Fidelity Special Values PLC
Rated Fund 2013-19. A good choice for optimistic investors
Alex Wright, manager of Fidelity Special Values since 2012, believes 2019 could be a great year for those brave enough to back UK equities.
“The unrelenting negativity that investors are demonstrating towards UK equities is making me feel more and more positive on their prospects for 2019,” he says. “One thing I have learnt from investing in unloved companies is that you should not necessarily wait for good news to become obvious before investing. And the number of unloved companies available to choose from makes me think 2019 could turn into a surprisingly positive year for investors brave enough to buy UK equities before the good news.”
Wright has turned the fund around after performance faltered when Anthony Bolton departed in 2007, and he has nailed his colours to the mast with his contrarian approach.
He looks for companies that are cheap and out of favour with investors but showing signs of recovery or restructuring. He fishes predominantly in the pool of small UK companies when seeking opportunities. This has generally been an advantage in recent years, but it can lead to short-term fluctuations.
Unlike many UK funds, Fidelity Special Values can hold some international stocks. At present, it has almost 8% in the US through Citigroup, Discover Financial Services, Hewlett Packard and deep-water oil company Kosmos Energy, and more than 4% in Switzerland through pharmaceuticals giant Roche.
The annual cost of this trust is 1.05%. The shares can typically be picked up at a discount to net asset value but currently trade at a small premium.
Narrative and ratings content all as of 01 January 2019.See all Money Observer rated funds
|Fid Ilf Gbp Fund C Acc||5.07 %|
|Pearson PLC||4.83 %|
|Roche Holding AG Dividend Right Cert.||4.77 %|
|CRH PLCCFD||4.71 %|
|Citigroup Inc||4.62 %|
|BP PLC||4.50 %|
|John Laing Group PLC||4.29 %|
|FTSE 250 - Stnd Index Future Mar19||4.02 %|
|Phoenix Group Holdings PLC||3.97 %|
|The Royal Bank of Scotland Group PLC||3.50 %|
|United Kingdom||72.34 %|
|United States||9.41 %|
|Financial Services||24.05 %|
|Consumer Cyclical||13.60 %|
|Consumer Defensive||5.76 %|
Alex Wright has 13 years of investment experience. He joined Fidelity in 2001 as a European equity research analyst, successively covering building materials, alcoholic beverages, leisure, emerging European and African banks and UK small-cap stocks. He became portfolio manager of the Fidelity UK Smaller Companies Fund in 2008. He continues to manage this fund alongside the Fidelity Special Situations Fund and the Fidelity Special Values PLC, which he started managing in 2012.
Data provided by Morningstar.
The Content is only for your general information and use and is not intended to address your particular requirements. The Content does not constitute any form of advice, recommendation or arrangement by Money Observer and is not intended to be relied upon by you in making (or refraining from making) any specific investment or other decisions. Appropriate independent advice should be obtained before making any such decision.
This information is sourced from our partner Morningstar. We believe the data to be correct however you should take care in using any information.
You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.