View more on these topics

Something special from Fidelity

Fidelity International

Global Special Situations Fund

Type: Oeic

Aim: Growth by investing globally in equities

Minimum investment: Lump sum £1,000, monthly £50

Investment split: 100% in global equities

Isa link: Yes

Pep transfers: Yes

Charges: Initial 3.5%, annual 1.5%

Commission: Initial 3%, renewal 0.5%

Tel: 0800 414181

Fidelity’s global special situations fund was formed from the division of Anthony Bolton’s Fidelity special situations fund. It will have an unconstrained approach, enabling it to invest in companies of any size anywhere in the world.

Bright Financial Services sales director Paul Breaks says: “The sun is always shining somewhere, says Fidelity, summing up the philosophy behind the launch of the global special situations fund. If there is an IFA out there who isn’t aware of what is occurring with Anthony Bolton and the special sits fund I wouldn’t want them looking after my affairs.”

Breaks points out that the £6bn special situations fund is to be split, with Bolton running both funds until Jan 2007, when Jorma Korhonen takes over the global special situations fund.

“The addition of the GSS fund takes Fidelity’s total number of special situations funds to six. It is a global equity fund, albeit with an adventurous brief. It can invest anywhere at any time, aiming to find the best special situations opportunities wherever they might be.”

Given Fidelity’s worldwide coverage and its experience of running special situations funds, Breaks anticipates the fund doing well in the long term.
“The UK now accounts for only 9 per cent of the worlds equity markets and only 36% of the FT-SE All Share companies income derives from the UK.,” says Breaks. He believes the fact that Bolton says a global special situations fund is the type of fund that he would launch today will also carry weight with IFAs.
With an initial charge of 3.5 per cent and an annual charge of 1.5 per cent, Breaks regards the fund as competitively priced.

Turning to the potential drawbacks of the fund Breaks says: “My only concern is that Korhonen was unknown before being elevated to be the fund manager. He has the unenviable task of following the most successful fund manager of the last 15 years. Korhonen has been at Fidelity 10 years, previously running the group’s Ibera, Italy and Switzerland funds. What is more important is that Bolton is personally recommending him as the ‘right man’ – and in 1979, who had heard of Anthony Bolton?”

In Breaks’ view, the competition is varied and includes Threadneedle global equity, Investec free enterprise, M & G basics and funds of funds. “There is, however, plenty of room for such funds as increasingly investors appreciate the international structure of what they currently perceive as domestic companies. The argument will become ‘why haven’t you got global fund exposure?’ as opposed to ‘why you should consider global fund exposure.”


Suitability to market: Good
Investment strategy: Good
Charges: Good
Adviser remuneration: Average

Overall 9/10


Wary Aifa doesn’t want it to end in tiers

The Newcob consultation has met with a mixed response, with Aifa cautious about its implications and Which? calling for a cost-benefit analysis. Aifa deputy director general Fay Goddard supports the concept of a principle-based regime which will provide advisers with greater flexibility. But she says Aifa is concerned about the vacuum created by the move […]

This week in Pensions

Lots of people moan, and often justifiably so, that journalists are only interested in bad news. It was the late great trailblazer of tabloid journalism William Randolph Hearst who once said news is something somebody doesn’t want printed, all else is advertising.

The brain drain

Behavioural finance explains why investors feel pessimistic about equity market performance

Law change will add time

Non-contestability period could see insurers becoming more selective on who can take out protection policies


Five ways to make your employee focus group session a success

by Debra Corey, group reward director  You just planned and booked what you thought was the perfect vacation for you and your family. You call everyone together to share the great news and instead of receiving sounds of glee and delight, you receive groans and complaints.Your youngest says: “I hate beaches, didn’t you know that?” (You think to […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm