Fidelity Special Values PLC

UK Growth

Rated Fund 2013-19. A good choice for optimistic investors

Alex Wright, manager of Fidelity Special Values since 2012, believes 2019 could be a great year for those brave enough to back UK equities.

“The unrelenting negativity that investors are demonstrating towards UK equities is making me feel more and more positive on their prospects for 2019,” he says. “One thing I have learnt from investing in unloved companies is that you should not necessarily wait for good news to become obvious before investing. And the number of unloved companies available to choose from makes me think 2019 could turn into a surprisingly positive year for investors brave enough to buy UK equities before the good news.”

Wright has turned the fund around after performance faltered when Anthony Bolton departed in 2007, and he has nailed his colours to the mast with his contrarian approach.

He looks for companies that are cheap and out of favour with investors but showing signs of recovery or restructuring. He fishes predominantly in the pool of small UK companies when seeking opportunities. This has generally been an advantage in recent years, but it can lead to short-term fluctuations.

Unlike many UK funds, Fidelity Special Values can hold some international stocks. At present, it has almost 8% in the US through Citigroup, Discover Financial Services, Hewlett Packard and deep-water oil company Kosmos Energy, and more than 4% in Switzerland through pharmaceuticals giant Roche.

The annual cost of this trust is 1.05%. The shares can typically be picked up at a discount to net asset value but currently trade at a small premium.

Narrative and ratings content all as of 01 January 2019.

See all Money Observer rated funds
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
1.05 %
Risk Rating
3
3 Year Sharpe
0.94
3 Year Alpha
5.61
Yield
2 %
Benchmark
FTSE AllSh TR GBP
Fund Size
£ 711.47 million
NAV
253
Gearing
110
Discount Premium
2
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 %
Pearson PLC 5.16 %
Citigroup Inc 5.08 %
Lloyds Banking Group PLC 4.87 %
Roche Holding AG Dividend Right Cert. 4.82 %
CRH PLCCFD 4.66 %
BP PLC 4.52 %
Shire PLC 4.00 %
John Laing Group PLC 3.97 %
Ftse 250 Index_fut 3.97 %
Phoenix Group Holdings 3.76 %
Region %
United Kingdom 69.05 %
United States 13.21 %
Eurozone 10.49 %
Sector %
Industrials 24.81 %
Financial Services 23.96 %
Consumer Cyclical 13.29 %
Energy 10.45 %
Healthcare 9.41 %
Consumer Defensive 5.69 %
Name
FIL Investments International
Address
TN11 9DZ, Tonbridge, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

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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You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.