Anthony Bolton
Encyclopedia
Anthony Bolton is one of the UK's best known investment fund managers
and most successful investors, having managed the Fidelity Special Situations fund from December 1979 to December 2007. Over this 28-year period the fund achieved annualised growth of 19.5%, far in excess of the 13.5% growth of the wider stock exchange, turning a £1,000 investment into £147,000.
He now manages Fidelity China Special Situations
PLC, a London Stock Exchange
listed investment trust
.
and Cambridge University, Bolton left with a degree in engineering and business studies. He pursued a career in the city where, age 29, he was recruited by Fidelity as one of their first London based investment managers. He is now President of Investments at Fidelity International and manager of Fidelity China Special Situations PLC.
Bolton began managing Special Situations (a UK equity OEIC) when he joined Fidelity in 1979 and continued until 2007. He managed other funds alongside Special Situations during this time. From November 1985 to December 2002, he managed the Fidelity European Fund (a European equity OEIC). He managed Fidelity European Growth fund (a European equity SICAV
) from 1990 to 2003, Fidelity European Values PLC (a UK-listed investment trust) from 1991 to 2001 and Fidelity Special Values PLC (also a UK-listed investment trust) from 1994 to 2007.
In 2006 his Special Situations Fund was split. The success of the fund had brought in so much money from investors, it had become the UK's largest open ended fund (OEIC) and it was feared that the fund was becoming too big to manage successfully. The fund was split into UK and Global Special Situations funds, with the Global fund passed to Jorma Korhornen and the UK fund continuing under Bolton's stewardship until the end of 2007. With Bolton's step back from fund management, many questioned whether the fund could continue to outperform the market in future.
Sanjeev Shah succeeded Anthony Bolton as the manager of the UK Special Situations Fund in January 2008. The fund remained in the first decile over the first two years of Shah's tenure.
Bolton's former funds suffered amongst the worst redemptions in 2007. Investors withdrew £335m from the Special Situations fund and £508m from Global Special Situations. However, redemptions in both funds slowed significantly in 2008 and in March 2010, at £3 billion, the UK fund is almost back to the same size as when Bolton stepped down.
When he ceased managing funds in 2007, he took a full-time role mentoring and developing newer investment managers.
The higher than usual charges, along with uncertainty over Bolton's long-term commitment to the fund, have led to criticism of the fund. Despite this criticism, the fund has attracted high levels of investment, being fully subscribed at £460 million on issue in April 2010, and was initially trading at a premium to its net asset value due to high demand for the shares, whereas most investment trusts trade at a discount (in reflection of the fact that management costs damaging returns). A second share issue in February 2011 was also fully subscribed, raising £166.5 million.
Although initially performing well, the fund suffered in 2011, and as of 14th November 2011 it was 5th out of 6 trusts in its sector, losing 34% of its value in 2011 and trading at 78p, well below its £1 initial flotation price.
as his biggest influence. His compositions have been performed at St Paul's Cathedral. He is a keen traveller and has a holiday home in Antigua
.
In September 2009 he was a guest on Private Passions
, the biographical music discussion programme on BBC Radio 3
.
Investment management
Investment management is the professional management of various securities and assets in order to meet specified investment goals for the benefit of the investors...
and most successful investors, having managed the Fidelity Special Situations fund from December 1979 to December 2007. Over this 28-year period the fund achieved annualised growth of 19.5%, far in excess of the 13.5% growth of the wider stock exchange, turning a £1,000 investment into £147,000.
He now manages Fidelity China Special Situations
Fidelity China Special Situations
Fidelity China Special Situations is a large British investment trust dedicated to long term investments in China. Established in 2010, the company is a constituent of the FTSE 250 Index. The chairman is John Owen. The fund is managed by Fidelity International....
PLC, a London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
listed investment trust
Investment trust
An Investment trust is a form of collective investment found mostly in the United Kingdom. Investment trusts are closed-end funds and are constituted as public limited companies....
.
Education and career
Educated at Stowe SchoolStowe School
Stowe School is an independent school in Stowe, Buckinghamshire. It was founded on 11 May 1923 by J. F. Roxburgh, initially with 99 male pupils. It is a member of the Rugby Group and Headmasters' and Headmistresses' Conference. The school is also a member of the G20 Schools Group...
and Cambridge University, Bolton left with a degree in engineering and business studies. He pursued a career in the city where, age 29, he was recruited by Fidelity as one of their first London based investment managers. He is now President of Investments at Fidelity International and manager of Fidelity China Special Situations PLC.
Bolton began managing Special Situations (a UK equity OEIC) when he joined Fidelity in 1979 and continued until 2007. He managed other funds alongside Special Situations during this time. From November 1985 to December 2002, he managed the Fidelity European Fund (a European equity OEIC). He managed Fidelity European Growth fund (a European equity SICAV
SICAV
A SICAV is an open-ended collective investment scheme common in Western Europe, especially Luxembourg, Switzerland, Italy, Spain, Belgium and France...
) from 1990 to 2003, Fidelity European Values PLC (a UK-listed investment trust) from 1991 to 2001 and Fidelity Special Values PLC (also a UK-listed investment trust) from 1994 to 2007.
In 2006 his Special Situations Fund was split. The success of the fund had brought in so much money from investors, it had become the UK's largest open ended fund (OEIC) and it was feared that the fund was becoming too big to manage successfully. The fund was split into UK and Global Special Situations funds, with the Global fund passed to Jorma Korhornen and the UK fund continuing under Bolton's stewardship until the end of 2007. With Bolton's step back from fund management, many questioned whether the fund could continue to outperform the market in future.
Sanjeev Shah succeeded Anthony Bolton as the manager of the UK Special Situations Fund in January 2008. The fund remained in the first decile over the first two years of Shah's tenure.
Bolton's former funds suffered amongst the worst redemptions in 2007. Investors withdrew £335m from the Special Situations fund and £508m from Global Special Situations. However, redemptions in both funds slowed significantly in 2008 and in March 2010, at £3 billion, the UK fund is almost back to the same size as when Bolton stepped down.
When he ceased managing funds in 2007, he took a full-time role mentoring and developing newer investment managers.
Fidelity China Special Situations
In 2009 he announced his return to fund management and in April 2010 moved to Hong Kong to begin managing the newly launched Fidelity China Special Situations PLC, an investment trust listed on the London Stock Exchange. The Trust is fairly unusual among Investment Trusts in paying a commission (0.5%) to financial advisers, paid out of its 1.5% annual management charge, a feature standard with Unit Trusts such as the Fidelity Special Situations fund Bolton had previously managed, but uncommon in the Investment Trust world. Another unusual feature is that the Trust charges a performance fee if the fund's cumulative performance exceeds its benchmark, the MSCI China Index, by more than 2%, which is charged at 15% of any outperformance, to a maximum fee of 1.5% per year.The higher than usual charges, along with uncertainty over Bolton's long-term commitment to the fund, have led to criticism of the fund. Despite this criticism, the fund has attracted high levels of investment, being fully subscribed at £460 million on issue in April 2010, and was initially trading at a premium to its net asset value due to high demand for the shares, whereas most investment trusts trade at a discount (in reflection of the fact that management costs damaging returns). A second share issue in February 2011 was also fully subscribed, raising £166.5 million.
Although initially performing well, the fund suffered in 2011, and as of 14th November 2011 it was 5th out of 6 trusts in its sector, losing 34% of its value in 2011 and trading at 78p, well below its £1 initial flotation price.
Private life
Bolton lives in Hong Kong and has three children. In his spare time he relaxes by composing music and cites Benjamin BrittenBenjamin Britten
Edward Benjamin Britten, Baron Britten, OM CH was an English composer, conductor, and pianist. He showed talent from an early age, and first came to public attention with the a cappella choral work A Boy Was Born in 1934. With the premiere of his opera Peter Grimes in 1945, he leapt to...
as his biggest influence. His compositions have been performed at St Paul's Cathedral. He is a keen traveller and has a holiday home in Antigua
Antigua
Antigua , also known as Waladli, is an island in the West Indies, in the Leeward Islands in the Caribbean region, the main island of the country of Antigua and Barbuda. Antigua means "ancient" in Spanish and was named by Christopher Columbus after an icon in Seville Cathedral, Santa Maria de la...
.
In September 2009 he was a guest on Private Passions
Private Passions
Private Passions is a weekly music discussion programme which has been running for over 10 years on BBC Radio 3, presented by the composer Michael Berkeley...
, the biographical music discussion programme on BBC Radio 3
BBC Radio 3
BBC Radio 3 is a national radio station operated by the BBC within the United Kingdom. Its output centres on classical music and opera, but jazz, world music, drama, culture and the arts also feature. The station is the world’s most significant commissioner of new music, and its New Generation...
.