capital growth of your investment, but their value-focused investment style often leads them towards companies with conservative balance sheets and strong cash generation, which also supports dividend payments to shareholders.

Gearing

As an investment trust, your Company can use borrowing and derivative instruments to increase its market exposure ("Gearing"). This can enhance shareholder returns when the return on the additional exposure exceeds the cost of financing, but it can also amplify losses. The level of gross gearing reflects the investment opportunity set available to your Portfolio Managers. When they identify more compelling opportunities on either the long or the short side, gross gearing may rise.

At the period end, gross gearing was 24.9% (2025: 16.8%) and net gearing was 10.1% (2025: 3.4%). Rather than using bank borrowing (which can be expensive depending on the prevailing interest rate environment and is often deployed across a portfolio on a pro-rata basis), the Company's gearing is primarily achieved through contracts for difference ('CFDs'). CFDs are derivative instruments that can be used on a security-by-security basis, allowing Nitin and Ajinkya to increase or reduce exposure selectively. Each year, your Board reviews the use of CFDs against alternative forms of gearing. We have again concluded that, in current market conditions, CFDs provide a flexible and cost-effective form of financing and allow gearing to be deployed selectively. We are fortunate that Fidelity has the infrastructure and capability to allow the use of CFDs in the portfolio; few other management groups can offer this.

Use of Short Positions

Fidelity's expertise in derivative instruments also enables your Portfolio Managers to take short positions. Ajinkya has significant experience in this area, having spent several years as a specialist shorting analyst for Fidelity. A short position seeks to benefit from an anticipated fall in the price of a stock or the value of an index. These positions may be held for relatively long periods as it can take time for the investment thesis to play out.

The total short exposure as of 31 July 2026 was 6.9% of net assets (2025: 6.7%). Short exposure has historically been limited to a maximum of 10% of net assets. However, while relatively small in scope, this tool has generally been additive to the Company's performance since its introduction.

Your Portfolio Managers currently see a broad range of opportunities to short stocks. Their research is identifying companies where stretched valuations are not supported by the underlying fundamentals, including weak earnings quality, fragile balance sheets or structural challenges.

Against this background, the Board proposes to amend the Investment Policy by increasing the maximum permitted short exposure from 10% to 20% of net assets, subject to approval by shareholders.

The increase would not introduce a new investment technique or change the Company's bottom-up, value-focused investment philosophy. It would instead give the Portfolio Managers greater capacity to use an established capability when they identify compelling opportunities. The 20% limit would be a ceiling, not a target. For day-to-day management, the Board would normally set a lower working limit and keep it under regular review.

Your Board undertook extensive due diligence before deciding to recommend this change. We reviewed the historical use of shorting, risk monitoring, controls and governance. We also examined Fidelity's broader risk and compliance framework, including daily monitoring against Board-approved limits and regular reporting to the Board. This work gives us confidence that the capability is supported by robust systems and effective oversight.

The related increase in the maximum Gross Asset Exposure from 140% to 150% of NAV would provide room for a larger short book without changing the formal Net Market Exposure limit. The Board considers this a measured extension of a successful part of the strategy. It would give the Portfolio Managers controlled additional flexibility to exploit a rich opportunity set, while maintaining disciplined risk management and Board oversight. Both changes will be put to shareholders at the AGM in November.

Investment Objective and Investment Policy

Given that shareholders are being asked to approve the changes to the Investment Policy described above, the Board and Fidelity are also taking the opportunity to simplify and clarify the wording and presentation of the Investment Objective and Investment Policy. No other material changes are proposed beyond the increase in the short exposure limit and the corresponding increase in the Gross Asset Exposure limit.

Board of Directors

We are fortunate to have an experienced and stable Board of Directors and there have been no changes in the period under review. We believe that your Board has a good mix of essential qualities and a diverse set of relevant backgrounds. We remain open to challenge and committed to listening to and doing the best job for all our shareholders. We welcome your engagement both by attending the AGM and by contacting us via the Company Secretary.

Continuation Vote

I would remind shareholders that, at the forthcoming Annual General Meeting, we will be voting on the continuation of the Company as an investment trust, as we do every five years. In the past five years, the Company has delivered NAV and Share price total returns of 42.4% and 40.3% in often challenging market conditions, and my fellow Directors and I will be voting in favour of continuation.

Outlook

In momentum-driven markets, it is easy for investors to get caught up in the enthusiasm for fear of missing out, but in the long-term, one of the best predictors of returns is not to overpay today for the value of earnings in the future. Currently, the stocks in the portfolio are, on aggregate, close to the cheapest they have been in the past 10 years relative to the Index, yet their return on equity is substantially higher - close to a 10-year high. This is a portfolio that is full of high-quality companies trading at attractive valuations, managed with an absolute return mindset and patiently positioned for long-term capital growth, whatever short-term surprises the coming year may hold in store for the market.

Clare Brady

Chairman

15 October 2026

ANNUAL GENERAL MEETING - WEDNESDAY, 25 NOVEMBER 2026 AT 11.00 AM

The AGM of the Company will be held at 11.00 am on Wednesday, 25 November 2026 at 4 Cannon Street, London EC4M 5AB (nearest tube stations are St Paul's or Mansion House) and virtually via the online Lumi AGM meeting platform. Full details of the meeting are given in the Notice of Meeting in the Annual Report.

For those shareholders unable to attend in person, we will live-stream the formal business and presentations of the meeting online.

Nitin Bajaj and Ajinkya Dhavale, the Portfolio Managers, will be making a presentation to shareholders discussing the performance of the past year and the prospects for the year to come. The Portfolio Managers and the Board will be very happy to answer any questions that shareholders may have. Following the AGM, copies of their presentation can be requested by email at [e-mail] or in writing to the Secretary at FIL Investments International, Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey KT20 6RP.

Properly registered shareholders joining the AGM virtually will be able to vote on the proposed resolutions. Please see Note 9 to the Notes to the Notice of Meeting in the Annual Report for details on how to vote virtually. Investors viewing the AGM online will be able to submit live written questions to the Board and the Portfolio Managers and these will be addressed at an appropriate juncture during the meeting.

Further information and links to the Lumi platform may be found in Note 9 in the Notes to the Notice of Meeting in the Annual Report. On the day of the AGM, in order to join electronically and ask questions via the Lumi platform, shareholders will need to connect to the website https://meetings.lumiconnect.com/100-515-687-445.

Please note that investors on platforms, such as Fidelity Personal Investing, Hargreaves Lansdown, Interactive Investor or AJ Bell Youinvest, will need to request attendance at the AGM in accordance with the policies of your chosen platform. They may request that you submit electronic votes in advance of the meeting. If you are unable to obtain a unique IVC and PIN from your nominee or platform, we will also welcome your online participation as a guest. Once you have accessed https://meetings.lumiconnect.com/100-515-687-445from your web browser on a tablet, smartphone or computer, you should then select the 'Guest Access' option before entering your name and who you are representing, if applicable. This will allow you to view the meeting and ask questions, but you will not be able to vote.

Further information on how to vote across the most common investment platforms is available at the following link:

https://www.theaic.co.uk/how-to-vote-your-shares

Portfolio Managers' Review

Nitin Bajaj was appointed as the Portfolio Manager of Fidelity Asian Values PLC on 1 April 2015. He is based in Singapore and has over 24 years of investment experience. He is also the Portfolio Manager for the Fidelity Asian Smaller Companies Fund and the Fidelity China Focus Fund. He first joined Fidelity in 2003 as an Investment Analyst and then took over the Fidelity India Special Situations Fund and subsequently started the Fidelity India Value Fund. He managed these funds until November 2012, when Fidelity decided to sell its India business.

Ajinkya Dhavale, the Company's Co-Portfolio Manager, supports and works closely with Nitin Bajaj. He has extensive experience in Asian markets and shares a common investment approach and complementary experience with the Portfolio Manager. He has over 18 years of investment experience. He joined Fidelity as an Investment Analyst in 2011, before becoming an Asia shorting analyst in 2014 and small-cap analyst in 2018. He is also Co-Portfolio Manager of the Fidelity Asian Smaller Companies Fund.

Question

How did the Company perform during the year to 31 July 2026, and what were the main drivers of returns?

Answer

Over the year ended 31 July 2026, the Company's net asset value ("NAV") total return was +6.1% compared with the Comparative Index (MSCI All Country Asia ex Japan Small Cap Index (net)) return of +9.1%. The Share price total return for the year was +7.8%, helped by the discount narrowing from 6.7% to 5.4%.

In Asia, Taiwanese small-cap stocks performed strongly, benefitting from investment in AI-related infrastructure. The Company significantly reduced its position in these companies late in 2025 and early 2026. This detracted from relative performance as these stocks continued to rise, with the Taiwan Small Cap Index up 43% in the second quarter of 2026. Meanwhile, our holdings in Indonesia and China were affected by a combination of factors (outlined below) that weighed on the perception of their domestic stock markets.

We remained underweight in India, which added to relative returns during the review period, as market momentum shifted away from Indian small caps and towards Taiwan.

Our investment process focuses on owning good businesses that are run by trustworthy management teams and buying them only when we have an ample margin of safety. As a result of this consistent contrarian value approach, the portfolio comprises a basket of high-quality businesses trading at a significant discount to our investment universe.

We have sizeable allocations to China and Indonesia as we have found a large number of businesses trading at significant discounts to their intrinsic value. Our exposure to Taiwan, South Korea and India remained conservative relative to the Index, as these markets have been in favour with investors and we struggled to find stocks with a sufficient margin of safety.

In our view, 12 months is a short period of time over which to judge a portfolio's performance. This should be put in the context of longer-term performance, in line with our investment horizon. Since taking over the management of the Company's assets in 2015, the Company's NAV total return has risen by 161.6%, which equates to an annualised return of +8.9% versus the MSCI Asia ex Japan Small Cap Index's net total return of +7.3%. The cumulative Share price total return has been 183.8%, equivalent to an annualised return of 9.6%.

Question

Which holdings made the strongest contributions during the year and why?

Answer

Unsurprisingly, given the massive global investment in AI, our positions in semiconductor businesses were among the key contributors to performance, with Taiwan Semiconductor Manufacturing Company (TSMC) the leading contributor, followed by Topco Scientific. The Hong Kong-based jewellery retailer Chow Sang Sang also added value.

• Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest semiconductor foundry, was the leading contributor over the period. We have always viewed TSMC as an undisputed leader in logic chip manufacturing, particularly in the most advanced applications. It continued to deliver strong earnings growth and margin improvement driven by AI-led demand, without resorting to price increases.

• Topco Scientific is a Taiwanese supplier of materials, equipment and engineering solutions to semiconductor manufacturers. The increased demand for semiconductor materials due to continued investment in AI translated into higher profits over the course of the year, which supported the share price.

• Chow Sang Sang, a prominent gold jewellery retailer in China, benefited from strength in gold prices that lifted its margins. This position was initiated seven years ago when its enterprise value, broadly the total value of the business including net debt, was around half the value of the gold and diamond inventory it owned. We exited this position as its valuation approached the value of its inventory.

Meanwhile, our largest relative detractors were primarily Indonesian stocks that were caught in the market-wide downtrend, while a short position in a technology stock did not yield the desired outcome in a momentum-led market.

• Short position: We held a short position in a technology company trading at an extreme valuation that does not reflect the weakness of its core business. However, this position performed poorly as market exuberance in stocks associated with AI demand remained strong. We do not generally name short positions due to the potential impact of disclosure on portfolio management.

• Ciputra Development is a best-in-class Indonesian property developer with diversified exposure across the country. Its stock fell with the broader Indonesian market despite Ciputra's robust fundamentals, including a strong balance sheet, a substantial land bank and resilient presales activity. The historical cost of its land alone is approximately twice the amount of the enterprise value. At estimated market value, we believe this land could be worth 4-5 times that amount.

• Indofood CBP, the largest instant noodle maker in the world with notable market share in Indonesia, the Middle East, Africa, and Southeastern Europe, was also caught in the sell-off in the Indonesian stock market. We retain our conviction in this durable Indonesian franchise whose underlying business remains unaffected by weaker investor sentiment towards Indonesia.

Question

Technology and artificial intelligence have remained important drivers of Asian markets over the last year. How are you positioning the portfolio in this segment?

Answer

We believe that AI is a remarkable technology whose applications will transform several industries over the coming decade. However, that does not necessarily make it a good investment. The internet has been one of the most important technologies of the last three decades, yet many technology stocks bought in 1999 and 2000 lost 90% of their value.

We are concerned by the expectations now reflected in valuations of stocks associated with this theme. The scale of capital expenditure being committed to AI infrastructure is unprecedented. According to some estimates, investment in AI infrastructure as a percentage of GDP is around twice the level of spending on telecom networks during the early 2000s and dot-com era.

During large investment cycles, reported earnings often exceed expectations because one company's investment becomes another company's revenue, while the cost of the spending is spread over several years through depreciation. This leads to a powerful earnings cycle that can continue for some time. We question whether those earnings will prove to be sustainable. We feel there is limited margin of safety in most of the stocks associated with this theme.

We maintain exposure to TSMC, which we continue to view as the unparalleled leader in manufacturing logic chips. It remains reasonably valued among technology companies in Asia and is one of the few companies in the technology supply chain that has not raised prices excessively during this cycle, making its earnings more sustainable. We also initiated positions in businesses within the AI supply chain that benefit from AI-related investment and have valuations that remain reasonable through the cycle.

However, this is a very crowded and popular part of the market, so our ability to find undervalued stocks is limited. We are very careful when deploying capital in AI stocks as we feel that there is a risk of significant capital loss.

