Fidelity Special Values ​​(FSV) has announced its annual results for the year ending August 31, 2024. The company has a NAV total return of 24.1% and a total return on the share price of 24.3%, well above the benchmark index return of 17%. The company also announced that the plate has recommended a final dividend of 6.30 pence per share, which together with the interim dividend payment of 3.24 pence per share (9.54 pence in total) represents an increase of 8.4% on the previous year for a current yield of 2 .8%.

Regarding performance, the manager noted that the portfolio overall they have delivered unusually strong profits, and performance has benefited from the improving trading outlook. The stronger economic environment has also meant that share prices of FSV’s more economically sensitive small and mid-cap companies are starting to recover after a difficult period in 2022-2023.

Chairman Dean Buckley discussed the performance and prospects for the trust and commented:

“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 sense that things are starting to return to some kind of ‘normality’ from an economic and market perspective ‘. . Increased post-Covid rates of inflation in developed markets have moderated significantly, and monetary policy is starting to follow suit, with economic growth expectations trending towards a more ‘soft landing’ scenario than may have been the case this time last year. All these factors would normally point to a more favorable environment for equity investing, and some of the larger equity markets – from the US to Japan – have reached new highs in the year under review, albeit not without some progress. inconstancy.

“While much of investor attention has been captured by US technology shares, especially those in the artificial intelligence space, there has been a quiet renaissance in the still unloved UK stock market, with the FTSE All-Share Index (benchmark) making a very creditable gain yielded. total return of 17.0% in the 12 months to 31 August 2024. It is therefore particularly pleasing to report another year of outperformance for your company, with a total return in net asset value (“NAV”) of 24.1% and a share price total return of 24.3%.

“One of the things that sets your firm apart is your portfolio managers’ focus on opportunities across the market capitalization spectrum. Perhaps unusually, there was no standout area in the UK market’s performance this year, with a total return of 16.9% for the 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 from all sectors, from banking giant NatWest Group to mid-cap support services shares Babcock International Group and Irish housebuilder Glenveagh Properties. Learn more about the factors contributing to performance in the portfolio manager rating below.

“The UK stock market, which has been largely out of favor on the international stage since the 2016 Brexit referendum, continues to trade at material levels. valuation discount in some other major developed markets, especially the US. A key element of your company’s investment approach is identifying quality companies with lower valuations than comparable companies in the UK market. So while a more positive backdrop could see investor attention return to Britain and valuations rise overall, the cheaper companies your portfolio manager favors could see additional upside. wind at the back.

“Of course, equity investing is a long-term business, and a year of outstanding performance should not be viewed in isolation. Alex Wright has been your lead portfolio manager for twelve years now and is pleased to report that he has outperformed the benchmark in eight of those twelve years, with a total net asset value return of +272.2% and a total share price return of +305 ,5. %. Over this period, an investment of £1,000 would have returned £3,055, with dividends reinvested.

“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 over a decade, since Jonathan became co-manager of the open-ended Fidelity UK Smaller Companies fund in 2013. He is the main manager of this fund. 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 the buying and selling ideas for your company’s portfolio, Jonathan’s wealth of expertise in smaller companies means he is a key contributor to such ideas, and the two often attend company meetings together.”

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