REG-Fidelity Special Values Plc: Half-year Financial Report
29/04/2026 07:02
Fidelity Special Values PLC
Half-Yearly Results for the six months ended 28 February 2026 (unaudited)
Financial Highlights:
* The Board of Fidelity Special Values PLC
(the “Company”) declares an interim dividend of 3.49 pence per share, an
increase of 3.9% from the prior year interim dividend.
* During the six months ended 28 February
2026, the Company reported an ordinary share price total return of +23.1% and
Net Asset Value (NAV) total return of +17.1%.
* Over the same period, the Benchmark, the
FTSE All-Share Index, returned +18.9%.
* Financials, select defensive positions
and resources among top contributors.
* The Portfolio Managers believe UK
market’s defensive sector composition should offer some resilience compared
with other regions.
Contacts
For further information, please contact:
Smita Amin
Company Secretary
01737 836347
FIL Investments International
Chair’s Statement
Overview and Performance
This is my first report to you as Chair of the Company, and also the first
time since February 2016 that we have included a statement from the Chair at
the half-year stage. It is a privilege to have taken on this role, and in an
increasingly fast-moving geopolitical and industry environment, my Board
colleagues and I felt it would be useful to take this opportunity to provide a
more frequent update to shareholders alongside your Portfolio Manager, Alex
Wright’s regular interim review.
Your Company has continued to perform well in the period under review, with
NAV and share price total returns of +17.1% and +23.1% respectively, compared
with the FTSE All-Share Index (Benchmark) return of +18.9%. This is despite
the fact that the performance of the UK equity market has continued to be
driven principally by the largest companies, with mid-sized and smaller
companies, which make up the greater part of your Company’s portfolio,
lagging behind. (The FTSE 100 Index returned +20.0% in the six months to 28
February 2026, while the Mid-Cap FTSE 250 Index saw a total return of +11.5%).
You can read more about the drivers of performance in the Portfolio
Manager’s Review below, but in brief, the contributors to returns have
included banks and defence stocks, merger and acquisition (M&A) activity, and
not owning some highly valued larger companies such as Diageo and London Stock
Exchange Group, which have performed poorly.
It is encouraging to see Alex and his co-Portfolio Manager Jonathan Winton’s
value-orientated, contrarian approach continuing to keep up in an environment
in which UK equities have again outperformed other developed markets (and
particularly the US) in both sterling and US dollar terms. Your Company’s
investment strategy has been proven to perform across investment cycles, with
not only double-digit annualised returns over one, three, five and ten years,
but also excellent returns since launch in 1994, and throughout Alex’s
tenure from 2012. The Board continue to have confidence in this disciplined
investment strategy, which we believe has increasing relevance in the current
uncertain environment.
Dividends
While your Company’s investment approach is focused on long-term capital
growth rather than income generation, dividends have historically formed an
important part of the total shareholder return. The Board’s policy is to pay
dividends twice a year, in order to smooth the dividend payments for the
Company’s financial year.
The Company’s revenue return for the six months to 28 February 2026 was 2.48
pence per share (28.02.25: 3.51 pence), and the Board is recommending an
interim dividend of 3.49 pence per share (28.02.25: 3.36 pence) to be paid on
22 June 2026 to shareholders on the register at the close of business on 15
May 2026 (ex-dividend date 14 May 2026). This represents an increase of 3.9%
on the prior period interim dividend.
Fidelity Special Values has a strong and consistent dividend history, with the
Board having maintained or grown the dividend in each of the past 16 years.
The Company has substantial revenue reserves (£32m or 9.9 pence per share at
end of February 2026) on which we have drawn only once, during the Covid
pandemic in 2020. We remain committed to this track record of delivering
income alongside capital growth, a record that places the Company towards the
top of the Association of Investment Companies’ list of ‘next-generation
dividend heroes’.
Discount Management and Share Issuance
Investment trust discounts remain wide, standing at an average of 13.4% on 28
February 2026, compared with 14.1% on 31 August 2025
1 . Against this backdrop it is encouraging to note that your
Company’s rating has remained appreciably better than this, beginning the
half-year period at a discount to NAV of 3.1% and ending it at a premium of
1.8%.
1 Source: Winterflood Investment Trusts, Refinitiv
Just as your Board seeks to maximise value for shareholders by using share
buybacks to limit the discount when supply exceeds demand (and thereby enhance
NAV per share), we also look to maintain an orderly market by issuing shares
when excess demand pushes the price above the NAV per share. During the period
under review, no shares were repurchased. However, with the shares trading at
a premium to NAV from late January 2026 until the end of the reporting period,
during February the Board was able to reissue all of the shares held in
Treasury (1,050,000) as well as 250,000 new shares from its blocklisting. At
the latest practicable date of this report, the share price remained at a
premium to NAV of 0.6%.
While continued strong performance has undoubtedly helped to maintain demand
for your Company’s shares, the Board would also like to note our
appreciation of Fidelity’s ongoing efforts to raise the profile of the
strategy, and in particular the time that both Alex and Jonathan take to
promote the Company in the media and at investor events.
Board Changes
As noted above, I took over as Chair of the Company following the Company’s
Annual General Meeting on 11 December 2025, succeeding Dean Buckley, who had
served on the Board for 10 years and as Chair since December 2022. My fellow
Directors and I thank him for his significant contribution and dedicated
service over his tenure and wish him well in his future endeavours. I look
forward to building on the strong foundations he and his predecessors have
established, and to working with the Board and Fidelity in the interests of
all shareholders.
Christopher Casey, who joined the Board in January 2025, takes on my previous
roles as both Senior Independent Director and Chair of the Audit Committee.
Chris has a strong background in investment trusts and accountancy and will
bring rigour and accountability to both roles. We were also delighted to
welcome Hamish Baillie to the Board as a non-executive Director at the start
of 2026. Hamish brings a wealth of experience in investment trust management
and closed-ended fund governance, and his perspective will be a valuable
addition to the Board’s deliberations, further strengthening our collective
expertise.
Board Strategy Day
In February 2026, the Board held its annual Strategy Day, which provides a
valuable opportunity to step back from our day-to-day oversight and consider
governance and strategy in a more top-down and forward-looking manner. We
undertake a comprehensive analysis of the strengths, weaknesses, opportunities
and threats facing the business, which can help to inform the Board’s
priorities over the coming year. As part of the day, we met with Fidelity’s
risk team to take a deeper dive into the opportunities and threats presented
by artificial intelligence (AI), as well as addressing the management of
cyber-risk in the broader business. The Strategy Day was also attended by a
representative of our new auditor, PricewaterhouseCoopers LLP.
