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Fidelity Special Values PLC on Thursday said its net asset value increased by more than the benchmark index in another year of outperformance. Fidelity Special Values is a contrarian investor in ‘unloved’ UK companies ‘entering a period of positive change’. For the financial year that ended August 31, the investment trust realised NAV per share and share price returns of 24%, whilst its benchmark, the FTSE all-share index returned 17% over the same period. NAV per share at the end of August was up 20% on-year to 352.84 pence from 293.44p, with the remaining 3.9% in total return coming from dividend payments. The FTSE 250-listed trust credited its positive performance to strong earnings delivery and positioning in financials. Fidelity noted that its performance in the five years to August 31 of 60% was significantly ahead of the benchmark total return of 38%, adding that its portfolio manager, Alex Wright, has now outperformed the benchmark in 8 out of 12 years as lead portfolio manager. Fidelity Special Values declared a final dividend of 6.30p, up from 6.27p a year before, for a 9.54p annual payout, up 8.4% from 8.80p. The stock was trading up 0.3% at 310.40 pence on Thursday afternoon in London. Chair Dean Buckley said: ‘Whilst geopolitical challenges remain, from the conflict in the Middle East and war in Ukraine to the forthcoming US presidential election, there is a growing sense that, from an economic and market standpoint, things are beginning to return to some sort of ’normality’.’ Wright’s ‘optimism’ for the UK market at the start of the year was rewarded, Buckley said, amid a ‘quiet renaissance’ in UK equities. ‘An improving corporate earnings environment, the prospect of some political stability, and a gradual economic recovery may help to bring greater attention to the many good companies listed on the London Stock Exchange, which would undoubtedly give further impetus to the market,’ Buckley said. Copyright 2024 Alliance News Ltd. All Rights Reserved
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