Fidelity Special Values PLC (LON:FSV) has published its monthly factsheet for March 2025.
Portfolio Manager Commentary
UK equities declined in March as investors grappled with renewed trade policy uncertainty and signs of slowing economic growth. US President Trump announced 25% new import duties on cars and car parts, which are set to take effect in early April, and these ended hopes of a measured tariff approach from the US administration. It followed the 25% levies on steel and aluminium imports that were imposed in February, intensifying concerns that the escalating trade war could stoke inflation. Cyclical areas of the market or those tied to tariff announcements underperformed. The consumer discretionary sector was the worst performer, while basic materials lagged as metals and mining stocks came under pressure from weaker commodity prices and trade policy concerns. In contrast, energy stocks benefitted from rising oil prices.
Despite their improved performance over recent years, UK equities still look cheap relative to other markets, and reasonable on an absolute basis. We believe that the combination of attractive valuations and the large divergence in performance between different parts of the market create good opportunities for attractive returns from UK stocks on a three-to-five-year view. Their unloved status means we continue to find overlooked companies with good upside potential across industries and the market cap spectrum.
On a rolling 12-month basis, the Trust recorded NAV and share price returns of 11.5% and 15.1% respectively, compared to 10.5% for the index.
Fidelity Special Values PLC (LON:FSV) aims to seek out underappreciated companies primarily listed in the UK and is an actively managed contrarian Investment Trust that thrives on volatility and uncertainty.
