TRUST WATCH: Fidelity Special Values

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FIDELITY SPECIAL VALUES: Fund aims to grow savers’ money by investing in companies in ‘special situations’

City & Finance Reporter for the Daily Mail

What does it do? This fund from top investment house Fidelity aims to grow savers’ money over the long term by investing in companies which find themselves in ‘special situations’ – in other words, ones it thinks have been unfairly marked down.

What does the manager invest in? Run by Alex Wright, it focuses on the UK but can invest up to 20 per cent of its value overseas. 

Top holdings include Royal Dutch Shell, Pearson, US bank Citigroup and Lloyds Banking Group.

What do the experts like? Wright has a ‘contrarian’ style, which involves going against the market consensus. 

It has historically paid handsome returns, according to FundCalibre’s research director Juliet Schooling Latter. This is especially the case when markets are volatile.

Any downsides? Investors need to be patient. Wright tends to have a bias towards medium-sized companies, which can be higher risk than larger ones. 

The trust has also traded at a discount to the value of its underlying investments. 

Currently, however, it is at a premium, meaning investors are paying more than the value of the underlying assets – so it isn’t the cheapest time for savers to come on board.

 

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