Fidelity Special Values PLC — Fund Information / Factsheet 2013

Jun 27, 2013

FIDELITY SPECIAL VALUES PLC

AIMS TO PROFIT FROM STOCKS UNLOVED BY THE MARKET

Fidelity Special Values PLC invests mainly in UK-listed companies. The portfolio is likely to have a bias towards mediumsized and smaller companies. The portfolio manager is a value investor, naturally seeking out stocks that are often unloved and unfashionable at the current time.

FIDELITY SPECIAL VALUES PLC DETAILS TO 31.05.13

Share price:	762p
NAV:	835.88p
Discount:	8.84%
Gearing:	21.03%
Ordinary shares in	54,128,896
issue:
Launch date:	17/11/1994
Portfolio Manager:	Alex Wright
Appointed to trust:	03/09/2012
Years at Fidelity:	12

PORTFOLIO MANAGER

As a contrarian investor, I often find myself becoming negative on the prospects for the market after a period of strong performance. With the FTSE All Share having risen 14.2% year to date to the end of May, following a 12.3% rise last year, I have been continually challenging my view that the market still offers good value opportunities to the contrarian investor. The good news is that new ideas entering stage 1 of the portfolio are in plentiful supply. All new ideas must meet my criteria of having downside protection to the share price and unrecognised growth options. Additionally, I think the market environment looks very favourable for equities on a long term view. Despite record low yields available in the bond market, there have been very limited flows into equities thus far. Should this so called 'great rotation' start in earnest, we could be at the beginning of an extended bull market. Special Values is currently geared to give a net market exposure of 112%.

I continue to find interesting ideas in several different areas of the market, one of those areas being defensive, high yield stocks. Investors have been keen to buy companies with defensive growth characteristics and a secure dividend. This has led to a very positive consensus view on a handful of stocks, leaving new buyers with not much in the way of a safety margin. I am more interested in the cheap and out of favour companies that are entering a period of positive change which the market has not yet appreciated.

In an environment of low economic growth, large companies are forced to look outward if they want to grow or defend their positions. In 2012, a number of the Trust's holdings were bought out by larger rivals because they saw the good value that was on offer. I believe this theme can continue, and perhaps gather pace, throughout 2013.

In May, the Trust recorded NAV returns of 6.5%, compared to 2.9% for the index. Several of our largest overweight positions such as Electronic Arts, Brewin Dolphin and United Drug were among the leading contributors during the month. Updated May 2013

Alexander Wright, Portfolio Manager

FIVE YEAR PERFORMANCE COMPARISON

NAV Benchmark Index Share Price

05-08 11-08 05-09 11-09 05-10 11-10 05-11 11-11

PERFORMANCE RECORD
Cumulative Growth	YTD	1mth	6mths	1 yr	3 yrs	5 yrs	10 yrs	Since 17.11.94
Share Price	26.2%	6.1%	34.9%	61.8%	54.1%	63.7%	245.1%	919.2%
NAV	24.2%	6.5%	28.1%	50.6%	53.1%	61.2%	272.4%	991.7%
FTSE All Share Index	14.2%	2.9%	15.3%	30.1%	44.1%	35.2%	149.6%	305.3%
Ranking within UK Capital Growth Inv. Trust Sector (Share Price)
Position of the company	4	5	2	3	8	6	7	1
Total number of companies	17	17	17	17	16	15	14	11
Quartile Ranking	1	2	1	1	2	2	2	1

Source of performance: Fidelity/Datastream, cumulative growth, total return as at 31 May 2013, bid-bid with net income reinvested. These figures do not include an initial charge. Rankings: Morningstar. Quartile rank refers to performance over time rated on a scale of 1-4. A ranking of 1 indicates that the item being ranked is in the top 25% of the sample; a quartile of 2 indicates it's in the top 50% and so on.

Please remember that past performance is not a guide to what may happen in the future. The value of investments can go down as well as up and you may not get back the amount you invested. As this fund can invest up to 20% in overseas companies this fund may be subject to currency fluctuations. Please remember the eligibility to invest in an ISA depends on individual circumstances and tax rules may be subject to change.

