Fidelity Special Values PLC (LON:FSV) has published its monthly factsheet for June 2026.
Portfolio Manager Commentary
UK equities rose for the third consecutive month in June. Resilient corporate earnings, easing concerns over the Middle East tensions following the ceasefire, and continued optimism surrounding merger and acquisition activity supported returns. Gains were partly offset by inflation concerns and a cautious monetary policy outlook. From a style perspective, value stocks outperformed growth during the month, supported by stronger performance from financials, consumer staples and cyclically exposed sectors. The Bank of England left interest rates unchanged at 3.75% during its June meeting, reiterating that policy would remain data-dependent given persistent inflationary pressures and a stilltight labour market.
UK equities continue to trade at a significant valuation discount to other major markets, both on an absolute basis and after adjusting for structural differences in index composition, such as the higher weighting of technology stocks in the US market. Within the UK, we continue to see particularly compelling opportunities among mid and smaller companies, where share prices continue to imply attractive valuations. While this area of the market has been out of favour for some time, ongoing takeover activity and share buybacks provide support, and it remains well placed to benefit from any improvement in investor sentiment.
On a rolling 12-month basis, the Trust recorded NAV and share price returns of 17.0% and 18.1% respectively, compared to 21.9% 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.
