Half-year Report

Fidelity Special Values Plc - Half-year Report

PR Newswire

London, April 22

Fidelity Special Values PLC

Half-Yearly Results for the six months ended 28 February 2021 (unaudited)

Financial Highlights:

Contacts

For further information, please contact:

Smita Amin

Company Secretary

01737 836347

FIL Investments International

PORTFOLIO MANAGER’S HALF-YEARLY REVIEW

PERFORMANCEThe performance of the Company over the six month period to 28 February 2021 was strong, with a net asset value (“NAV”) total return of 24.3% and a share price total return of 36.5%, compared to a total return of 12.0% for the FTSE All-Share Index (the Company’s Benchmark Index). This report seeks to summarise the period, highlight the key drivers of performance and put forward the Portfolio Manager’s views looking ahead.

STOCK MARKET AND PORTFOLIO REVIEWOver the period, UK equities continued to make up some of the ground lost after the market collapse seen in late February/early March 2020 with the onset of the COVID-19 crisis. The period started on a downbeat note as a second wave of COVID-19 cases initially caused markets to retrace some of their earlier gains. However, news of the efficacy of a number of vaccines and their fast-track approval for use by authorities boosted investors’ optimism, as did expectations that Joe Biden’s win in the US presidential election would result in a new round of economic stimulus measures in the US. Investors were further relieved as the UK and the European Union finally agreed a post-Brexit trade deal, helping UK shares to end the rollercoaster year that was 2020 on a stronger footing.

While 2021 started off on an optimistic note as the UK Government’s inoculation roll-out programme gained momentum, this quickly gave way to renewed nervousness as the country entered its third lockdown and new, more transmissible, variants started to be uncovered. While the swift vaccine rollout and the meaningful impact of vaccines in cutting transmission rates have bolstered recovery hopes, inflation worries started to creep in, causing markets to become more jittery of late and to question the previously established market leadership favouring high-growth stocks. Towards the end of the period, investors welcomed the Government’s plans to phase out pandemic restrictions, although overall UK equities only made modest gains in the first two months of the year.

From a macro perspective, while the domestic economy has rebounded in the second half of 2020, overall activity remains significantly below pre-pandemic levels. The UK economy proved particularly susceptible to lockdown measures given its reliance on services, hospitality and consumer spending, and fared worse among Western economies as a result. However, the fast pace of the vaccine rollout means that the UK economy should exit restrictions quicker and, given the disproportionate contraction it has experienced, stands to benefit most from a return to normality. Globally, growth should gradually pick up, supported by substantial fiscal and monetary stimuli, with central banks willing to do more if necessary.

Over the period, the Company’s NAV continued to recover strongly from the low seen on 19th March 2020 and meaningfully outperformed the Benchmark Index. Strong stock selection, especially in consumer-related sectors, life insurance and health care, was the primary driver of returns during the period. The underweight allocation to the resources sectors was less beneficial, as investors increasingly focused on the more cyclical segments of the market during the period and moved away from defensives. Our lack of exposure to stocks such as pharmaceuticals groups AstraZeneca and GlaxoSmithKline, as well as highly-rated consumer goods companies Unilever and Reckitt Benckiser, contributed to relative returns as their shares fell.

Among our holdings, bicycle and motoring retailer Halfords Group was the leading contributor, as it posted strong sales across the board during the third quarter, on the back of a significant increase in market share, driven by its digital operating model, the first group-wide motoring campaign and expansion of the Halfords Mobile Expert vans proposition. Insurance group Aviva was another key contributor. The company recently reported solid full-year results, reinstated its dividend and continued to make good progress in its disposal of non-core assets. Support services group Mitie also added value on the back of new contract wins, its acquisition of Interserve, and an improving balance sheet. The company has been rejuvenated under a new management team which has improved its culture, systems and contract risk profile. Among others, banking group AIB Group rose, as it revealed a new cost-cutting plan and a key competitor exited the Irish market, while the smaller position in M&C Saatchi also added value. This successful advertising agency with significant organic growth potential and high-profile clients is emerging from a troubled period that saw accounting misstatements, a deterioration in trading and boardroom issues. Under new management, new processes and controls have been put in place and ambitious targets have just been announced.

