Kepler Research on Fidelity Special Values, November 2024

Fidelity

Alex Wright, the manager of Fidelity Special Values (LON:FSV), which celebrates its 30th anniversary this year, takes a contrarian investment approach, focusing on finding overlooked and undervalued opportunities across the whole UK market-cap spectrum. This approach drives Alex to seek investment opportunities in areas of the market that are often ignored by his peers.

Alex’s contrarian approach has proven effective over both the long term and more recent periods, with FSV outperforming its benchmark over numerous timeframes. For instance, the trust has outpaced the FTSE All-Share Index over one and five years, and has delivered c. 1.5x the annual returns of the index since Alex’s appointment in September 2012 and c. 1.7x since the trust’s launch in November 1994. Notably, FSV has also been the best performing investment trust in the AIC UK All Companies sector over the past five years.

Despite the strong performance in both the short and long term, the shares of FSV continue to trade at a c. 9% Discount, which is wider than the five-year average of 4.2%. FSV has historically traded at a premium rating to the sector average, though this has notably narrowed over the past c. 18 months.

Whilst the past 12 months have been a strong period for UK equities, they remain at lower valuations than their international counterparts. Alex believes they remain attractive in the current uncertain macroeconomic environment leading to a Gearing level of c. 8%, slightly below the five-year average.

FSV primarily focuses on capital growth, but still pays a Dividend with a historic yield of c. 2.8%. It also has a 14-year track record of dividend growth, while the dividend has grown c. 19% annually between 2014 and 2023.

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.

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Fidelity Special Values recommends 6.84p final dividend (LON:FSV)

Fidelity Special Values (FSV) delivered strong outperformance in 2025, driven by disciplined stock selection and sector positioning, with a 6.9% increase in dividends for shareholders.

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Fidelity Special Values has released its September 2025 factsheet, highlighting continued gains in UK equities amid supportive monetary policy and firmer commodity prices.

Active M&A market in UK Equities unlocks investor value

Alex Wright, portfolio manager of Fidelity Special Values, highlights the rise in takeover activity among companies within the trust’s portfolio, despite volatile markets and currency movements.

Fidelity Special Values strong performance reinforces attractiveness of UK equities  

Fidelity Special Values sees strong 12-month gains as UK equities quietly reward contrarian investors amid persistent capital outflows.

UK investment Trust continues impressive gains and beats 12-month index (LON:FSV)

UK equities advanced in July, supported by trade agreements and earnings upgrades in energy and materials. The Trust’s contrarian approach benefitted from attractive UK valuations, with NAV up 14.1% and the share price up 17.1% over 12 months, compared with a 12.1% gain for the index.

Why Investing in UK equities remains compelling (LON:FSV)

Fidelity Special Values portfolio manager Alex Wright remains positive on UK equities as the market hits record highs. Despite strong recent returns, UK stocks continue to trade at a discount to global peers, with compelling opportunities in small and mid-cap companies.

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