Fidelity Special Values PLC (UK)

Share price (p)

274.00

Estimated NAV (p)

277.02

Premium/Discount (%)

-0.95

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

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.

Fidelity Special Values PLC's aim is to achieve long term capital growth for investors by investing in special situations. It is an actively managed contrarian investment trust that thrives on volatility and uncertainty.

London is one of, if not the most important, of the world’s financial centres. Focused on the UK market but with up to 20% invested in overseas stock markets, this investment trust looks for stocks that are undervalued by the market and whose growth potential isn’t yet appreciated by other investors.

By understanding the downside and identifying the potential for change it allows the trust to invest in unloved stocks with potential for positive change. These 80-120 stocks held in the portfolio provide the trust with diversification and liquidity.

Investing in companies with unrecognised potential

Past performance is not a reliable indicator of future results. The value of investments can go down as well as up and you may not get back the amount you invested. Fidelity does not give advice. If you’re unsure of the suitability of an investment for you, you should speak to an authorised financial adviser.

Overseas investments are subject to currency fluctuations. This Investment Trust may also invest 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. Investment Trusts can gear through the use of bank loans or overdrafts and this can be achieved through the use of derivatives. Their use may lead to higher volatility in the Net Asset Value and Share Price.

 

What’s our approach?

Portfolio Manager, Alex Wright’s, 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.

Who’s Alex Wright?

Alex Wright has 13 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.

May suit investors who:

  • Want an investment that focuses on the UK
  • Are interested in undervalued stocks as a growth opportunity
  • Are wanting to invest in small- and medium-sized companies
  • Can afford to take a long-term investment view
  • Are investing for their future; the trust may be held in an ISA, Junior ISA, SIPP or General Investment Account

Board of Directors

Reports and Literature

Investors should be aware that the content of the Key Information Document (KID), including methodologies for the calculation and presentation of risks, performance scenarios and costs are defined by technical standards under the EU’s PRIIPs Regulation. The forward-looking Performance Scenarios are based on degrees of variation from historic performance, and cannot be guaranteed. The figures in the KID may not reflect the expected returns for the Company and will be higher following periods of strong returns and lower following market falls. Please remember that past performance is not a guide to future performance.

Is there any value left in the market? Absolutely!

Alex Wright, Portfolio Manager of Fidelity Special Values PLC, explains why now might be the time, against mounting pressures of higher inflation and interest rates, for value investors to start to look at which stocks offer absolute value.

Find out more

Registration information

Registered in England and Wales; registration number 02972628.

Registered office: FIL Investments International, Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey KT20 6RP.

Fidelity Special Values (UK) PLC is a member of the Association of Investment Companies. Visit the London Stock Exchange for all the latest and historical announcements.

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