Standard & Poor’s has drop- ped its long-term outlook for Fidelity’s £2.8bn UK spe- cial situations fund to an A rating.
The fund had long been AAA-rated under investment guru Anthony Bolton before being placed under review by S&P following Bolton’s decision to retire from direct fund management at the end of 2007 and the fund being taken over by Sanjeev Shah.
S&P took the same stance on Jorma Korhonen’s global special situations fund before awarding it an A rating in September 2007.
Shah has produced top-quartile performance since taking on the fund at the turn of the year. It is currently down by 9.67 per cent year to date compared with an average fall of 12.35 per cent, according to figures from Morningstar for the IMA UK all companies sector.
Standard & Poor’s director, head of research Guy Boden says: “We have a strong qualitative process and although Shah has done well in his time in fund management, it is difficult to compare him with the wealth of experience that Anthony Bolton has. The same applies for Jorma Korhonen on the global version, which is effectively a new fund.
“It is a lower rating but it is positive news as Shah is competent and runs a similar style to Anthony Bolton.”
Chelsea Financial Services managing director Darius McDermott says: “I think that Shah and Fidelity have done quite well. This is still a strong recommendation.”
Fidelity refused to comment on the issue.