Outlook
Recent developments in global trade policy and the war between the US, Israel
and Iran have further elevated ongoing geopolitical tensions and contributed
to increased volatility in commodity markets and supply chains, increasing
uncertainty around the global economy, and the trajectory of inflation and
interest rates on both sides of the Atlantic. However, your Company has
weathered many storms across more than thirty years, and we remain confident
that Alex and Jonathan’s patient and contrarian approach to identifying
unloved and undervalued companies, and their rigorous bottom-up investment
process, will continue to deliver attractive performance over the long-term
notwithstanding any shorter-term pressures for shareholders. As part of
Fidelity, the managers have a strong team behind them, and we as your Board
remain committed to robust governance and achieving long-term value for
shareholders.
The success of the Company is borne out not only by its investment
performance, but also its long-term dividend record, and by the fact that
strong investor demand has meant that we have been able to issue new shares
and grow the capital base. This was further underlined by the three-yearly
continuation vote held at December’s AGM, in which 97.12% of those voting
approved the continuation of the Company as an investment trust. I would like
to thank all shareholders for their continued support, and I look forward to
reporting further progress at the year end.
Claire Boyle
Chair
28 April 2026
Portfolio Manager’s Half-Yearly Review
Performance
In the six month reporting period to 28 February 2026, the Company recorded
strong absolute returns with a net asset value (“NAV”) per share return of
+17.1% and a share price return of +23.1%, compared to a +18.9% return for the
FTSE All Share Index (the “Benchmark”), all on a total return basis. This
report seeks to summarise the period, highlight the key drivers of performance
and set out the Portfolio Manager’s forward-looking views.
The Company’s NAV underperformance against the Benchmark was primarily
driven by the performance divergence between large and mid-cap stocks in the
UK market. This was reflected in the FTSE 100’s gain of 20.0% compared with
the FTSE 250’s rise of 11.5%. Given the Company’s substantial exposure to
mid-cap stocks, this large-cap driven market environment weighed on relative
returns, although this was partly mitigated by strong stock selection within
large-cap companies.
Market Review
The reporting period for this investment review is 1 September 2025 to 28
February 2026. As a result, the performance review and positioning update
relate to this period and therefore precede the events taking place in the
Middle East since early March 2026. We have, however, incorporated a
forward-looking perspective in the outlook section to reflect more recent
developments. As this remains a rapidly developing situation, the investment
team’s views are subject to change as events evolve.
UK equities delivered strong performance, supported by attractive relative
valuations, diversification by international investors and a gradually
improving global monetary backdrop. The period began with cautiousness ahead
of the UK Autumn Budget, as fiscal uncertainty weighed on investor sentiment,
particularly in domestically focused stocks. Mixed signals over possible
revenue measures added to the speculation. However, the final announcement
revealed fewer near-term fiscal surprises and reassured markets. Global
central banks continued to ease their policy stance, with both the US Federal
Reserve and the Bank of England delivering rate cuts before the end of the
year.
2026 started on a strong note, supported by an improving growth narrative and
continued rotation towards more value-oriented areas of the market.
Performance was broad-based, with gains across the market-cap spectrum, led by
mid and small-caps. However, this was short lived, as February’s rally was
driven strongly by large-cap stocks, given its favourable sector mix and
rotation away from artificial intelligence (“AI”) companies. Global
geopolitics remained an important theme, contributing to volatility in energy
and metals prices. For the UK market this proved broadly supportive, given its
sizeable exposure to oil majors and mining companies, which benefited from
firmer commodity pricing.
From a sector perspective, market gains were primarily led by basic materials,
utilities and health care, supported by a constructive environment for
commodity prices, while defensive sectors benefited from earnings resilience
and a more favourable growth backdrop. Technology was the only sector to post
negative returns, reflecting market concerns around AI disruption, notably in
software and information services companies. Against this backdrop, both value
and growth segments advanced, but value outperformed by a significant margin.
Similarly, large-cap stocks were the strongest performers, as investors
favoured greater international revenue exposure, while mid and small-cap
stocks underperformed.
Portfolio Review
Over the period, the Company’s NAV delivered strong absolute returns but
underperformed its Benchmark.
Beverages company C&C Group declined against a challenging backdrop for the
hospitality sector. The company reported results below expectations, primarily
due to weaker performance in its distribution channels, reflecting softness in
wine and spirits and evidence of customers trading down across product
categories. However, its branded business (Tennent’s and Bulmers) delivered
robust growth, and the company is actively strengthening distribution channels
and product categories to improve profitability.
Elsewhere, shares in staffing companies Hays and PageGroup were a source of
weakness. Both companies were weighed down by weak underlying recruitment
markets, reflecting caution among both corporates and candidates when it comes
to undertaking job searches. Investor concerns have also centred around the
potential for disintermediation and job displacement from AI. We believe these
concerns are overstated and have yet to see clear evidence that AI has
structurally impaired these businesses. Current challenges appear largely
cyclical, and we are already seeing signs of improvement in staffing activity
in certain markets, such as the US, where AI adoption is the most advanced.
Within the consumer discretionary sector, our holdings in media agency WPP and
digital media company Future declined. WPP’s performance has been weaker
than expected, as we had believed the company was further along in its
turnaround journey following its previous restructuring. The company has since
lost meaningful market share, driven by client account losses and a cyclical
downturn in advertising spending. Concerns around potential disruption from AI
have also weighed on its shares. However, WPP remains an interesting
turnaround opportunity and its shares are trading at very attractive levels.
The company is under new management and has seen recent improvements in client
account wins. Future’s underperformance was driven by a valuation de-rating,
reflecting concerns over the impact of AI on its web traffic. The company has
taken steps to mitigate this, improving the diversification and monetisation
of its content, including a shift towards more direct, owned distribution
channels. Its shares are trading on low single-digit multiples, with the
valuation underpinned by its price comparison business. The company is highly
cash generative and is carrying out significant share buybacks, which is
highly accretive to its earnings power.
Stock selection among large-cap companies contributed positively to
performance, driven by our lack of exposure to expensive ‘quality’
companies. Several of these companies were impacted by market fears of AI
disruption, such as RELX, Experian, Compass and London Stock Exchange Group.
Collectively, they witnessed a sharp de-rating from their stretched valuation
multiples. In addition, not holding Diageo and 3i Group contributed
positively, as both companies came under pressure from weaker earnings, and in
Diageo’s case, structural concerns around future demand for spirits.
