Fidelity Special Values PLC (LON:FSV) has published its monthly factsheet for July 2026.
Portfolio Manager Commentary
UK equities advanced in July, outperforming developed markets as improving investor sentiment and resilient corporate earnings supported returns. The market’s sector mix continued to provide attractive diversification relative to global equities. Merger and acquisition activity remained supportive, with continued interest from US corporates and private equity firms. At the same time, geopolitical tensions in the Middle East contributed to market volatility, higher oil and gas prices, and uncertainty around the global economic outlook.
UK equities continue to trade at a significant discount to other major markets, both on an absolute basis and after allowing for differences in index composition, including the higher weighting of technology stocks in the US. We continue to see particularly attractive opportunities among mid and smaller companies, where valuations remain compelling. Although this part of the market has been out of favour for some time, ongoing takeover activity and share buybacks provide support, while any improvement in investor sentiment could act as an additional tailwind.
Over the 12 months to 31 July 2026, the Trust’s NAV returned 20.7% and the share price returned 25.3%, compared with a 21.6% return from the benchmark 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.
