relatively unknown manager will take on half of bolton's existing uk mandate
Fidelity is prepared to put a dilution levy of up to 0.8% on its forthcoming Global Special Situations fund for those investors looking to take more than £500,000 out.
The fund will be created by splitting Anthony Bolton's existing UK Special Situations portfolio in two this September, with Bolton continuing to manage one half until he retires, and the rest put into a global mandate run by Jorma Korhonen.
The existing vehicle is available via a number of offshore life wraps including those from Canada Life International, Friends Provident International, Royal Skandia and Prudential. Investors will see their holding split equally between the two funds, assuming they approve the plans.
Korhonen is a relatively unknown fund manager in the UK although he is highly rated by Bolton who has worked with him for 10 years. Bolton said investment is now a global business and if he were starting up the original UK Special Situations fund today it would have this kind of remit.
Bolton added: "He is the right person for this role. I am convinced he has the particular skills and instincts that characterise a special situations manager. Of course, it is also true he is not yet well-known as a manager, but neither was I when I took on the fund."
Peter McGahan, managing director of Worldwide Financial Planning, said: "We do not know enough about the manager to make it a buy recommendation. From looking at the past performance for his global fund and focus portfolio they barely outperform the index.
"In a positive bull market he outperforms the index, but in a difficult environment he struggles. His stock decision-making skills seem to be quite risky and I am questioning whether he makes decent strategic calls. Investors should not be drawn in to the product as at the moment as there are not enough compelling reasons to invest. It is not the only global fund around."
In January 2006 the Global fund returned 5.24% compared to the MSCI World index 3.63%. Whereas in April 2006 the portfolio returned -0.66% compared to the index's -0.22%.
McGahan added Korhonen's Iberia fund and Italy portfolio had performed well, but he could only make a decision on whether to invest on the basis of Korhonen's global product.
Fidelity head of communications Richard Miles said the Global Special Situations fund would be run on a different mandate from Korhonen's previous portfolios, which had benchmark constraints.
Caring for children and elderly relatives
Similar to June 2007
Square Mile’s series of informal interviews
Fine reduced to £60,000
Two roles created