Fidelity Special Values plc (LON:FSV) has been the best-performing trust in the AIC UK All Companies sector over the past 12 months (to 31/03/2026), with managers Alex Wright and Jonathan Winton focussing on undervalued and overlooked companies with the potential to turn their fortunes around. In fact, it has been a strong period for UK equities, which have outperformed their global and US peers. While FSV’s NAV return was in line with the market, its long-term track record remains robust, with the trust having outperformed the FTSE All-Share Index over the past five years.
Following their strong Performance, UK large-caps have re-rated to valuations close to their long-term averages. As a result, Alex and Jonathan have marginally increased allocations to small- and mid-caps (SMIDs), which still trade at a discount to their large-cap peers and to their own long-term average valuations. At the sector level, they have added to their exposure to GDP-sensitive stocks, one of the four ‘supersectors’ they use to analyse Portfolio exposure – across a variety of areas including staffing companies, consumer-related sectors, and housing and construction. Many of these businesses combine attractive stock-specific opportunities with depressed industry volumes, offering multiple catalysts to support a turnaround. Reciprocally, they have trimmed their exposure to defensive companies such as tobacco and defence-related holdings, as they have returned to favour with investors.
Over the past 12 months, FSV’s Discount has narrowed from 6.1% to 1.7%, with the board having issued shares in February, as the trust had been trading at a sustained premium since the end of 2025. In addition, the trust boasts a 16-year track record of annual Dividend increase and currently offers a historic yield of c. 2.5%.
The investment companies team at Kepler Trust Intelligence has produced a new piece of investment bank quality research about the trust, designed to provide a clear and comprehensive reference for long term investors. This note is free to read for UK investors.
