# UK investment opportunities attractive due to high dividends and low valuations (LON:FSV)

- Link: https://www.directorstalkinterviews.com/uk-investment-opportunities-attractive-due-to-high-dividends-and-low-valuations-lonfas/4121123264
- Published: 2023-07-04T16:18:46+01:00
- Author: Amilia Stone

UK investment trust, **[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 May 2023.

**Portfolio Manager CommentaryUK equities gave back some of their recent gains in
May with US debt ceiling concerns, disappointing Chinese economic data and sustained
inflationary pressures all contributing to a weaker month. Commodity prices also
came under pressure in view of weaker growth indicators in China, adding further
pressure on the UK’s commodity-heavy indices, which as a result lagged their US 
and European counterparts. This was also reflected in the underperformance of the
[FTSE 100](https://www.directorstalkinterviews.com/news/ftse-100) versus the [FTSE 250](https://www.directorstalkinterviews.com/news/ftse-250)
and FTSE Small Cap indices.

The relative attractiveness of UK valuations versus other markets 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. 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 or recession. 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, including global equities.

On a rolling 12-month basis, the Trust recorded NAV and share price returns of -
0.2% and -2.4% respectively, compared to 0.4% for the index.

[FAS-May-factsheet](https://www.directorstalkinterviews.com/wp-content/uploads/2023/07/FAS-May-factsheet.pdf)
[Download](https://www.directorstalkinterviews.com/wp-content/uploads/2023/07/FAS-May-factsheet.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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