Question

Indonesia remains an important area of investment for the Company. What continues to support your conviction in the market?

Answer

Looking at Indonesia first from a top-down macroeconomic perspective, and then from a bottom-up stock selection perspective, there are several reasons why we remain positive on the market.

On the macroeconomic front, Indonesia has one of the strongest demographic tailwinds in Asia and inflation is contained compared with its emerging market peers. Indonesia is a net energy exporter; its fiscal deficit is subject to a statutory ceiling, and levels of government and household debt are among the lowest globally.

Despite this reasonable macroeconomic position, Indonesian stocks have been the weakest performers over the review period within the Asian universe. There are several underlying factors: Indonesia's stock market has relatively little direct exposure to the AI theme. This has made it an easy market to overlook amidst the AI-driven frenzy. Further, recent political developments and policy decisions have also weighed on investor confidence.

Nonetheless, our conviction in Indonesia stems from the stock-specific opportunities available. We have found and invested in a number of market-leading companies across different industries (from banking and housebuilding to consumer goods) and we have been able to build our positions in these businesses at attractive prices, often paying P/E ratios of between 5x-10x for businesses that have been around for decades, generate Return on Equity (ROE) of between 15%-20%, have many years of growth ahead of them and pay generous dividends to shareholders. The following table shows our key holdings in Indonesia, many of which are long-standing positions.

As at 31 July 2026	Portfolio weight (%)	Index weight (%)	Relative weight (%)	Forward PE Ratio	Dividend Yield (%)	ROE (%)
Bank Central Asia	3.6	0.0	3.6	12.2	5.3	21.8
Indosat	2.5	0.0	2.5	11.7	4.9	16.5
Adaro Andalan Indonesia	2.4	0.1	2.4	5.0	7.2	26.7
Indofood CBP	1.7	0.0	1.7	8.5	4.2	16.2
Ciputra Development	1.4	0.0	1.4	4.4	4.8	9.5
Bank Negara	1.2	0.0	1.2	6.1	9.5	14.2
Arwana Citramulia	1.0	0.0	1.0	6.8	8.0	23.4
Cikarang Listrindo	0.9	0.0	0.9	9.5	8.8	9.9
Selamat Sempurna	0.9	0.0	0.9	8.0	8.9	30.0
Amman Mineral Internasional	0.8	0.0	0.8	12.8	-	16.6
	========	========	========	========	========	========

Source: Fidelity International, Refinitiv DataStream, 31 July 2026; Index: MSCI AC Asia ex Japan Small-Cap Index. Price to Earnings (P/E) Ratio is a measure for valuing a company's share price versus its earnings and is based on FY1 estimates. Dividend yield measures a company's annual dividend payments as a percentage of its share price. Dividend Yield is based on current fiscal year data. Return on Equity (ROE) is the measure of a company's net income divided by its shareholders' equity. Return on Equity (ROE) is based on current fiscal year data.

Question

Where are you finding the most attractive opportunities in China, and how has the opportunity set changed during the year?

Answer

We maintain diversified exposure to China in segments of the market that have remained out of favour, where durable businesses are trading at discounted valuations. As in other global and Asian equity markets, AI-related stocks remained popular, while a lack of an obvious market catalyst weighed on consumer businesses, selected industrials and real estate stocks.

Our contrarian, value-driven process has led us to these areas, where strong balance sheets and improving shareholder returns add to our margin of safety. Our biggest exposures in China are in travel-related stocks (BOC Aviation, Macau Casinos, Samsonite and Trip.com), consumer staples (China Mengniu Dairy), real estate (a number of positions across property development and management) and, increasingly, healthcare businesses (hospitals/pharmacy chains).

During the year, we exited commodity holdings where the margin of safety was narrowing as the stocks performed strongly.

Question

How does Fidelity's research platform help you identify businesses that may be overlooked or misunderstood by the wider market?

Answer

Our dedicated and experienced Asian small-cap analyst team provides us with a significant competitive advantage and is particularly valuable in our investment universe. Public disclosure can be limited in the small-cap universe, and businesses are often less well researched by the wider market.

Our analysts, who we meet with regularly, are an important source of investment ideas and challenge within our investment process. Their local, first-hand research helps us build a thorough understanding of a business, its competitive position, management quality and long-term prospects, including factors that may not be widely understood by the market. The investment trust structure also gives us additional flexibility to act on those ideas. When we have more ideas than money, we can use gearing. The level of gearing therefore reflects the investment opportunities we are finding.

We can also draw on Fidelity's broader expertise and research capabilities in unlisted companies across Asia. Fidelity has specialist resource in this area alongside its local analyst network, which broadens the range of companies we can research and invest in beyond listed markets. We use this flexibility selectively, but it gives us access to opportunities that would otherwise not be available to the portfolio.

We are excited by the team we work with, including the regional analyst team at Fidelity, the small-cap team in Asia and our specialist shorting analysts. Our performance reflects the hard work and insights of Fidelity's research team, and we are grateful for their help.

Question

Why is the Company seeking shareholder approval to increase its permitted short exposure, and how could this additional flexibility benefit the portfolio?

Answer

Short exposures are another way for us to express a research view. Just as we look for good businesses trading at valuations that provide a margin of safety, the short book allows us to express a view on businesses where our research suggests that market expectations are overly optimistic relative to the underlying fundamentals.

We are not trying to make broad calls on sectors or macroeconomic outcomes. The focus remains on individual companies and the quality of the investment case. Where we have a high degree of conviction, a short position can complement our long investments, improve the balance of the portfolio and allow us to make fuller use of the insights generated by our research process.

In our opinion, the current market environment presents highly attractive opportunities for short positions, particularly among companies with weak balance sheets, stretched valuations, poor earnings quality or structurally challenged business models. Short positions are an existing part of the Company's investment approach and have contributed to relative performance for the last five calendar years.

Increasing the limit would provide additional flexibility within the existing strategy, rather than introducing a new investment technique. The proposal would allow the Company to make fuller use of the investment flexibility available within the investment trust structure, while managing risk across the portfolio.

Question

How do you maintain a long-term investment perspective during periods of heightened market and geopolitical uncertainty?

Answer

We believe that in periods of heightened exuberance or fear, it becomes even more important to focus on what we can understand: the quality of the business, the strength of its balance sheet, the integrity of the people running it and the price we are being asked to pay. We have been consistent in our approach: we invest in businesses, not countries or sectors, and stock picking remains the mainstay of our process.

We have been investing for over two decades based on our understanding of each business and the environment in which it operates. Companies operate within economic cycles and are affected by geopolitics, so we cannot ignore these risks, but we think about them primarily at the individual company level. These factors provide guardrails rather than drive our investment decisions. We do not try to predict every macroeconomic or geopolitical event.

Maintaining a long-term perspective therefore comes down to remaining disciplined and sticking to our investment philosophy. We look for good businesses run by competent and honest management teams and seek to buy them at valuations that provide an adequate margin of safety if conditions deteriorate. This time-tested approach has consistently delivered sustainable performance for the Company over the long-term, and we are confident that it can continue to do so.

Nitin Bajaj Ajinkya Dhavale

Portfolio Manager Co-Portfolio Manager

15 October 2026

PRINCIPAL RISKS AND UNCERTAINTIES AND RISK MANAGEMENT

As required by provisions 33 and 34 of the Association of Investment Companies Corporate Governance Code (the "AIC Code"), the Board has a robust ongoing process for identifying, evaluating and managing the principal risks and uncertainties faced by the Company, including those that could threaten its business model, future performance, solvency and liquidity. The Board will implement the new requirement, under provision 34 of the AIC Code applicable for reporting periods from 1 January 2026, of a Board declaration on the effectiveness of material risk management and internal controls in the Company's next reporting year.

The Board, with the assistance of the Alternative Investment Fund Manager (FIL Investment Services (UK) Limited (the "Manager")), has developed a risk matrix which, as part of the risk management and internal controls process, identifies the key existing and emerging risks and uncertainties that the Company faces.

The Manager also has responsibility for risk management of the Company. It works with the Board to identify and manage the principal and emerging risks and uncertainties and to ensure that the Board can continue to meet its UK corporate governance obligations.

The Board considers the risks listed below as the principal risks and uncertainties faced by the Company.

Principal Risks
1. Economic, Political and Market Risks
Trend (from previous year): Increased
Description and Impact		Mitigation
• The Company and its assets may be affected by economic and market risks. These include market downturns, interest rate movements, exchange rate movements and market shocks. Inflation and economic instability may also impact investors' risk appetite. Emerging markets are less established and can be more volatile than developed markets. They involve higher risks, particularly market, credit, illiquid security, legal, custody, valuation, and currency risks, and are more likely to experience market shocks than developed markets. • The Company is exposed to a variety of geopolitical risks. The geopolitical landscape continues to change globally and is largely shaped by the ongoing effects of conflicts, tariff wars, deglobalisation trends and significant supply disruption. The Middle East and Russia are significant net exporters of oil, natural gas and a variety of soft commodities with supply limitations fuelling global inflation and economic instability, specifically within Western nations. Energy price inflation continues to be a primary risk but has impacted countries to various degrees depending on their reliance on energy imports. • There are country specific risks applicable to the Company's portfolio, all of which may potentially impact the performance of the Company. For example, the market narrative in Indonesia remains bifurcated, with strong domestic growth and commodity exposure versus governance transparency concerns and MSCI classification risks. US/China geopolitical risks remain elevated, particularly around Taiwan and US relations. India is heavily dependent on energy imports and may face a near-term drag on domestic demand and liquidity conditions. • Most of the Company's assets and income are denominated in currencies other than sterling which is the Company's functional and presentation currency. As a result, movements in exchange rates may affect the sterling value of its assets and income.		• The Board has oversight of the Company's portfolio, which is reviewed at each Board meeting. The Company's portfolio is made up mainly of listed securities, and the Board ensures that the portfolio is sufficiently diversified by sector, country and number of holdings. • The Audit and Risk Committee receives regular risk management reports from the Manager and reviews any material economic, political and market risks and their potential impact on the Company's portfolio at Audit and Risk Committee meetings. • The Manager has major market contingency plans developed for more extreme market events. • Market and currency risks to which the Company is exposed are included in Note 17 to the Financial Statements together with summaries of the policies for managing these risks. • It is the Company's policy not to hedge the underlying currencies of the holdings in the portfolio but rather to take the currency risk into consideration when making investment decisions.
2. Investment Performance Risk (including the use of Derivatives and Gearing)
Trend (from previous year): Stable
Description and Impact		Mitigation
• The achievement of the Company's investment performance objective relative to the Comparative Index requires the taking of risk, such as investment strategy, asset allocation and stock selection, and may lead to NAV and Share price underperformance compared to the Comparative Index and/or peer group companies. • Continued underperformance could lead to the Company and its objective becoming unattractive to investors. • The Company gears using derivatives including CFDs which provide greater flexibility and are generally cheaper than bank loans. The principal risk is that the Portfolio Managers fail to use gearing effectively, resulting in a failure to outperform in a rising market or underperformance in a falling market. • Derivative instruments are used to enhance investment returns, as well as for hedging and efficient portfolio management purposes. There is a risk that the use of derivatives may lead to higher volatility in the NAV/Share price, than might otherwise be the case.		• The Manager is responsible for actively monitoring the portfolio in accordance with the asset allocation parameters and seeks to ensure that individual stocks meet an acceptable risk/reward profile. The Board independently challenges the Portfolio Managers and also takes comfort from the work of the Portfolio Construction and Advisory team in reviewing and challenging the portfolio. • The Board reviews Fidelity's compliance with agreed investment restrictions; investment performance and risk; relative performance; the portfolio's risk profile; and whether appropriate strategies are employed to mitigate any negative impact of substantial changes in the markets. The Board and the Company's Broker also regularly canvass major shareholders for their views with respect to company matters. • The Investment Policy sets the gearing limits within which the Manager must operate. The Board regularly reviews the Investment Policy. • The Board has put in place policies and limits to control the Company's use of derivatives and exposures. These are monitored daily by the Manager's Compliance team with regular reports provided to the Board. Further detail on derivative instruments risk is included in Note 17 to the Financial Statements.
3. Competition Risks and Marketplace Threats Impacting Business Growth
Trend (from previous year): Increased
Description and Impact		Mitigation
• There is increased merger and acquisition activity across the investment company marketplace and alternative investment offerings (including passive vehicles) which could influence the demand for the Company's Shares. • There is a risk of costly shareholder activism in the investment company sector, pursuing goals that may not be in the interests of most shareholders.		• The Board, the Company's Broker and the Manager closely monitor industry activity, the peer group and the Share register. • An annual review of strategy is undertaken by the Board to ensure that the Company continues to offer a relevant product to investors. There has also been pre-emptive preparation in case of an activist investor approach that is not in the interests of most shareholders.
4. Cybercrime and Information Security
Trend (from previous year): Increased
Description and Impact		Mitigation
• Cybersecurity risk, including the increased use of artificial intelligence (AI) and cyberattacks or threats to the functioning of global markets and to the Manager's own business model, including its and the Company's outsourced suppliers. • The external threat environment has intensified, driven by AI enhanced ransomware, identity-centric attacks, rapidly expanding supply chain compromise vectors, and rising nation state activity.		• The risk is monitored by the Board with the help of the Manager's global cybersecurity team and their extensive Strategic Cyber and Information Security programme and assurances are obtained from outsourced suppliers. • The Manager has established a comprehensive framework of information security policies and standards which provide a structured approach to identify, prevent, and respond to information security threats. The framework ensures consistency in Fidelity's security measures, enhances its ability to adapt to evolving/emerging threats, and ensures compliance with ever-evolving regulatory requirements. • The Manager obtains assurance that the Company's other key service providers also have cybersecurity measures in place. • Key performance indicators and metrics have been developed by the Manager to monitor the overall efficacy of cybersecurity processes and controls and to further enhance the Manager's cybersecurity strategy and operational resilience.
5. Business Continuity and Crisis Management
Trend (from previous year): Increased
Description and Impact		Mitigation
• Business process disruption risk refers to the continued threat of cyberattacks, geopolitical events, outages, fire events and natural disasters, resulting in financial and/or reputational impact to the Company affecting the functioning of the business. • In addition to the Manager, the Company relies on other third-party service providers, principally the Registrar, Custodian and Depositary, who may be subject to business continuity and crisis management issues.		• The Manager has Business Continuity and Crisis Management Frameworks in place to deal with business disruption and assure operational resilience. • All third-party service providers are subject to a risk-based programme of oversight by the Manager. Third-party service provider internal control reports are received on an annual basis, with concerns investigated as they arise.
6. Operational Risks
Trend (from previous year): Stable
Description and Impact		Mitigation
• Financial losses or reputational damage from inadequate or failed internal processes, people and systems or from external parties and events.		• The Manager's Operational Risk Management Framework is designed to pro-actively prevent, identify and manage operational risks inherent in most activities. • The Manager uses robust systems and procedures dedicated to its operational processes. Its risk management structure is designed according to the FCA's three lines of defence model.
7. Level of Discount to Net Asset Value
Trend (from previous year): Stable
Description and Impact		Mitigation
• The risk that the Share price performance lags NAV performance. A widening, or increase in the volatility, of the discount at which the Company's Shares trade to NAV may mean that shareholders would be unable to realise the underlying value of their investment. In considering the risk that the discount to NAV poses to shareholder value and returns, both the absolute level of the discount and the amount relative to the Company's peer group and the wider market are considered.		• The Board reviews the investment strategy, investment performance and the marketing approach, given the influence of all these factors on the discount. Due to the nature of listed companies, the price of the Company's Shares and its discount to NAV are factors which are not completely within the Company's control. • The Company's Share price, NAV and discount volatility are monitored daily by the Manager and the Company's Broker and considered by the Board on a regular basis. The demand for Shares can be influenced through good performance and an active investor relations programme. • Discretionary repurchases of Shares are made within guidelines set by the Board considering prevailing market conditions in order to limit the volatility of the discount.
8. Key Person Risk
Trend (from previous year): Stable
Description and Impact		Mitigation
• Loss of the Portfolio Manager, Co-Portfolio Manager or other key individuals could lead to potential performance and/or operational issues. • The Portfolio Manager, Nitin Bajaj, has a differentiated style in relation to his peers. This style is intrinsically linked with the Company's investment philosophy and strategy and, therefore, the Company has a key person dependency on him. • There is also a risk that the Manager has inadequate succession plans for other key operational individuals.		• The Company has a Co-Portfolio Manager, Ajinkya Dhavale, who supports the Portfolio Manager, and has extensive experience in the Asian markets and companies and shares a common investment approach and complementary investment experience with the Portfolio Manager. The Portfolio Manager is also supported by an Investment Director, Himalee Bahl, as a primary spokesperson for the Company. This helps strengthen the investment process. In addition, the Manager has an extensive investment management and research presence in Asia. • The Manager identifies key dependencies which are then addressed through succession plans, particularly for portfolio managers.
9. Changes in Legislation, Taxation or Regulation
Trend (from previous year): Decreased
Description and Impact		Mitigation
• Changes in legislation, taxation or regulation, or other external influence that require changes to the investment trust structure of the Company are a significant risk for the Company. • A breach of Section 1158 of the Corporation Tax Act 2010 could lead to a loss of investment trust status resulting in the Company being subject to tax on capital gains. • There have been concerns about investment cost disclosures and their impact on the industry.		• The Board and Manager closely monitor regulatory, taxation and legislative changes, with developments impacting the Company summarised in the form of regular reporting to the Board. • The Manager monitors Section 1158 status to ensure that any issues are escalated to the Board and addressed promptly. • The Manager participates in industry discussions regarding regulatory changes impacting investment companies. Regulatory developments are monitored and managed by the Manager through active lobbying and negotiations as well as a robust change management process.