The underweight stance in oil majors Royal Dutch Shell and BP detracted from relative performance, as oil prices rose during the period. Sales and marketing group DCC was another detractor amid concerns over fewer M&A opportunities and the long term fears concerning transition away from petrol for its forecourt business. However, we remain positive on the company, which is a long term compounder that is focused on deploying capital in businesses that generate high returns on capital and strong cash conversion with low capital intensity. The holding in aerospace & defence group Ultra Electronics also lagged. It subsequently reported 2020 results ahead of expectations maintaining organic growth with improved profit margins.

Despite the underperformance experienced in the February/March 2020 market dislocation, it is encouraging to note that the Company is now comfortably ahead of the broader market on a 12 month basis. While some of our economically-sensitive holdings were disproportionally affected by the lockdown restrictions, decisive action in selling off those that looked most vulnerable and taking advantage of valuation anomalies highlighted by our analysis, through increased gearing, ultimately proved rewarding. While the market was initially quick to discount some of our holdings as being vulnerable to the crisis, it was rewarding to see them demonstrate their resilience in the last six months, particularly in sectors such as life insurance, retailers and house builders – all areas we added to in the Spring/Summer.

USE OF DERIVATIVESDuring the review period, the Company continued to use contracts for difference (“CFDs”) to gear portfolio long exposure and eliminate some of the currency exposure for those holdings listed outside the UK. As the Company had increased gearing and the market rose in the review period, the use of derivatives was a significant contributor to performance. Overall, net gearing was at 14.5% at the end of February 2021, reflecting the fact that we remain optimistic about the outlook and continue to find attractive investment opportunities with meaningful upside potential.

OUTLOOKUK equities, and in particular value stocks, continue to look very attractively valued in a global context, a hangover of prior Brexit uncertainty and the disproportionate impact of the pandemic on the domestic economy. Whilst the post-Brexit transition will present challenges near term, our conversations with companies suggest that these have been mostly administrative in nature and not insurmountable, particularly given the lead time to prepare, and resources available to most listed companies. Assuming this continues to be the case, we would expect the Brexit overhang to disappear over time, and if the UK economy recovers from the pandemic as expected, it is hard to see how UK stocks can remain this unloved. From a virus perspective, the pace of the vaccine roll-out, the falling numbers of new cases and hospitalisations, as well as the announcement by the Government of plans for a gradual reopening of the domestic economy, are very encouraging and point to a return to some sort of normality.

While we have started to see a rotation into value in late 2020, and more recently as investors contemplate the implications of an economic recovery supported by unprecedented fiscal and monetary stimulus, the dispersion in returns between growth and value stocks since the 2008-2009 global financial crisis remains unprecedented. This leads us to believe that, should investors shift their focus, the degree of outperformance could be very substantial, given how bifurcated the market continues to be.

Consensus is growing that later this year we could witness an uptick in inflation as economies reopen, and we see pent up demand and constrained supply in some areas. Indeed, many companies we talk to are increasingly highlighting these challenges, particularly within supply chains. There is still an enormous amount of US fiscal stimulus ahead of us, which could stoke things further, and create a very different environment to the one we saw after the financial crisis. Near term, the ability for businesses to pass on these cost pressures will be increasingly in focus, and is a key topic of conversation in our company meetings. An environment with higher inflation and rising bond yields has tended to favour value stocks. If discount rates rise, then some of the very highly priced stocks/sectors could de-rate, which we have started to see, whereas value stocks moderate valuations should benefit from a normalisation of economic and market conditions.

This value opportunity has not gone unnoticed by acquirers, with UK companies continuing to receive bids from both corporates’ and private equity. Over the past six months alone, five of our holdings (William Hill, McCarthy & Stone, CPL Resources, Entain (unsuccessful) and RDI REIT) were bid for highlighting that others also recognise the value on offer.

Against this improving backdrop, the Company continues to look attractively valued, with our holdings trading on an average Price-to-Earnings of 11x 2022 which looks low from an absolute and relative perspective, at a 20% discount to the broader UK market. As we have highlighted previously, we are not having to sacrifice quality and the portfolio contains companies with growth potential, good returns and relatively low levels of debt. Looking at the overall portfolio, our holdings have had more resilient earnings in 2020, are generating superior returns on capital and are not overly indebted. This quality profile gives us confidence that we can continue to deliver attractive returns to investors over the course of 2021.

