UK investment trust FSV: 18% share price cumulative growth in 3 months


Fidelity Special Values plc (LON:FSV) has published its fact sheet for the period to 31 December 2022.

Portfolio Manager Commentary 

UK equities fell in December. Conviction remained low as investors grappled with recessionary fears amid high inflation and tight financial conditions, while optimism about China’s reopening helped offset some losses. The Fed delivered a 0.50 percentage point interest rate hike despite lower-than-expected CPI, sending a hawkish message and the Bank of England raised interest rates by the same margin, while signalling that more rate hikes may be required to bring persistently high inflation under control. All sectors except health care declined.

There is clearly a lot of economic and geopolitical uncertainty globally. Most indicators point to a slowdown or recession, particularly for the consumer as inflation and rising interest rates take their toll. The unpredictable demand picture combined with continued supply chain pressures are adding to the volatility, and we have started to see that emerge in company earnings. These valuation levels and the large divergence in performance between different parts of the market create good opportunities for attractive returns from UK stocks in the next three to five years. In our opinion, the UK market with its higher dividends offers a better prospective return than from many other asset classes, including global

On a rolling 12-month basis, the Trust recorded NAV and share price returns of 0.1% and -5.0% respectively, compared to 0.3% 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. Supported by an extensive research team, they look to invest in out-of-favour companies, having spotted potential triggers for positive change they believe have been missed by others.

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