View more on these topics

Special sits’ size restricts stockpicking

The sheer size of Fidelity’s 6.5bn special situations fund makes fund manager Anthony Bolton feel restricted in his stockpicking by and he says he is constantly pushing against the 20 per cent limit on overseas stocks.

Investment Management Association guidelines stipulate that 80 per cent of a fund’s investment allocation needs to be within its core investment area, which is the UK in the case of Fidelity special sits, but Bolton told the Securities and Investment Institute conference last week that he makes full use of the 20 per cent non-UK opportunities for the fund.

He said: “I am required to be 80 per cent invested in the UK and that is a constraint with a big fund. I am 2bn bigger than my nearest competitor fund. I am constantly pushing against the 20 per cent barrier.”

On March 31, Bolton’s non-core asset allocation in the special sits portfolio included 13 per cent of the fund in Europe, 3 per cent in Asia/ Pacific and 1 per cent in North America.

He told the delegates at the SII conference: “With the exception of China, I look at them from the top down. I got interested in China a couple of years ago when I gave up the European funds and I wanted one new area to invest in.”

Bolton’s five criteria for picking stocks1: Industry anomalies

Examples: British Land, NTLBolton says: “I look at the cheapest stocks in an industry to see if they deserve to be so cheap. British Land look a good bet now they have changed their management.”2: Turn-round or recovery situations

Examples: Mothercare, ITV”A change of management at Mothercare has led to a strong recovery.”3: Unrecognised growthExamples: William Hill, Cairn Energy”I like to find a business that has unrecognised growth. Cairn Energy now has the biggest oil field in onshore India.”4: Attractive assets

Examples: Tesco, Land Securities”Land Securities has very strong asset backing.”5: Corporate potentialExamples: Rank Media, GCAP Media”I look for stocks that have a greater likelihood of merger and acquisition activity.”


This week in Pensions

What a week for pensions. Not even pictures of John Prescott playing croquet in the garden of his grace and favour home could stop pensions stories from getting top billing in the papers last week.

Skandia and Standard top 1st poll

Skandia and Standard Life are the two most popular providers with advisers when they are looking to adopt e-business links, according to research from software firm 1st.Skandia polled 36 per cent and Standard Life 33 per cent when advisers were asked which providers were most important to your organisation in terms of adopting links.The research […]

US firm Farallon looks at investing in Misys

US alternative investment firm Farallon is looking to invest in Sesame parent Misys and is undertaking due diligence, Money Marketing understands. California-based external management consultant Paulette Thomas is conducting analysis of Misys and its value potential. Investor Ashish Pant is heading the initial analysis for Farallon, which has $12bn under management. In April, Misys abandoned […]

Widows still open for trust business

Scottish Widows says it remains open to new trust business, including its discounted gift trust but has produced additional guidance notes to accompany its trust material. It stresses advisers should ensure clients fully understand the implications of changes to taxation of trusts before making recommendations.

What triggers the MPAA?

Jim Grant – Senior Product Insight & Technical Support Analyst There’s sometimes confusion around what triggers the money purchase annual allowance. Find out what does and what doesn’t trigger the MPAA. The money purchase annual allowance (MPAA) is a reduced annual allowance that can apply to contributions to defined contribution (DC) schemes. The following table […]


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