Fidelity Special Values PLC (LON:FSV) has published its monthly factsheet for July 2026.
Portfolio Manager Commentary
UK equities delivered a modest positive return in August, although performance varied widely across the market. Mid-sized and smaller companies performed particularly well and outpaced larger businesses. Investor sentiment was supported by generally resilient company earnings and ongoing corporate activity. However, concerns about stubborn inflation, higher government borrowing costs and uncertainty around the future path of interest rates continued to weigh on some of the larger companies in the market.
UK shares remain attractively valued compared with many other major markets. While some of this reflects differences in market composition, such as the larger technology sector in the US, we believe the valuation gap remains too wide. We continue to see attractive opportunities across the UK market, particularly among mid-sized and smaller companies, where valuations remain subdued. The portfolio is focused on businesses that we believe offer strong long-term growth potential, generate attractive returns on capital and maintain relatively low levels of debt. Many of these holdings trade at a discount to the wider market despite these favourable characteristics, which supports our confidence in the Trust’s long-term return prospects.
Over the 12 months to the end of August, the Trust’s NAV and share price returned 23.4% and 27.8% respectively, compared with 21.3% 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.