Integrated utility company SSE was the top owned contributor to relative
performance. Its shares rose after it announced a multi-year investment plan
focused on regulated networks and renewables. In November, the company
unveiled a £33 billion five-year investment programme, including a £2
billion equity raise, as it seeks to upgrade the UK’s regulated electricity
networks, bolster its renewables business and strengthen its balance sheet.
Geotechnical engineering company Keller also outperformed, supported by a
continued run of earnings upgrades. The business has become more streamlined
and is benefiting from strong demand linked to data centre activity and
infrastructure-related projects in the US.
Gold miners have benefited from the continued shift in central bank reserves
away from US Treasuries, as well as strong retail demand for precious metals,
both of which underpinned the rally in the commodity price. South
Africa-focused gold miner Pan African Resources advanced against this
backdrop, alongside delivering strong production updates and the ramp up of
its new mine.
Defence remained a key market theme, supporting our holdings in defence
contractor Babcock and outsourcing company Serco. Babcock’s highly
specialised operations, growing international order book and ongoing self-help
initiatives continued to support share price performance. Serco, which has
around 40% revenue exposure to defence, gained from securing major contract
wins and renewals in both the US and the UK, helping to offset headwinds from
the loss of the Australian immigration contract. Elsewhere, the position in
Mitie rallied after the company delivered a robust half-year trading update,
beating revenue expectations and highlighting strong pipeline momentum. This
strength has been driven by growth in energy efficiency and data-centre
related projects as well as greater opportunities in the public-sector.
Within the banking sector, Standard Chartered was among the top contributors,
following a strong trading update in October 2025 that highlighted robust
growth in its global banking and wealth divisions. Not holding a position in
HSBC detracted from relative performance. However, we prefer Standard
Chartered as its wealth management business starts from a lower base and
offers stronger growth prospects.
Portfolio Positioning
We have actively recycled capital from areas of strong performance and leaned
into unloved businesses with attractive turnaround potential. While the
investment process is driven by bottom-up stock selection, we group the market
into four super sectors – financials, resources, defensives and other GDP
sensitive companies.
Financials remain our largest absolute sector weight, but this is highly
diversified across a variety of sub-sectors, geographies and business models.
We maintain a positive view on banks and continue to see value across our
holdings. These include emerging market-focused Standard Chartered, domestic
lenders Lloyds Banking Group, NatWest Group and Close Brothers, Irish banks
AIB Group and Permanent TSB Group Holdings, as well as a couple of smaller
banking positions. Over the period, we recycled part of our NatWest holding
into Lloyds. Our insurance exposure moderated as we took profits, while the
Just Group position acts as a cash proxy following the takeover bid from
Brookfield Wealth Solutions. We also selectively added to asset managers
Jupiter and Man Group, where valuations looked particularly attractive. Both
companies subsequently made further progress in their turnarounds.
Defensive companies generally performed well, and we have opportunistically
taken profits in several positions. These included consumer goods company
Reckitt Benckiser, tobacco companies Imperial Brands and British American
Tobacco, regulated grid operator National Grid and defence-related businesses
Babcock and Serco. In contrast, we added to our DCC position. The company has
shifted focus towards its core energy business with the disposal of its health
care business last year and planned sale of its technology division. While the
market has been cautious around the restructuring and the challenges of
navigating the energy transition, we believe these concerns are overdone and
the company is focusing on its higher return business.
We increased our position in a variety of cyclical areas, where we see
attractive valuations and turnaround potential. For example, staffing
companies (Hays, PageGroup and Sthree) are trading at trough valuation levels
and offer an attractive risk/reward profile over three to five years. Current
valuations reflect significant disruption to the businesses, while offering
substantial upside should a recovery in hiring materialise. We also see
opportunities in consumer-related sectors, alongside housing and construction,
where valuations remain depressed and stocks are pricing in significant
negativity. Many of these businesses combine attractive stock-specific
opportunities with depressed industry volumes, offering multiple catalysts to
support a turnaround. We exited low-cost carrier Ryanair following strong
performance, as the investment thesis had largely played out. Similarly, we
sold Rolls Royce after strong execution in its civil aerospace business and a
significant improvement in margins, delivered strong share price performance
which led to more demanding valuations levels.
Within resources, our underweight position increased as the basic materials
sector sharply outperformed, notably precious metals and mining companies.
Against this strong performance backdrop, we trimmed our two small gold mining
positions and exited two copper miners. While we remain underweight large-cap
miners, reflecting our negative view on iron ore, we added to our Glencore
position, supported by its attractive commodity mix and our constructive
long-term outlook for copper. We also hold Kazatomprom, the world’s largest
uranium producer, which benefits from its low-cost position and favourable
supply and demand dynamics. The Company holds around 4.5% in oil companies,
representing a meaningful underweight relative to the UK benchmark and
reflecting our cautious medium-term outlook and sector valuations. Our largest
position is French-listed TotalEnergies, which remains our preferred oil major
compared with UK peers.
Use of Gearing
We have continued to use contracts for difference (CFDs) to gear the
portfolio’s long exposure and eliminate some of the currency exposure for
those holdings listed outside of the UK. Overall, the Company’s net gearing
increased from 5.4% at the beginning of the period to 8.5% at the end of
February 2026.
Outlook
We remain positive on the long-term outlook for UK equities. UK valuations
continue to trade at meaningful discounts to other major regions – both on
absolute price to earnings multiples and after adjusting for structural sector
differences, such as the heavy weighting of technology in US indices. The UK
still offers many pockets of value, particularly among smaller and mid-sized
companies.
There were early signs of an economic inflection, particularly across
industrial and consumer-facing sectors that have faced a prolonged period of
weakness. However, developments in the Middle East (as at 30 March) have
clearly added complexity and increased near-term uncertainty. The duration of
the conflict remains a key focus for markets, given its impact on oil prices,
inflation, interest rate policy, growth expectations and broader risk
sentiment. On a relative basis, the UK market’s defensive sector composition
and meaningful exposure to health care, utilities, consumer staples and oil
majors should offer some resilience compared with other regions.
As in previous periods of uncertainty, we are spending significant time
engaging with companies to understand how current conditions are
affecting them and the resilience of balance sheets. We are closely monitoring
developments and leveraging Fidelity’s extensive analyst network, both
globally and across industries, to see how wider trends could impact the
portfolio. Our focus remains on bottom-up fundamentals, with positioning
decisions driven by valuations and contrarian investment opportunities, rather
than macro-economic events.
Another recent development has been increased volatility linked to AI.
Companies perceived to be sensitive to AI disruption have sold off sharply.
