Fidelity Special Values PLC (LON:FSV) has published its monthly factsheet for April 2026.
Portfolio Manager Commentary
UK equities rebounded in April following a sharp decline in March, as markets stabilised after the prior month’s sell-off. Investors weighed improving risk appetite and supportive corporate earnings against inflation risks stemming from the energy supply shock. Commodity prices remained elevated due to ongoing geopolitical tensions and disruption in the Strait of Hormuz. Against this backdrop, the Bank of England maintained a cautious stance, holding the policy rate at 3.75% in an 8–1 vote, with one member favouring a rate increase.
We continue to believe that market conditions favour our value contrarian investment style. Periods of heightened uncertainty typically create opportunities to acquire compellingly valued stocks. Large divergences in performance across the market create attractive opportunities to generate returns over a three- to five-year horizon. The portfolio benefits from a favourable upside/downside profile, and our holdings trade at a meaningful discount to the broader UK market, despite their potential for robust earnings growth, strong returns on capital and relatively low leverage. This quality profile reinforces our confidence in delivering strong long-term outcomes for investors.
On a rolling 12-month basis, the Trust delivered NAV and share price returns of 24.1% and 31.8%, respectively, compared with 25.2% 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.
