Fidelity Worldwide Investment has announced that Fidelity China Special Situations trust manager Anthony Bolton, one of the UK's best known and most successful fund managers in recent years, will retire in April 2014 and will be replaced by fund manager Dale Nicholls.

Prior to managing FCSS, Bolton was the manager of a number of Fidelity funds, including Fidelity Special Situations, which he ran from December 1979 to December 2007. During this time, he delivered annual returns of 19.5 per cent in a career that challenged critics of active fund management who said that it was impossible to deliver market-beating returns over a long period.

After April 2014, Bolton will continue as an advisor to Fidelity and a trustee of its charitable foundations.

Nicholls has 17 years’ investment experience and has managed the Fidelity Funds Pacific Fund since September 2003.

"Nicholls typically seeks companies that can grow over the medium to long-term, are cash generative, reinvest cash advantageously, have proven quality management and a competitive advantage. As for China, growth is slowing but the economy is re-balancing. GDP growth of 6-7 per cent per annum is still very healthy and valuations are near to historic lows, which presents opportunity," said Tim Cockerill, head of collectives research at Rowan Dartington.

Bolton made a surprise return from retirement in 2010 to manage the FCSS.

Like many of his peers, Bolton failed to escape the market downturn in China and struggled to generate returns expected by investors in the China investment trust in the first two years. However, in the past year, FCSS has performed much better for shareholders with net asset value up 22 per cent, versus 14 per cent for the Morningstar category on average.

"The fund's performance this year has been markedly better than the first two years and Bolton wanted a good end to a long and successful career. We see no reason for investors to panic and we will be assessing Nicholls' track record and management ahead of meeting him in July. Nonetheless, we have placed our rating under review pending our meeting with the incoming manager," said Jackie Beard, director of closed-end fund research at Morningstar.

"I see no reason for existing investors to panic, particularly as the trust is already trading at a discount and redeeming their shares now will lock in any losses. Much better to digest the news properly and make a more informed decision in the coming months, and for those investing in China, rather than simply because Anthony is running the money, perhaps give the new manager the benefit of the doubt in the new year," said Darius McDermott, managing director at Chelsea Financial Services.