Fidelity Special Values PLC (LON:FSV) has published its monthly factsheet for September 2025.
Portfolio Manager Commentary
UK equities continued their gains in September, supported by the Fed’s widely expected 25-bps rate cut and a policy outlook signalling further monetary easing through its updated dot plot. Firmer commodity prices and a weaker sterling helped support revenues of FTSE 100 companies and sustain investors’ risk appetite. Domestically, monetary policy developments were muted. The Bank of England left rates unchanged at 4.0% after the cut in August, as it signalled a slower pace of quantitative tightening to stabilise government bond (gilt) markets. In terms of sectors, performance was led by basic materials, which were buoyed by stronger metal prices, with industrials and financials also outperforming. By contrast, telecommunications, consumer staples and healthcare lagged.
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 19.9% and 29.0% respectively, compared to 16.2% 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.
