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Fidelity Special Values PLC (UK)

Last Deal Price (p)

319.50

Net Change (%) ↑↓

+0.63

Estimated NAV (p)

341.77

Prem/Disc (%)

-7.10

Source: Morningstar PLC. Share price is delayed by 15 minutes. Net Asset Value (NAV) and discount/premium are estimated.*

Important information: please keep in mind that the value of investments can go down as well as up, so you may get back less than you invest. Past performance is not a reliable indicator of future results. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.

" Dedicated followers of the unfashionable, know a comeback when they see it."

What sets us apart

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Contrarian stock-picking approach

Investing in unloved companies with the potential for positive change.

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Due diligence

The process relies on extensive due diligence and leveraging the breadth and depth of Fidelity’s investment resources.

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Three-stage investment cycle

Individual investments are considered in three distinct stages, from unloved to recovery.

  • Contrarian stock-picking approach

Portfolio managers Alex Wright and Jonathan Winton look for unloved companies that are entering a period of positive change that the market has not yet recognised. They follow a highly disciplined investment process that focuses first on evaluating downside risk and then on identifying positive change and potential upside. The focus is first and foremost on downside protection.

Since the trust launched in 1994, its portfolio managers have consistently applied this contrarian style investment approach. Alex’s philosophy is to base investment decisions on company fundamentals rather than top-down factors (market or macroeconomic drivers).

  • Leveraging Fidelity’s global research platform

This contrarian approach is research intensive in order to identify and gain conviction in opportunities that are out of favour with other investors. The depth of Fidelity’s research ensures that there is a sufficient number of strong investment ideas to build a diversified portfolio at all points of the market cycle. Company research and the insight and expertise of our large team of analysts have been central to the long-term success of our approach.

  • Three-stage investment cycle

Individual investments are considered in three distinct stages. On average, it takes around 18 months for a company to move through this cycle, but this can vary significantly depending on the speed of a company’s recovery.

Stage one: An initial position in a stock is taken. The holding will be gradually increased as and when the team’s conviction increases. Once the operational change takes effect, and an improvement in growth is evident, the company moves to stage two.

Stage two: Start of perception change by the wider market, leading to a re-rating of stocks. At this point, the managers will allow the position to increase in size.

Stage three: The company’s recovery process is well underway and the share price is close to the portfolio managers’ upside target; other investors are buying into the growth story. There is now less downside protection and less upside potential. At this point, the managers will reduce the position and recycle the proceeds into stage one companies.

News & Insights - Special Values PLC

Kepler Trust Intelligence - latest research note on the Company

FSV’s wide discount doesn’t reflect strong recent performance.

Read more
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Why the UK is a fount of Special Value

Bashing the UK market has become fashionable. After five years of post-Brexit underperformance and a tech surge that left the FTSE 100 behind, some view the UK stock market as a supermarket bargain bin, full of cheap but outdated companies. By rummaging through this bargain bin, Alex Wright, portfolio manager of Fidelity Special Values PLC believes that there are plenty of opportunities in under-research stocks with value to unlock.

Find out more

Alex Wright: Why consider my investment trust for your next ISA

In a recent Fund Ideas for your ISA webinar with AJ Bell, Alex Wright, Portfolio Manager of Fidelity Special Values PLC explains why he believes that value investing has the potential to outperform overtime and how he has positioned the trust for success.

Watch now
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UK flags

Why unloved UK equities make a compelling investment opportunity

In sharp contrast to the US markets which have recently hit new highs, UK equities remain generally unloved, despite improving relative performance. However, Alex Wright, portfolio manager of Fidelity Special Values PLC, believes there are reasons to be positive about UK equities. He reviews the opportunity set and potential catalysts for what, in his opinion, remains a very cheap domestic market.

Find out more

Fidelity Special Values maintains its AJ Bell Select List status

Fidelity Special Values PLC continues to retain its place as one of just 18 investment trusts on AJ Bell’s Select List. The investment specialists at what is one of the UK’s leading investment platforms analyse the investment trust market, looking at factors including price, performance and size to create their list of preferred investment trusts. Fidelity European Trust PLC and Fidelity China Special Situations PLC also feature in the shortlist.

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Why UK equities may have finally turned a corner

The recent strong relative performance of the UK equity market has gone largely unnoticed by investors, reinforcing its unloved status. Alex Wright, portfolio manager of Special Values PLC, outlines why value-oriented areas of the UK market represent a strong investment opportunity and highlights how he is positioning his portfolios to benefit.

Find out more
What’s our approach?

Lead Portfolio Manager, Alex Wright, approach is very much in keeping with Fidelity Special Values’ heritage and history - that of contrarian investing, looking for unloved companies whose potential for recovery has been overlooked by the market.

Alex’s value-contrarian philosophy centres on buying unloved companies undergoing positive change and holding them until their potential value is recognised by the wider market. He looks to only invest in companies where he understands the potential downside risk to limit the possibility of losses. Ideally, he wants to invest in companies that have exceptionally cheap valuations or some kind of asset that should prevent their share prices falling below a certain level.