Investment available via ISA and Share Plan

SINGLE YEAR PERFORMANCE (5 YEARS ENDING MAY)

		May 08- May 09- May 10- May 11- May 12- May 09 May 10 May 11 May 12 May 13
Share Price	-10.4%	18.6%	11.7%	-14.7%	61.8%
Price Record	May	May	May	May	May

	09	10	11	12	13
Share Price (pence)	452.50	528.00		578.50 482.00	762.00
NAV (pence)	473.30	578.53		644.29 566.34	835.88

TOP 10 POSITIONS AS AT 31.05.13

	%
SANOFI	5.88
UNITED DRUG PLC	5.50
ROYAL DUTCH SHELL	4.78
BREWIN DOLPHIN HLDGS PLC	4.63
DCC PLC	4.47
HSBC HOLDINGS PLC	4.29
SSE PLC	3.85
ELECTRONIC ARTS INC	3.75
GLAXOSMITHKLINE PLC	3.66
WPP PLC	3.32

Source: FIL Ltd, 31 May 2013. Benchmark is FTSE All Share Index. All data in the above includes any derivative exposures as an economically equivalent position in the underlying asset. Source: FIL Limited, 31 May 2013

INDUSTRY BREAKDOWN AS AT 31.05.13 GLOSSARY

Includes exposure to derivatives. Source: FIL Limited, 31 May 2013

DEALING INFORMATION

Listed:	London Stock Exchange
Quoted:	London Stock Exchange
	Financial Times
	The Times
	The Daily Telegraph
	The Independent
Reuters Code:	FSV.L
SEAQ Code:	51079

MARKET CAP ALLOCATIONS AS AT 31.05.13

Source: FIL Limited, 31 May 2013

NAV

The total value of a company's assets less the total value of its liabilities is its net asset value (NAV). For valuation purposes it is common to divide net assets by the number of shares in issue to give the net assets per share. NAV calculations can include or exclude current financial year income. For the purposes of this factsheet, they are valued with assets including income and costs and with debt valued at the market.

DISCOUNT

If the share price of an investment company is lower than the net asset value (NAV) per share, the company is said to be trading at a discount. The discount is shown as a percentage of the NAV.

GEARING EXPOSURE

Investment trusts have the ability to borrow additional money to invest, known as gearing. The trust has the ability to use bank loans, bank overdrafts and Contracts for Difference (CFDs) to increase its exposure to stocks. CFDs are used as a way of gaining exposure to the price movements of shares without buying the underlying shares directly.

OVERWEIGHT/UNDERWEIGHT

If a stock is deemed "overweight" this indicates that the portfolio has a higher exposure to a stock compared to its benchmark. If a stock is deemed "underweight" this indicates that portfolio has a lower exposure to a stock compared to its benchmark.

TOP 10 POSITIONS

The ten largest holdings are shown as a percentage based on total exposure which is the fixed asset investments plus the fair value of the underlying securities within the derivative instruments.

SECTOR/GEOGRAPHICAL BREAKDOWNS

These are expressed as a percentage of total portfolio and cash.

FAIR VALUE

The fair value of the listed investments is measured at bid prices or last prices quoted, depending on the convention of the exchange on which they are listed. Where permitted, unlisted investments, where there is not an active market, are valued using an appropriate valuation technique so as to establish what the transaction price would have been and derivative instruments are valued at the quoted trade price for the contract.

Reference in this document to specific securities should not be construed as a recommendation to buy or sell these securities, but is included for the purposes of illustration only. Investors should also note that the views expressed may no longer be current and may have already been acted upon by Fidelity. This information does not constitute investment advice and should not be used as the basis for any investment decision nor should it be treated as a recommendation for any investment. If you are unsure of the suitability of an investment, please contact a financial adviser.

For more information contact us on 0800 41 41 10, 9am – 6pm Monday to Saturday or go to www.fidelity.co.uk/specialvalues