Annual Report Clarification Statement

Fidelity Special Values PLC (the 'Company')                  

                     Annual Report clarification statement                     

The Company's Annual Report (2014) states (in the Chairman's Statement and
Strategic Report) that:

'the Company may utilise derivative instruments, including index-linked notes,
contracts for differences, covered options and other equity-related derivative
instruments on a limited basis as a tool to meet the investment objectives of
the Company'.

To avoid any misinterpretation of the term 'limited', the Board wish to clarify
the current investment policy as follows:
 
The Company mainly invests in shares and also invests in equity-related
instruments such as derivatives. Derivatives are used as a tool to meet the
investment objectives of the Company, and usage remains subject to the
previously disclosed limits which have not changed since 2011.

Derivative use is limited in terms of its contribution to gearing, which is
defined as the gross sum of all un-hedged positions (longs, shorts, derivatives
and securities), and is limited to 130% of net assets.

Derivatives are used principally in the following ways:

1. As an alternative form of gearing to bank loans or bonds. The Company will
purchase long CFDs that achieve an equivalent effect to bank gearing but
currently at lower financing costs.

2. To hedge equity market risks where the Portfolio Manager considers that
suitable protection can be purchased to limit the downside of a falling market
at a reasonable cost.

3. To enhance the investment returns by taking short exposures on stocks that
the Portfolio Manager considers to be over-valued.


The Board has policies and exposure limits to manage derivatives, and their
impacts on the different parts of the business, and these are monitored on a
daily basis. Exposure to any single stock security remains limited to 10% of
total net assets.


Faith Pengelly
For and on behalf of FIL Investments International
Company Secretary
01737 834156

 

13 February 2015