Interim Management Statement

FIDELITY SPECIAL VALUES PLC - INTERIM MANAGEMENT STATEMENT FOR THE QUARTER                    
ENDED 31 MAY 2014                                                                             
                                                                                              
                                                                                              
                                                                                              
Issued pursuant to the requirements of Chapter 4 of the Disclosure and                        
Transparency Rules                                                                            
                                                                                              
                                                                                              
                                                                                              
                                                                                              
                                                                                              
Objective                                                                                     
                                                                                              
The Company's objective is to achieve long term capital growth from an actively               
managed portfolio of "special situation" investments, consisting primarily of                 
securities listed or traded on the London Stock Exchange.                                     
                                                                                              
                                                                                              
                                                                                              
The Company's primary objective is measured by the total return of the share                  
price over a 5 year period. The secondary aim is to make higher returns than                  
the competition and the market, as measured by the AIC UK Growth Sector and the               
FTSE All-Share Index.                                                                         
                                                                                              
                                                                                              
                                                                                              
Benchmark                                                                                     
                                                                                              
The returns are compared against cash returns and the total return from the                   
FTSE All-Share Index.                                                                         
                                                                                              
                                                                                              
                                                                                              
Review of Period (total return)                                                               
                                                                                              
During the period:                                                                            
                                                                                              
- the NAV decreased by 2.2% against a 0.9% increase for the benchmark.                        
                                                                                              
- the share price decreased by 3.4%.                                                          
                                                                                              
- the Board and Manager continue to believe that investment in equities will                  
produce strong returns for shareholders over the long term.                                   
                                                                                              
- main portfolio changes are detailed in the top ten holdings below                           
                                                                                              
                                                                                              
                                                                                              
Actual gearing exposure which includes derivatives was 25.1% on 31 May 2014.                  
                                                                                              
                                                                                              
                                                                                              
Material transactions                                                                         
                                                                                              
75,000 ordinary shares, held as Treasury shares, have been repurchased since                  
the quarter end.                                                                              
                                                                                              
                                                                                              
                                                                                              
Material Events                                                                               
                                                                                              
Publication of half-yearly results for the six months ended 28 February 2014.                 
                                                                                              
                                                                                              
                                                                                              
Additional Information                                                                        
                                                                                              
                                                                                              
                                                                                              
Details of the Company                                            Dealing Information         
                                                                                              
                                                                                              
                                                                                              
Portfolio   Alex Wright                                           Listed:         London Stock
Manager:                                                                          Exchange    
                                                                                              
Enquiries:  08457 100 456                                         Broker:         Cenkos      
                                                                                              
WWWAddress: www.fidelity.co.uk/its                                Price Quoted:   Financial   
                                                                                  Times       
            Copies of major announcements and                                                 
            documentation relating to the Company                                 The Times   
            may be found on the website                                                       
                                                                                  The Daily   
                                                                                  Telegraph   
                                                                                              
                                                                                  The         
                                                                                  Independent 
                                                                                              
Launch      17 November 1994                                      Reuters Code:   FSV.L       
Date:                                                                                         
                                                                                              
                                                                                              
            As at 31 May 2014                     As at 15 July   SEAQ Code:      51079       
                                                  2014                                        
                                                                                              
Ordinary    54,128,896                            54,128,896      ISIN:           GB0003325106
Shares In                                                                                     
Issue:                                                                                        
                                                                                              
Treasury    -                                     75,000                                      
Shares:                                                                                       
                                                                                              
Discount    3.5%                                  5.1%            Registered                  
(ex-income                                                        office                      
basis):                                                                                       
                                                                                              
Total Net   £527.1m                               £505.8m         Beech Gate                  
Assets:                                                                                       
                                                                  Millfield Lane              
Actual      25.1%                                 26.7%                                       
Gearing                                                           Lower Kingswood             
Exposure:                                                                                     
                                                                  Tadworth                    
                                                                                              
                                                                  Surrey KT20 6RP             
                                                                                              
                                                                                              
                                                                                              
                                                                                              
The Company's net asset value per share is announced daily and may be found on                
the Stock Exchange website www.londonstockexchange.com                                        
                                                                                              
