of Subscription Shares

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1 Subscription Shares Understanding the Bonus Issue of Subscription Shares

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3 Contents Subscription Shares 4 Fidelity Investment Trust Subscription Shares 5 Converting Subscription Shares 6 Subscription Shares in an ISA 7 Subscription Shares in the Share Plan 9 We re here to help 10 Subscription Shares 3

4 Subscription Shares Subscription Shares have similar characteristics to warrants, in that they offer shareholders the right but not the obligation to subscribe for shares at specified future dates or during a pre-determined period at pre-determined prices. Unlike warrants, Subscription Shares qualify for the stocks and shares component of an ISA. The Subscription Shares hold a monetary value which may be traded in a similar fashion to Ordinary Shares or they may be converted into Ordinary Shares (see page 6 for further details on converting Subscription Shares). For example, if the Conversion Price on the relevant conversion date was 150p and the market price of Ordinary Shares on that date was 100p, it would be anticipated that the Subscription Shares would not be converted. However, if the market price of Ordinary Shares on that date was 200p, it is likely that Subscription Shares would be converted, should the Subscription Shareholder wish to purchase more Ordinary Shares. Subscription Shares, like warrants, lock the price at which new Ordinary Shares may be purchased on future conversion dates or during a pre-determined period. As a holder of a Subscription Share you have the choice whether or not to convert to new Ordinary Shares on or between these dates. You also have the choice of selling the Subscription Shares at any point once they have been issued. Whether you wish to convert your Subscription Shares will normally be dependant on the prevailing Ordinary Share price on the conversion date. In general it is anticipated that investors would convert their Subscription Share Rights if the market price of Ordinary Shares exceeds the Conversion Price at the relevant conversion date. The shares for Fidelity Asian Values PLC can be converted on a monthly basis from the last business day in May 2010, until the last business day in May Subscription Shares

5 Fidelity Investment Trust Subscription Shares The investment trust Board has allocated investors one Subscription Share for every five Ordinary Shares held in Fidelity Asian Values PLC. This means you have been issued Subscription Shares for investments held in either an ISA Share Plan and/or an Investment Trust Share Plan. If you have investments in both, you will receive Subscription Shares for both accounts. If you have a qualifying direct share holding, with the Registrars (not Fidelity) you will also receive Subscription Shares. The Subscription Price payable to exercise each Subscription Share has been calculated to be 191 pence. This is based on the Subscription Price being equal to a 1% premium to the published NAV (net asset value) per Ordinary Share as at 5.00pm on 4March 2010, rounded up to the nearest whole penny. Who is eligible for Subscription Shares? All UK and EEA resident Shareholders, including those in the Fidelity Investment Trust Share Plan and ISA, will be eligible to receive Subscription Shares. EEA residents who remain out of the UK will only be able to sell them and cannot convert them. Although, if EEA residents return to the UK before May 2013, they will be eligible to convert your shares as explained in this guide and using the forms available on the website. Given restrictions on the issuance of shares applying to certain jurisdictions, shareholders who are not resident in the EEA will not be eligible to receive the Subscription Shares. New investors in the Company after shares have been allocated will not be eligible to receive Subscription Shares. These Subscription Shares will be available for you to exercise from May 2010 onwards on a monthly basis and you will be able to convert shares up until the last business day in May If you wish to sell your Subscription Shares you can do so at any point from when your shares are issued (see pages 8 and 9 on how to do this). Also you can switch the value of the Subscription Shares to another fund. Each Subscription Share may only be exercised once. Subscription Shares 5

