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Life after Shah: AAA-rated Wright adds Brewins to Fidelity Special Values
Markets
by Sarah Miloudi on Nov 15, 2012 at 07:01
This view is in stark contrast with Axa Framlington's Nigel Thomas, who has been closely monitoring the prospects for a bid after Lloyds' holding was valued at around £1 billion.
Thomas told Wealth Manager earlier this month that he would add to his SJP position in the event of a deal, and currently holds 7.5 million shares in St James's Place, accounting for 0.89% of his Citywire Selection UK Select Opportunities fund.
Performance
After roughly two months at the helm, it is too early to judge the impact of Wright's arrival on Fidelity Special Values, however the manager said he and the board would be looking for its 11% discount to narrow and the trust's assets to grow going forward.
Wright said he would also look to take advantage of gearing, a key benefit of the closed-end structure.
If timed well, gearing can add to an investment trust's returns, which before the hand over from Shah to Wright stood at 36.8%, looking at the three years to the end of April, versus 51.6% by its comparator index.
Gearing on Fidelity Special Values is currently 105%.
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- Fidelity hands Shah's Special Values trust to Alex Wright
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