ALEX WRIGHTPortfolio Manager22 April 2021

TWENTY LARGEST INVESTMENTS AS AT 28 FEBRUARY 2021

The Gross Asset Exposures shown below measure exposure to market price movements as a result of owning shares and derivative instruments. The Balance Sheet Value is the actual value of the portfolio. Where a contract for difference (“CFD”) is held, the Balance Sheet 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 share has moved.

1 Gross Asset Exposure is expressed as a percentage of Shareholders’ Funds.

2 Gross Asset Exposure comprises market exposure to investments of £676,404,000 plus market exposure to derivative instruments of £160,340,000.

3 Portfolio Fair Value comprises investments of £676,404,000 plus derivative assets of £2,551,000 less derivative liabilities of £1,835,000 (per the Balance Sheet below).

INTERIM MANAGEMENT REPORT

REVISED MANAGEMENT FEEAs reported in the Annual Report for the year ended 31 August 2020, the Board agreed a revised management fee with the Manager, FIL Investment Services (UK) Limited, which was effective from 1 January 2021. The previous tiered fee structure of 0.85% on the first £700 million of net assets reducing to 0.75% of net assets in excess of £700 million was replaced by a single fee of 0.60% of net assets. In addition, the fixed annual fee of £100,000 for services other than portfolio management was removed. There is no change in the investment process as a result of the new fee arrangement.

DISCOUNT/PREMIUM AND SHARE REPURCHASES/ ISSUESUnder the Company’s discount management policy, the Board seeks to maintain the discount in single digits in normal market conditions and will repurchase shares to help stabilise the share price discount.

The Board will approve the issuance of shares if the Company’s shares are trading at a sufficient level of premium to ensure that it adds value for Shareholders and that the issue of shares is not dilutive. Issuing shares increases the size of the Company, making it more liquid and allowing costs to be spread out over a larger pool of assets.

Over the reporting period, the Company’s shares traded between a premium of 3.1% and a discount of 12.3%. The level of discount significantly narrowed from 9.1% at the start of the reporting period to 0.2% as at 28 February 2021. The peer group average discount as at 28 February 2021 was 6.1%.

During September and early October 2020, the Company’s discount widened, and in order to keep it in single digits, the Board approved the repurchase of 1,025,473 ordinary shares into Treasury. All of these shares were subsequently re-issued in late November and early December 2020 as the shares moved back to a premium. Since then and as at the date of this Half-Yearly Report, no further shares have been repurchased into Treasury or for cancellation.

In the reporting period, the Company’s shares mostly traded at a premium and in order to meet demand, the Company issued a total of 9,969,913 ordinary shares from a combination of shares held in Treasury as above, and its block listing facilities. Since then and as at the date of this Half-Yearly Report, the Company has issued a further 2,460,000 shares.

The Board continues to monitor the discount/ premium closely and will take action when it believes that it will be effective.

INTERIM DIVIDENDThe Board’s dividend policy is to pay dividends twice yearly in order to smooth the dividend payment for the Company’s financial year. The Company’s revenue return for the six months to 28 February 2021 was 1.54 pence per share.

The Board has declared an interim dividend of 2.17 pence per share which is 3.3% higher than the 2.10 pence per share paid as the interim dividend in 2020. This will be paid on 23 June 2021 to Shareholders on the register on 14 May 2021 (ex-dividend date 13 May 2021). Shareholders should note that the Board will review the final dividend payment later in the year based on dividend receipts from the companies held in the portfolio, particularly in light of the continuing impact of COVID-19. However, based on current forecasts, the Board would hope to maintain at least the same level of dividend paid in the prior year.

Shareholders may choose to reinvest their dividends in additional shares in the Company. Details of the Dividend Reinvestment Plan are set out in the Half-Yearly Report.

PRINCIPAL RISKS AND UNCERTAINTIESThe Board, with the assistance of the Alternative Investment Fund Manager (FIL Investment Services (UK) Limited/the “Manager”), has developed a risk matrix which, as part of the risk management and internal controls process, identifies the key risks and uncertainties faced by the Company.