Alex seeks companies where he believes perception by the wider market may shift due to changes in the company’s competitors or market, a new product line or an expansion into new business areas. He also imposes a strict sell discipline once the recovery has taken place.

The trust’s structure affords Alex the ability to invest right across the market, in terms of size (market capitalisation) of underlying investments, although there is an inherent bias towards small and mid-cap companies.

The aim is to position the Company as the investment of choice for those seeking exposure to UK listed companies but with the benefit of investing up to 20% of the portfolio in listed companies on overseas exchanges in order to enhance Shareholder returns.

Alex Wright, Portfolio Manager

Alex Wright has 23 years of investment experience. He joined Fidelity in 2001 as a European equity research analyst, successively covering building materials, alcoholic beverages, leisure, emerging European and African banks and UK small-cap stocks. He became portfolio manager of the Fidelity UK Smaller Companies Fund in 2008. He continues to manage this fund alongside the Fidelity Special Situations Fund and the Fidelity Special Values PLC, which he started managing in 2012.

Jonathan Winton, Co-portfolio Manager

Jonathan Winton joined Fidelity as an analyst in 2005, and has since covered pan European Support Services, Small Cap Technology and Beverages & Tobacco. He is the Lead Portfolio Manager of Fidelity UK Smaller Companies Fund and has worked alongside Alex Wright in the Fidelity UK equities team since 2013. He became co-portfolio manager on the Trust in February 2020.

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Past Performance (%)

Dec 2018 -
Dec 2019

Dec 2019 -
Dec 2020

Dec 2020 -
Dec 2021

Dec 2021 -
Dec 2022

Dec 2022 -
Dec 2023

Net Asset Value

24.4

-9.7

28.4

0.1

7.3

Share Price

25.1

-9.7

26.7

-5.0

3.4

FSTE All-Share Index

19.2

-9.8

18.3

0.3

7.9

Past performance is not a reliable indicator of future returns. 
Source: Morningstar as at 31.12.2023, bid-bid, net income reinvested. 
©2023 Morningstar Inc. All rights reserved. The FTSE All-Share Total Return Index is a comparative index of the investment trust.

Investment objective

The investment objective of Fidelity Special Values PLC is to achieve long term capital growth primarily through investment in equities (and their related securities) of UK companies which the Investment Manager believes to be undervalued or where the potential has not been recognised by the market.

Summary of the key aspects of the Investment policy

The investment approach is flexible, with positions in large, medium and smaller sized companies, across all industries.

The Company may make limited investments in companies outside of the UK.

The Company may also invest into other transferable securities, collective investment schemes, money market instruments, cash and deposits and is also able to use derivatives for efficient portfolio management and investment purposes.

The Company is able to gear the portfolio and the Board takes the view that long term returns for Shareholders can be enhanced by the use of gearing in a carefully considered and monitored way.

AGM 2023 - Portfolio Manager Review

Your Board of Directors

Dean Buckley

Chairman

Claire Boyle

Chair of the Audit Committee

Nigel Foster

Senior Independent Director

Alison McGregor

Non-Executive Director

Ominder Dhillon

Non-Executive Director

Reports and Literature

Latest monthly factsheet

Contains the latest portfolio manager commentary, performance data and breakdown of the trust’s holdings.

Annual report

The latest annual report includes an update on the trust’s strategy, governance and financial performance.

Half-yearly report

The half-yearly report includes the Portfolio Manager’s review, financial highlights and latest portfolio holdings.

Key Information Document

This document provides you with key information about this investment product. It is not marketing material.

Additional Information

Historical reports and announcements

Ready to invest?

Tell us whether you are a personal investor or an investment professional, and we will show you the different ways you can invest in our trusts.

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*The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

News & Insights - Special Values PLC

FSV’s wide discount doesn’t reflect strong recent performance.

Fidelity Special Values (FSV) owns a portfolio of predominantly UK equities t…


Kepler

Kepler

Trust Intelligence

Fidelity Special Values Half Yearly Results Announcement

The Company has announced its half yearly results for the period ending 29th …


Fidelity

Fidelity

Research team

Alex Wright: Why consider my investment trust for your next ISA

In a recent AJ Bell webinar, hear from Alex Wright as he explains why he beli…


Alex Wright

Alex Wright

Portfolio manager, Fidelity Special Values PLC

Important information

Overseas investments are subject to currency fluctuations. This trust invests more heavily than others in smaller companies, which can carry a higher risk because their share prices may be more volatile than those of larger companies and the securities are often less liquid. This trust uses financial derivative instruments for investment purposes, which may expose it to a higher degree of risk and can cause investments to experience larger than average price fluctuations. The shares in the investment trust are listed on the London Stock Exchange and their price is affected by supply and demand. The investment trust can gain additional exposure to the market, known as gearing, potentially increasing volatility.