Emerging Risks

The Audit and Risk Committee continues to seek to identify any new emerging risks and take any action necessary to mitigate their potential impact. The risks identified are placed on the Company's risk matrix and appropriately graded. This process, together with the policies and procedures for the mitigation of existing and emerging risks, is updated and reviewed regularly in the form of comprehensive reports by the Audit and Risk Committee. The Board determines the nature and extent of any risks it is willing to take to achieve its strategic objectives.

Climate change, which refers to a large-scale shift in the planet's weather patterns and average temperatures, continues to be an emerging risk. Globally, climate change effects are already being experienced in the form of changing weather patterns. Extreme weather events can potentially impact the operations of investee companies, their supply chains and their customers. The Board notes that the Manager has integrated ESG considerations into the Company's investment process. The Board will continue to monitor how this may impact the Company as a risk to investment valuations and potentially affect shareholder returns.

The Board, together with the Manager, is also monitoring the emerging risk posed by the rapid advancement of artificial intelligence ("AI") and technology and how it may threaten the Company's activities and its potential impact on the portfolio and investee companies. AI can provide asset managers powerful tools, such as enhancing data analysis risk management, trading strategies, operational efficiency and client servicing, all of which can lead to better investment outcomes, and more efficient operations. However, with these advances in computer power that impact society, there are risks from its increasing use and manipulation with the potential to harm, including a heightened threat to cybersecurity.

The Board and the Manager regularly consider other emerging risks which may continue to evolve from unforeseen geopolitical and economic events. There are currently a number of geopolitical factors that could mean greater stock market risks and heightened macroeconomic changes such as inflation, interest rates, currency fluctuations, energy costs and an increased regulatory environment.

Emerging Risks - Manager's Role

The Manager also has responsibility for the risk management of the Company. It works with the Board to identify and manage the principal and emerging risks and related uncertainties to ensure that the Board can continue to meet its UK corporate governance obligations.

Annual Review of Full Risk Register

The Company has a full risk register which includes less material risks which the Board reviews at least annually.

GOING CONCERN STATEMENT

The Directors have considered the Company's investment objective, risk management policies, liquidity risk, credit risk, capital management policies and procedures, the nature of its portfolio and its expenditure and cash flow projections. The Directors, having considered the liquidity of the Company's portfolio of investments (being mainly securities which are readily realisable) and the projected income and expenditure, are satisfied that the Company is financially sound and has adequate resources to meet all of its liabilities and ongoing expenses and continue in operational existence for the foreseeable future. The Board has, therefore, concluded that the Company has adequate resources to continue to adopt the going concern basis for the period to 31 October 2027 which is at least twelve months from the date of approval of the Financial Statements. This conclusion also takes into account the Board's assessment of the ongoing risks from significant global geopolitical and market events and regulatory changes that could impact the Company's performance, prospects and operations.

The Company's Articles of Association require that a continuation resolution be proposed at the forthcoming Annual General Meeting to be held on 25 November 2026. In the event that such resolution is not passed, the Directors would be required to formulate proposals to be put to shareholders for the reconstruction, reorganisation or winding up of the Company. The Directors have assessed the likelihood of the continuation resolution being passed, taking account of shareholder engagement to date, the Company's long-term performance and the views of major shareholders. While there can be no certainty as to the outcome of the vote, the Directors have no reason to believe that the resolution will not be passed.

Accordingly, the Directors consider it appropriate to adopt the going concern basis of accounting in preparing the Company's Financial Statements.

The prospects of the Company over a period longer than twelve months can be found in the Viability Statement set out below.

VIABILITY STATEMENT

In accordance with provision 36 of the AIC Code, the Directors have assessed the prospects of the Company over a longer period than the twelve-month period required by the "Going Concern" basis above. The Company is an investment trust with the objective of achieving long-term capital growth. The Board considers that five years is an appropriate investment horizon to assess the viability of the Company, although the life of the Company is not intended to be limited to this or any other period.

In making an assessment on the viability of the Company, the Board has considered the following:

• The ongoing relevance of the investment objective in prevailing market conditions;

• The Company's level of gearing;

• The Company's NAV and Share price performance versus its Comparative Index;

• The principal and emerging risks and uncertainties facing the Company and their potential impact as set out above;

• The Company's continuation vote to be put forward at the AGM on 25 November 2026 and every five years thereafter;

• The future demand for the Company's Shares;

• The Company's Share price discount to the NAV;

• The liquidity of the Company's portfolio;

• The level of income generated by the Company; and

• Future income and expenditure forecasts.

The Board regularly reviews the Investment Policy and is putting forward an amended investment policy for approval by shareholders at the Annual General Meeting to be held on 25 November 2026. There will be no change to the Company's investment strategy, philosophy or process as a consequence of the amendments being made.

The Board has concluded that there is a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the next five years based on the following considerations:

• The Investment Manager's compliance with the Company's investment objective and policy, its investment strategy and asset allocation;

• The Company's portfolio mainly comprises readily realisable securities which can be sold to meet funding requirements if necessary;

• The Board's discount management policy; and

• The ongoing processes for monitoring operating costs and income which are considered to be reasonable in comparison to the Company's total assets.

In preparing the Financial Statements, the Directors have considered the impact of climate change and potential emerging risks from the use of artificial intelligence, as detailed above. The Board has also considered the impact of regulatory changes, ongoing geopolitical tensions and unforeseen market events, and how these may affect the Company.

In addition, the Directors' assessment of the Company's ability to operate in the foreseeable future is included in the Going Concern Statement as set out above.

A continuation vote takes place every five years. There is a risk that shareholders do not vote in favour of the continuation of the Company during periods when performance of the Company's NAV and Share price is poor. The last continuation vote was at the Company's AGM held on 3 December 2021. The next continuation vote will be put forward at the forthcoming AGM to be held on 25 November 2026.

PROMOTING THE SUCCESS OF THE COMPANY

Under Section 172(1) of the Companies Act 2006, the directors of a company must act in a way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to the likely consequences of any decision in the long-term; the need to foster relationships with the Company's suppliers, customers and others; the impact of the Company's operations on the community and the environment; the desirability of the Company maintaining a reputation for high standards of business conduct; and the need to act fairly as between members of the Company.

As an externally managed investment trust, the Company has no employees or physical assets, and a number of the Company's functions are outsourced to third parties. The key outsourced function is the provision of investment management services by the Manager, but other professional service providers support the Company by providing administration, marketing, custodial, banking and audit services. The Board considers the Company's key stakeholders to be the existing and potential shareholders, the external appointed Manager and other third-party professional service providers. The Board considers that the interests of these stakeholders are aligned with the Company's objective of delivering long-term capital growth to investors, in line with the Company's stated investment objective and strategy, while providing the highest standards of legal, regulatory and commercial conduct.

The Board, with the Portfolio Managers, sets the overall investment strategy and reviews this at an annual strategy day which is separate from the regular cycle of board meetings. In order to ensure good governance of the Company, the Board has set various limits on the investments in the portfolio, whether in the maximum size of individual holdings, the use of derivatives, the level of gearing and others. These limits and guidelines are regularly monitored and reviewed and are set out in the Annual Report.

The Board receives regular reports from the Company's Broker which cover market activity, and how the Company compares with its peers in its sector on performance, discount and share repurchase activity, an analysis of the Company's share register and market trends.

The Board places great importance on communication with shareholders. The Annual General Meeting ("AGM") provides the key forum for the Board and the Portfolio Managers to present to the shareholders on the Company's performance and future plans and the Board encourages all shareholders to attend either in person or virtually and raise any questions or concerns. The Chairman and other Board members are available to meet shareholders as appropriate. Shareholders may also communicate with Board members at any time by writing to them at the Company's registered office at FIL Investments International, Beech Gate, Millfield Lane, Tadworth, Surrey KT20 6RP or via the Company Secretary in writing at the same address or by email at [e-mail].

The Portfolio Managers meet with major shareholders, potential investors, stock market analysts, journalists and other commentators during the year. These communication opportunities help inform the Board in considering how best to promote the success of the Company over the long-term.

The Board seeks to engage with the Manager and other service providers and advisers in a constructive and collaborative way, promoting a culture of strong governance, while encouraging open and constructive debate, in order to ensure appropriate and regular challenge and evaluation. This approach aims to enhance service levels and strengthen relationships with service providers, with a view to ensuring shareholders' interests are best served, by maintaining the highest standards of commercial conduct while keeping cost levels competitive.

Whilst the Company's direct operations are limited, the Board recognises the importance of considering the impact of the Company's investment strategy on the wider community and environment and considers the Manager's ESG approach.

In addition to ensuring that the Company's investment objective was being pursued, key decisions and actions taken by the Directors during the reporting year, and up to the date of this report, have included:

• The decision to seek shareholder approval at the AGM held on 26 November 2025 to update the Company's Articles of Association;

• Completing an audit tender as the Company's previous auditor had been in place for 10 years. Following completion of the audit tender, PricewaterhouseCoopers LLP was recommended by the Board for shareholder approval which was obtained at the AGM held on 26 November 2025;

• The decision to again hold a hybrid AGM this year in order to make it more accessible and improve the shareholder experience;

• Authorising the repurchase of 4,022,699 Shares since 1 August 2025 and up to the latest practicable date of this document in line with the Board's discount management policy;

• The decision to repurchase Shares to be held in Treasury rather than for cancellation with effect from 1 July 2026. The position with regards to buying back Shares to be held in Treasury or for cancellation will be kept under regular review by the Board;

• The decision to recommend the payment of a final dividend in respect of the year ended 31 July 2026 of 22.0 pence per Share; and

• The decision to seek shareholder approval at the forthcoming AGM to be held on 25 November 2026 to amend the Company's Investment Objective and Investment Policy, which includes a proposed increase to the Company's short exposure limit and a corresponding increase in the Gross Asset Exposure limit.

