Fidelity’s Shah replaced by Alex Wright on Special Values trust

Sanjeev Shah has been replaced by Alex Wright as manager of Fidelity’s Special Values investment trust – a listed closed ended fund – after requesting to be taken off the mandate.

The board of the trust said that Shah (pictured), who also manages the group’s multi-billion pound Fidelity Special Situations fund, wanted to concentrate solely on running the open-ended fund.

The board of the trust also wanted to expand the trust’s remit so it invested more in mid and small cap stocks.

Wright has run the Fidelity UK Smaller Companies fund since inception, and has more than a decade of experience at Fidelity.

The group said: “This reflects the wish of the Board to use more fully the flexibility afforded to it with its current investment strategy, including being able to invest a greater proportion of the portfolio in smaller and mid-cap stocks, and allows the company’s current portfolio manager, Sanjeev Shah, to focus solely on managing the open-ended Fidelity Special Situations Fund in accordance with his wishes.”

In the last three years, the trust has returned 25.7%, compared to UK industry body the Association of Investment Companies’ UK Growth sector average of 37.2%, according to Morningstar.

The change means Shah will be able to concentrate on managing manager Anthony Bolton’s former fund, which has struggled to match its peers in the UK Investment Management Association’s UK All Companies sector in the last three years.

The open-ended fund has returned 30.9% over three years, against the sector average return of 43.5%.

Lynn Ruddick, chairman of Fidelity Special Values, said: “The board is keen to take greater advantage of opportunities for capital growth available from dynamic smaller and mid-cap companies and this is an area where Alex has demonstrated considerable success.

“The investment strategy and the company’s benchmark remain unchanged.”

The trust faces a continuation vote at its AGM next year.


This article was first published on Investment Week

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