Fidelity Special Values PLC (LON:FSV) has published its monthly factsheet for July 2025.
Portfolio Manager Commentary
UK equities advanced in July as investor sentiment improved amid positive trade developments and supportive sectoral performance. The US administration’s announcement of multiple trade agreements offered some clarity around the evolving policy environment and helped restore investor confidence. The UK was seen as a relative winner, particularly after securing an early trade deal with the US, which boosted the appeal of attractively valued UK names. The market was also supported by upward earnings revisions in energy and materials.
The UK has been performing well over the past five years and remains a fertile hunting ground for contrarian stock pickers. While there has been some narrowing in regional valuations following the strong year-to-date performance, the UK has room to run further. It continues to trade at a meaningful discount to other regions on an absolute basis. We believe that the current market conditions continue to favour our contrarian-value investment style. While it is still a developing trend, it is encouraging to see other market participants showing increasing interest in UK equities. The UK market offers a rich pool of investment opportunities for diligent investors, combining strong earnings growth, high dividend yields and low valuations.
On a rolling 12-month basis, the Trust recorded NAV and share price returns of 14.1% and 17.1% respectively, compared to 12.1% 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.