Statement of Directors' Responsibilities

The Directors are responsible for preparing the Annual Report and Financial Statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare Financial Statements for each financial period. Under that law they have elected to prepare the Financial Statements in accordance with UK Generally Accepted Accounting Practice (UK Accounting Standards and applicable law), including Financial Reporting Standard FRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland ("FRS 102"). Under company law, the Directors must not approve the Financial Statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the return for the reporting period.

In preparing these Financial Statements, the Directors are required to:

• Select suitable accounting policies in accordance with Section 10 of FRS 102 and then apply them consistently;

• Make judgements and accounting estimates that are reasonable and prudent;

• Present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;

• State whether applicable UK Accounting Standards, including FRS 102, have been followed, subject to any material departures disclosed and explained in the Financial Statements; and

• Prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the Company and the Financial Statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Under applicable law and regulations, the Directors are also responsible for preparing a Strategic Report, a Directors' Report, a Corporate Governance Statement and a Directors' Remuneration Report that comply with that law and those regulations.

The Directors have delegated to the Manager the responsibility for the maintenance and integrity of the corporate and financial information included on the Company's pages of the Manager's website at www.fidelity.co.uk/asianvalues. Visitors to the website need to be aware that legislation in the UK governing the preparation and dissemination of the Financial Statements may differ from legislation in their own jurisdictions.

The Directors confirm that to the best of their knowledge:

• The Financial Statements, prepared in accordance with UK Generally Accepted Accounting Practice, including FRS 102, give a true and fair view of the assets, liabilities, financial position and profit of the Company;

• The Annual Report, including the Strategic Report, includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties it faces; and

• The Annual Report and Financial Statements, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the Company's performance, business model and strategy.

The Statement of Directors' Responsibilities was approved by the Board on 15 October 2026 and signed on its behalf by:

Clare Brady

Chairman

INCOME STATEMENT

for the year ended 31 July 2026

		Year ended 31 July 2026			Year ended 31 July 2025
	Notes	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000
Gains on investments	10	-	34,559	34,559	-	21,141	21,141
(Losses)/gains on derivative instruments	11	-	(23,052)	(23,052)	-	12,024	12,024
Income	3	20,147	-	20,147	19,419	-	19,419
Investment management fees	4	(708)	(1,319)	(2,027)	(673)	(2,577)	(3,250)
Other expenses	5	(983)	(32)	(1,015)	(963)	(6)	(969)
Foreign exchange losses		-	(632)	(632)	-	(761)	(761)
		---------	---------	---------	---------	---------	---------
Net return on ordinary activities before finance costs and taxation		18,456	9,524	27,980	17,783	29,821	47,604
Finance costs	6	(676)	(2,028)	(2,704)	(688)	(2,065)	(2,753)
		---------	---------	---------	---------	---------	---------
Net return on ordinary activities before taxation		17,780	7,496	25,276	17,095	27,756	44,851
Taxation on return on ordinary activities	7	(1,656)	(655)	(2,311)	(1,563)	85	(1,478)
		---------	---------	---------	---------	---------	---------
Net return on ordinary activities after taxation for the year		16,124	6,841	22,965	15,532	27,841	43,373
		======	======	======	======	======	======
Return per ordinary share	8	25.18p	10.68p	35.86p	22.51p	40.34p	62.85p
		======	======	======	======	======	======

The Company does not have any other comprehensive income. Accordingly, the net return on ordinary activities after taxation for the year is also the total comprehensive income for the year and no separate Statement of Comprehensive Income has been presented.

The total column of this statement represents the Income Statement of the Company. The revenue and capital columns are supplementary and presented for information purposes as recommended by the Statement of Recommended Practice issued by the AIC.

No operations were acquired or discontinued in the year and all items in the above statement derive from continuing operations.

The Notes form an integral part of these Financial Statements.

STATEMENT OF CHANGES IN EQUITY

for the year ended 31 July 2026

	Notes	Share capital £'000	Share premium account £'000	Capital redemption reserve £'000	Other non- distributable reserve £'000	Capital reserve £'000	Revenue reserve £'000	Total shareholders' funds £'000
Total shareholders' funds at 1 August 2025		18,895	50,501	3,197	7,367	302,519	20,229	402,708
Net return on ordinary activities after taxation for the year		-	-	-	-	6,841	16,124	22,965
Repurchase of ordinary shares for cancellation	14	(863)	-	863	-	(20,287)	-	(20,287)
Repurchase of ordinary shares into Treasury	14	-	-	-	-	(2,368)	-	(2,368)
Cancellation of ordinary shares from Treasury	14	(206)	-	206	-	-	-	-
Dividend paid to shareholders	9	-	-	-	-	-	(13,139)	(13,139)
		--------	--------	--------	--------	--------	--------	--------
Total shareholders' funds at 31 July 2026		17,826	50,501	4,266	7,367	286,705	23,214	389,879
		====	====	====	====	====	====	====
Total shareholders' funds at 1 August 2024		18,895	50,501	3,197	7,367	297,210	14,844	392,014
Net return on ordinary activities after taxation for the year		-	-	-	-	27,841	15,532	43,373
Repurchase of ordinary shares into Treasury	14	-	-	-	-	(22,532)	-	(22,532)
Dividend paid to shareholders	9	-	-	-	-	-	(10,147)	(10,147)
		--------	--------	--------	--------	--------	--------	--------
Total shareholders' funds at 31 July 2025		18,895	50,501	3,197	7,367	302,519	20,229	402,708
		=====	=====	=====	=====	=====	=====	=====

The Notes form an integral part of these Financial Statements.

BALANCE SHEET

as at 31 July 2026

Company number 03183919

	Notes	2026 £'000	2025 £'000
Fixed assets
Investments	10	374,720	377,051
		----------	----------
Current assets
Derivative instruments	11	7,021	2,278
Debtors	12	3,984	1,839
Amounts held at futures clearing houses and brokers		3,009	2,674
Cash and cash equivalents		5,981	25,407
		----------	----------
		19,995	32,198
Current liabilities
Derivative instruments	11	(1,209)	(2,045)
Other creditors	13	(3,627)	(4,494)
Bank overdrafts		-	(2)
		----------	----------
		(4,836)	(6,541)
		----------	----------
Net current assets		15,159	25,657
		----------	----------
Net assets		389,879	402,708
		======	======
Capital and reserves
Share capital	14	17,826	18,895
Share premium account	15	50,501	50,501
Capital redemption reserve	15	4,266	3,197
Other non-distributable reserve	15	7,367	7,367
Capital reserve	15	286,705	302,519
Revenue reserve	15	23,214	20,229
		----------	----------
Total shareholders' funds		389,879	402,708
		----------	----------
Net asset value per ordinary share	16	621.46p	604.69p
		======	======

The Financial Statements were approved by the Board of Directors on 15 October 2026 and were signed on its behalf by:

Clare Brady
Chairman

The Notes 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 that is listed on the London Stock Exchange. The Company's registration number is 03183919, and its registered office is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey KT20 6RP. The Company has been approved by HM Revenue & Customs as an Investment Trust under Section 1158 of the Corporation Tax Act 2010 and intends to conduct its affairs so as to continue to be approved.

2 Accounting Policies

The Company has prepared its Financial Statements in accordance with UK Generally Accepted Accounting Practice ("UK GAAP"), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", issued by the Financial Reporting Council ("FRC"). The Financial Statements have also been prepared in accordance with the Statement of Recommended Practice: Financial Statements of Investment Trust Companies and Venture Capital Trusts ("SORP") issued by the Association of Investment Companies ("AIC"), in December 2025. The Company is exempt from presenting a Cash Flow Statement as a Statement of Changes in Equity is presented and substantially all of the Company's investments are highly liquid and are carried at market value.

(a) Basis of accounting - The Financial Statements have been prepared on a going concern basis and under the historical cost convention, except for the measurement at fair value of investments and derivative instruments. The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence up to 31 October 2027, which is at least twelve months from the date of approval of these Financial Statements. In making their assessment the Directors have reviewed income and expense projections, reviewed the liquidity of the investment portfolio and considered the Company's ability to meet liabilities as they fall due. In addition, the Directors have considered the continuation vote to be put forward at the forthcoming Annual General Meeting to be held on 25 November 2026. While there can be no certainty as to the outcome of the vote, the Directors have no reason to believe that the resolution will not be passed. This conclusion also takes into account the Director's assessment of the risks faced by the Company as detailed in the Going Concern Statement above.

In preparing these Financial Statements the Directors have considered the impact of climate change risk as an emerging risk and have concluded that there was no further impact of climate change to be taken into account as the investments are valued based on market pricing. In line with FRS 102, investments are valued at fair value, which for the Company are quoted bid prices for investments in active markets at the Balance sheet date. Investments which are unlisted are priced using market-based valuation approaches. All investments therefore reflect the market participants' view of climate change risk on the investments held by the Company.

The Company's Going Concern Statement above takes account of all events and conditions up to 31 October 2027 which is at least twelve months from the date of approval of these Financial Statements.

(b) Significant accounting estimates and judgements - The preparation of the Financial Statements requires the use of estimates and judgements. These estimates and judgements affect the reported amounts of assets and liabilities at the reporting date. While estimates are based on best judgement using information and financial data available, the actual outcome may differ from these estimates.

The key sources of estimation and uncertainty relate to the fair value of the unlisted investments.

Judgements

The Directors consider whether the fair value of unlisted investments is appropriate following detailed review and challenge of the pricing methodology. The judgement applied in the selection of the methodology used (see Note 2 (k)) for determining the fair value of each unlisted investment can have a significant impact upon the valuation.

Estimates

The key estimate in the Financial Statements is the determination of the fair value of the unlisted investments by the Manager's Fair Value Committee ("FVC"), with support from the external valuer and Fidelity's unlisted investments specialists, for detailed review and appropriate challenge by the Directors. This estimate is key as it significantly impacts the valuation of the unlisted investments at the Balance Sheet date. When no recent primary or secondary transaction in the company's shares has taken place, the fair valuation process involves estimation using subjective inputs that are unobservable (for which market data is unavailable). The estimates involved in the valuation process may include the following:

(i) the selection of appropriate comparable companies. Comparable companies are chosen on the basis of their business characteristics and growth patterns;

(ii) the selection of a revenue metric (either historical or forecast);

(iii) the selection of an appropriate illiquidity discount factor to reflect the reduced liquidity of unlisted companies versus their listed peers;

(iv) the estimation of the likelihood of a future exit of the position through an initial public offering ("IPO") or a company sale;

(v) the selection of an appropriate industry benchmark index to assist with the valuation; and

(vi) the calculation of valuation adjustments derived from milestone analysis and future cash flows (i.e. incorporating operational success against the plans/forecasts of the business into the valuation).

As the valuation outcomes may differ from the fair value estimates a price sensitivity analysis is provided in the Other Price Risk Sensitivity in Note 17, to illustrate the effect on the Financial Statements of an over or under estimation of fair value.

The risk of an over or under estimation of fair value is greater when methodologies are applied using more subjective inputs.

(c) Segmental reporting - The Company is engaged in a single segment business and, therefore, no segmental reporting is provided.

(d) Presentation of the Income Statement - In order to reflect better the activities of an investment company and in accordance with guidance issued by the AIC, supplementary information which analyses the Income Statement between items of a revenue and capital nature has been prepared alongside the Income Statement. The net revenue return after taxation for the year is the measure the Directors believe appropriate in assessing the Company's compliance with certain requirements set out in Section 1159 of the Corporation Tax Act 2010.

(e) Income - Income from equity investments is accounted for on the date on which the right to receive the payment is established, normally the ex-dividend date. Overseas dividends are accounted for gross of any tax deducted at source. Amounts are credited to the revenue column of the Income Statement. Where the Company has elected to receive its dividends in the form of additional shares rather than cash, the amount of the cash dividend foregone is recognised in the revenue column of the Income Statement. Any excess in the value of the shares received over the amount of the cash dividend is recognised in the capital column of the Income Statement. Special dividends are treated as a revenue receipt or a capital receipt depending on the facts and circumstances of each particular case.

Derivative instrument income received from dividends on long contracts for difference ("CFDs") is accounted for on the date on which the right to receive the payment is established, normally the ex-dividend date. The amount net of tax is credited to the revenue column of the Income Statement.

Interest received on CFDs, bank deposits, collateral and money market funds are accounted for on an accruals basis and credited to the revenue column of the Income Statement. Interest received on CFDs represents the finance costs calculated by reference to the notional value of the CFDs.

f) Investment management fees and other expenses - Investment management fees and other expenses are accounted for on an accruals basis and are charged as follows:

• The base investment management fee is allocated 25% to revenue and 75% to capital in line with the Board's expected long-term split of revenue and capital from the Company's portfolio of investments.

• The variable investment management fee continues to be charged/credited to capital as it is based on the performance of the net asset value per share relative to the Benchmark Index; and

• All other expenses continues to be allocated in full to revenue with the exception of those directly attributable to share issues or other capital events.

