Fidelity Special Values PLC

UK Growth

Rated Fund 2013-20. A good choice for value-focused investors      

Fidelity Special Values' style has been out of favour for a while, but Alex Wright, its manager since 2012, has stuck to his guns and managed to keep up with peers despite this. His value approach is widely tipped for a comeback in 2020 after signs of revival in 2019 and a decade in the doldrums. Precisely timing the shift is impossible but, whatever materialises, there is a lot to be gained from going against the grain - some of the world's most successful investors were or are contrarians.

Wright targets unloved companies that have the potential to recover based on factors such as a unique business model, corporate change or exceptional value. He aims to buy into such situations at an early stage. He believes the path from unloved to recovery takes place in three stages. Stage one is the identification of disliked companies, which are being valued as ex-growth with no recognised catalyst. At stage two, changes at the company level are beginning to be recognised by the wider market and the share price should be gaining momentum. Stage three concludes when the business and perception change has taken place. Typically, at this point he recycles capital back into stage-one ideas.

He believes attractive valuations can be found across the market, in large and small companies, both international and domestic-facing. Unlike many UK funds, Fidelity Special Values can hold some international stocks. At the end of 2019, these accounted for almost one quarter of assets. Shares in the trust traded at a small premium to net asset value for most of 2019 but dipped towards par or a small discount at times.

Narrative and ratings content all as of January 2020.  

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Name
Fidelity Special Values PLC
Manager
FIL Investments International
Type
Closed Ended Investment Company
ISIN
GB00BWXC7Y93
Sector
UK All Companies
Launched
17/11/1994
OCF
0.96 %
Risk Rating
4
3 Year Sharpe
-0.16
3 Year Alpha
-2.01
Yield
3.8 %
Benchmark
FTSE AllSh TR GBP
Fund Size
£ 543.52 million
NAV
198
Gearing
110
Discount Premium
-6
To achieve long term capital growth primarily through investment in equities (and their related financial instruments) of UK companies which the Investment Manager believes to be undervalued or where the potential has not been recognised by the market.
Holding %
CRH PLCCFD 5.36 %
Imperial Brands PLC 5.04 %
John Laing Group PLC 5.01 %
FIDELITY INSTITUTIONAL LIQUIDITY FUND PLC - THE UNITED STATES DOLLAR FUNDC 4.77 %
Legal & General Group PLCCFD 4.69 %
Roche Holding AG Dividend Right Cert. 4.69 %
Serco Group PLC 3.60 %
Phoenix Group Holdings PLC 3.57 %
DCC PLC 3.46 %
Aviva PLCCFD 3.41 %
Region %
United Kingdom 73.78 %
United States 9.26 %
Eurozone 7.55 %
Europe - ex Euro 5.60 %
Sector %
Industrials 27.66 %
Financial Services 13.73 %
Energy 10.79 %
Healthcare 9.30 %
Consumer Defensive 8.11 %
Basic materials 8.04 %
Consumer Cyclical 7.18 %
Communication Services 6.09 %
Name
FIL Investments International
Address
TN11 9DZ, Tonbridge, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

Jonathan Winton
Joined 02/03/2020

Jonathan joined Fidelity as a research analyst in 2005. Over eight years in the pan European team, he covered such diverse sectors as support services, small cap technology, beverages and tobacco. He was promoted to the role of co- portfolio manager of the Fidelity UK Smaller Companies Fund in February 2013. Jonathan holds a BA (Hons) degree in Politics from the University of Nottingham.

Alexander Wright
Joined 09/01/2012

Alex Wright has 13 years of investment experience. He joined Fidelity in 2001 as a European equity research analyst, successively covering building materials, alcoholic beverages, leisure, emerging European and African banks and UK small-cap stocks. He became portfolio manager of the Fidelity UK Smaller Companies Fund in 2008. He continues to manage this fund alongside the Fidelity Special Situations Fund and the Fidelity Special Values PLC, which he started managing in 2012.

Data provided by Morningstar.

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