Advertisement

The manager taking on Bolton's mantle

Last week, we took a look at the extraordinary record of fund manager Anthony Bolton. He's a tough act to follow, given his consistent outperformance over the last 25 years, but Tom McCarron looks up to the job, says John Greenwood in The Sunday Telegraph.

Last week, we took a look at the extraordinary record of fund manager Anthony Bolton. He's a tough act to follow, given his consistent outperformance over the last 25 years, but Tom McCarron looks up to the job, says John Greenwood in The Sunday Telegraph.

He took over the management of Bolton's Fidelity European Values in 2001 and has managed to return more than 177% over the last three years thanks both to clever stock picking and a good level of gearing (investment trusts can borrow money to invest, something unit trusts are not allowed to do, and McCarron's can gear up to 17% of net assets).

Advertisement - Article continues below

Despite their recent good run, McCarron still sees value in Europe's reasonably rated markets and rather like his predecessor looks for unrecognised growth, out-of-favour companies, and recovery stories in his search for long-term capital growth. Back in July, he saw good opportunities in pharmaceuticals even as the rest of the market was shunning the sector. His top holdings now include Novartis, Europe's second-biggest drugmaker.

The fund's gearing makes it relatively high risk and it also trades at a small premium to its peers. But don't let that put you off, analyst Charles Cade of Wins Investment Trusts told Greenwood. This is no ordinary fund. McCarron has managed to outperform in both positive and negative market conditions and is not frightened of investing in peripheral markets or smaller companies. All this means that his fund deserves and "can sustain a premium rating".

Contact: 01732-361144, www.fidelity.co.uk

Fidelity European Values investment trust top ten holdings

Name of holding                         % of assets

Novartis AG                                 5.3%Sap AG                                       3.3%Total SA                                     2.8%Euro Aero Defence & Space            2.5%Sanofi-Aventis                             2.5%AstraZeneca                                2.4%Koninklijke Philips Electronics NV      2.4%Ing Groep NV                               2.3%Socit Gnrale                          2.1%Basf AG                                      2.0%

Advertisement
Advertisement

Recommended

How the fear of death affects our investment processes
Investment strategy

How the fear of death affects our investment processes

Many of our investment decisions are driven by one simple fact: the knowledge that, one day, we will be dead. Here, in an extract from his new book, J…
2 Jan 2020
The good investments of the 2010s – and the bad
Stockmarkets

The good investments of the 2010s – and the bad

John Stepek takes a look back on which investments did well and which did badly in the decade that’s about to come to an end.
26 Dec 2019
ESG investing provides shelter in the storm
Funds

ESG investing provides shelter in the storm

Funds focusing on environmental, social and governance (ESG) issues proved resilient during the market slump.
23 Jun 2020
Asian income stocks: where to find the continent's top money machines
Share tips

Asian income stocks: where to find the continent's top money machines

International dividends shouldn’t only mean companies in the US or Europe – the Far East has plenty of big payouts to offer. Cris Sholto Heaton looks …
22 Jun 2020

Most Popular

Eagle Lightweight GT: the reincarnation of the E-type Jag
Toys and gadgets

Eagle Lightweight GT: the reincarnation of the E-type Jag

Jaguar’s classic E-type sports car has been reinvented for the modern age. The result – the Eagle Lightweight GT – is a thing of beauty.
7 Aug 2020
Platinum: the precious metal that looks set to play catch-up with silver and gold
Silver and other precious metals

Platinum: the precious metal that looks set to play catch-up with silver and gold

Gold and silver continue to soar, but there's still time to get in. And there's another precious metal that looks set to go on a bull run too, says Jo…
7 Aug 2020
The MoneyWeek Podcast: how to age well and profit from the “longevity dividend”
Investment strategy

The MoneyWeek Podcast: how to age well and profit from the “longevity dividend”

Merryn talks to economist and author Andrew J Scott and discusses how we can profit from the "longevity dividend" as we live longer; why we need to re…
6 Aug 2020