Update research from QuotedData

RNS Number : 3170M

Fidelity Special Values PLC

27 July 2017

 

Fidelity Special Values plc - Update research from QuotedData

27^th July 2017

Sounding a note of caution

Fidelity Special Values (FSV) is managed with a contrarian style (it focuses on stocks which are out of favour with other investors, yet show potential for change). It benefited from the Trump reflation trade (see page 14), as value stocks (stocks that that tend to trade at low valuations relative to their fundamentals) rallied strongly, but, as the market has reset its expectations, value has moved out of favour as investors have refocused on growth. With market valuations close to all-time highs, FSV's manager, Alex Wright, is sounding a note of caution.

The trust's natural level of borrowing is around 10% of net assets, but Alex has moved the portfolio to a circa 3% net cash position. However, Alex believes it is still possible to deliver positive returns in environments that do not favour value and, despite this more cautious stance, FSV's portfolio has an overweight exposure to cyclical stocks and an underweight position in what Alex sees as expensive defensive stocks, which he believes will suffer as interest rates start to rise.

Full research:

http://quoteddata.com/2017/07/fidelity-closed-end-funds-review/

This research is also available free on our website www.quoteddata.com where you will also find news, performance data and factsheets on every London listed Investment Company. QuotedData writes and distributes research on a number of quoted companies, facilitates meetings between those companies and existing and potential investors and assists in raising additional capital where required.

NB: Marten & Co has been paid to produce this note on Fidelity International's investment trusts and the note is for information purposes only. It is not intended to encourage the reader to deal in the security or securities mentioned in this report. Please read the important information at the back of this note. QuotedData is a trading name of Marten & Co Limited which is authorised and regulated by the FCA. Marten & Co is not permitted to provide investment advice to individual investors.

QUOTEDDATA
123a Kings Road | London SW3 4PL
Tel: [phone]

www.quoteddata.com ervice from the London Stock Exchange

 

END

 

 

NRAUBAURBSABUAR