Fidelity's Wright looks to performance turnaround on Special Values trust

Hopeful of revival amid geopolitical risks

Fidelity's Alex Wright, manager of the £727m Special Values trust, has pointed to a number of stock-specific blow-ups over the past six months and use of derivatives as reasons for the vehicle's underperformance and narrowing premium.

In the six-month period to 28 February, the investment trust reported a net asset value (NAV) total return of -6.1%, compared with the FTSE All-Share index's loss of 3.7%, with the premium on the trust narrowing from 1.5% to 0.9%. Wright said online gaming firm GVC Holdings was the main detractor from performance, weighed down by negative regulatory news.  Elsewhere, the company's holding in Citigroup fell over earnings expectations given a worsening global economy and falling bond yields. Allianz GI's Gergel takes profits from large caps to boost mid-cap exposure Yet the manage...