Markets have indiscriminately punished anything with even indirect AI
exposure, often without clear evidence of structural impairment. We believe
this environment increasingly tilts in favour of value investors and plays to
Fidelity’s strengths in fundamental research. Companies trading on rich
multiples leave little margin for error. When investors assume a company’s
monopoly advantage will endure, even a modest shift in competitive dynamics,
including the risk of AI-driven disruption, can justify a meaningful
de-rating. We have seen this dynamic in information services and software
businesses, where valuations have rightly fallen from very high levels.
However, in most cases they still remain expensive, although there are areas
of opportunity. Generally, the outlook for many industries is less predictable
and businesses regarded as having unassailable moats or monopoly positions may
not enjoy the same dominance in the future.
We avoid companies where their stretched valuations rely on long-term
certainty. Instead, we focus on attractively valued businesses where
the market has overreacted to perceived AI threats and where balance
sheets provide strong downside support. The low valuation multiples we pay for
stocks means that we do not need to take a decisive view on the outlook beyond
the next ten years. We also look for cheap, underappreciated
beneficiaries - companies with genuine exposure to structural change
that the market has yet to fully recognise, such as outsourcing
company Mitie, which supports the design and delivery of data centres.
Integrated utility company SSE also benefits from AI-related growth
through higher need for electricity grids and renewable energy
demands.
We continue to believe that market conditions favour our value contrarian
investment style. When uncertainty is rife, this typically results in more
opportunities to pick up very attractively valued stocks. The large
divergences in performance between different parts of the market create good
opportunities to make attractive returns over a three-to-five-year view. The
portfolio benefits from a favourable upside/downside profile and our holdings
trade at a meaningful discount to the broader UK market, despite having the
potential for robust earnings growth, strong returns on capital and relatively
low levels of debt. This quality profile reinforces our confidence in
delivering attractive long-term returns for investors.
Alex Wright
Portfolio Manager
28 April 2026
Twenty Largest Holdings
As at 28 February 2026
The Asset Exposures shown below measure exposure to market price movements as
a result of owning shares, bonds and derivative instruments. The Fair Value is
the realisable value of the portfolio as reported in the Balance Sheet. Where
the Company holds shares and bonds, the Asset Exposure and Fair Value will be
the same. For derivative instruments, Asset Exposure is the market value of
the underlying asset to which the Company is exposed, while the Fair Value
reflects the profit or loss on the contract since it was opened, and is based
on how much the share price of the underlying asset has moved.
Asset Exposure Fair Value
£’000 % 1 £’000
Exposures – shares unless otherwise stated
Standard Chartered
Banks 64,407 4.4 64,407
DCC
Industrial Support Services 62,306 4.3 62,306
Lloyds Banking Group
Banks 51,278 3.5 51,278
TotalEnergies (long CFDs)
Oil Gas & Coal 49,211 3.4 402
Aviva
Life Insurance 48,169 3.3 48,169
SSE
Electricity 47,980 3.3 47,980
British American Tobacco
Tobacco 44,162 3.0 44,162
Smith & Nephew
Medical Equipment & Services 41,454 2.8 41,454
AstraZeneca
Pharmaceuticals & Biotechnology 41,104 2.8 41,104
Glenveagh Properties (shares and long CFDs)
Household Goods & Home Construction 39,867 2.7 39,464
Imperial Brands
Tobacco 36,888 2.5 36,888
NatWest Group
Banks 35,576 2.4 35,576
AIB Group (long CFDs)
Banks 33,754 2.3 (496)
Mitie Group
Industrial Support Services 33,566 2.3 33,566
Just Group
Life Insurance 31,449 2.2 31,449
Serco Group
Industrial Support Services 31,210 2.1 31,210
Greencore Group
Food Producers 30,757 2.1 30,757
Cairn Homes (long CFDs)
Household Goods & Home Construction 29,034 2.0 1,302
Keller Group
Construction & Materials 26,693 1.8 26,693
Glencore
Industrial Metals & Mining 26,371 1.8 26,371
--------------- --------------- ---------------
Twenty largest exposures 805,236 55.0 694,042
--------------- --------------- ---------------
Other exposures 784,250 53.5 717,134
--------------- --------------- ---------------
Gross Asset Exposure (114 holdings) 1,589,486 108.5
Portfolio Fair Value ========= ========= 1,411,176
=========
1 Asset Exposure is expressed as a percentage of
Shareholders’ Funds.
Interim Management Report and Directors’ Responsibility Statement
Principal and Emerging Risks
The Board, with the assistance of the Manager (FIL Investment Services (UK)
Limited), has developed a risk matrix which, as part of the risk management
and internal controls process, identifies the key existing and emerging risks
and uncertainties faced by the Company.
The Board considers that the principal risks and uncertainties faced by the
Company continue to fall into the following categories: economic, geopolitical
and market; competition and marketplace threats impacting business growth;
investment performance (including the use of derivatives and gearing); changes
in legislation, taxation or regulation; cybercrime and information security;
business continuity and crisis management; operational; key person and
operational support; and discount control. Information on each of these risks
is given on pages 26 to 29 in the Strategic Report section of the Annual
Report for the year ended 31 August 2025, a copy of which can be found on the
Company’s pages of the Manager’s website at
www.fidelity.co.uk/specialvalues .
Although the principal risks and uncertainties remain the same as those at the
last year end, the magnitude of their uncertainty continues to change.
Geopolitical risks facing the company continue to increase, including
political and trade tensions globally, trade sanctions and a challenging
regulatory environment hindering investment. Global economic uncertainty is
raised by the recent Middle East conflict injecting fresh volatility into
global markets and oil prices and supplies, the ongoing war in Ukraine,
tensions between China and the US and South Korea and North Korea, the South
China Sea dispute affecting shipping routes and implications of China and
Taiwan relations. The Board and the Manager remain vigilant in monitoring such
risks.
Other emerging risks may continue to evolve from future geopolitical and
economic events.
In recent months, there have been developments around the FCA’s proposed
Consumer Composite Investment (CCI) cost disclosure. The developments have
been encouraging and should help investors. The Pension Schemes Bill, as
currently proposed, excludes investment trusts and there is a risk that if
adopted this could divert demand away from investment trusts.
There continues to be an increase in the threats facing the investment trust
sector and this has resulted in a rise in merger and acquisition activity. The
Board, the Manager, and the Company’s Broker closely monitor industry
activity and the peer group and actively manage supply and demand through its
discount polices and mechanisms. In addition, an annual strategy review is
undertaken by the Board to ensure that the Company continues to offer a
relevant product to shareholders.
The investment company sector has generally suffered from wider discounts
compared to long-term averages. Against this background, the Company has not
needed to use its discount management policy and was trading at a premium
during part of and at the end of the reporting period.
