Fidelity Special Values PLC (LON:FSV) has published its monthly factsheet for January 2026.
Portfolio Manager Commentary
UK equity markets started the year strongly in January, supported by an improving growth narrative and a continued rotation toward more value-oriented areas of the market. Global geopolitics remained an important theme, with markets briefly unsettled by US intervention in Venezuela, and renewed friction between the US and Europe after the US administration linked Greenland to potential tariff measures. While the rhetoric softened later in the month, the episode contributed to volatility in energy and metals prices. For the UK market, this proved broadly supportive given its sizeable exposure to oil majors and mining companies, which benefitted from firmer commodity pricing. At the sector level, basic materials led the market, followed by utilities, telecommunications and financials, reflecting the month’s clear preference for value versus growth stocks.
The UK market continues to trade at a meaningful discount to other major regions, both on outright price to earnings multiples and after adjusting for structural sector differences, such as the heavy weighting of technology in US indices. While bullish sentiment has driven valuations to more demanding levels across many global markets, the UK still offers many pockets of value, particularly further down the market cap spectrum.
On a rolling 12-month basis, the Trust recorded NAV and share price returns of 26.7% and 39.1% respectively, compared to 21.1% 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.
