fidelity - Special Values IT/ Special Situation OEIC

grizzly1911

What are peeps thoughts on these?

Currently considering a switch at of legacy HSBC FTSE all share fund (the only passive).

Would be a small % of the overall pot.

Also hold Invesco Perpetual Income & Growth IT.

Morningstar is neutral on the IT and Trustnet is the same on the OEIC - citing Wright's inexperience and limited track record at the this sort of size, leverage on the IT and spread of responsibilities.

jimjames

I have both, from the days when they had the same manager.

I prefer the IT as I think they are more suited to investments for long term that could be affected by inflows and outflows. Anything at a discount means you get more assets for your money which is a bonus to me.

However I certainly wouldn't suggest moving everything from a tracker into it. Both SS/SV have had a very good run recently which may not continue long term so I do still hold trackers too.

atush

I own the IT. And Invesco perpetual inc and gr.

I am holding both. I made enough on FSV IT in t he past, I can wait and see how it goes.

mike88

I have owned both the IT and UT in the past. I haven't checked the current situation but back in the day the Special Values IT always sold at a premium to asset value so tended to concentrate more on the UT. In the years I owned it when Bolton was the manger the returns averaged over 25% per annum but I sold my holding many years ago when Bolton left.

Looking at the present situation the UT is ranked in performance terms at 81 out of 268 over 1 year; 71 out of 257 over 3 years; and 76 out of 239 over 5 years.

To put this into perspective the Fidelity Special Sits fund has increased by 45% over 3 years as opposed to the best performing funds increasing by 111%. Past performance is no guide to the future but it is possible to make a judgement about consistent performers from the tables on City Wire for example. Fund size is also relevant as larger funds tend to be less nimble than their smaller counterparts and you need to look into the kind of stocks the fund of your choice invests in. For example do you judge that FTSE 250 stocks and smaller companies are overblown at this point in the investment cycle?

I suggest you do your own research and decide whether you want to invest in a moderate performing fund such as Fidelity Special Situations. The choice is yours. On the plus side the manager of the Special Situations Fund is AA rated by City Wire and an Alpha rated manager by TrustNet.