Climate change continues to be a key emerging and principal risk confronting
asset managers and how this may impact the Company as a risk on investment
valuations and potentially shareholder returns. It can potentially impact the
operations of investee companies, their supply chains and their customers.
Additional risks may also arise from increased regulations, costs and net-zero
programmes which can all impact investment returns. The Board notes the
Manager’s ESG considerations, including climate change, in the Company’s
investment process and how it may affect investment valuations and potentially
shareholder returns.
The Board and the Manager are also monitoring the emerging risks and
opportunities posed by the rapid advancement of artificial intelligence
(“AI”) and technology and how this may threaten the Company’s activities
and its potential impact on the portfolio and investee companies. AI can
provide asset managers with powerful tools, such as enhancing data analysis,
risk management, trading strategies, operational efficiency and client
servicing, all of which can lead to better investment outcomes and more
efficient operations. However, with these advances in computer power, there
are risks from its increasing use and manipulation with the potential to harm,
including a heightened threat to cybersecurity.
Market fluctuations will impact the value of shares in the Company and
investors should remember that holding shares in the Company should be
considered to be a long-term investment. Risks are mitigated by the investment
trust structure of the Company which means that the Portfolio Manager is not
required to trade to meet investor redemptions. Therefore, investments in the
Company’s portfolio can be held over a longer-time horizon.
The Manager has appropriate business continuity and operational resilience
plans in place to ensure the continued provision of services. This includes
investment team key activities, including those of portfolio managers,
analysts and trading/support functions. The Manager reviews its operational
resilience strategies on an ongoing basis and continues to take all reasonable
steps in meeting its regulatory obligations, assess its ability to continue
operating and the steps it needs to take to serve and support its clients,
including the Board.
The Company’s other third-party service providers also have similar measures
in place to ensure that business disruption is kept to a minimum.
Transactions with the Manager and Related Parties
The Manager has delegated the Company’s portfolio management of assets and
company secretariat services to FIL Investments International. Transactions
with the Manager and related party transactions with the Directors are
disclosed in Note 13 to the Financial Statements below.
Going Concern Statement
The Directors have considered the Company’s investment objective, risk
management policies, liquidity risk, credit risk, capital management policies
and procedures, the nature of its portfolio, its expenditure and cash flow
projections. The Directors, having considered the liquidity of the Company’s
portfolio of investments (being mainly securities which are readily
realisable) and the projected income and expenditure, are satisfied that the
Company is financially sound and has adequate resources to meet all of its
liabilities and ongoing expenses and can continue in operational existence for
a period of at least twelve months from the date of this Half-Yearly Report.
This conclusion also takes into account the Board’s assessment of the
ongoing risks as outlined above.
Accordingly, the Financial Statements of the Company have been prepared on a
going concern basis.
Continuation votes are held every three years and the last continuation vote
was put to shareholders at the AGM on 11 December 2025. 97.12% of the votes
cast were in favour of continuation. The next continuation vote will be put to
shareholders at the AGM in January 2029.
By Order of the Board
FIL Investments International
28 April 2026
Directors’ Responsibility Statement
The Disclosure Guidance and Transparency Rules (“DTR”) of the Financial
Conduct Authority require the Directors to confirm their responsibilities in
relation to the preparation and publication of the Interim Management Report
and Financial Statements.
The Directors confirm to the best of their knowledge that:
a) the condensed set of Financial Statements contained
within the Half-Yearly Report has been prepared in accordance with the
Financial Reporting Council’s Standard: FRS 104: Interim Financial
Reporting; and
b) the Chair’s Statement, Portfolio Manager’s
Half-Yearly Review and the Interim Management Report above, include a fair
review of the information required by DTR 4.2.7R and 4.2.8R.
In line with previous years, the Half-Yearly Report has not been audited by
the Company’s Independent Auditor.
The Half-Yearly Report was approved by the Board on 28 April 2026 and the
above responsibility statement was signed on its behalf by Claire Boyle,
Chair.
FINANCIAL STATEMENTS
Income Statement
For the six months ended 28 February 2026
Six months ended 28 February 2026 unaudited Six months ended 28 February 2025 unaudited Year ended 31 August 2025 audited
Notes Revenue Capital Total Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Gains on investments – 186,400 186,400 – 9,427 9,427 – 117,016 117,016
Gains/(losses) on derivative instruments – 20,154 20,154 – (1,264) (1,264) – 2,195 2,195
Investment and derivative income 4 13,514 – 13,514 17,399 – 17,399 51,646 – 51,646
Other interest 4 1,627 – 1,627 845 – 845 2,375 – 2,375
Investment management fees 5 (4,002) – (4,002) (3,315) – (3,315) (6,857) – (6,857)
Other expenses (497) – (497) (470) – (470) (944) – (944)
Foreign exchange gains/(losses) – 18 18 – (66) (66) – (546) (546)
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Net return on ordinary activities before finance costs and taxation 10,642 206,572 217,214 14,459 8,097 22,556 46,220 118,665 164,885
Finance costs 6 (2,612) – (2,612) (2,956) – (2,956) (6,225) – (6,225)
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Net return on ordinary activities before taxation 8,030 206,572 214,602 11,503 8,097 19,600 39,995 118,665 158,660
Taxation on return on ordinary activities 7 (31) – (31) (118) – (118) (272) – (272)
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Net return on ordinary activities after taxation for the period 7,999 206,572 214,571 11,385 8,097 19,482 39,723 118,665 158,388
======= ======= ======= ======= ======= ======= ======= ======= =======
Return per ordinary share 8 2.48p 63.92p 66.40p 3.51p 2.50p 6.01p 12.28p 36.67p 48.95p
======= ======= ======= ======= ======= ======= ======= ======= =======
The Company does not have any other comprehensive income. Accordingly, the net
return on ordinary activities after taxation for the period is also the total
comprehensive income for the period and no separate Statement of Comprehensive
Income has been presented.
The total column of this statement represents the Income Statement of the
Company. The revenue and capital columns are supplementary and presented for
information purposes as recommended by the Statement of Recommended Practice
issued by the AIC.
No operations were acquired or discontinued in the period and all items in the
above statement derive from continuing operations.
