Bolton’s fund to launch in time for ISA season
Jennifer Lowe, 09 February 2010
The Fidelity China Special Situations investment trust, managed by Anthony Bolton, is set to open to ISA investors at the end of the month.
The trust, which has applied to list on the London Stock Exchange, is targeting an initial capital raising of around £630 million. It will invest in a diversified portfolio consisting primarily of securities issued by companies listed in China or Hong Kong and Chinese companies listed elsewhere.
Bolton will manage the portfolio using his contrarian approach to investing to achieve the objective of long-term growth.
He said, ‘I am very confident that there will be very many stock-picking opportunities in China in the years to come. I see many similarities with investing in Europe in the early part of my career. Then, my longer-term, research-led approach was considered unusual in a market more used to short-term trading but it proved to be successful. I think the same will be the case in China and I expect that my experience in Europe will be helpful as I see the composition of the market shifting from an emphasis on manufacturing and financials to include more service-oriented companies.
‘History shows that many developing economies go through acceleration in their growth once GDP per head reaches a critical level, phenomenon called the 'S' curve effect. The most interesting aspect of China’s development is its position on this curve. It is in the investment “sweet spot” where incomes per head of population rise steadily and levels of consumption increase at an accelerating rate for a period of time. Exactly the same process took place in Taiwan and Korea 20 or 30 years ago and in Japan before that. The difference this time is the scale on which the transformation is happening. Never before has this kind of development happened in a country of over 1.3 billion people.’
Full details of the offer and placing will be included in the prospectus expected to be published by the Company on 26 February, but investors can register interest now online at www.fidelity.co.uk to ensure they receive an information pack as soon as it becomes available.
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