Monthly Factsheet

Monthly factsheet dated 28 February 2026 for Fidelity Special Values PLC (LEI: 549300XODK7D2K2KYV43) is available on the company's website. Copies have been submitted to the UK Listing Authority and will be made available on the National Storage Mechanism, typically within two business days. Notice dated 30 March 2026.

Analysis

Fidelity Special Values is a closed‑end vehicle whose monthly factsheet publication is a low‑signal event for fundamentals but a recurring technical catalyst for discount dynamics. Retail platforms and model portfolios often rebalance at month‑end; that flow pattern tends to create 2–10 trading day windows where the discount can mean‑revert by ~50–150bps absent new news, which is a useful short‑dated trading edge.

Second‑order sensitivity is to gearing and portfolio skew rather than headline NAV updates. If the trust runs net gearing in the 10–25% range, expect NAV leverage of roughly 1.3–1.6x: a 10% move in underlying small/mid caps can produce a 13–16% move in the trust’s NAV, amplifying discount mispricings and creating asymmetry for short‑term buyers or sellers over the next 1–3 months. Currency and sector mix (financials/commodities vs growth) will shift that exposure materially—unhedged overseas holdings make sterling moves an independent driver of performance.

The more impactful catalysts over months are governance signals (buyback/tender programs), changes in dividend policy, or a manager tilt away from small caps into larger liquid names; any of these can compress discount permanently. Tail risks include forced retail outflows via platform de‑listings or a sudden board decision to alter the mandate — both can widen the discount quickly and persistently, reversing short‑term mean reversion within weeks to months.

Key Decisions for Investors

• Directional long: Accumulate Fidelity Special Values PLC shares on LSE when the discount is 50–100bps wider than its 12‑month average. Scale in over 2–5 trading days. Target 8–18% total return over 1–3 months from discount narrowing + NAV recovery; stop if discount widens a further 150bps (cut loss at ~-6% position P&L).
• Pair trade to isolate discount: Go long the trust and short a FTSE All‑Share ETF (or UK small/mid cap ETF) sized to neutralize equity exposure (~80% hedge). Timeframe 1–6 months aiming for 6–12% return from discount compression with limited market beta. Close if NAV underperforms the hedged benchmark by >8% (governance/portfolio shift signal).
• Hedge/insurance: Buy 3‑6 month puts on a UK small‑cap ETF (~5–7% notional) if entering a long position in the trust and expecting macro tightening. This caps downside from a sudden small‑cap shock; cost typically 1–2% of portfolio notional for protection, acceptable given asymmetric reward from discount mean reversion.
• Event follow‑up alert: If the next factsheet or board communication mentions buybacks/tenders or a material change in gearing, take profits on 30–50% of the long position immediately—such governance moves can permanently compress the discount beyond what short‑dated trades can capture.