fund

Rated

This is one of our rated funds. They’re the ones our experts believe will do well for investors over the longer term. Top of the class!

Fidelity Special Situations W

Multi-cap UK equity fund with a contrarian manager.

  • 4370.00p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • -
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.75%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 0.91%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 1.40%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 20 January 2022, fund commentary last updated 11 October 2021

The fund seeks to achieve long-term capital growth from a portfolio made up of the shares of UK companies. It uses the FTSE All-Share index as a point of reference to judge performance. Manager Alex Wright invests in companies across the market cap scale which he believes are undervalued but have unrecognised future growth prospects. The aim is to keep delivering strong returns in both rising and falling markets. Its holdings which are primarily UK based, but with up to 20% overseas exposure, include insurance firm Aviva and oil giant Royal Dutch Shell. Wright has an active, bottom-up investment approach. This involves looking at a company’s earnings and financial risks to build a portfolio of winning stocks.

Fund summary

Sector UK All Companies
Structure OEIC
Launched October, 2012
Size £2,907m
Yield 1.40%
Charging basis Income
Dividends paid Acc units only

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.91%

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Investment process

Although manager Alex Wright does account for economic factors, the main focus of the investment process is active stock picking. He seeks to identify unloved companies, which have already gone through a lengthy period of underperformance and where the risk of further pain is limited. Therefore, trying to understand the potential downside risk and growth potential is key to his process. Wright looks at a company’s earnings and financial risks and does detailed research on their balance sheets. He also seeks stocks with new management teams who have a track-record of improving companies by repairing self-inflicted damage. In addition, companies are sought which can exploit regulatory change or disruption. Wright is helped in his deliberations through ongoing weekly discussions with other UK equity portfolio managers and former analyst colleagues. The portfolio holds between 80 and 120 names of which 60% are mid to small-cap stocks. Wright allocates capital according to a company’s stage of recovery with sizes not typically exceeding 7%. His investment time horizon is around three years.

The fund is perhaps most associated with star manager Anthony Bolton, who departed in 2007. Alex Wright, who previously worked with Bolton, took over the reins in 2014 after delivering good results as manager of the similar Fidelity Special Values IT and on the Fidelity UK Smaller Companies fund. The performance of the Special Situations fund over the last seven years has been encouraging, despite a market backdrop which has seen growth stocks prosper. Wright’s bias towards overlooked, unloved mid and small caps is a positive one as he goes against the prevailing market flow. He also unusually has the flexibility to short stocks within his strategy.

Manager research

Average monthly relative returns

  • 17/18 -0.03%
  • 18/19 0.49%
  • 19/20 0.00%
  • 20/21 0.00%
  • 21/22 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.25%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 99.40%

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

Alex Wright / Jonathan Winton

Wright graduated from Warwick University in 2001 with a First Class Honours degree in Economics. He joined Fidelity the same year and worked as a pan-European equity analyst in various sectors. In 2007 he chose to focus on UK equities, initially as a UK small cap analyst. During this period, he worked closely with both Anthony Bolton and Sanjeev Shah. Wright began running client assets in 2008 with the launch of the Fidelity UK Smaller Companies fund. In 2010, he broadened his remit to the full market cap spectrum, working more closely with Shah on the Fidelity Special Situations fund and launched an internal all-cap portfolio. In September 2012, he took over the Fidelity Special Values IT from Shah and in January 2014 acquired the running of the Fidelity Special Situations Fund. Wright is a CFA charterholder.

Track record

Alex Wright / Jonathan Winton has 6.1 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.25%. During the worst period of relative performance (from January 2016 - September 2016) there was a decline of 4% relative to the index. The worst absolute loss has been 15%. 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 -15.00% (July 2018 - December 2018)
Relative -4.00% (January 2016 - September 2016)

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.

Allocation

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Top 10 holdings

Data accurate as at 31 December 2021

4.9536% Legal & General Group
3.9254% Aviva
3.6121% Royal Dutch Shell Plc
3.5461% Inchcape Plc
3.1272% Serco Group Plc
3.1032% Phoenix Group Hldgs
2.6218% Sanofi
2.554% Roche Hldg Ag
2.5273% Dcc
2.2402% Wpp Plc
Source: Trustnet

Sector breakdown

Industrials 27.00%
Financials 24.00%
Consumer Discretionary 19.00%
Health Care 8.00%
Energy 7.00%
Telecommunications 5.00%
Basic Materials 5.00%
Consumer Staples 5.00%
Utilities 3.00%
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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