Fidelity Special Situations A

Multi-cap UK equity fund with a contrarian manager.

  • 3993.00p Price (Inc)
  • - Price (Acc)
  • 3.50% 0.00% Initial charge
  • 1.50% Annual management charge
  • 1.69% Ongoing charges
  • 0.90% Yield

Prices as at 09 December 2019, fund data last updated 08 January 2016

The fund targets long-term capital growth from a portfolio of UK equities of all sizes, along with selected overseas companies. Since January 2014 it has been managed by Alex Wright, manager of the Fidelity UK Special Values IT and UK Smaller Companies OEIC. Wright adopts a contrarian approach to investing but we perceive his style to be more conservative than his predecessor Sanjeev Shah. The use of derivatives to enhance returns remains in place.

Fund summary

Sector UK All Companies
Structure OEIC
Launched December, 1979
Size £2,927m
Yield 0.90%
Charging basis Income
Dividends paid Acc units only

Charges

Standard initial charge 3.50%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.50%
Ongoing charges figure 1.69%

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Investment process

The fund invests in UK companies of all sizes, along with selected overseas companies. Wright has a contrarian approach, often buying stocks that are out of favour with the market and being prepared to hold them for the long term to realise value. As a result the portfolio may differ sharply from the index. Stocks typically fit into four categories: Turnarounds - companies that have performed poorly but have early signs of improvement; Unrecognised growth - growth companies selling on relatively low valuations; Hidden jewels - companies that have divisions with potential not fully recognised by the market; Corporate activity potential - companies with an above average chance of being involved in take-overs etc. Wright uses a wide range of techniques to select stocks, including fundamental analysis, company meetings, quant screens and technical analysis. He also uses derivatives to enhance returns, including shorting individual stocks and using index puts for protection. He describes the process as 90% bottom-up, with a sector/macro-economic overlay used to ensure portfolio exposures match his conviction levels.

Alex Wright has experienced an impressive rise through the ranks of Fidelity's investment professionals since joining as a graduate analyst. His reputation grew whilst managing his UK smaller companies fund, but as a result of inheriting this portfolio he has been running three mandates with a substantially larger sum of money in aggregate up until recently. He stepped back from the management of the UK Smaller Companies fund earlier in 2019, whilst focusing on this strategy. We hold Wright in high regard, with the manager now having a substantial amount of experience in the UK multi-cap value-orientated space.

Manager research

Average monthly relative returns

  • 14/15 0.71%
  • 15/16 0.00%
  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.94%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 99.90%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Alex Wright

Wright graduated from Warwick University in 2001 with a First Class Honours degree in Economics. He joined Fidelity the same year and worked as analyst in various sectors, including UK small cap, until 2008 when he became a portfolio manager. He also runs Fidelity Special Situations Fund and Fidelity Special Values Investment Trust. Wright is a CFA charterholder.

Track record

Alex Wright has 4.9 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.94%. During the worst period of relative performance (from March 2008 - March 2008) there was a decline of 5% relative to the index. The worst absolute loss has been 37%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is more than 99%.

Periods of worst performance

Absolute -37.00% (March 2008 - November 2008)
Relative -5.00% (March 2008 - March 2008)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

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Top 10 holdings

Data accurate as at 31 July 2019

5.8975% Royal Dutch Shell
5.5093% Crh
5.0028% Roche Hldg Ag
4.8613% Pearson
4.3706% Citigroup Inc
3.8364% Meggitt Plc
3.5945% Phoenix Group Hldgs
3.5873% John Laing Group Plc
3.3936% Bp
3.3318% Royal Bank Of Scotland Group Plc
Source: Trustnet

Sector breakdown

Financials 29.00%
Industrials 24.00%
Oil & Gas 10.00%
Consumer Services 10.00%
Consumer Goods 8.00%
Health Care 7.00%
Basic Materials 6.00%
Utilities 3.00%
Money Market 1.00%
Technology 1.00%

Portfolio

80-120 stocks - typically a large weight to the top 20 with a long tail. Up to 20% non-UK stocks may be included.

Constraints

There are no formal limits set upon the manager by the group.

Key Investor Information

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