6 Converting Subscription Shares If you wish to exercise your Subscription Shares they will be converted into Ordinary Shares, the same type of shares you currently hold. The price of Ordinary Shares is variable as it can fluctuate as supply and demand for Ordinary Shares changes. This means that the Ordinary Share price may go down as well as up and the Ordinary Share price can fall when the NAV per Ordinary Share rises, or vice versa. Please remember that the value of your investments and the income from it can go down as well as up and you may not get back the amount you invested. When you are considering converting your Subscription Shares you should consider the following: If you exercise Subscription Shares at a time when the Subscription Share price which is 191 pence is greater than the prevailing share price, you would actually be paying more for the shares than they are valued by the market The Subscription Shares, once converted into Ordinary Shares, will be affected by the same risk factors as the Ordinary Shares you currently hold The Subscription Share Rights (rights to sell or convert) will lapse on the last business day of May 2013 and the Subscription Shares may have no value to holders after that date, except as detailed below In the case of any Subscription Shares which have not been exercised on or before the final exercise date, these will cease to have any value unless a trustee, which has been appointed by the Company, decides that the net proceeds of sale of the Ordinary Shares that would arise on the exercise of the Subscription Rights after costs would exceed the costs of exercise of the Subscription Rights. The trustee would then exercise or arrange exercise of all outstanding Subscription Shares and sell the Ordinary Shares arising. The net proceeds of the sale, less costs, would be sent to the Subscription Shareholders unless the amount to which a Subscription Shareholder is entitled is less than 5 For full details, including your cancellation rights please refer to the enclosed Key Features document or the full Prospectus available online at 6 Subscription Shares

7 Subscription Shares in an ISA Investments in ISAs are free of UK tax on income and capital gains. Receipt of Subscription Shares and any subsequent disposal of Subscription Shares held in an ISA will not be a chargeable event for capital gains tax purposes. As an ISA holder, you may convert your Subscription Shares into Ordinary Shares from May However, any new monies paid into your ISA to convert your Subscription Shares will contribute towards your annual ISA limit in the tax year in which you invest and must not exceed the ISA allowance for that tax year. Subscription Shares can be bought and sold independently of the Ordinary Shares. However, within a Fidelity ISA it will not be possible to buy more Subscription Shares. Once issued, if you do not wish to retain the Subscription Shares, you can sell them as you would sell any other security or switch the value to another fund. Whether you re eligible to invest in an ISA, and how much the tax savings are worth to you, will depend on your particular circumstances. It s also important to bear in mind that future governments may change the rules on ISAs. Converting Subscription Shares in an ISA To convert your Subscription Shares within the Fidelity ISA you must use money held within ISA Cash Park. This can be new money in the current tax year or money you already hold in ISA Cash Park from previous years ISA investments. Use the ISA Conversion Form available in the pack sent to you or via the website at fidelity.co.uk/asianvals. All you have to do is specify the number of shares you wish to convert and which ISA plan year you would like the money in ISA Cash Park to come from. Please note, you must ensure that you have the money held in the ISA Cash Park before you give an instruction to convert the Subscription Shares. If you wish to invest new money into your current year s ISA allowance to convert your Subscription Shares you will also need to complete the relevant ISA Cash Park application form. Please refer to page 8 for information on which application form you will need to complete. Fidelity will convert Subscription Shares on the last business day of each month. Once you have made your investment into the ISA Cash Park and also when Subscription Shares have been converted, you will receive Confirmation of Transactions showing your transaction details. Please be aware that Subscription Shares will be converted on the last business day of every month. If you wish your shares to be converted in a particular month Fidelity will require the form to be sent in by the first business day of that month. For example, if you would like to convert your shares in May 2010, we must receive your form at the latest by 1 May Subscription Shares 7

