Fidelity Special Values’ investment objective is to achieve long-term capital growth, primarily through investment in the equities (and their related financial instruments) of UK companies that the manager believes to be undervalued or where potential has not been recognised by the market. Investments are only made in companies where the potential downside risk is understood, to limit the possibility of losses. The trust’s performance is measured against a broad index of UK companies.
Fidelity Special Values (FSV) was launched in November 1994 and is run by Alex Wright (lead manager since January 2014) and Jonathan Winton (co-manager since February 2020). They have a value-based investment style, aiming to generate long-term capital growth – while limiting downside risk – from a diversified portfolio of UK equities, although up to 20% of the fund may be invested in companies listed overseas. FSV’s positive long-term relative performance record has been negatively affected by the coronavirus pandemic; however, the managers are taking advantage of what they consider to be mispriced opportunities and are selectively adding to the trust’s holdings. FSV currently offers a 3.2% dividend yield.