(g) Functional currency and foreign exchange - The functional and reporting currency of the Company is UK sterling, which is the currency of the primary economic environment in which the Company operates. Transactions denominated in foreign currencies are reported in UK sterling at the rate of exchange ruling at the date of the transaction. Assets and liabilities in foreign currencies are translated in the rates of exchange ruling at the Balance Sheet date. Foreign exchange gains and losses arising on the translation are recognised in the Income Statement as a revenue or a capital item depending on the nature of the underlying item to which they relate.

(h) Finance costs - Finance costs comprise interest on bank overdrafts and finance costs paid on CFDs, which are accounted for on an accruals basis, and dividends paid on short CFDs, which are accounted for on the date on which the obligation to incur the cost is established, normally the ex-dividend date. Finance costs are allocated 25% to revenue and 75% to capital in line with the Board's expected long-term split of revenue and capital from the Company's portfolio of investments.

(i) Taxation - The taxation charge represents the sum of current taxation and deferred taxation.

Current taxation is taxation suffered at source on overseas income less amounts recoverable under taxation treaties. Taxation is charged or credited to the revenue column of the Income Statement, except where it relates to items of a capital nature, in which case it is charged or credited to the capital column of the Income Statement. Where expenses are allocated between revenue and capital any tax relief in respect of the expenses is allocated between revenue and capital returns on the marginal basis using the Company's effective rate of corporation tax for the accounting period. The Company is an approved Investment Trust under Section 1158 of the Corporation Tax Act 2010 and is not liable for UK taxation on capital gains.

Deferred taxation is the taxation expected to be payable or recoverable on timing differences between the treatment of certain items for accounting purposes and their treatment for the purposes of computing taxable profits. Deferred taxation is based on tax rates that have been enacted or substantively enacted when the taxation is expected to be payable or recoverable. Deferred tax assets are only recognised if it is considered more likely than not that there will be sufficient future taxable profits to utilise them.

(j) Dividend paid - Dividends payable to equity shareholders are recognised when the Company's obligation to make payment is established.

(k) Investments - The Company's business is investing in financial instruments with a view to profiting from their total return in the form of income and long-term capital growth. This portfolio of investments is managed and its performance evaluated on a fair value basis, in accordance with a documented investment strategy, and information about the portfolio is provided on that basis to the Company's Board of Directors. Investments are measured at fair value with changes in fair value recognised in profit or loss, in accordance with the provisions of both Section 11 and Section 12 of FRS 102. The fair value of investments is initially taken to be their cost and is subsequently measured as follows:

• Listed investments are valued at bid prices, or last market prices, depending on the convention of the exchange on which they are listed, and

• Unlisted investments are not quoted, or are not frequently traded, and are stated at the best estimate of fair value. The Manager's Fair Value Committee ("FVC"), which is independent of the Portfolio Managers' team, meets quarterly to determine the fair value of unlisted investments. These are based on the principles outlined in Note 2 (b).

The unlisted investments are valued at fair value following a detailed review and appropriate challenge by the Directors of the pricing methodology proposed by the FVC.

The FVC provides a recommendation of fair values to the Directors based on recognised valuation techniques that take account of the cost of the investment, recent arm's length transactions in the same or similar investments and financial performance of the investment since purchase. Consideration is given to the input received from the Fidelity International analyst that covers the company, where appropriate the external valuer and Fidelity's unlisted investments specialist.

In accordance with the AIC SORP, the Company includes transaction costs, incidental to the purchase or sale of investments, within gains on investments in the capital column of the Income Statement and has disclosed these costs in Note 10.

(l) Derivative instruments - When appropriate, permitted transactions in derivative instruments are used. Derivative transactions into which the Company may enter include long and short CFDs, futures, options and forward currency contracts. Derivatives are classified as other financial instruments and are initially accounted and measured at fair value on the date the derivative contract is entered into and subsequently measured at fair value as follows:

• Long and short CFDs - the difference between the strike price and the value of the underlying shares in the contract;

• Futures - the difference between the contract price and the quoted trade price;

• Forward currency contracts - valued at the appropriate quoted forward foreign exchange rate ruling at the Balance Sheet date; and

• Options - the quoted trade price for the contract.

Where transactions are used to protect or enhance income, if the circumstances support this, the income and expenses derived are included in net income in the revenue column of the Income Statement. Where such transactions are used to protect or enhance capital, if the circumstances support this, the income and expenses derived are included in gains on derivative instruments in the capital column of the Income Statement. Any positions on such transactions open at the year end are reflected on the Balance Sheet at their fair value within current assets or current liabilities.

m) Debtors - Debtors include securities sold for future settlement, amounts receivable on the settlement of derivatives, accrued income, taxation recoverable and other debtors and prepayments incurred in the ordinary course of business. If collection is expected in one year or less (or in the normal operating cycle of the business, if longer) they are classified as current assets. If not, they are presented as non-current assets. They are recognised initially at fair value and, where applicable, subsequently measured at amortised cost using the effective interest rate method.

n) Amounts held at futures clearing houses and brokers - These are amounts held in segregated accounts on behalf of brokers as collateral against open derivative contracts. These are carried at amortised cost.

o) Cash and cash equivalents - Cash and cash equivalents may comprise cash at bank and money market funds which are short-term, highly liquid and are readily convertible to a known amount of cash. These are subject to an insignificant risk of changes in value.

p) Other creditors - Other creditors include securities purchased for future settlement, amounts payable for repurchase of shares, Indian capital gains tax payable, short CFD dividends payable, investment management fees, secretarial and administration fees and other creditors and expenses accrued in the ordinary course of business. If payment is due within one year or less (or in the normal operating cycle of the business, if longer) they are classified as current liabilities. If not, they are presented as non-current liabilities. They are recognised initially at fair value and, where applicable, subsequently measured at amortised cost using the effective interest rate method.

q) Capital reserve - The following are accounted for in the capital reserve:

• Gains and losses on the disposal of investments and derivative instruments;

• Changes in the fair value of investments and derivative instruments, held at the year end;

• Foreign exchange gains and losses of a capital nature;

• Variable element of management fee;

• 75% of base investment management fees;

• 75% of finance costs;

• Dividends receivable which are capital in nature;

• Costs associated with the repurchase of ordinary shares;

• Taxation charged or credited relating to items which are capital in nature; and

• Other expenses which are capital in nature.

Technical guidance issued by the Institute of Chartered Accountants in England and Wales in TECH 02/17BL, guidance on the determination of realised profits and losses in the context of distributions under the Companies Act 2006, states that changes in the fair value of investments which are readily convertible to cash, without accepting adverse terms at the Balance Sheet date, can be treated as realised. Capital reserves realised and unrealised are shown in aggregate as capital reserve in the Statement of Changes in Equity and the Balance Sheet. At the Balance Sheet date, the portfolio of the Company consisted of investments listed on a recognised stock exchange and derivative instruments contracted with counterparties having an adequate credit rating, and the portfolio was considered to be readily convertible to cash, with the exception of the level 3 investments which had unrealised investment holding gains of £3,111,000 (2025: gains of £1,676,000). See Note 17 for further details on the level 3 investments.

3 Income

	Year ended 31 July 2026 £'000	Year ended 31 July 2025 £'000
Investment income
Overseas dividends	15,657	15,258
Overseas scrip dividends	45	40
Overseas property income distributions	31	-
Interest on securities	131	625
	-----------	-----------
	15,864	15,923
Derivative income
Dividends received on long CFDs	3,421	2,529
Interest received on CFDs	384	360
	-----------	-----------
	3,805	2,889
Other interest
Interest received on bank deposits, collateral and money market funds	471	607
Interest received on tax reclaims	7	-
	478	607
	-----------	-----------
Total income	20,147	19,419
	======	======

No special dividends have been recognised in capital during the year (2025: £nil).

4 Investment Management Fees

	Year ended 31 July 2026			Year ended 31 July 2025
	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000
Investment management fees - base	708	2,124	2,832	673	2,020	2,693
Investment management fees - variable	-	(805)	(805)	-	557	557
	------	------	------	------	------	------
	708	1,319	2,027	673	2,577	3,250
	====	====	====	====	====	====

FIL Investment Services (UK) Limited is the Company's Alternative Investment Fund Manager and has delegated portfolio management to FIL Investments International ("FII"). Both companies are Fidelity group companies.

FII charges base investment management fees at an annual rate of 0.70% of net assets. In addition, there is a +/- 0.20% variation fee based on the Company's NAV per ordinary share performance relative to the Company's Benchmark Index return on a rolling three year basis which is charged/credited to capital. Fees are payable monthly in arrears and are calculated on a daily basis.

The base investment management fee has been allocated 75% to the capital reserve in accordance with the Company's accounting policies.

5 Other Expenses

	Year ended 31 July 2026 £'000	Year ended 31 July 2025 £'000
Allocated to revenue:
AIC fees	28	18
Custody fees	83	72
Depositary fees	26	31
Directors' expenses	38	72
Directors' fees1	212	190
Legal and professional fees	108	120
Marketing expenses	202	181
Printing and publication expenses	107	89
Registrars' fees	46	40
Secretarial and administration fees payable to the Investment Manager	75	75
Other expenses	-	17
Fees payable to the Company's Independent Auditors for the audit of the Financial Statements	58	58
	------	------
	983	963
Allocated to capital:
Legal and professional fees	32	6
	------	------
Other expenses	1,015	969
	====	===

1 Details of the breakdown of Directors' fees are disclosed in the Directors' Remuneration Report in the Annual Report; costs relating to the Directors' national insurance and levies of £25,000 are included. In the prior year these costs were included in Other expenses.

6 Finance Costs

	Year ended 31 July 2026			Year ended 31 July 2025
	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000
Interest paid on bank overdrafts	5	14	19	7	22	29
Interest paid on CFDs	576	1,729	2,305	447	1,340	1,787
Dividends paid on short CFDs	81	243	324	234	703	937
Cost recognised from charges on futures	14	42	56	-	-	-
	------	------	------	------	------	------
	676	2,028	2,704	688	2,065	2,753
	====	====	====	====	====	====

Finance costs have been allocated 75% to the capital reserve in accordance with the Company's accounting policies.

7 Taxation on Return on Ordinary Activities

	Year ended 31 July 2026			Year ended 31 July 2025
	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000
a) Analysis of the taxation charge for the year
Overseas taxation	1,805	-	1,805	1,563	-	1,563
Indian capital gains tax	(149)	655	506	-	(85)	(85)
	------	------	------	------	------	------
Taxation charge for the year (see Note 7b)	1,656	655	2,311	1,563	(85)	1,478
	====	====	====	====	====	====

b) Factors affecting the taxation charge for the year

The taxation charge for the year is lower than the standard rate of UK corporation tax for an investment trust company of 25% (2025: 25%). A reconciliation of the standard rate of UK corporation tax to the taxation charge for the year is shown below:

	Year ended 31 July 2026							Year ended 31 July 2025
	Revenue £'000			Capital £'000		Total £'000		Revenue £'000		Capital £'000		Total £'000
Net return on ordinary activities before taxation	17,780			7,496		25,276		17,095		27,756		44,851
Net return on ordinary activities before taxation multiplied by the standard rate of UK corporation tax of 25% (2025: rate of 25%)	4,445			1,874		6,319		4,274		6,939		11,213
Effects of:
Capital gains not taxable1	-			(2,719)		(2,719)		-		(8,101)		(8,101)
Income not taxable	(3,845)			-		(3,845)		(3,780)		-		(3,780)
Expenses not deductible	-			515		515		-		511		511
Prior period adjustment	33			-		33		-		-		-
Excess management expenses	(633)			330		(303)		(494)		651		157
Overseas taxation	1,805			-		1,805		1,563		-		1,563
Indian capital gains tax2	(149)			655		506		-		(85)		(85)
		------	------		------		------		------		------
Taxation charge for the year (see Note 7a)	1,656			655		2,311		1,563		(85)		1,478
		====	====		====		====		====		====

1 The Company is exempt from UK corporation tax on capital gains as it meets the HM Revenue & Customs criteria for an investment company set out in Section 1159 of the Corporation Tax Act 2010.

2 The Indian capital gains tax charge in the Income Statement of £655,000 (2025: receipt of £85,000) is composed of £375,000 (2025: £1,553,000) paid in the year and the £280,000 increase (2025: £1,638,000 reduction) in the Balance Sheet capital gains tax provision. The provision in the Balance Sheet of £776,000 (2025: £496,000, 2024: £2,134,000) represents a future liability as payment is deferred until such time as the Indian investments are sold. During the year a refund has been processed through revenue amounting £149,000 (2025: nil).

c) Deferred taxation

A deferred tax asset of £9,286,000 (2025: £9,589,000), in respect of excess management expenses of £34,874,000 (2025: £36,087,000), and excess interest paid of £2,271,000 (2025: £2,271,000) has not been recognised as it is unlikely that there will be sufficient future taxable profits to utilise these expenses.

