'Quiet Assassin' Bolton to quit Fidelity after China fund flop
Monday 17 June 2013
Anthony Bolton, one of Britain’s best-known fund managers, is to retire after failing to crack the Chinese market.
The 63-year-old will step down as head of the Fidelity China Special Situations investment trust next year after three difficult years trying to master the world’s second-largest economy.
Nicknamed the Quiet Assassin in City circles, Bolton earned a stellar reputation as head of Fidelity Special Situations fund in the UK, making annual returns of 20% during his 28 years at its helm. He consistently outfoxed the index, meaning anyone who stuck with him would have seen a £1000 initial investment grow to £147,000 by the time he left it in 2007.
However, his move to Asia in 2010 has not worked out as expected. He invested in small to medium-sized firms, and now has around 110 stocks in his portfolio. These have proved to be riskier than large corporates, meaning that he has been hit harder than the other funds in his sector, which predominantly invest in large caps.
The China fund’s share price has fallen 10.4% since its launch. Bolton will continue as an adviser to Fidelity and a trustee of its charitable foundations. He said his decision to step down had been “well-flagged”. He added: “I’ve been pretty open about my intentions. I said it was something I wasn’t going to do for the long term. The key for me is to do it when we had the right person to take over.”
Bolton will be replaced by Dale Nicholls, head of the Fidelity Funds Pacific Fund since September 2003.
Patrick Connolly, financial planner at Chase de Vere said: “The Fidelity China Special Situations investment trust was launched to a huge fanfare in 2010, and it raised an impressive £460 million. The initial popularity of the trust was down to the reputation of Anthony Bolton and the positive investor sentiment in China with the average Chinese fund having returned 55% in 2009.
“However, performance in China has been disappointing since. The IMA China sector is the worst-performing of all sectors in the past three years, registering a loss of 0.6%. This compares, for example, with gains of 40% for UK equity funds, 39% for US equities and 35% for European equities.”
- 1 Christmas comes early to Hong Kong, as millions of bank notes spill out onto busy street
- 2 The 'Black Museum': After 150 years, public can visit police’s grisly crime museum
- 4 Vagina canoe artist facing two years in jail defends herself over ‘obscenity’ charges
- 5 The Queen’s speech 2014: Recap and Twitter reaction to Game of Thrones reference
PlayStation and Xbox hacked by Lizard Squad
Antonio Martin shooting: Black teenager may have tried to ambush patrolman, says police officer's lawyer
Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
Boxing Day snowfall set to push even more bargain-hunters online for sales
The 'Black Museum': After 150 years, public can visit police’s grisly crime museum
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
Alex Salmond has 'broken his word to the Scottish people' says Scottish Lib Dem leader
iJobs Money & Business
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...
£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...