# UK equities investing – stocks edge higher in June, FSV factsheet

- Link: https://www.directorstalkinterviews.com/uk-equities-investing-stocks-edge-higher-in-june-fsv-factsheet/4121124313
- Published: 2023-07-27T14:25:42+01:00
- Author: Amilia Stone

**[Fidelity Special Values PLC](https://www.directorstalkinterviews.com/company/fidelity-special-values/fsv.l)**(
[LON:FSV](https://www.directorstalkinterviews.com/company/fidelity-special-values/fsv.l))
monthly factsheet for June 2023.

**Portfolio Manager Commentary**

UK equities edged higher in June as negotiations on extending the US debt limit 
were ultimately resolved. Interest rate uncertainty remained a feature of markets,
as the UK’s headline consumer price inflation remained stubbornly elevated at 8.7%
in May. Core inflation, which excludes energy and food, accelerated to 7.1% from
6.8%, pushing gilt yields to levels above those seen during last year’s mini-budget
crisis. The Bank of England increased interest rates by 0.5% in June, marking its
thirteenth consecutive rate rise.

The relative attractiveness of UK valuations and the large divergence in performance
between different parts of the market continue to create good opportunities for 
attractive returns from UK stocks on a three-to-five-year view. The smaller end 
of the market cap spectrum is particularly rich in investment opportunities given
the lack of research coverage. For us, this has always been a big structural overweight.
Smaller companies have incurred severe deratings over the past year as they are 
thought to be more
cyclical and thus more susceptible to an economic slowdown. However,
some of the share price drops, in our opinion, have been indiscriminate. The UK 
market with its high dividends and low valuation offers a better prospective return
than many other asset classes.

On a rolling 12-month basis, the Trust recorded NAV and share price returns of 8.2%
and 1.7% respectively, compared to 7.9% for the index.

[FSV-Factsheet-June](https://www.directorstalkinterviews.com/wp-content/uploads/2023/07/FSV-Factsheet-June.pdf)
[Download](https://www.directorstalkinterviews.com/wp-content/uploads/2023/07/FSV-Factsheet-June.pdf)

**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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