                                                                                              
                                                                                              
                                                                                              
                                                                                              
                                                                                              
                                                                                              
                                                                                              
                                                                                              
                                                                                              
                                                                                              
Portfolio Breakdowns                                                                          
                                                                                              
                                                                                              
                                                                                              
Industry Analysis (% total   As   As at 28         Largest 10 Holdings   As at 31 May As at   
assets)                      at   February 2014    (% total assets)      2014         28      
                              31                                                      February
                             May                                                      2014    
                             2014                                                             
                                                                                              
Financials                   35.1 31.9             Royal Dutch Shell PLC 5.5          5.0     
                                                                                              
Industrials                  24.0 18.7             DCC PLC               5.1          4.7     
                                                                                              
Consumer Services            21.3 22.5             SSE PLC               4.7          4.2     
                                                                                              
Consumer Goods               10.0 8.6              Brewin Dolphin Hldg   4.4          5.2     
                                                   PLC                                        
                                                                                              
Oil & Gas                    7.9  8.2              Sanofi                4.1          4.6     
                                                                                              
Health Care                  7.8  7.5              Lloyds Banking Group  4.0          4.2     
                                                   PLC                                        
                                                                                              
Utilities                    5.4  4.7              HSBC Holdings PLC     3.7          3.1     
                                                                                              
Basic Materials              2.3  -0.4             Electronic Arts Inc   3.7          3.5     
                                                                                              
Telecommunications           2.1  3.2              Carnival PLC          3.6          3.0     
                                                                                              
Technology                   1.7  1.9              Smurfit Kappa Group   3.2          -       
                                                   PLC**                                      
Futures & Options            -7.7 -6.8                                   -            5.0     
                                                   UDG Healthcare PLC*                        
                                                                                              
                                                                                              
                                                                                              
                                                   * Not in the top 10 as at 31 May 2014      
                                                                                              
                                                   ** Not in the top 10 as at 28 February 2014
                                                                                              

 

Performance Record (total return %)                                                         
                                                                                            
                                                                                            
                                                                                            
            Price at 31   Quarter to   Quarter to 28   1 Year to   3 Years to   5 Years to  
            May 2014 (p)  31 May 2014  February 2014   31 May 2014 31 May 2014  31 May 2014 
                                                                                            
NAV(debt at 973.75        -2.2              +8.3          +18.6       +60.2        +125.4   
par)                                                                                        
                                                                                            
Ordinary    929.50        -3.4              +8.5          +24.2       +71.4        +127.0   
Share price                                                                                 
                                                                                            
Benchmark   n/a           +0.9              +3.9          +8.9        +30.3        +92.8    
Index                                                                                       
                                                                                            
                                                                                            
                                                                                            

 

 

 

 

As at 15 July 2014 the Company's NAV per share was 935.77p and the Company's
share price was 876.00p per share.

 

 

                                                                               
                                                                               
Standardised Performance (total return %)                                      
                                                                               
                                                                               
                                                                               
                31/05/  31/05/    31/05/  31/05/2012                    31/05/ 
                2009    2010    2011                                    2013   
                                          31/05/2013                           
                31/05/  31/05/    31/05/                                31/05/ 
                2010    2011    2012                                    2014   
                                                                               
NAV             +24.2   +13.3   -10.3     +50.6                         +18.6  
                                                                               
Ordinary Share  +18.6   +11.7   -14.7     +61.8                         +24.2  
price                                                                          
                                                                               
                                                                               
                                                                               

 

By order of the Board

Christopher Pirnie

 

For and on behalf of FIL Investments International

 

Company Secretary

16 July 2014

 

 

Past performance is not a guide to future returns. The value of investments can
go down as well as up. For funds that invest in overseas markets, changes in
currency exchange rates may affect the value of an investment. Investments in
small and emerging markets can be more volatile than other more developed
markets. Source of performance: Datastream as at 31 May 2014. Basis: bid-bid
with net income reinvested. Fidelity only gives information about its own
products and services and does not provide investment advice based on
individual circumstances.