Fidelity Special Values PLC

Launched in 1994, Fidelity Special Values aims to achieve capital growth by investing primarily in unloved UK companies and waiting for them to come back into favour. The trust can hold some overseas stocks too, although this is limited to no more than 20% of the value of the portfolio.

Fund provider factsheet
Print this note / Save to PDF

Quick Access

Our Opinion
Fund Managers
Investment Board
Key Facts
Fund Performance
Risk
Investment process
ESG
Gearing
Discount/Premium

Our Opinion

Alex is an experienced manager and has a good track record. We see no reason why he and Jonathan will not continue to achieve these results. While neither are income investors, Fidelity Special Values' dividend has increased every year since Alex took charge in 2012. This trust should appeal to investors looking for a value play in the UK market, with a medium- to long-term time horizon.

Fund Managers

Expand

Fund Managers

Close
Alex Wright

Alex Wright joined Fidelity in 2001 as a research analyst and has since covered a broad range of sectors and market capitalizations. He has managed the Fidelity Special Situations Fund since January 2014 and the Fidelity Special Values PLC since September 2012. Alex holds a BSc in Economics from Warwick University, graduating with First Class Honours, and is a CFA Charterholder.

Manager photo

Jonathan Winton joined Fidelity in 2005 as an analyst, covering various sectors including pan-European support services, small-cap technology, and beverages & tobacco. He was promoted to co-portfolio manager of the Fidelity UK Smaller Companies Fund in February 2013, gradually increasing his role in the fund's day-to-day management. In February 2020, Jonathan was appointed co-portfolio manager of the Fidelity Special Situations portfolios, managed by Alexander Wright.

Alex Wright

Alex Wright joined Fidelity in 2001 as a research analyst and has since covered a broad range of sectors and market capitalizations. He has managed the Fidelity Special Situations Fund since January 2014 and the Fidelity Special Values PLC since September 2012. Alex holds a BSc in Economics from Warwick University, graduating with First Class Honours, and is a CFA Charterholder.

Read More

Jonathan Winton joined Fidelity in 2005 as an analyst, covering various sectors including pan-European support services, small-cap technology, and beverages & tobacco. He was promoted to co-portfolio manager of the Fidelity UK Smaller Companies Fund in February 2013, gradually increasing his role in the fund's day-to-day management. In February 2020, Jonathan was appointed co-portfolio manager of the Fidelity Special Situations portfolios, managed by Alexander Wright.

Read More

Investment Board

The five-strong board is chaired by Dean Buckley. Dean was previously chief executive officer at Scottish Widows Investment Partnership. He has also held several positions at HSBC Bank plc, including chief executive Officer for HSBC Asset Management UK and Middle East and chief investment officer for HSBC Asset Management, European equities. He is also a non-executive director of the JPMorgan Asian Investment Trust.

The remaining board members are Claire Boyle, Nigel Foster, Alison McGregor and Ominder Dhillon.

Key Facts

Asset type Equity

Annual Income (Historic) -

Sector UK All Companies

Gearing-

Fund Size-

Fund Manager Start Date 01 September 2012

Ongoing Charges Figure (OCF) -

Payment Date(s) Jun, Dec

Share price discount or premium -

Fund Performance

Expand

Risk

Contrarian investing has traditionally paid handsome returns, but investors must be patient. Returns can be exceptional one year and average the next. The managers tend to have a bias towards medium-sized companies, which can be higher risk than large blue-chip stocks. However, this risk is mitigated by the extensive in-house research team which supports the managers, as well as the diversified portfolio of around 80-120 stocks.

Read more
Back
Risk: 6

Fund Performance

Close

Risk

Close

Contrarian investing has traditionally paid handsome returns, but investors must be patient. Returns can be exceptional one year and average the next. The managers tend to have a bias towards medium-sized companies, which can be higher risk than large blue-chip stocks. However, this risk is mitigated by the extensive in-house research team which supports the managers, as well as the diversified portfolio of around 80-120 stocks.

Quote from the Fund Manager

I’m drawn to unfashionable stocks that are out-of-favour and trade on cheap valuations. I’m looking for potential positive change that others haven’t seen yet.

Alex Wright

Alex Wright

Co-Manager

Investment process

Alex and Jonathan's investment style is best described as contrarian. This means they look for stocks that are out-of-favour, but that must meet two strict criteria. The first is the preservation of investors’ capital: the managers aim to do this by choosing companies with exceptionally cheap valuations or an asset, such as intellectual property or inventory, which has the potential to limit share price falls. Secondly, they look for companies where there is a catalyst for significant earnings growth. Although this approach often puts the managers on the opposite side of consensus, they are patient investors and are prepared to wait for stocks to deliver.

Risk

Contrarian investing has traditionally paid handsome returns, but investors must be patient. Returns can be exceptional one year and average the next. The managers tend to have a bias towards medium-sized companies, which can be higher risk than large blue-chip stocks. However, this risk is mitigated by the extensive in-house research team which supports the managers, as well as the diversified portfolio of around 80-120 stocks.

ESG

ESG - Limited  

The trust’s contrarian approach means Alex and Jonathan will look at all opportunities available to them and will not discount a stock purely because of its lack of ESG credentials. There is one exception though, in excluding companies that work with cluster munitions and mines. Alex and Jonathan's primary focus is on finding unloved, value equities. However, this is not to say ESG factors are ignored. Governance factors are used to consider what poor management could do to a stock, and whether that would be a reason for the share price weakness. The managers will also look for any specific social and environmental concerns when considering the potential downside risks to a stock, or whether these risks are already incorporated in valuations. This may mean the portfolio could feature names that some investors would find unacceptable. Alex and Jonathan will also look at those improving their ESG characteristics and on the path to a better corporate profile, which will be beneficial in the longer-term. Therefore, ESG is a consideration, but will not result in exclusion from investment.

Gearing

The managers are able to use gearing as and when they find attractive opportunities. Gearing has been employed since 2013, with a range between 6% and 14%, although net gearing can go as high as 20%. It is worth noting that, unlike conventional methods of gearing, the managers use contracts for difference as a means of borrowing, which is more cost-effective for the trust.

Discount/Premium

The trust is susceptible to share price volatility, depending on market conditions and sentiment. At points during the past five years, its share price has traded at a 13.3% discount to net asset value, as well as a 4.1% premium (figures to 16 November, 2020).

Related Insights

The information, data, analyses, and opinions contained herein (1) include the proprietary information of FundCalibre, (2) may not be copied or redistributed without prior permission, (3) do not constitute investment advice offered by FundCalibre, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a fund, and (5) are not warranted to be correct, complete, or accurate. FundCalibre shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, this information, data, analyses, or opinions or their use. The Elite Fund rating is subjective in nature and reflects FundCalibre’s current expectations of future events/behaviour as they relate to a particular fund. Because such events/behaviour may turn out to be different than expected, FundCalibre does not guarantee that a fund will perform in line with its FundCalibre benchmark. Likewise, the Elite Fund rating should not be seen as any sort of guarantee or assessment of the creditworthiness of a fund nor of its underlying securities and should not be used as the sole basis for making any investment decision. FundCalibre disclaims any responsibility for trading decisions, damages or other losses resulting from any use of the Elite Fund rating. All performance data, as well as fund size, OCF, AMC, annual income (historic), share price discount or premium, is sourced directly from FE Analytics, and will change periodically.