Statement of Changes in Equity
For the six months ended 28 February 2026
Notes Share capital £’000 Share premium account £’000 Capital redemption reserve £’000 Other non-distributable reserve £’000 Capital reserve £’000 Revenue reserve £’000 Total shareholders’ funds £’000
Six months ended 28 February 2026 (unaudited)
Total Shareholders’ funds at 31 August 2025 16,205 238,442 3,256 5,152 949,776 54,357 1,267,188
New ordinary shares issued 11 12 1,125 – – – – 1,137
Issue of ordinary shares from Treasury 11 – 1,236 – – 3,469 – 4,705
Net return on ordinary activities after taxation for the period – – – – 206,572 7,999 214,571
Dividend paid to Shareholders 9 – – – – – (22,097) (22,097)
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total Shareholders’ funds at 28 February 2026 16,217 240,803 3,256 5,152 1,159,817 40,259 1,465,504
======== ======== ======== ======== ======== ======== ========
Six months ended 28 February 2025 (unaudited)
Total Shareholders’ funds at 31 August 2024 16,205 238,442 3,256 5,152 834,580 45,906 1,143,541
Repurchase of ordinary shares into Treasury 11 – – – – (2,628) – (2,628)
Net return on ordinary activities after taxation for the period – – – – 8,097 11,385 19,482
Dividend paid to Shareholders 9 – – – – – (20,418) (20,418)
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total Shareholders’ funds at 28 February 2025 16,205 238,442 3,256 5,152 840,049 36,873 1,139,977
======== ======== ======== ======== ======== ======== ========
Year ended 31 August 2025 (audited)
Total Shareholders’ funds at 31 August 2024 16,205 238,442 3,256 5,152 834,580 45,906 1,143,541
Repurchase of ordinary shares into Treasury 11 – – – – (3,469) – (3,469)
Net return on ordinary activities after taxation for the year – – – – 118,665 39,723 158,388
Dividends paid to Shareholders 9 – – – – – (31,272) (31,272)
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total Shareholders’ funds at 31 August 2025 16,205 238,442 3,256 5,152 949,776 54,357 1,267,188
======== ======== ======== ======== ======== ======== ========
Balance Sheet
as at 28 February 2026
Company number 2972628
Notes 28 February 2026 unaudited £’000 31 August 2025 audited £’000 28 February 2025 unaudited £’000
Fixed assets
Investments 10 1,410,180 1,164,423 1,094,910
========= ========= =========
Current assets
Derivative instruments 10 2,489 1,213 4,028
Debtors 7,745 10,672 12,374
Amounts held at futures clearing houses and brokers 120 1,300 795
Cash and cash equivalents 48,690 94,109 41,676
---------------- ---------------- ----------------
59,044 107,294 58,873
========= ========= =========
Current liabilities
Derivative instruments 10 (1,493) (3,530) (6,096)
Other creditors (2,227) (999) (7,710)
(3,720) (4,529) (13,806)
---------------- ---------------- ----------------
Net current assets 55,324 102,765 45,067
---------------- ---------------- ----------------
Net assets 1,465,504 1,267,188 1,139,977
========= ========= =========
Capital and reserves
Share capital 11 16,217 16,205 16,205
Share premium account 240,803 238,442 238,442
Capital redemption reserve 3,256 3,256 3,256
Other non-distributable reserve 5,152 5,152 5,152
Capital reserve 1,159,817 949,776 840,049
Revenue reserve 40,259 54,357 36,873
---------------- ---------------- ----------------
Total shareholders’ funds 1,465,504 1,267,188 1,139,977
========= ========= =========
Net asset value per ordinary share 12 451.83p 392.26p 352.61p
========= ========= =========
Cash Flow Statement
for the six months ended 28 February 2026
28 February 2026 unaudited £’000 28 February 2025 unaudited £’000 31 August 2025 audited £’000
Operating activities
Investment income received 17,565 18,750 42,920
Net derivative income received 3,287 1,796 5,969
Interest received 1,627 822 2,352
Investment management fee paid (3,950) (3,361) (6,820)
Directors’ fees paid (129) (93) (181)
Other cash payments (402) (141) (801)
---------------- ---------------- ----------------
Net cash inflow from operating activities before finance costs and taxation 17,998 17,773 43,439
========= ========= =========
Finance costs paid (2,655) (2,974) (6,228)
Overseas taxation (suffered)/recovered (27) 251 (223)
---------------- ---------------- ----------------
Net cash inflow from operating activities 15,316 15,050 36,988
========= ========= =========
Investing activities
Purchases of investments (268,815) (162,160) (352,069)
Sales of investments 207,368 194,529 425,818
Receipts on long CFDs 39,275 27,326 70,434
Payments on long CFDs (21,914) (21,241) (61,062)
Receipts on short CFDs – 460 460
Payments on short CFDs – (1,621) (1,622)
Movement on amounts held at futures clearing houses and brokers 1,180 (795) (1,300)
---------------- ---------------- ----------------
Net cash (outflow)/inflow from investing activities (42,906) 36,498 80,659
---------------- ---------------- ----------------
Net cash (outflow)/inflow before financing activities (27,590) 51,548 117,647
========= ========= =========
Financing activities
Dividends paid (22,097) (20,418) (31,272)
Repurchase of ordinary shares – (1,137) (3,469)
Net proceeds from issue of ordinary shares 4,250 – –
---------------- ---------------- ----------------
Net cash outflow from financing activities (17,847) (21,555) (34,741)
---------------- ---------------- ----------------
Net (decrease)/increase in cash and cash equivalents (45,437) 29,993 82,906
---------------- ---------------- ----------------
Cash and cash equivalents at the beginning of the period 94,109 11,749 11,749
Effect of movement in foreign exchange 18 (66) (546)
---------------- ---------------- ----------------
Cash and cash equivalents at the end of the period 48,690 41,676 94,109
========= ========= =========
Represented by:
Cash at bank 2,501 2,408 1,937
Amount held in Fidelity Institutional Liquidity Fund 46,189 39,268 92,172
---------------- ---------------- ----------------
48,690 41,676 94,109
========= ========= =========
Notes to the Financial Statements
1 Principal Activity
Fidelity Special Values PLC is an Investment Company incorporated in England
and Wales that is listed on the London Stock Exchange. The Company’s
registration number is 2972628, and its registered office is Beech Gate,
Millfield Lane, Lower Kingswood, Tadworth, Surrey KT20 6RP. The Company has
been approved by HM Revenue & Customs as an Investment Trust under Section
1158 of the Corporation Tax Act 2010 and intends to conduct its affairs so as
to continue to be approved.
2 Publication of Non-statutory Accounts
The Financial Statements in this Half-Yearly Report have not been audited by
the Company’s Independent Auditor and do not constitute statutory accounts
as defined in section 434 of the Companies Act 2006 (the “Act”). The
financial information for the year ended 31 August 2025 is extracted from the
latest published Financial Statements of the Company. Those Financial
Statements were delivered to the Registrar of Companies and included the
Independent Auditor’s Report which was unqualified and did not contain a
statement under either section 498(2) or 498(3) of the Act.
3 Accounting Policies
(i) Basis of Preparation
The Company prepares its Financial Statements on a going concern basis and in
accordance with UK Generally Accepted Accounting Practice (“UK GAAP”) and
FRS 102: The Financial Reporting Standard applicable in the UK and Republic of
Ireland, issued by the Financial Reporting Council. The Financial Statements
are also prepared in accordance with the Statement of Recommended Practice:
Financial Statements of Investment Trust Companies and Venture Capital Trusts
(“SORP”) issued by the Association of Investment Companies (“AIC”) in
July 2022. FRS 104: Interim Financial Reporting has also been applied in
preparing this condensed set of Financial Statements. The accounting policies
followed are consistent with those disclosed in the Company’s Annual Report
and Financial Statements for the year ended 31 August 2025.
(ii) Going Concern
The Directors have a reasonable expectation that the Company has adequate
resources to continue in operational existence for a period of at least twelve
months from the date of approval of these Financial Statements. Accordingly,
the Directors consider it appropriate to adopt the going concern basis of
accounting in preparing these Financial Statements. This conclusion also takes
into account the Directors’ assessment of the risks faced by the Company as
detailed in the Interim Management Report above.
4 Income
Six months ended Six months Year ended
28 February 2026 unaudited £’000 ended 31 August 2025 audited £’000
28 February 2025 unaudited £’000
Investment income
UK dividends 8,882 11,409 33,971
UK property income distributions 304 788 1,522
UK scrip dividends – 512 512
UK property income scrip dividends 264 – –
Interest on securities 180 964 1,512
Overseas dividends 1,540 2,283 7,562
---------------- ---------------- ----------------
11,170 15,956 45,079
Derivative income
Dividends received on long CFDs 2,344 1,443 6,567
---------------- ---------------- ----------------
Investment and derivative income 13,514 17,399 51,646
Other interest
Interest received on bank deposits, collateral and money market funds 1,627 823 2,352
Interest received on CFDs – 22 23
1,627 845 2,375
---------------- ---------------- ----------------
Total income 15,141 18,244 54,021
========= ========= =========
Special dividends of £1,133,000 have been recognised in capital during the
period (six months ended 28 February 2025 and year ended 31 August 2025:
£2,947,000).
5 Investment Management Fees
Six months ended 28 February 2026 unaudited £’000 Six months Year ended 31 August 2025 audited £’000
ended 28 February 2025 unaudited £’000
Investment management fees 4,002 3,315 6,857
========= ========= =========
FIL Investment Services (UK) Limited is the Company’s Alternative Investment
Fund Manager and has delegated portfolio management to FIL Investments
International (“FII”). Both companies are Fidelity group companies.
FII charges investment management fees at an annual rate of 0.60% of net
assets. Fees are accrued on a daily basis and payable monthly.
6 Finance Costs
Six months ended 28 February 2026 unaudited £’000 Six months ended 28 February 2025 unaudited £’000 Year ended 31 August 2025 audited £’000
Interest paid on CFDs 2,581 2,938 6,122
Interest paid on bank overdrafts 31 18 103
---------------- ---------------- ----------------
2,612 2,956 6,225
========= ========= =========
7 Taxation on Return on Ordinary Activities
Six months ended 28 February 2026 unaudited £’000 Six months ended 28 February 2025 unaudited £’000 Year ended 31 August 2025 audited £’000
Overseas taxation 31 118 272
---------------- ---------------- ----------------
Total taxation charge for the period 31 118 272
========= ========= =========
8 Return per Ordinary Share
Six months ended 28 February 2026 unaudited Six months ended 28 February 2025 unaudited Year ended 31 August 2025 audited
Revenue return per ordinary share 2.48p 3.51p 12.28p
Capital return per ordinary share 63.92p 2.50p 36.67p
---------------- ---------------- ----------------
Total return per ordinary share 66.40p 6.01p 48.95p
========= ========= =========
The return per ordinary share is based on the net return on ordinary activities after taxation for the period divided by the weighted average number of ordinary shares held outside of Treasury during the period, as shown below:
£’000 £’000 £’000
Net revenue return on ordinary activities after taxation 7,999 11,385 39,723
Net capital return on ordinary activities after taxation 206,572 8,097 118,665
---------------- ---------------- ----------------
Net total return on ordinary activities after taxation 214,571 19,482 158,388
========= ========= =========
Number Number Number
Weighted average number of ordinary shares held outside of Treasury 323,151,130 324,066,047 323,570,427
========= ========= =========
9 Dividends Paid to Shareholders
Six months ended 28 February 2026 unaudited £’000 Six months ended 28 February 2025 unaudited £’000 Year ended 31 August 2025 audited £’000
Final dividend of 6.84 pence per ordinary share paid for the year ended 31 August 2025 22,097 – –
Interim dividend of 3.36 pence per ordinary share paid for the year ended 31 August 2025 – – 10,854
Final dividend of 6.30 pence per ordinary share paid for the year ended 31 August 2024 – 20,418 20,418
---------------- ---------------- ----------------
22,097 20,418 31,272
========= ========= =========
The Company has declared an interim dividend for the six month period to 28
February 2026 of 3.49 pence per ordinary share (2025: 3.36 pence). The interim
dividend will be paid on 22 June 2026 to shareholders on the register at the
close of business on 15 May 2026 (ex-dividend date 14 May 2026). The total
cost of this interim dividend, which has not been included as a liability in
these Financial Statements, is £11,320,000 (2025: £10,854,000). This amount
is based on the number of ordinary shares in issue held at the date of this
report.
10 Fair Value Hierarchy
The Company is required to disclose the fair value hierarchy that classifies
its financial instruments measured at fair value at one of three levels,
according to the relative reliability of the inputs used to estimate the fair
values.
