Fidelity names Shah as Bolton's successor

What Investment, June, 2007

Fidelity has confirmed that Sanjeev Shah will take over its flagship Special Situations Fund from Anthony Bolton at the end of 2007.

Shah will succeed Bolton as manager of the 3.2 billion [pounds sterling] fund at the end of this year, becoming only its second manager in 27 years. Bolton will work closely with Shah in the months leading up to the handover to ensure a smooth transition. He will then take on a new full-time role in investment and product strategy, as well as acting as a mentor to Fidelity fund managers and analysts.

Commenting on the outlook for the fund under Shah's management, Mark Hinton, research analyst at Bestinvest, said: 'Shah delivered very promising returns when manager of Fidelity's UK Aggressive Fund, but has struggled over the last year on his current European Aggressive Fund. Shah's approach is similar to Bolton's in that he tends to invest in unloved companies and sectors that he expects to come back into favour. Some of the sectors he has backed, including technology, media and pharmaceuticals, have yet to deliver, while exposure to specific stocks such as PartyGaming and BP have also hurt performance.

'It would be overly harsh to slate Shah for this short-term underperformance--it can happen with this style of investing--but it does mean he'll need to get off to a good start with the Special Situations Fund to dispel any concerns.'

The fund requires an initial investment of 1,000 [pounds sterling] and has an initial charge of 3.5 per cent and an annual charge of 1.5 per cent.

For more information visit www.fidelity.co.uk or call 0800 41 41 61.