Impressive Returns for Fidelity Special Values ​​in 2024

Fidelity Special Values ​​(FSV) has announced its annual results for the year ended August 31, 2024. The company delivered a NAV Total return of 24.1% and a total share price return of 24.3%, well above the scale index Return of 17%. The company also announced that the plank recommended a finale dividend of 6.30p per share which, together with the interim dividend payment of 3.24p per share (totaling 9.54p), represents an increase of 8.4% year-on-year and a current yield of 2.8%.

Regarding performance, the manager noted that the Portfolio Overall, the company posted unusually strong earnings and performance benefited from an improving trading outlook. The stronger economic backdrop has also resulted in the share prices of FSV's more economically sensitive small and mid-cap holdings beginning to recover after a difficult period from 2022 to 2023.

Commenting on the Trust's performance and prospects, Chairman Dean Buckley said:

“While geopolitical challenges remain, from the conflict in the Middle East and the war in Ukraine to the upcoming US presidential election, there is a growing feeling that things are gradually returning to some kind of 'normal' from an economic and market perspective.” Increased post-Covid rates of inflation in all developed markets have weakened significantly, and monetary policy is starting to follow suit as economic growth expectations lean more towards a “soft landing” scenario than might have been the case this time last year. All of these factors typically point to a more favorable environment for stock investing, and indeed some of the larger stock markets – from the US to Japan – hit new highs during the year under review, although not without a few Volatility.

“While investor attention was largely focused on US technology stocks, particularly those related to artificial intelligence, the still-unloved UK stock market enjoyed a quiet renaissance, with the FTSE All-Share Index (benchmark) performing very well A total return of 17.0% in the 12 months to August 31, 2024. It is therefore particularly pleasing that your company has a net asset value (“NAV”) total return of 24.1% and one share for another year The outperformance can report a total price return of 24.3%.

“One of the things that sets your company apart is your portfolio managers’ focus on opportunities across the market cap spectrum. Perhaps unusually, there was no single standout area in the UK market's performance this year, with a total return of 16.9% for large caps FTSE 100 index17.3% for the Mid-Cap FTSE 250 Index and 18.7% for the FTSE Small-Cap Index. This provides some context for your company's performance, with positive contributions coming from everything from banking giant NatWest Group to mid-market support services stock Babcock International Group to Irish housebuilder Glenveagh Properties. For more information on the top performers, see the portfolio managers' report below.

“The UK stock market, which has largely fallen out of favor on the international stage since the Brexit vote in 2016, continues to trade at a significant price Evaluation Discounted prices compared to some other major developed markets, particularly the US. A key element of your company's investment approach is to identify quality companies whose valuations are lower than their competitors in the UK market. So while a more positive environment could see investor attention return to the UK and overall valuations rise, the cheaper companies your portfolio manager favors could see an additional boost tailwind.

“Of course, stock investing is a long-term endeavor and one year of outstanding performance should not be viewed in isolation. Alex Wright has been your lead portfolio manager for 12 years now and we are pleased to report that he has outperformed the benchmark in eight of those 12 years, with a NAV total return of +272.2% and a total share price return of +305 .5% achieved. Over this period, a £1,000 investment with dividends reinvested would have paid out £3,055.

“Alex has been supported by co-portfolio manager Jonathan Winton since 2020. Jonathan and Alex share the same contrarian, values-based philosophy and process and have worked closely together for more than a decade, since Jonathan became co-manager of the Fidelity UK Smaller Companies open-ended fund in 2013. He has been the lead manager of this fund since 2014 and was awarded the Investment Week Fund Manager of the Year Award in the UK Smaller Companies category in July this year. While Alex has the final say on buying and selling ideas for your company's portfolio, Jonathan's extensive expertise in the small business space makes him a key contributor to such ideas, and the two often attend company meetings together.”

FSV: Impressive Returns for Fidelity Special Values ​​in 2024