8 Return per Ordinary Share

	Year ended 31 July 2026	Year ended 31 July 2025
Revenue return per ordinary share	25.18p	22.51p
Capital return per ordinary share	10.68p	40.34p
	---------	--------
Total return per ordinary share	35.86p	62.85p
	======	=====

The return per ordinary share is based on the net return on ordinary activities after taxation for the year divided by the weighted average number of ordinary shares held outside of Treasury during the year, as shown below:

	Year ended 31 July 2026 £'000	Year ended 31 July 2025 £'000
Net revenue return on ordinary activities after taxation	16,124	15,532
Net capital return on ordinary activities after taxation	6,841	27,841
	---------	--------
Net total return on ordinary activities after taxation	22,965	43,373
	======	=====

	Number	Number
Weighted average number of ordinary shares held outside of Treasury	64,037,379	69,010,726
	======	=====

9 Dividends Paid to Shareholders

		Year ended 31 July 2026 £'000		Year ended 31 July 2025 £'000
Dividend paid
Dividend of 20.5 pence per ordinary share paid for the year ended 31 July 2025		13,139		-
Dividend of 14.5 pence per ordinary share paid for the year ended 31 July 2024		-		10,147
	---------			--------
		13,139		10,147
Dividend proposed
Dividend of 22.0 pence per ordinary share proposed for the year ended 31 July 2026		13,766		-
Dividend of 20.5 pence per ordinary share proposed for the year ended 31 July 2025		-		13,168
	---------			--------
Total dividend proposed		13,766		13,168
	======		=====

The Directors have proposed the payment of a dividend for the year ended 31 July 2026 of 22.0 pence per ordinary share which is subject to approval by shareholders at the Annual General Meeting on 25 November 2026 and has not been included as a liability in these Financial Statements. If approved, the dividend will be paid on 4 December 2026 to shareholders on the register at the close of business on 30 October 2026 (ex-dividend date 29 October 2026).

10 Investments at Fair Value through Profit or Loss

	2026 £'000	2025 £'000
Listed investments	367,544	371,717
Unlisted investments	7,176	5,334
	---------	---------
Investments at fair value	374,720	377,051
	---------	---------
Opening book cost	377,392	406,135
Opening investment holding losses	(341)	(27,558)
	---------	---------
Opening fair value	377,051	378,577
Movements in the year
Purchases at cost	264,205	209,010
Sales - proceeds	(301,095)	(231,677)
Gains on investments	34,559	21,141
	---------	---------
Closing fair value	374,720	377,051
Closing book cost	383,671	377,392
Closing investment holding losses	(8,951)	(341)
	---------	---------
Closing fair value	374,720	377,051
	=====	=====

The Company received £301,095,000 (2025: £231,677,000) from investments sold in the year. The book cost of these investments when they were purchased was £257,785,000 (2025: £237,753,000). These investments have been revalued over time and until they were sold any unrealised gains/losses were included in the fair value of the investments.

Investment transaction costs

Transaction costs incurred in the acquisition and disposal of investments, which are included in the gains on the investments above, were as follows:

	Year ended 31 July 2026 £'000	Year ended 31 July 2025 £'000
Purchases transaction costs	341	241
Sales transaction costs	556	338
	----------	---------
	897	579
	======		=====

11 Derivative Instruments

	Year ended 31 July 2026 £'000	Year ended 31 July 2025 £'000
(Losses)/gains on derivative instruments
Realised (losses)/gains on long CFD positions closed	(7,136)	9,504
Realised (losses)/gains on short CFD positions closed	(10,150)	1,245
Realised (losses)/gains on futures contracts closed	(1,891)	718
Realised (losses) on options contracts closed	(7,548)	(467)
Realised gains on forward currency contracts	110	70
Movement in investment holding gains on long CFDs	3,603	1,143
Movement in investment holding gains on short CFDs	1,635	112
Movement in investment holding losses on futures	(183)	(129)
Movement in investment holding losses on options	(1,476)	(172)
Movement in investment holding losses on forward currency contracts	(16)	-
	----------	---------
	(23,052)	12,024
	======		=====

	2026 Fair value £'000	2025 Fair value £'000
Derivative instruments recognised on the Balance Sheet
Derivative instrument assets	7,021	2,278
Derivative instrument liabilities	(1,209)	(2,045)
	----------	---------
	5,812	233
	======		=====

	2026		2025
	Fair value £'000	Asset exposure £'000	Fair value £'000	Asset exposure £'000
At the year end the Company held the following derivative instruments:
Long CFDs	3,431	77,102	(172)	66,384
Call options (long exposure)	589	6,183	-	-
Short CFDs	2,120	24,253	485	21,913
Short futures	(312)	4,763	(129)	2,353
Put options (short exposure)	-	-	96	2,143
Call options (short exposure)	-	-	(47)	394
Forward currency contract	(16)	-	-	-
	----------	----------	----------	----------
	5,812	112,301	233	93,187
	======	======	======	======

12 Debtors

	2026 £'000	2025 £'000
Securities sold for future settlement	890	108
Amounts receivable on settlement of derivatives	1,315	699
Accrued income	1,590	874
Taxation recoverable	25	28
Other debtors and prepayments	164	130
	---------		--------
	3,984	1,839
	======		=====

13 Other Creditors

	2026 £'000	2025 £'000
Securities purchased for future settlement	1,558	2,449
Amounts payable for settlement of derivatives	343	-
Amounts payable for repurchase of shares into Treasury	295	172
Indian capital gains tax payable	776	496
Amounts payable on short CFD dividends	166	442
Finance costs payable	-	18
Creditors and accruals	489	917
	---------		--------
	3,627	4,494
	======		=====

14 Share Capital

	2026		2025
	Number of shares	Nominal value £'000	Number of shares	Nominal value £'000
Issued, allotted and fully paid
Ordinary shares of 25 pence each held outside of Treasury
Beginning of the year	66,597,059	16,650	71,060,556	17,766
Ordinary shares repurchased into Treasury	(410,969)	(103)	(4,463,497)	(1,116)
Ordinary shares repurchased and cancelled	(3,450,155)	(863)	-	-
	--------------	--------	------------	--------
End of the year	62,735,935	15,684	66,597,059	16,650
Ordinary shares of 25 pence each held in Treasury1
Beginning of the year	8,983,830	2,245	4,520,333	1,129
Ordinary shares repurchased into Treasury	410,969	103	4,463,497	1,116
Ordinary shares cancelled out of Treasury	(822,911)	(206)	-	-
	--------------	--------	------------	--------
End of the year	8,571,888	2,142	8,983,830	2,245
Total share capital		17,826		18,895
		=====		=====

1 Ordinary shares held in Treasury carry no rights to vote, to receive a dividend or to participate in a winding up of the Company.

The cost of ordinary shares repurchased into Treasury during the year was £2,368,000 (2025: £22,532,000), the cost of ordinary shares repurchased and cancelled during the year was £20,287,000 (2025: £nil) and the nominal value of ordinary shares cancelled out of Treasury during the year was £206,000 (2025: £nil).

15 Capital and Reserves

	Share capital £'000	Share premium account £'000	Capital redemption reserve £'000	Other non-distributable reserve £'000	Capital reserve £'000	Revenue reserve £'000	Total shareholders' funds £'000
At 1 August 2025	18,895	50,501	3,197	7,367	302,519	20,229	402,708
Gains on investments (see Note 10)	-	-	-	-	34,559	-	34,559
Losses on derivative instruments (see Note 11)	-	-	-	-	(23,052)	-	(23,052)
Foreign exchange losses	-	-	-	-	(632)	-	(632)
Investment management fees (see Note 4)	-	-	-	-	(1,319)	-	(1,319)
Other expenses (see Note 5)	-	-	-	-	(32)	-	(32)
Finance cost (see Note 6)	-	-	-	-	(2,028)	-	(2,028)
Indian capital gains tax (see Note 7)	-	-	-	-	(655)	-	(655)
Revenue return on ordinary activities after taxation for the year	-	-	-	-	-	16,124	16,124
Dividend paid to shareholders (see Note 9)	-	-	-	-	-	(13,139)	(13,139)
Repurchase of ordinary shares for cancellation (see Note 14)	(863)	-	863	-	(20,287)	-	(20,287)
Repurchase of ordinary shares into Treasury (see Note 14)	-	-	-	-	(2,368)	-	(2,368)
Cancellation of ordinary shares from Treasury (see Note 14)	(206)	-	206	-	-	-	-
	---------	---------	---------	---------	---------	---------	---------
At 31 July 2026	17,826	50,501	4,266	7,367	286,705	23,214	389,879
	======	======	======	======	======	======	======

At 1 August 2024	18,895	50,501	3,197	7,367	297,210	14,844	392,014
Gains on investments (see Note 10)	-	-	-	-	21,141	-	21,141
Gains on derivative instruments (see Note 11)	-	-	-	-	12,024	-	12,024
Foreign exchange losses	-	-	-	-	(761)	-	(761)
Investment management fees (see Note 4)	-	-	-	-	(2,577)	-	(2,577)
Other expenses (see Note 5)	-	-	-	-	(6)	-	(6)
Finance cost (see Note 6)	-	-	-	-	(2,065)	-	(2,065)
Indian capital gains tax (see Note 7)	-	-	-	-	85	-	85
Revenue return on ordinary activities after taxation for the year	-	-	-	-	-	15,532	15,532
Dividend paid to shareholders (see Note 9)	-	-	-	-	-	(10,147)	(10,147)
Repurchase of ordinary shares into Treasury (see Note 14)	-	-	-	-	(22,532)	-	(22,532)
	---------	---------	---------	---------	---------	---------	---------
At 31 July 2025	18,895	50,501	3,197	7,367	302,519	20,229	402,708
	=====	=====	=====	=====	=====	=====	=====

The capital reserve balance at 31 July 2026 includes investment holding losses of £8,951,000 (2025: losses of £341,000) as detailed in Note 10. See Note 2 (q) for further details. In accordance with the Articles of Association, distributions by way of dividend can be made from both the revenue reserve and capital reserve to the extent they are realised.

16 Net Asset Value per Ordinary Share

The calculation of the net asset value per ordinary share is based on the total shareholders' funds divided by the number of ordinary shares held outside of Treasury.

	2026	2025
Total shareholders' funds	£389,879,000	£402,708,000
Ordinary shares held outside of Treasury at year end	62,735,935	66,597,059
Net asset value per ordinary share	621.46p	604.69p
	==========	=========

It is the Company's policy that shares held in Treasury will only be reissued at net asset value per ordinary share or at a premium to net asset value per ordinary share and, therefore, shares held in Treasury have no dilutive effect.

17 Financial Instruments

Management of risk

The Company's investing activities in pursuit of its investment objective involve certain inherent risks. The Board confirms that there is an ongoing process for identifying, evaluating and managing the risks faced by the Company. The Board, with the assistance of the Manager, has developed a risk matrix which, as part of the internal control process, identifies the risks that the Company faces. Risks are identified and graded in this process, together with steps taken in mitigation, and are updated and reviewed on an ongoing basis. Risks identified are shown above.

This note refers to the identification, measurement and management of risks potentially affecting the value of financial instruments. The Company's financial instruments may comprise:

• Equity shares (listed and unlisted), equity linked notes and corporate bonds held in accordance with the Company's investment objective and policies;

• Derivative instruments which comprise CFDs, forward currency contracts, futures and options on listed stocks and equity indices; and

• Cash, liquid resources and short-term debtors and creditors that arise from its operations.

The risks identified arising from the Company's financial instruments are market price risk (which comprises interest rate risk, foreign currency risk and other price risk), liquidity risk, counterparty risk, credit risk and derivative instruments risk. The Board reviews and agrees policies for managing each of these risks, which are summarised below. These policies are consistent with those followed last year.

Market price risk

Interest rate risk

The Company principally finances its operations through its share capital and reserves. In addition, the Company has gearing through the use of derivative instruments. The level of gearing is reviewed by the Board and the Portfolio Managers. The Company is exposed to a financial risk arising as a result of any increases in interest rates associated with the funding of the derivative instruments.

Interest rate risk exposure

The values of the Company's financial instruments that are exposed to movements in interest rates are shown below:

	2026 £'000	2025 £'000
Exposure to financial instruments that bear interest
Long CFDs - exposure less fair value	73,671	66,556
Bank overdrafts	-	2
	---------	--------
	73,671	66,558
Exposure to financial instruments that earn interest
Short CFDs - exposure plus fair value	26,373	22,398
Cash and cash equivalents	5,981	25,407
Amounts held at futures clearing houses and brokers	3,009	2,674
	35,363	50,479
	---------	--------
Net exposure to financial instruments that bear interest	(38,308)	(16,079)
	=======	=======

Foreign currency risk

The Company's net return on ordinary activities after taxation for the year and its net assets can be affected by foreign exchange rate movements because the Company has income, assets and liabilities which are denominated in currencies other than the Company's functional currency which is UK sterling. The Portfolio Managers may seek to manage exposure to currency movements by using forward and spot foreign exchange contracts. The Company can also be subject to short-term exposure to exchange rate movements, for example, between the date when an investment is purchased or sold and the date when settlement of the transaction occurs.

Three principal areas have been identified where foreign currency risk could impact the Company:

• Movements in currency exchange rates affecting the value of investments and derivative instruments;

• Movements in currency exchange rates affecting short-term timing differences; and

• Movements in currency exchange rates affecting income received.

Currency exposure of financial assets

The currency exposure profile of the Company's financial assets is shown below:

Currency	Investments at fair value £'000	Long exposure to derivative instruments1 £'000	Debtors2 £'000	Cash and cash equivalents3 £'000	2026 Total £'000
Hong Kong dollar	44,335	68,739	836	104	114,014
Indonesian rupiah	72,011	-	7	-	72,018
US dollar	46,146	16,987	1,570	5,228	69,931
South Korean won	53,181	-	637	37	53,855
Taiwan dollar	45,608	-	596	-	46,204
Indian rupee	42,767	-	3,147	136	46,050
Australian dollar	23,893	-	3	343	24,239
Thai baht	9,716	-	-	-	9,716
Singapore dollar	8,231	-	-	-	8,231
Philippine peso	7,736	-	33	53	7,822
Malaysian ringgit	5,218	-	-	-	5,218
Sri Lankan rupee	3,939	-	-	-	3,939
Other overseas currencies	8,253	131	-	75	8,459
UK sterling	3,686	-	164	5	3,855
	----------	----------	----------	----------	----------
	374,720	85,857	6,993	5,981	473,551
	======	======	======	======	======

1 The exposure to the market of long CFDs, long options contracts and forward currency contracts.

2 Debtors include amounts held at futures clearing houses and brokers.

3 Cash and cash equivalents are made up of £3,605,000 cash at bank and £2,376,000 held in Fidelity Institutional Liquidity Fund.