The Board considers that the principal risks and uncertainties faced by the Company comprise of market, economic and political risk; pandemic risk; share price risk; discount control risk; regulatory risk; cybercrime risk; investment management risk; and operational risks (such as service providers). Information on each of these risks is given in the Strategic Report section of the Annual Report for the year ended 31 August 2020. A copy of the Annual Report can be found on the Company’s pages of the Manager’s website at www.fidelity.co.uk/specialvalues.

These principal risks and uncertainties have not materially changed during the six months to 28 February 2021, with the exception of continuing risks arising from new variants of COVID-19 and possible vaccine shortages, and are equally applicable to the remaining six months of the Company’s financial year.

CORONAVIRUS (COVID-19)With the pandemic continuing to evolve and new variants of the virus appearing, it is evident that the arrival of vaccines does not necessarily mean an end of COVID-19. It is, potentially, a tough job for the formulations of the various vaccines to keep up with variants of the disease. Risks remain and these are being kept under constant review by the Board and the Manager. Investors should be prepared for market fluctuations and remember that holding shares in the Company should be considered to be a long term investment. These risks are somewhat mitigated by the investment trust structure which means no forced sales need to take place to deal with any redemptions. Therefore, investments can be held over a longer time horizon.

The Manager carries on reviewing its business continuity plans and operational resilience strategies on an ongoing basis and continues to take all reasonable steps in meeting its regulatory obligations and to assess operational risks, the ability to continue operating and the steps it needs to take to serve and support its clients, including the Board. For example, to enhance its resilience and to look after the safety of employees, the Manager has mandated that all staff work from home and has implemented split team working for those whose work is deemed necessary to be carried out in an office. The Manager follows the self-isolation and lock-down arrangements on staff in line with Government recommendations and guidance.

Investment team key activities, including those of portfolio managers, analysts and trading/ support functions, are performing well despite the operational challenges posed by working from home or split team arrangements.

The Company’s other third party service providers have also implemented similar measures to ensure business disruption can be kept to a minimum.

TRANSACTIONS WITH THE MANAGER AND RELATED PARTIESThe Manager has delegated the Company’s portfolio management and the role of Company Secretary 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 STATEMENTThe 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 (being mainly securities which are readily realisable) and its expenditure and cash flow projections and have concluded that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing these Financial Statements.

This conclusion also takes into account the Board’s assessment of the continuing risks arising from COVID-19 as set out above.

Continuation votes are held every three years and the next continuation vote will be put to Shareholders at the Annual General Meeting in 2022.

BY ORDER OF THE BOARDFIL INVESTMENTS INTERNATIONAL22 April 2021

DIRECTORS’ RESPONSIBILITY STATEMENT

The Disclosure and Transparency Rules (“DTR”) of the UK Listing 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 Portfolio Manager’s Half-Yearly Review and the Interim Management Report, set out 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 22 April 2021 and the above responsibility statement was signed on its behalf by Andy Irvine, Chairman.

FINANCIAL STATEMENTS

INCOME STATEMENT FOR THE SIX MONTHS ENDED 28 FEBRUARY 2021

The Company does not have any other comprehensive income. Accordingly the net return/(loss) 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 2021

BALANCE SHEET AS AT 28 FEBRUARY 2021

Company number 2972628

CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 28 FEBRUARY 2021

NOTES TO THE FINANCIAL STATEMENTS

1 PRINCIPAL ACTIVITYFidelity Special Values PLC is an Investment Company incorporated in England and Wales with a premium listing 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 ACCOUNTSThe 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 2020 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 BASIS OF PREPARATION(i) Basis of PreparationThe 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 October 2019. 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 2020.

(ii) Going ConcernThe Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. 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 Board’s assessment of the continuing risks arising from COVID-19.

4 INCOME

Special dividends of £1,617,000 (year ended 31 August 2020: £276,000 and six months ended 29 February 2020: £276,000) have been recognised in capital.

5 DERIVATIVE EXPENSES

6 INVESTMENT MANAGEMENT FEES

* Includes company secretarial, fund accounting, taxation, promotional and corporate advisory services.

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.

