Bolton to manage new Fidelity China fund

By Sundeep Tucker in Hong Kong

Published: November 26 2009 05:36 | Last updated: November 26 2009 05:36

Anthony Bolton: ‘The centre of gravity is clearly shifting to this part of the world [China] and I want to play a part in it while I can’

Anthony Bolton, the former stock picker at Fidelity International and one of the most renowned fund managers in Europe, has shelved his retirement plans and will relocate from London to Hong Kong to set up a China-focused fund.

The surprise move, to take place by next March, will mark a return to portfolio management for Mr Bolton, who stepped down from daily stock picking two years ago. The decision is all the more remarkable because Mr Bolton, Fidelity’s president of investments, turns 60 in March and had planned to retire next month.

Writing for FT.com, Mr Bolton revealed that a recent tour of China had rekindled his desire to manage money. “The [investment] opportunity is simply too great to pass up. My retirement can wait a little while yet.”

He believes developing economies, and China in particular, are set to out-perform western countries in the coming years amid lingering effects of the financial crisis. His relocation mirrors that of Michael Geoghegan, HSBC chief executive, who is moving from London to Hong Kong in January, and underscores rising corporate and investor interest in China.

“The centre of gravity is clearly shifting to this part of the world and I want to play a part in it while I can,” Mr Bolton told the FT yesterday.

Mr Bolton stepped down from managing money two years ago after a 28-year stint running Fidelity’s special situations fund, a UK-registered mutual fund, where he established himself as one of the world’s most successful investors with large contrarian stock calls.

During his stewardship, the fund achieved an annualised return of 19.5 per cent – compared with 13.5 per cent for the FTSE All-Share index. One thousand pounds invested in the portfolio at launch would have grown in value to £146,700 over that period. Mr Bolton has spent the past two years mentoring Fidelity’s younger fund managers and analysts.

He said that he believed he had the skills and experience to make the move a success. The special situations fund successfully invested in Chinese companies during his tenure and he is a regular visitor to the region.

He brushed aside growing concerns that Chinese-related equities were overvalued. “The bargain stage for Chinese stocks is over but it is too early to talk about real bubbles just one year after the crisis,” he said. The new fund will invest in Chinese equities wherever they are listed in the world. Further details of the venture, including fund raising, sector allocation and the benchmarks to be used, are to be announced shortly.

The new fund will be separate from Fidelity’s existing China-related funds, whose three portfolio managers manage a combined $4.5bn.

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