Anthony Bolton, manager of the Fidelity China Special Situations investment trust, has thrown in the towel and tacitly admitted his Midas touch does not work in China.
Bolton will be replaced as manager by Dale Nicholls, manager of the Fidelity Funds Pacific Fund. Bolton will retire in 2013.
China has been ‘hot’ as an investment theme for retail punters for over a decade and it could be argued that Fidelity was late to the party with its China-focussed vehicle, which launched in 2010 and attracted over GBP430m in investment, making it one of the largest ever launches for an Investment Trust (a UK-listed closed-ended investment vehicle).
It could also be argued that Bolton, with little previous experience of investing in China, was not the best placed to run such a fund. Nevertheless, Fidelity convinced thousands of retail investors that Bolton’s stock-picking skills could be successfully transplanted to China.
However, almost from the get-go, the vehicle struggled to deliver the above-average returns for which Bolton had become so famous with his highly popular Fidelity Special Situations UK mutual fund.