From 1 January 2021, FII charges portfolio management fees at an annual rate of 0.60% of net assets and the fee for non-portfolio management services of £100,000 per annum is no longer charged. Prior to this date, the portfolio management fees were charged on a tiered fee basis of 0.85% on the first £700 million of nets assets and 0.75% of net assets in excess of £700 million.

7 TAXATION ON RETURN/(LOSS) ON ORDINARY ACTIVITIES

8 RETURN/(LOSS) PER ORDINARY SHARE

The return/(loss) per ordinary share is based on the net return/(loss) on ordinary activities after taxation for the period divided by the weighted average number of ordinary shares in issue during the period, as shown below:

9 DIVIDENDS PAID TO SHAREHOLDERS

The Company has declared an interim dividend for the six month period to 28 February 2021 of 2.17 pence per ordinary share (2020: 2.10 pence). The interim dividend will be paid on 23 June 2021 to Shareholders on the register at 14 May 2021 (ex-dividend date 13 May 2021). The total cost of this interim dividend, which has not been included as a liability in these Financial Statements, is £6,541,000 (2020: £6,091,000). This amount is based on the number of ordinary shares in issue held at the date of this report.

10 FAIR VALUE HIERARCHYThe 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.

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 table below sets out the Company’s fair value hierarchy:

11 SHARE CAPITAL

* 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, 9,969,913 ordinary shares (year ended 31 August 2020: 13,860,000 shares and six months to 29 February 2020: 11,465,000 shares) were issued. From the issue of ordinary shares out of Treasury, £2,383,000 (year ended 31 August 2020 and six month period to 29 February 2020: £nil) was credited to the capital reserve. The premium received in the period on the issue of new ordinary shares of £21,366,000 (year ended 31 August 2020: £34,409,000 and six month period to 29 February 2020: £30,223,000) and on the issue of ordinary shares out of Treasury of £24,000 (year ended 31 August 2020 and six month period to 29 February 2020: £nil) was credited to the share premium account.

1,025,473 ordinary shares (year ended 31 August 2020 and six months to 29 February 2020: nil) were repurchased and held in Treasury. The cost of repurchasing these shares was £1,811,000 (year ended 31 August 2020 and six months to 29 February 2020: £nil). This amount was charged to the capital reserve.

12 NET ASSET VALUE PER ORDINARY SHARE

It is the Company’s policy that shares held in Treasury will only be reissued at net asset value per ordinary share or at a premium to net asset value per ordinary share and, therefore, shares held in Treasury have no dilutive effect. Since 3 December 2020, there have been no shares held in Treasury.

13 TRANSACTIONS WITH THE MANAGER AND RELATED PARTIESFIL 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 fee arrangements are given in Note 6 above. During the period, fees for portfolio management services of £2,442,000 (year ended 31 August 2020: £5,527,000 and six months ended 29 February 2020: £3,133,000) and fees for non-portfolio management services of £33,000 (year ended 31 August 2020: £100,000 and six months ended 29 February 2020: £50,000) were payable to FII. Non-portfolio management fees include company secretarial, fund accounting, taxation, promotional and corporate advisory services. At the Balance Sheet date, fees for portfolio management services of £332,000 (year ended 31 August 2020: £418,000 and six months ended 29 February 2020: £505,000) and fees for non-portfolio management services of £nil (year ended 31 August 2020: £17,000 and six months ended 29 February 2020: £17,000) were accrued and included in other creditors. FII also provides the Company with marketing services. The total amount payable for these services during the period was £62,000 (year ended 31 August 2020: £175,000 and six months ended 29 February 2020: £66,000). At the Balance Sheet date, marketing services of £16,000 (year ended 31 August 2020: £20,000 and six months ended 29 February 2020: £40,000) were accrued and included in other creditors.

As at 28 February 2021, 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 Chairman receives an annual fee of £41,000, the Audit Committee Chairman an annual fee of £31,750 and each other Director an annual fee of £27,000.

As at the date of this report, the following members of the Board held ordinary shares in the Company: Andy Irvine 250,000 shares, Dean Buckley 50,000 shares, Nigel Foster 75,000 shares, Claire Boyle 7,466 shares and Alison McGregor 20,000 shares.

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 2021 and 29

February 2020 has not been audited or reviewed by the Company’s Independent Auditor.

The information for the year ended 31 August 2020 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.