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. Each holding 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.
Read more about Fidelity Special Values
What’s covered in this podcast:
- How the portfolio is currently positioned [0:26]
- The two stocks hit hard by the pandemic, but which the manager is willing to wait for earnings to recover [2:10]
- Why the trust’s gearing is currently 14% [3:14]
- The reason the trust is underweight oil & gas companies and banks [4:37]
- Why Brexit planning helped UK plc cope with lockdown [6:01]
- Which overseas companies are held in the portfolio [8:54]
This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Past performance is not a reliable guide to future returns. Remember, all investments can fall in value as well as rise, so you could make a loss. Before you make any investment decision, make sure you’re comfortable and fully understand the risks.Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.