View the article online at http://citywire.co.uk/wealth-manager/article/a634530
Life after Shah: AAA-rated Wright adds Brewins to Fidelity Special Values
by Sarah Miloudi on Nov 15, 2012 at 07:01
Wright, who took on the £347 million Fidelity Special Values trust from Sanjeev Shah in July, said he backs Brewins because of its 'sticky' client base and believes there are better opportunities for returns compared to its rivals.
Increasing its margins is key to realising this potential, Wright said.
'Brewins has realised [this],' he explained, pointing out that while Rathbones has fewer assets under management its margins are healthier.
'The Brewin Dolphin business is pretty good. Rathbones is on a higher P/E and that does not make sense to me,' Wright (pictured) added.
Wright already holds Brewins in his open-end fund, which over the last three years has returned 78.5% versus a 38.6% rise in the Numis Smaller Companies Extended index, and 43.2% by the Numis Smaller Companies (ex investment trusts) Total Return index.
He initiated the position in Fidelity Special Values as part of his strategy of tilting the portfolio towards mid and small caps.
Largely, the sectors the vehicle is exposed to have stayed broadly the same since Wright took over from Shah, but he told Wealth Manager he is now underweight banks and neutral on financials more generally.
No sale on SJP
Wright, who is ranked in position 29 in Citywire 1000, our guide to the world's top fund managers, said he had also looked at Lloyds-owned St James's Place, but has not taken a position in the wealth adviser network because he believes its fees may come under pressure.
He also believes it unlikely Lloyds will be able to let go of its 60% stake, despite it obviously being up for grabs for some time.
News sponsored by:
As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.
Today's top headlines
The Citywire guide to investment trusts
Investment trusts have proved to be a highly effective way to invest in the market. Citywire has interviewed the experts to find out more.
With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop
More about this:
Look up the funds
Look up the shares
- Brewin Dolphin Holdings PLC
- Fidelity Special Values PLC
- Rathbone Brothers PLC
- St. James's Place PLC
- Lloyds Banking Group PLC
Look up the fund managers
More from us
- Fidelity hands Shah's Special Values trust to Alex Wright
- Why Nigel Thomas would increase St James’s Place stake on Lloyds sale
- AXA Framlington UK Select Opportunities
On the road
J.P. Morgan Elect on investment growth, income and cash. More information on J.P. Morgan investment trusts.