Fidelity Asian Values

Website: Fidelity Asian Values
Index: FTSE Small Cap
EPIC: FAS
Supersector: Financial Services
Sector: Equity Investment Instruments
Subsector: Equity Investment Instruments
Market Cap: £378.41M
Payout Frequency:

Fidelity Asian Values Dividend Analysis and Summary

Dividend declaration and key dates

Coverage, reserves and capacity

Revenue EPS: 22.51p; proposed dividend: 20.5p ? per-share cover c. 1.10x.
Revenue earnings: £15.53m vs proposed dividend cost: £13.17m ? cash coverage c. 1.18x.
Revenue reserve at 31/07/2025: £20.23m. After paying the proposed final dividend, residual reserve would be c. £7.1m (roughly ~10–11p per share, depending on shares in issue at the record date).

Yield context

Indicative trailing yield: about 3.6% based on the 31/07/2025 share price of 564p (NAV-basis c. 3.4% on 604.69p).

Structural and policy developments relevant to dividends

Cost allocation change (effective 01/08/2024): 75% of management fees and finance costs charged to capital and 25% to revenue (previously 100% to revenue). The Board notes this “resulted in a step-change” in the proposed dividend.
Active buybacks: 4.46m shares (6.3%) repurchased in the year at a cost of £22.5m; a further 2.36m repurchased after year-end. From 01/08/2025, all buybacks are for cancellation (822,911 treasury shares also cancelled). Lower shares in issue supports per-share dividends and reduces cash outflow.
AGM authorities: Seeking renewal to repurchase up to 14.99% of shares and issue up to 10% at a premium.
Minor changes proposed to Investment Objective/Policy wording and Articles (not dividend-specific).
No M&A, demergers or share consolidations disclosed.

Short, focused analysis: sustainability and growth

Sustainability: The proposed 20.5p dividend is covered by current-year revenue (1.1x per share; 1.18x in aggregate) and backed by a healthy £20.2m revenue reserve pre-payment. However, a material part of the uplift reflects the accounting re-allocation of costs (75% to capital), not solely underlying income growth.
Growth trajectory: The dividend has more than doubled over four years; this year’s +41.4% rise is aided by the cost allocation change and ongoing buybacks that lift DPS mechanically. Management reiterates dividends are an “output rather than an aim”, signalling potential variability rather than a progressive policy.
Support from financial performance and capital allocation: Revenue EPS rose to 22.51p amid higher portfolio income and fee reallocation. Ongoing buybacks and a tighter discount are shareholder-friendly and reduce the cash cost of dividends. Net gearing is modest at 3.4% (gross 16.8%) and appears well controlled.

Risks and flags for dividend stability

Policy-driven uplift: The 75:25 cost allocation change materially boosts distributable revenue; any reversal or higher financing costs could pressure cover.
Variable dividend stance: The Board explicitly warns dividends may vary given the capital growth objective.
Market and FX exposure: Income is largely from Asia ex-Japan small caps, unhedged FX exposure, and use of CFDs/shorts adds complexity; earnings are sensitive to markets, currencies and rates.
Continuation vote in 2026: Not immediate, but a structural event that could affect future policy if sentiment/performance weakens.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency

Total (Annual Dividends Per Share): 0.00p

Dividend Yield = Annual Dividends Per Share (0.00p) ÷ Share Price (594p) = 0%

Ex Dividend Date	Payment Date	Amount	Currency
13/11/2025	11/12/2025	20.50p	GBX
07/11/2024	06/12/2024	14.50p	GBX
02/11/2023	06/12/2023	14.50p	GBX
27/10/2022	07/12/2022	14.00p	GBX
28/10/2021	08/12/2021	8.80p	GBX

Year

Number of Shares:

Payment	Paid	Amount
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