Sunday share tips: Admiral, Fidelity Asian Values

Alexander Bueso Sharecast | 19 Mar, 2017 12:44 | | |

  • 2,011.00
  • -0.74%-15.00
  • Max: 2,030.00
  • Min: 2,008.00
  • Volume: 676,281
  • MM 200 : n/a
17:20 28/04/17
  • 395.13
  • 0.41%1.63
  • Max: 397.85
  • Min: 394.11
  • Volume: 66,222
  • MM 200 : n/a
17:30 28/04/17
  • 7,203.94
  • -0.46%-33.23
  • Max: 7,243.31
  • Min: 7,197.28
  • Volume: 0
  • MM 200 : n/a
17:20 28/04/17
  • 2,898.78
  • 0.19%5.51
  • Max: 2,914.95
  • Min: 2,887.13
  • Volume: 0
  • MM 200 : n/a
17:20 28/04/17
  • 9,090.86
  • 0.04%3.83
  • Max: 9,106.67
  • Min: 9,077.31
  • Volume: 0
  • MM 200 : n/a
17:20 28/04/17
  • 4,014.93
  • -0.40%-16.04
  • Max: 4,034.05
  • Min: 4,011.86
  • Volume: 0
  • MM 200 : n/a
17:20 28/04/17
  • 5,528.63
  • 0.28%15.24
  • Max: 5,533.40
  • Min: 5,513.39
  • Volume: 0
  • MM 200 : n/a
17:20 28/04/17
  • 3,962.49
  • -0.37%-14.85
  • Max: 3,980.41
  • Min: 3,959.50
  • Volume: 0
  • MM 200 : n/a
17:20 28/04/17

Changes to how compensation claims are calculated took some of the air out of Admiral's tires but the car insurer continues to be in good shape, The Times's Tempus argued.

Nonetheless, recent changes at the top of the company's management may mean a change of control is in the offing.

The new government ruling on compensation claims will cost the firm co-founded in 1991 by Henry Engelhardt roughly £150m.

Yet that's a one-off impact, while the company is continuing to grow strongly, expanding its presence overseas and is now the lead player in telematics, the tipster pointed out.

It is also investing in its home inusrance unit and moving into auto finance.

Englehardt recently stepped down, handing over to co-founder David Stevens, and Alastair Lyons, the chairman, is set to leave in April.

Given recent consolidation in the sector, such as Mitsui's takeover of Amlin, might these departures be the catalyst for a change in ownership?

"Stranger things have happened," Tempus said.

The Mail on Sunday's Midas column touted the strengths of the Fidelity Asian Values trust and its fund manager, Nitin Bajaj.

The investment trust combs among the almost 18,000 listed companies in Asia-Pacific - which are often little known by most big international inverstors - to find the most promising - targeting annual returns of over 10%.

The fund, run by Nitin Bajaj, a Singapore-based financial expert with a solid track record of success, invests in about 160 companies, ranging in size from £25m £20bn, though most lie on the smaller end.

Bajaj focuses on firms capable of delivering returns in excess of 50% over three years, whether via dividends, capital appreciation or both.

He also focuses on fast-growing companies which must be run by people he trusts - and be undervalued.

"The formula sounds simple and logical – and it works," Midas said.

Since April 2015, when Bajaj began running the fund, the trust's share price has doubled.

As a rule, the fund manager only focuses on businesses which are in sectors offering long-term growth.

One such case is Lion Brewery Ceylon, which brews and markets beer - including Carlsberg - in Sri Lanka. Carlsberg has a 80% market share in the country although consumption of the beer is still low as the nation recovers from its long civil war.

Bajaj is also known for having a contrarian streak. He was interested in India at the turn of the century, when few others were. More recently, he has been investing in South Korea, a country that is being rocked by political and corporate scandals.

"Fidelity Asian Values' manager, Nitin Bajaj, believes that he should treat every investment decision as if it involved his own money, a position made that much easier as he owns a significant number of shares in the fund," Midas said, telling readers the trust's shares were a long-term buy.

More news

28 Apr S&P reaffirms AA rating on UK, outlook clouded by Brexit

Standard&Poor's reaffirmed its rating on the United Kingdom's long-term sovereign debt but warned of the potential impact on the economy from the uncertainty around the Brexit negotiations and their eventual outcome.

28 Apr FX round-up: Sterling nonchalant after UK Q1 growth disappoints

Sterling made steady gains on most key cross on Friday, appearing nonchalant in its reaction to disappointing UK economic growth data out mid-morning.

28 Apr Europe close: Weak US, UK GDP weigh on shareson the continent

European stocks ended the day on a mixed note after weak readings on UK and US GDP dragged many indices into the red at the end of the month.

28 Apr Laird off to solid start, but second half remains key

Electronic component maker Laird reported strong sales growth in the first quarter of 2017 after a difficult year.

28 Apr General Motors truck and SUV sales drive record earnings

Growth at General Motors accelerated past analyst forecasts with a record first-quarter set of earnings.

28 Apr RBS and Lloyds Bank customers hit by online glitch on payday

Royal Bank of Scotland and Lloyds Banking Group customers were prevented from accessing money in their accounts due to a technical glitch ahead of the bank holiday weekend.

28 Apr Kennedy Wilson confirms quarterly dividend, new office leases

Kennedy Wilson Europe Real Estate announced it will pay an interim quarterly dividend of 12.0p per share, while also reporting strong leasing momentum across key investments in Greater London and Dublin.

28 Apr Time spins backwards on decision not to sell business

Time Inc stock reversed recent gains after the board decided not to sell the publishing business as it was being "reinvigorated" under a new strategy.

28 Apr Morgan Stanley downgrades Berendsen on competition concerns

Berendsen not only needs to invest in property, plant and equipment but is facing increasing competition in the UK, warned Morgan Stanley as it downgraded the stock on Friday.

28 Apr UK mortgages and consumer credit card borrowing both decline - BBA

Mortgage approvals and consumer credit card lending both fell in March according to fresh data from the banking industry, providing the reason for the fall in house prices announced elsewhere on Friday.