Currency	Investments at fair value £'000	Long exposure to derivative instruments1 £'000	Debtors2 £'000	Cash and cash equivalents3 £'000	2025 Total £'000
Hong Kong dollar	97,377	54,327	881	615	153,200
US dollar	33,706	12,057	546	23,939	70,248
Indonesian rupiah	66,419	-	108	-	66,527
Indian rupee	48,177	-	1,892	47	50,116
South Korean won	48,834	-	706	-	49,540
Taiwan dollar	25,682	-	106	-	25,788
Australian dollar	16,507	-	84	-	16,591
Thai baht	11,614	-	-	-	11,614
Singapore dollar	9,626	-	-	-	9,626
Sri Lankan rupee	6,161	-	-	-	6,161
Vietnamese dong	5,456	-	-	-	5,456
Philippine peso	4,875	-	60	-	4,935
Other overseas currencies	1,657	-	-	806	2,463
UK sterling	960	-	130	-	1,090
	----------	----------	----------	----------	----------
	377,051	66,384	4,513	25,407	473,355
	======	======	======	======	======

1 The exposure to the market of long CFDs.

2 Debtors include amounts held at futures clearing houses and brokers.

3 Cash and cash equivalents are made up of £5,689,000 cash at bank and £19,718,000 held in Fidelity Institutional Liquidity Fund.

Currency exposure of financial liabilities

The currency profile of these financial liabilities is shown below:

Currency	Short exposure to derivative instruments1 £'000	Other creditors £'000	2026 Total £'000
US dollar	20,419	117	20,536
Indian rupee	4,763	776	5,539
Hong Kong dollar	1,997	480	2,477
Australian dollar	1,968	343	2,311
Korean won	-	816	816
Indonesian rupiah	-	265	265
Malaysian Ringgit	-	46	46
Other overseas currencies	2,457	-	2,457
UK sterling	-	784	784
	----------	----------	----------
	31,604	3,627	35,231
	======	======	======

1 The exposure to the market of short CFDs, short futures and forwards.

Currency	Short exposure to derivative instruments1 £'000	Other creditors £'000	Bank overdrafts £'000	2025 Total £'000
US dollar	17,697	1,496	-	19,193
South Korean won	3,366	135	-	3,501
Hong Kong dollar	2,666	18	-	2,684
Australian dollar	1,944	-	-	1,944
Indian rupee	1,130	496	-	1,626
Indonesian rupiah	-	916	-	916
Thai baht	-	320	-	320
Vietnamese dong	-	303	-	303
Singapore dollar	-	99	-	99
UK sterling	-	711	2	713
	---------	---------	---------	---------
	26,803	4,494	2	31,299
	======	======	======	======

1 The exposure to the market of short CFDs and call options.

Other price risk

Other price risk arises mainly from uncertainty about future prices of financial instruments used in the Company's business. It represents the potential loss the Company might suffer through holding market positions in the face of price movements.

The Board meets quarterly to consider the asset allocation of the portfolio and the risk associated with particular industry sectors within the parameters of the investment objective.

The Portfolio Managers are responsible for actively monitoring the existing portfolio selected in accordance with the overall asset allocation parameters described above and seek to ensure that individual stocks also meet an acceptable risk/reward profile. Other price risks arising from derivative positions, mainly due to the underlying exposures, are estimated using Value at Risk and Stress Tests as set out in the Company's internal Risk Management Process Document.

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulties in meeting obligations associated with financial liabilities. The Company's assets mainly comprise readily realisable securities and derivative instruments which can be sold easily to meet funding commitments if necessary. Short-term flexibility, if required, is achieved by the use of a bank overdraft.

Liquidity risk exposure

At 31 July 2026, the undiscounted gross cash outflows of the financial liabilities were all repayable within one year and consisted of derivative instrument liabilities of £1,209,000 (2025: £2,045,000), other creditors of £3,627,000 (2025: £4,494,000) and bank overdrafts of £nil (2025: £2,000).

Counterparty risk

Certain derivative instruments in which the Company may invest are not traded on an exchange but instead will be traded between counterparties based on contractual relationships, under the terms outlined in the International Swaps and Derivatives Association's ("ISDA") market standard derivative legal documentation. These are known as Over the Counter ("OTC") trades. As a result, the Company is subject to the risk that a counterparty may not perform its obligations under the related contract. In accordance with the risk management process which the Manager employs, the Manager will seek to minimise such risk by only entering into transactions with counterparties which are believed to have an adequate credit rating at the time the transaction is entered into, by ensuring that formal legal agreements covering the terms of the contract are entered into in advance, and through adopting a counterparty risk framework which measures, monitors and manages counterparty risk by the use of internal and external credit agency ratings and by evaluating derivative instrument credit risk exposure.

For OTC and exchange traded derivative transactions, collateral is used to reduce the risk of both parties to the contract. Collateral is managed on a daily basis for all relevant transactions.

Collateral

	2026		2025
	collateral received £'000	collateral pledged £'000	collateral received £'000	collateral pledged £'000
HSBC Bank plc	907	-	-	121
Goldman Sachs International Ltd	728	-	181	-
UBS AG	1,278	3,009	-	2,553
J.P. Morgan Securities plc	3,819	-	1,073	-
Morgan Stanley & Co. International Ltd	1,746	-	242	-
	-------	-------	--------	-------
Total	8,478	3,009	1,496	2,674
	=====	=====	======	======

Credit risk

Financial instruments may be adversely affected if any of the institutions with which money is deposited suffer insolvency or other financial difficulties. All transactions are carried out with brokers that have been approved by the Manager and are settled on a delivery versus payment basis. Limits are set on the amount that may be due from any one broker and are kept under review by the Manager. Exposure to credit risk arises on unsettled security transactions and derivative instrument contracts and cash at bank.

Derivative instrument risk

The risks and risk management processes which result from the use of derivative instruments, are set out in a documented Risk Management Process Document. Derivative instruments are used by the Manager for the following purposes:

• To gain unfunded long exposure to equity markets, sectors or single stocks. Unfunded exposure is exposure gained without an initial flow of capital;

• To hedge equity market risk using derivatives with the intention of at least partially mitigating losses in the exposures of the Company's portfolio as a result of falls in the equity market; and

• To position short exposures in the Company's portfolio. These uncovered exposures benefit from falls in the prices of shares which the Portfolio Managers believe to be overvalued. These positions, therefore, distinguish themselves from other short exposures held for hedging purposes since they are expected to add risk to the portfolio.

RISK SENSITIVITY ANALYSIS

Interest rate risk sensitivity analysis

Based on the financial instruments held and interest rates at 31 July 2026, an increase of 1.00% in interest rates throughout the year, with all other variables held constant, would have decreased the net return on ordinary activities after taxation for the year and decreased the net assets of the Company by £383,000 (2025: decreased the net return and decreased the net assets by £161,000). A decrease of 1.00% in interest rates throughout the year would have had an equal but opposite effect.

Foreign currency risk sensitivity analysis

Based on the financial instruments held and currency exchange rates as at the Balance Sheet date, with all other variables held constant, a 10% strengthening of the UK sterling exchange rate against other currencies would have decreased the Company's net return on ordinary activities after taxation for the year and decreased the net assets (2025: decreased the net return and decreased the net assets) by the following amounts:

Currency	2026 £'000	2025 £'000
Hong Kong dollar	10,140	13,683
Indonesian rupiah	6,523	5,965
South Korean won	4,822	4,185
US dollar	4,490	4,641
Taiwan dollar	4,200	2,344
Indian rupee	3,683	4,408
Australian dollar	1,993	1,331
Thai baht	883	1,027
Singapore dollar	748	866
Philippine peso	711	449
Malaysian ringgit	470	94
Sri Lankan rupee	358	560
Other overseas currencies	546	597
	----------	---------
	39,567	40,150
	======	======

Based on the financial instruments held and currency exchange rates as at the Balance Sheet date, with all other variables held constant, a 10% weakening of the UK sterling exchange rate against other currencies would have increased the Company's net return on ordinary activities after taxation for the year and increased the net assets (2025: increased the net return and increased the net assets) by the following amounts:

Currency	2026 £'000	2025 £'000
Hong Kong dollar	12,393	16,724
Indonesian rupiah	7,973	7,290
US dollar	5,893	5,673
South Korean won	5,488	5,115
Taiwan dollar	5,134	2,865
Indian rupee	4,501	5,388
Australian dollar	2,436	1,627
Thai baht	1,080	1,255
Singapore dollar	915	1,059
Philippine peso	869	548
Malaysian ringgit	575	115
Sri Lankan rupee	438	685
Other overseas currencies	667	732
	----------	---------
	48,362	49,076
	======	======

Other price risk - exposure to investments sensitivity analysis

Based on the listed investments held and share prices at 31 July 2026, an increase of 10% in share prices, with all other variables held constant, would have increased the Company's net return on ordinary activities after taxation for the year and increased the net assets of the Company by £36,754,000 (2025: increased the net return and increased the net assets by £37,172,000). A decrease of 10% in share prices would have had an equal and opposite effect.

An increase of 10% in the valuation of unlisted investments held at 31 July 2026 would have increased the Company's net return on ordinary activities after taxation for the year and increased the net assets of the Company by £718,000 (2025: increased the net return and increased the net assets by £533,000). A decrease of 10% in the valuation would have had an equal and opposite effect.

Other price risk - net exposure to derivative instruments sensitivity analysis

Based on the derivative instruments held and share prices at 31 July 2026, an increase of 10% in the share prices underlying the derivative instruments, with all other variables held constant, would have increased the Company's net return on ordinary activities after taxation for the year and increased the net assets of the Company by £5,427,000 (2025: increased the net return and increased the net assets by £3,958,000). A decrease of 10% in share prices would have had an equal and opposite effect.

Fair Value of Financial Assets and Liabilities

Financial assets and liabilities are stated in the Balance Sheet at values which are not materially different to their fair values. As explained in Notes 2 (k) and (l), investments and derivative instruments are shown at fair value. In the case of cash at bank, book value approximates to fair value due to the short maturity of the instruments.

The sensitivity analysis below illustrates how the unobservable inputs used in the valuation methodologies of the unlisted assets impact the fair value as at 31 July 2026.

	Significant unobservable inputs				Sensitivity to changes in significant unobservable inputs
Valuation approach	Fair value £'000*	Key unobservable inputs	Other unobservable inputs	Range
Market approach using comparable traded multiples or calibration factors	6,855	TEV/LTM revenue multiple1	a, b, c, d	1.50x - 1.90x	If TEV / LTM revenue multiple moved by +/- 10%, the fair value would change by £104,674 and -£104,635.
		TEV/LTM EBITDA multiple2	a, b, c, d	6.00x - 7.50x	If TEV / LTM EBITDA multiple moved by +/- 10%, the fair value would change by £138,863 and -£138,824.
		TEV/FY+1 revenue multiple3	a, b, c, d	1.30x - 1.70x	If TEV / FY+1 revenue multiple moved by +/- 10%, the fair value would change by £107,656 and -£107,616.
		TEV/FY+1 EBITDA multiple4	a, b, c, d	5.25x - 6.25x	If TEV / FY+1 EBITDA multiple moved by +/- 10%, the fair value would change by £135,683 and -£135,643.
		===========	========	========	===========================================

Certain unlisted investments have been valued by reference to statements received.

* An asset may be valued using multiple approaches therefore this column is not expected to represent the total of level 3 investments.

1 Total enterprise value (TEV) divided by the last twelve months (LTM) revenue.

2 Total enterprise value (TEV) divided by the last twelve months (LTM) earnings before interest, taxes, depreciation and amortisation (EBITDA).

3 Total enterprise value (TEV) divided by the next twelve months forecasted revenue (FY+1).

4 Total enterprise value (TEV) divided by the next twelve months (FY+1) forecasted earnings before interest, taxes, depreciation and amortisation (EBITDA).

The sensitivity analysis below illustrates how the unobservable inputs used in the valuation methodologies of the unlisted assets impact the fair value as at 31 July 2025.

	Significant unobservable inputs				Sensitivity to changes in significant unobservable inputs
Valuation approach	Fair value £'000*	Key unobservable inputs	Other unobservable inputs	Range
Market approach using comparable traded multiples or calibration factors	5,281	TEV/LTM revenue multiple1	a, b, c, d	1.60x - 2.00x	If TEV / LTM revenue multiple moved by +/- 10%, the fair value would change by £78,228 and -£78,834.
		TEV/LTM EBITDA multiple2	a, b, c, d	6.75x - 7.75x	If TEV / LTM EBITDA multiple moved by +/- 10%, the fair value would change by £96,016 and -£96,622.
		TEV/FY+1 revenue multiple3	a, b, c, d	1.45x - 1.85x	If TEV / FY+1 revenue multiple moved by +/- 10%, the fair value would change by £84,898 and -£85,302.
		TEV/FY+1 EBITDA multiple4	a, b, c, d	5.75x - 6.75x	If TEV / FY+1 EBITDA multiple moved by +/- 10%, the fair value would change by £91,569 and -£92,175.
Scenario analysis considering a range of exit scenariose	53	Discount rate	c, d	18.50% - 23.70%	If the discount rate moved by +/- 10% the fair value would change by £3,421 and -£3,616.
	====	========	======	==========	==========================================

* An asset may be valued using multiple approaches therefore this column is not expected to represent the total of level 3 investments.