8 Subscription Shares in an ISA What is ISA Cash Park? ISA Cash Park is a temporary home to shelter your money until you want to convert your Subscription Shares. It allows you to secure your ISA allowance without having to decide immediately where and when you wish to invest. If you don t already have money in the ISA Cash Park you can use the enclosed ISA Cash Park application form. This form is valid for the 2010/2011 tax year so please do not submit this before 6April If you wish to invest before 6April 2010 or after 5April 2011 you will need to complete a different form which can be found on the Help and support section on our website fidelity.co.uk in Application forms. Alternatively please contact us on for further information. When you re invested in ISA Cash Park you can earn a competitive rate of interest. The minimum investment is 1,000, and you can invest up to your full 7,200 or 10,200 ISA allowance, depending on how much you have already invested in ISAs in the current tax year. The ISA Cash Park is not available for monthly savings, phased investment or withdrawal plans. Monthly interest payments will be subject to a tax charge of 20%. Subscription Shares in Account Management Our online Account Management service is a great way to view your Subscription Shares and follow your investments. You can see an up-to-date balance, check your transactions, move money between funds and analyse your portfolio anytime day or night. If you would like to use money you currently hold in other funds or investment trusts within an ISA to convert your Subscription Shares you will have to switch your money into the ISA Cash Park and then complete the ISA conversion form. Selling your Subscription Shares in an ISA If you wish to sell your Subscription Shares rather than convert them, you can simply issue an instruction to Fidelity and we will sell them on your behalf. This instruction will need to be done in writing. The proceeds of the sale will be credited to the bank account linked with your account. If we do not hold your bank details you will be sent a cheque. For UK tax purposes, the sale of Subscription Shares obtained via an ISA investment should not be taxable. For more information on the ISA Cash Park please refer to section 10 of the enclosed Key Features Document. Once we have received your instruction to convert Subscription Shares from the ISA Cash Park, you will no longer receive interest on this as the money will be allocated for investment within that month. 8 Subscription Shares

9 Subscription Shares in the Share Plan For UK Capital Gains Tax purposes, Subscription Shares received into the Share Plan will be treated as the same asset as your existing Ordinary Share holding. The purchase date will be the same as for your existing Ordinary Shares and the base cost for tax purposes of the Subscription Shares will be a proportion of the original base cost of your Ordinary Shares. This proportion depends on the actual price of the Ordinary and Subscription Shares at the close of the first day of trading for the Subscription Shares. If you convert your Subscription Shares into Ordinary Shares, the resulting Ordinary Shares will be treated as the same asset as the Subscription Shares that they replace, and the base cost for tax purposes will be the base cost of those Subscription Shares, increased by the amount of any conversion monies paid. For specific advice on this matter, we recommend you contact a tax adviser. Converting Subscription Shares in the Share Plan To convert your Subscription Shares held in your Share Plan account simply fill out the Share Plan Conversion form. The forms are available in the pack sent to you or via the website at fidelity.co.uk/asianvals. You need to provide us with the number of Subscription Shares you are converting and send in a cheque for that amount. Your shares will be converted on the last business day of each month. Once your Subscription Shares have been converted, you will receive a Confirmation of Transaction showing your transaction details. Details will also appear on your six monthly statements. Please be aware that Subscription Shares will be converted on the last business day of every month. If you wish your shares to be converted in a particular month Fidelity will require the form to be sent in by the first business day of the month. For example, if you would like to convert your shares in May 2010, we must receive your form at the latest by 1 May If you would like to use money you currently hold in investment trusts within the Fidelity Investment Trust Share Plan to convert your Subscription Shares you will have to switch your money from one trust to do so. If you wish to convert your Subscription Shares via a switch from another trust or to obtain a Share Plan switch form, please contact us on , we re open 9am to 5pm Monday to Friday. Please note you cannot switch over the phone, only written instructions are accepted. Selling Subscription Shares in the Share Plan If you wish to sell your Subscription Shares rather than convert them, you can simply issue an instruction to Fidelity and we will sell them on your behalf. To do this you need to write to us using the address on page 10. We will then send the proceeds made from the sale to you by cheque. If you wish for us to pay this amount into a bank account please provide us with your bank account details. We also require that you send us a void cheque or paying in slip so we can verify your bank details. Subscription Shares 9

10 We re here to help For Share Plan queries: UK Calls Overseas calls 0044 (0) Both lines open 9am to 5pm Monday to Friday Fidelity Investment Trust Share Plan Block C, Western House Lynchwood Business Park Peterborough PE2 6BP For ISA queries: UK Calls Overseas calls 0044 (0) Both lines open 9am to 6pm Monday to Saturday Fidelity Investment Trust ISA Oakhill House 130 Tonbridge Road Hildenborough Kent TN11 9DZ If you require further information on Subscription Shares go to our website fidelity.co.uk/asianvals. The ISA or Share Plan conversion forms are available for download via this link. Alternatively, please contact your Financial Adviser. 10 Subscription Shares

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12 UKD003/31555/CH/CS0695/na