Fidelity Special Values PLC (LON:FSV) has published its monthly factsheet for October 2025.
Portfolio Manager Commentary
UK equities extended their gains in October, posting another month of positive performance and outpacing most major European peers. The market benefitted from weaker inflation expectations, firmer commodity prices, and a fragile sterling, which enhanced the relative appeal of internationally exposed large-cap names. Sterling remained under pressure amid investor concern over the government’s widening fiscal deficit, though sentiment improved through the month as expectations built for another rate cut from the Bank of England before year-end. At a sector level, healthcare, utilities, basic materials, and energy outperformed, supported by strength in commodity-linked names and defensives. Technology and industrials lagged amid profit-taking following recent gains.
While the market’s optimism and rise in valuations should warrant caution, we believe the UK market continues to offer relative value against other regions – including the US, Europe, Japan and Asia Pacific ex-Japan – both on a forward P/E basis and when adjusting for sectoral differences. We remain excited by the prospects of our holdings and the deep and attractive investment universe that the UK offers, along with the ability to generate long term performance.
On a rolling 12-month basis, the Trust recorded NAV and share price returns of 24.0% and 33.3% respectively, compared to 22.5% 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.
