Lack of trust in banks could be investment opportunity – Fidelity

It may be savvy to invest in financial services because of the current distrust in the industry, the manager of the Fidelity Special Values investment trust has said.

When asked about where to find market opportunities in a post-crash environment, Alex Wright, who has run the trust since 2012, said: “Maybe the financials to some extent, because there is still quite a lot of distrust of the banking sector in particular.”

He said that he had holdings in banking that had “done well for the trust”, including HSBC and Lloyds.

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The trust had £637.67m in total assets, according to its Fidelity Personal Investing online overview as of 20 November.

According to the trust’s factsheet as of 30 September 2014, it had a 33.3 per cent exposure to general finance. This was its greatest exposure, followed by 19.9 per cent in general industrials and 14.7 per cent to consumer services.

Mr Wright’s comments came as part of an interview marking the 20th anniversary of the trust.

Adviser view

Alan Solomons, director of London-based Alpha Investments and Financial Planning, said: “Maybe investing in banks will be an opportunity, but it will take them a long time to change, particularly in terms of their culture.”