Fidelity Special Values PLC (LON:FSV) has published its monthly factsheet for March 2026.
Portfolio Manager Commentary
UK equities fell in March, marking a decisive shift from the more resilient tone seen earlier this year. Global macro shock stemming from the escalation of the US-Iran conflict, which triggered a steep rise in oil and gas prices, dominated the market narrative. These conditions pushed markets into a risk-off regime. The soaring energy prices fed directly into higher inflation expectations, rising bond yields and tighter financial conditions, driving a broad-based de-rating across UK equities.
We continue to believe that market conditions favour our value contrarian investment style. When uncertainty is rife, this typically results in more opportunities to pick up very attractively valued stocks. The large divergences in performance between different parts of the market create good opportunities to make attractive returns over a three-to-five year view. The portfolio benefits from a favourable upside/downside profile and our holdings trade at a meaningful discount to the broader UK market, despite having the potential for robust earnings growth, strong returns on capital, and relatively low levels of debt. This quality profile reinforces our confidence in delivering attractive long-term returns for investors.
On a rolling 12-month basis, the Trust recorded NAV and share price returns of 21.6% and 27.9% respectively, compared to 21.5% 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.