1 Total enterprise value (TEV) divided by the last twelve months (LTM) revenue.

2 Total enterprise value (TEV) divided by the last twelve months (LTM) earnings before interest, taxes, depreciation and amortisation (EBITDA).

3 Total enterprise value (TEV) divided by the next twelve months forecasted revenue (FY+1).

4 Total enterprise value (TEV) divided by the next twelve months (FY+1) forecasted earnings before interest, taxes, depreciation and amortisation (EBITDA).

a. Selection of comparable companies

The fair value is determined by examining the market valuations of similar publicly traded firms. This approach involves identifying peer companies with similar industry characteristics, size, growth prospects, and financial metrics. Key valuation multiples such as Price-to-Earnings (P/E), Enterprise Value-to-EBITDA (EV/EBITDA), and Price-to-Sales (P/S) are calculated for each comparable company. These multiples are then applied to the target company's corresponding financial figures to derive an estimated value range. The selection of comparable companies is evaluated at each valuation.

b. Selection of appropriate benchmarks

A benchmark-based valuation methodology estimates the fair value of a company by comparing its financial and operational metrics to a set of relevant industry or market benchmarks. These benchmarks may include sector averages, historical performance standards, or key financial ratios such as return on equity (ROE), profit margins, or revenue growth rates. The selection of appropriate benchmarks is assessed individually for each investment and updated regularly.

c. Selection of alternative valuation methodologies

Fair value is to be determined using a variety of valuation methodologies, each suited to different types of investments and contexts. Common alternative approaches include the income approach, which estimates fair value based on the present value of expected future cash flows, utilising discounted cash flow (DCF) models and estimated weighted average cost of capital (WACC) discount rates.

d. Estimate of sustainable earnings

The approach focuses on normalised earnings, either forecasted over the next 12 months or adjusted to reflect a sustainable, long-term level that smooths out cyclical fluctuations and one-time events. Analysts typically use forward-looking metrics such as projected net income or EBITDA, derived from management guidance, analyst forecasts, or historical trends. These earnings are then multiplied by a valuation multiple (e.g., P/E or EV/EBITDA) that reflects market expectations and industry norms. The chosen multiple may be based on comparable companies or historical averages. By focusing on earnings that are expected to persist over time, the approach aims to provide a more accurate and stable estimate of intrinsic value, especially in dynamic or transitional market environments.

e. Range of exit scenarios

Fair value is determined by modelling potential scenarios about how a company might be sold, or value might be realised. Analysts typically develop several plausible exit scenarios such as a strategic acquisition, initial public offering (IPO), management buyout, or liquidation each with its own assumptions about timing, valuation multiples, and transaction terms. For each scenario, the expected proceeds are estimated, often using projected financial metrics and applying relevant market-based multiples. These proceeds are then discounted back to present value using an appropriate discount rate to reflect the time value of money and risk. The final fair value is calculated as a probability-weighted average of the present values across all scenarios, incorporating both the likelihood and financial impact of each outcome.

Fair Value Hierarchy

The Company is required to disclose the fair value hierarchy that classifies its financial instruments measured at fair value at one of three levels, according to the relative reliability of the inputs used to estimate the fair values.

Classification	Input
Level 1	Valued using quoted prices in active markets for identical assets
Level 2	Valued by reference to inputs other than quoted prices included in level 1 that are observable (i.e. developed using market data) for the asset or liability, either directly or indirectly
Level 3	Valued by reference to valuation techniques using inputs that are not based on observable market data
========	========================================================================

Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the fair value measurement of the relevant asset. The valuation techniques used by the Company are explained in Notes 2 (k) and (l). The table below sets out the Company's fair value hierarchy:

Financial assets at fair value through profit or loss	Level 1 £'000	Level 2 £'000	Level 3 £'000	2026 Total £'000
Investments	367,544	-	7,176	374,720
Derivative instrument assets	589	6,432	-	7,021
	------------	--------	--------	-----------
	368,133	6,432	7,176	381,741
	=======	=====	=====	======
Financial liabilities at fair value through profit or loss
Derivative instrument liabilities	(312)	(897)	-	(1,209)

Financial assets at fair value through profit or loss	Level 1 £'000	Level 2 £'000	Level 3 £'000	2025 Total £'000
Investments	366,943	4,774	5,334	377,051
Derivative instrument assets	124	2,154	-	2,278
	------------	--------	--------	-----------
	367,067	6,928	5,334	379,329
	=======	=====	=====	======
Financial liabilities at fair value through profit or loss
Derivative instrument liabilities	(157)	(1,888)	-	(2,045)
	=======	=====	=====	======

The table below sets out the movements in level 3 financial instruments during the year:

	2026 £'000	2025 £'000
Beginning of the year	5,334	1,046
Purchase at cost - ByteDance	-	3,001
Purchase at cost - Fireside Ventures	407	-
Sales proceeds - ByteDance	-	(86)
Sales gain - ByteDance	-	13
Sales proceeds - Chime Biologics	(51)	-
Sales gain - Chime Biologics	51	-
Transfers out level 3 at cost - Interojo1	-	(1,404)
Movement in investment holding gains	1,435	2,764
	---------	---------
End of the year	7,176	5,334
	======	======

1 Financial instruments are transferred out of level 3 when they become listed.

Below are details of the four investments which fall into level 3 of which the first three investments are unlisted and the latter one is suspended from trading.

ByteDance

ByteDance is a leading global digital media and advertising platform, serving over two billion users across more than 150 markets. Powered by advanced recommendation algorithms, scalable infrastructure, and ongoing innovation, its platforms include TikTok. The valuation at 31 July 2026 is based on the company's financial performance, the macroenvironment and benchmarking the position to a range of comparable market data. As at 31 July 2026, its fair value was £6,855,000 with book cost £2,928,000. (2025: fair value was £5,281,000 with book cost £2,928,000).

Fireside Ventures Fund IV

Fireside Ventures Fund IV is a venture capital fund investing in digital first consumer brands in India. The first investment in this fund was made during the financial year ended 31 July 2026. The Company's total capital commitment to the fund is $5,000,000 of which £407,000 had been called and paid in the period to 31 July 2026. As at 31 July 2026, its fair value was £321,000 with book cost £407,000. This position was not held at 31 July 2025.

Eden Biologics

Eden Biologics develops biosimilars and is also engaged in providing process development and contract manufacturing solutions to the biopharmaceutical industry and is an unlisted company. On 26 February 2018, the company voluntarily delisted from the Taipei Exchange. In September 2023, there was a potential voluntary liquidation of the company which was subsequently postponed indefinitely. The company is attempting to restructure, and the future outcome is uncertain. Given the distressed nature of the company a decision was made for the price to be written down to nil as of the 16 April 2024. As at 31 July 2026, its fair value was £nil with book cost £407,000 (2025: £nil with book cost £407,000).

Salt Lake Potash

Salt Lake Potash is a mineral exploration company. The company was suspended from trading on the Australian Stock Exchange on 27 July 2021 and in October 2021 it announced that it would be entering voluntary administration. As at 31 July 2026, its fair value was £nil with book cost £323,000 (2025: £nil with book cost £323,000).

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 above 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 in the Annual Report. The principal risks and their management are disclosed above.

The Company's gross and net gearing at the year end is set out below:

	2026
	Gross gearing		Net gearing
	Asset exposure £'000	%1	Asset exposure £'000	%1
Investments	374,720	96.1	374,720	96.1
Long CFDs	77,102	19.8	77,102	19.8
Call options (long exposure)	6,183	1.6	6,183	1.6
Total long exposures	458,005	117.5	458,005	117.5
Short CFDs	24,253	6.2	(24,253)	(6.2)
Short Futures	4,763	1.2	(4,763)	(1.2)
Gross asset exposure/net market exposure	487,021	124.9	428,989	110.1
	------------		------------
Shareholders' funds	389,879		389,879
	======		=======
Gearing2		24.9%		10.1%
		=====		=====

1 Asset exposure to the market expressed as a percentage of shareholders' funds.

2 Gearing is the amount by which gross asset exposure/net market exposure exceeds shareholders' funds expressed as a percentage of shareholders' funds.

	2025
	Gross gearing		Net gearing
	Asset exposure £'000	%1	Asset exposure £'000	%1
Investments	377,051	93.6	377,051	93.6
Long CFDs	66,384	16.5	66,384	16.5
Total long exposures	443,435	110.1	443,435	110.1
Short CFDs	21,913	5.5	(21,913)	(5.5)
Short Futures	2,353	0.6	(2,353)	(0.6)
Put options (short exposure)	2,143	0.5	(2,143)	(0.5)
Call options (short exposure)	394	0.1	(394)	(0.1)
Gross asset exposure/net market exposure	470,238	116.8	416,632	103.4
	------------		------------
Shareholders' funds	402,708		402,708
	======		=======
Gearing2		16.8%		3.4%
		=====		=====

1 Asset exposure to the market expressed as a percentage of shareholders' funds.

2 Gearing is the amount by which gross asset exposure/net market exposure exceeds shareholders' funds expressed as a percentage of shareholders' funds.

19 Transactions with the Managers and Related Parties

FIL Investment Services (UK) Limited is the Company's Alternative Investment Fund Manager and has delegated portfolio management and the role of Company Secretary to FIL Investments International ("FII"). Both companies are Fidelity group companies.

Details of the current fee arrangements are given in the Directors' Report in the Annual Report. During the year, the following expenses were payable to FII:

	Year ended 31 July 2026 £'000	Year ended 31 July 2025 £'000
Management fees	2,027	3,250
Secretarial and administration fees	75	75
Marketing services1	202	181
	=====	=====

1 Marketing services includes costs paid to FII to reimburse it for third-party costs it has incurred on behalf of the Company in providing marketing services.

At the Balance Sheet date, the following balances payable to FII were accrued and included in other creditors:

	31 July 2026 £'000	31 July 2025 £'000
Management fees	156	217
Secretarial and administration fees	13	44
Marketing services	49	-
	=====	=====

Disclosures of the Directors' interests in the ordinary shares of the Company and Directors' fees and taxable expenses relating to reasonable travel expenses payable to the Directors are given in the Directors' Remuneration Report in the Annual Report. In addition to the fees and taxable expenses disclosed in the Directors' Remuneration Report, £25,000 (2025: £21,000) of employers' National Insurance contributions were paid by the Company. At the Balance Sheet date, Directors' fees of £38,000 (2025: £17,000) were accrued and payable.

ALTERNATIVE PERFORMANCE MEASURES

The Company uses the following as Alternative Performance Measures which are all defined in the Glossary of Terms in the Annual Report.

Discount/Premium

Details of the Company's discount are on the Financial Highlights page.

Gearing

See Note 18 for details of the Company's gearing (both gross and net).

Net Asset Value ("NAV") per Share

See the Balance Sheet for further details.

Ongoing Charges

Ongoing Charges have been calculated in accordance with guidance issued by the AIC as the total of investment management fees and other expenses expressed as a percentage of the average net asset values throughout the year.

	2026	2025
Investment management fees (£'000)	2,832	2,693
Other expenses (£'000)	1,015	969
Ongoing charges (£'000)	3,847	3,662
Variable element of management fee (£'000)	(805)	557
Average net assets (£'000)	404,562	386,444
Ongoing Charges	0.95%	0.95%
Ongoing Charges including variable element of management fee	0.75%	1.09%
	======	=====

Revenue, Capital and Total Returns per Share

See the Income Statement and Note 8 for further details.

Total Return Performance

The NAV per Share total return includes reinvestment of the dividend in the NAV of the Company on the ex-dividend date. The Share price total return includes the reinvestment of the net dividend in the month that the Share price goes ex-dividend.

The tables below and on the next page provide information relating to the NAV per Share and Share price of the Company and the impact of the dividend reinvestments and the total returns for the years ended 31 July 2026 and 31 July 2025.

2026	Net asset value per Share	Share price
31 July 2025	604.69p	564.00p
31 July 2026	621.46p	588.00p
Change in year	+2.8%	+4.3%
Impact of dividend reinvestment	+3.3%	+3.5%
	---------	---------
Total return for the year	+6.1%	+7.8%
	=====	=====

2025	Net asset value per Share	Share price
31 July 2024	551.66p	496.00p
31 July 2025	604.69p	564.00p
Change in year	+9.6%	+13.7%
Impact of dividend reinvestment	+2.8%	+3.3%
	---------	---------
Total return for the year	+12.4%	+17.0%
	=====	=====

The Annual Financial Report Announcement is not the Company's statutory accounts. The above results for the year ended 31 July 2026 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 2025 and 2026 statutory accounts received unqualified reports from the Company's Independent Auditors in respect of those years and did not include any reference to matters to which the Independent Auditors 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 statutory accounts for 2025 have been delivered to the Registrar of Companies. The 2026 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: https://data.fca.org.uk/#/nsm/nationalstoragemechanism

The Annual Report will be posted to shareholders later this month and additional copies will be available from the registered office of the Company and on the Company's website: www.fidelity.co.uk/asianvalues where up to date information on the Company, including daily NAV and share prices, factsheets and other information can also be found.

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.

END