Bolton's China Fund Comes Good

After a troubled start, Anthony Bolton's Fidelity China Special Situations is outperforming the benchmark and under the stewardship of new manager Dale Nicholls is on a promising path

Emma Wall 20 November, 2014 | 9:52AM
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When Fidelity China Special Situations (FCSS) was launched in 2010 fans of the veteran Fidelity fund manager Anthony Bolton, rushed to pour their cash into his new venture. Bolton had at the time an unrivalled reputation as a UK equities investor; his Fidelity Special Situations fund turned an investment of £1,000 into £148,200 during his 27-year tenure.

But the new trust got off to a bad start, losing 5% in its first year, and a staggering 26% in year two. John Owen, the chairman of the fund, blamed the trust’s overweight bias to small and medium sized companies which had not fared well in the years following the global recession.

In September 2011, the fund was forced to buy back 350,000 shares. The fund manager also fell foul to fraud, investing in two companies which turned out to be worth significantly less than he was led to believe.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Alibaba Group Holding Ltd ADR111.96 USD0.00Rating
Fidelity China Special Ord313.06 GBP-1.40Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar