Fidelity manager Dale Nicholls’ experience running the £743m Fidelity Pacific fund stand him in good stead to take over Anthony Bolton’s £550m Fidelity China Special Situations trust in April, say investment experts.
Nicholls will take over the trust when Bolton retires in April 2014.
The managers currently share 33 common names across their separate portfolios and both take a similar positive view of small cap and private Chinese companies.
Nicholls and Bolton agree that a “wholesale change in strategy” should not be necessary once the portfolio is handed over.
Rowan Dartington head of collectives research Tim Cockerill says: “Whilst Dale Nicholls has not managed a pure Chinese fund before, he has greater regional experience than Bolton which will be an advantage. And of course, the two managers will work together for some time before his retirement so next April should bring little actual change.
“Ahead of Bolton’s retirement, it all looks positive for Fidelity’s China fund. The valuations are attractive, so investors should be happy with this change.”
Chelsea Financial managing director Darius McDermott has labelled the trust a ‘hold’ pending the management change.
He says: “On paper, Nicholls has a strong track record and good amount of experience in the region but we will need to convince ourselves that he can transfer his skills to a single-country fund before we think of upgrading the trust to buy.”