Fidelity Special Values PLC (LON:FSV) has published its monthly factsheet for June 2025.
Portfolio Manager Commentary
UK equities extended their gains in June, ending the month modestly higher. Markets were supported by a more constructive tone on tariffs and growing expectations of rate cuts from the Bank of England (BoE) following a string of weak economic data releases. However, investor sentiment turned sharply negative mid-month after the US joined Israel in striking Iranian nuclear facilities, which triggered a temporary risk-off move. However, a ceasefire agreement later in the month helped to ease pressures. 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, both 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 17.6% and 25.9% respectively, compared to 11.2% 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.
