Fidelity Special Values PLC (LON:FSV) has published its monthly factsheet for December 2025.
Portfolio Manager Commentary
UK equity markets rose in December, ending a year that saw stellar domestic returns. The UK outperformed most global regions over the month but marginally trailed the broader European market, as investors balanced a more supportive global backdrop against continued domestic economic weakness. Improved risk sentiment, driven by weaker US economic data and another interest rate cut by the Fed, helped sustain UK equity markets into year-end. Along the expected lines, the Bank of England delivered another 25-bps interest rate cut, lowering the policy rate to 3.75% following a sharply divided vote. At a sector level, basic materials were the strongest performers, followed by financials and telecoms, reflecting strength in value-oriented and internationally exposed areas of the market. The energy sector lagged as oil prices dipped.
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 26.4% and 37.2% respectively, compared to 24.0% 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.