Classification Input
Level 1 Valued using quoted prices in active markets for identical assets
Level 2 Valued by reference to inputs other than quoted prices included in level 1 that are observable (i.e. developed using market data) for the asset or liability, either directly or indirectly
Level 3 Valued by reference to valuation techniques using inputs that are not based on observable market data
Categorisation within the hierarchy has been determined on the basis of the
lowest level input that is significant to the fair value measurement of the
relevant asset. The valuation techniques used by the Company are as disclosed
in the Company’s Annual Report for the year ended 31 August 2025 (Accounting
Policies Notes 2 (k) and 2 (l) on pages 62 and 63). The table below sets out
the Company’s fair value hierarchy:
28 February 2026 (unaudited) Level 1 £’000 Level 2 £’000 Level 3 £’000 Total £’000
Financial assets at fair value through profit or loss
Investments 1,407,596 2,391 193 1,410,180
Derivative instrument assets – 2,489 – 2,489
---------------- ---------------- ---------------- ----------------
1,407,596 4,880 193 1,412,669
========= ========= ========= =========
Financial liabilities at fair value through profit or loss
Derivative instrument liabilities – (1,493) – (1,493)
========= ========= ========= =========
31 August 2025 (audited) Level 1 £’000 Level 2 £’000 Level 3 £’000 Total £’000
Financial assets at fair value through profit or loss
Investments 1,159,745 2,357 2,321 1,164,423
Derivative instrument assets – 1,213 – 1,213
---------------- ---------------- ---------------- ----------------
1,159,745 3,570 2,321 1,165,636
========= ========= ========= =========
Financial liabilities at fair value through profit or loss
Derivative instrument liabilities – (3,530) – (3,530)
========= ========= ========= =========
28 February 2025 (unaudited) Level 1 £’000 Level 2 £’000 Level 3 £’000 Total £’000
Financial assets at fair value through profit or loss
Investments 1,070,007 24,358 545 1,094,910
Derivative instrument assets – 4,028 – 4,028
---------------- ---------------- ---------------- ----------------
1,070,007 28,386 545 1,098,938
========= ========= ========= =========
Financial liabilities at fair value through profit or loss
Derivative instrument liabilities – (6,096) – (6,096)
========= ========= ========= =========
11 Share Capital
28 February 2026 unaudited 31 August 2025 audited 28 February 2025 unaudited
Number of shares Nominal Number of shares Nominal Number of shares Nominal
value £’000 value £’000 value £’000
Issued, allotted and fully paid ordinary shares of 5 pence each held outside of Treasury
Beginning of the period 323,048,920 16,152 324,098,920 16,205 324,098,920 16,205
Ordinary shares issued out of Treasury 1,050,000 53 – – – –
New ordinary shares issued 250,000 12 – – – –
Ordinary shares repurchased into Treasury – – (1,050,000) (53) (800,000) (40)
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
End of the period 324,348,920 16,217 323,048,920 16,152 323,298,920 16,165
Ordinary shares of 5 pence each held in Treasury 1
Beginning of the period 1,050,000 53 – – – –
Ordinary shares issued out of Treasury (1,050,000) (53) – – – –
Ordinary shares repurchased into Treasury – – 1,050,000 53 800,000 40
End of the period – – 1,050,000 53 800,000 40
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
Total share capital 16,217 16,205 16,205
========= ========= ========= ========= ========= =========
1 Ordinary shares held in Treasury carry no rights to
vote, to receive a dividend or to participate in a winding up of the Company.
During the period, 250,000 new ordinary shares were issued (year ended 31
August 2025 and six months to 28 February 2025: nil). The premium arising on
the issue of these new ordinary shares amounting to £1,125,000 was credited
to the share premium account.
In addition, 1,050,000 ordinary shares held in Treasury were issued (year
ended 31 August 2025 and six months ended 28 February 2025: nil). As a result,
£1,236,000 was credited to the share premium account and £3,469,000 to
capital reserve.
No ordinary shares were repurchased into Treasury during the period (year
ended 31 August 2025: 1,050,000 ordinary shares repurchased at a cost of
£3,469,000 and six months ended 28 February 2025: 800,000 ordinary shares
repurchased at a cost of £2,628,000).
12 Net Asset Value per Ordinary Share
The calculation of the net asset value per ordinary share is based on the
total shareholders’ funds divided by the number of ordinary shares held
outside of Treasury.
28 February 2026 unaudited 31 August 2025 audited 28 February 2025 unaudited
Total shareholders’ funds £1,465,504,000 £1,267,188,000 £1,139,977,000
Ordinary shares held outside of Treasury at the period end 324,348,920 323,048,920 323,298,920
Net asset value per ordinary share 451.83p 392.26p 352.61p
========= ========= =========
It is the Company’s policy that shares held in Treasury will only be
reissued at a premium to net asset value per ordinary share and, therefore,
shares held in Treasury have no dilutive effect.
13 Transactions with the Manager and Related Parties
FIL Investment Services (UK) Limited is the Company’s Alternative Investment
Fund Manager and has delegated portfolio management and the role of Company
Secretary to FIL Investments International (“FII”). Both companies are
Fidelity group companies.
Details of the current fee arrangements are given in Note 5 above. During the
period, the following expenses were payable to FII:
Six months ended 28 February 2026 unaudited £’000 Six months ended 28 February 2025 unaudited £’000 Year ended 31 August 2025 audited £’000
Investment management fees 4,002 3,315 6,857
Marketing fees 115 123 230
========= ========= =========
At the Balance Sheet date, the following balances payable to FII were accrued
and included in other creditors:
Six months ended 28 February 2026 Unaudited £’000 Year ended 31 August 2025 audited £’000 Six months ended 28 February 2025 unaudited £’000
Investment management fees 659 607 525
Marketing fees 65 33 87
========= ========= =========
As at 28 February 2026, the Board consisted of five non-executive Directors
(as shown in the Directory in the Half-Yearly Report), all of whom are
considered to be independent. None of the Directors have a service contract
with the Company.
The annual fee structure from 1 September 2025 is as follows:
1 September 2025 £
Chair 52,000
Chair of the Audit Committee 42,000
Senior Independent Director 35,000
Director 33,000
=========
Directors’ Shareholdings are as follows:
28 February 2026 Ordinary Shares
Hamish Baillie 5,000
Claire Boyle 7,466
Christopher Casey 7,000
Ominder Dhillon 7,750
Alison McGregor 20,000
=========
The financial information contained in this Half-Yearly Results Announcement
does not constitute statutory accounts as defined in section 435 of the
Companies Act 2006. The financial information for the six months ended 28
February 2026 and 28 February 2025 has not been audited or reviewed by the
Company’s Independent Auditor.
The information for the year ended 31 August 2025 has been extracted from the
latest published audited financial statements, which have been filed with the
Registrar of Companies, unless otherwise stated. The report of the Auditor on
those financial statements contained no qualification or statement under
sections 498(2) or (3) of the Companies Act 2006.
Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other website) is
incorporated into, or forms part of, this announcement.
A copy of the Half-Yearly Report will shortly be submitted to the National
Storage Mechanism and will be available for inspection at
www.morningstar.co.uk/uk/NSM
The Half-Yearly Report will also be available on the Company's website at
www.fidelity.co.uk/specialvalues where up
to date information on the Company, including daily NAV and share prices,
factsheets and other information can also be found.
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