Fidelity Special Values (FSV) investment trust has outperformed the AIC UK All Companies sector over the past year delivering a 13.06% total return to investors compared to a 10.5% gain for the sector.
The trust, run by Alex Wright and Jonathan Winton, co-manager since 3 February 2020, has achieved 11% dividend growth over five years. It currently yields 2.7% and trades at a 5% discount to NAV (net asset value).
The top five weightings are Swiss multi-national healthcare company Roche (SWX:ROG) at 3.7%, Allied Irish Bank (AIBG) also at 3.7%, Irish distribution group DCC (DCC) at 3.6%, tobacco firm Imperial Brands (IMB) also at 3.6%, and UK banking group NatWest (NWG) at 3.5%.
Analysts at Stifel are positive on the trust, observing: ‘With the market remaining unenthusiastic about growth stocks, we continue to like the approach taken by Fidelity Special Values, with its focus on special situations, contrarian investing and undervalued companies.’
‘Alex Wright, the manager, continues to believe that UK companies are relatively attractive, with this being reflected in takeover activity at a number of the portfolio companies. Considering the solid performance record, the focus on value and special situations which we like, and 5% discount to net asset value (NAV).’
Other trusts which have done well over the past year include Artemis Alpha Trust (ATS) and Baillie Gifford UK Growth (BGUK), the former delivering a 12.3% share price total return and the latter 12.1%. The dividend yield for Artemis Alpha is currently 1.67% and for Baillie Gifford UK Growth trust is 2.31%.
WORST PERFORMING TRUSTS
It was not all good news in the AIC UK All Companies sector, however, with Henderson Opportunities Trust (HOT) one of the worst performers with a total return share price fall of 7% over the year.
JPMorgan MidCap (JMF) posted a total return share price of just 3.13% over the year, and over five-years a fall of 16.25%.
The trust, run by portfolio managers Georgina Brittain and Katen Patel, invests in medium sized UK listed companies from the FTSE Mid250 Index and the Alternative Investment Market (AIM).
One of its bigger holdings is holiday company Jet2 (JET2:AIM). The managers said in a recent note: ‘The company issued a robust full-year treading update towards the end of April, with encouraging trends in pricing, but noted uncertainty over air traffic disruption risks for the summer ahead.
Other consumer discretionary companies in the portfolio include Watches of Switzerland (WSOG), which recently saw its shares slide due to difficult trading conditions, Dunelm (DNLM) and JD Sports Fashion (JD).
