Three investment trusts to watch in 2021

TL;DR

Fidelity Special Values for value stock recovery, Baillie Gifford China Growth for potential premium entry point, Capital Gearing as a defensive option.

Transcript

the first trust to watch in 2021 is the fidelity special values investment trust for investors that are seeking to profit from a potential recovery in value stocks this trust is managed by alex wright who is a respected contrarian investor in october the trust increased its gearing levels which is a sign that the fund manager is confident about the... Read More

Key Insights

• 👨‍💼 Fidelity Special Values Investment Trust is positioned for potential value stock recovery by focusing on life insurance businesses and specialist retailers.
• 😥 Baillie Gifford China Growth Investment Trust, with its concentrated best ideas portfolio, could offer an attractive entry point if its premium decreases in 2021.
• 🍻 Capital Gearing Investment Trust managed by Peter Spiller provides defensive capabilities with a combination of equities and inflation-linked bonds.
• 🎚️ Gearing levels in Fidelity Special Values Investment Trust reflect the fund manager's confidence in underlying investments.
• 🤗 Baillie Gifford China Growth Investment Trust changed its mandate and team, and investors hope for the replication of the successful open-ended fund's performance.
• 🔠 Capital Gearing Investment Trust's defensive armory offers better capital protection compared to other investment trusts during market downturns.
• 😥 Both Fidelity Special Values Investment Trust and Baillie Gifford China Growth Investment Trust may provide potential entry points at preferable discounts.

Questions & Answers

Q: Why is Fidelity Special Values Investment Trust recommended for 2021?

Fidelity Special Values is managed by respected investor Alex Wright and has increased gearing levels, indicating confidence in its underlying investments. It focuses on value stocks and has a history of trading at a discount, offering potential for investors.

Q: What are some key features of Baillie Gifford China Growth Investment Trust?

Baillie Gifford China Growth is a concentrated trust with around 40 to 80 names in its portfolio. Managed by Sophie Earnshaw and Roderick Snell, it invests in listed and unlisted companies. It was formerly known as Whitton Pacific and offers exposure to the Chinese market.

Q: Why should investors consider Capital Gearing Investment Trust?

Capital Gearing is managed by the longest-serving investment trust manager, Peter Spiller. It provides a defensive approach with a portfolio consisting of equities and inflation-linked bonds. This defensive armory helps protect capital during stock market declines.

Q: How does the performance of Baillie Gifford's open-ended China fund reflect on the investment trust?

The open-ended Baillie Gifford China fund has a strong track record, and investors hope that the performance will be replicated in the Baillie Gifford China Growth Investment Trust, which is managed by the same team.

Summary & Key Takeaways

• Fidelity Special Values Investment Trust, managed by Alex Wright, shows confidence in value stocks with increased gearing levels and focuses on life insurance businesses and specialist retailers.

• Baillie Gifford China Growth Investment Trust, formerly Whitton Pacific, offers a concentrated best ideas portfolio and is managed by Sophie Earnshaw and Roderick Snell.

• Capital Gearing Investment Trust, managed by Peter Spiller, provides a defensive approach with a portfolio of equities and inflation-linked bonds.