Fidelity China fund confirmed as investment trust
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Fidelity has opted to structure Anthony Bolton’s forthcoming China fund as an investment trust, a move first revealed by Fund Strategy in December last year.
Anthony Bolton
Bolton said in December that the benefit of a closed-ended structure is that it would cap the fund’s assets, because he wants a limited amount he can control in the fund.
He also liked the fact that being structured as an investment trust provides him the ability to gear the portfolio.
On January 22, Fidelity registered a China Special Situations company at Companies House, and today confirmed the fund’s investment trust status.
Yesterday, Mark Dampier, the Hargreaves Lansdown head of research, repeated his concerns over the fund being offered in a closed-ended structure. (article continues below)
He said: “It only gives you a limited window to invest in what is a more complex structure. You also have to deal with the fact that it will probably launch at a premium, so you probably won’t want to buy at launch and wait for a later date, and Anthony has only committed to two years on the fund.”
Fidelity is expected to reveal more details on the fund early next month.
