IFAs get priority access to half of Bolton China trust

Advisers and wealth managers will have access to half of the initial £630m capital raising for Anthony Bolton’s Fidelity China Special Situations investment trust.

Bolton has stated his wish for the strong supporters of his UK Special Situations fund throughout his 28 tenure to have the chance to access the new trust, particularly the IFA marketplace.

A public offer for shares in the company, issued at £1, will run from 26 February through to 5 April, ahead of a 19 April admission to the London Stock Exchange.

Fidelity will reserve half the shares for the intermediary market, with the remaining issue for institutional investors.

Fidelity China Special Situations plc shares will be eligible for ISA investments and applications may be made via the Fidelity ISA for either or both of the current and next tax years. Trail commission of 0.5% will be available on ISA investments.

Full details of the offer and placing will be included in the prospectus, expected to be published by the company on 26 February.

Bolton says he is confident there will be 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,” he says.

“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.”

While China has gone through rapid recent development, the UK’s most renowned stockpicker has dismissed concerns an asset price bubble is beginning to develop.

“I think these worries are overstated,” Bolton adds.

“On inflation, the Chinese have a record of moving in a measured way to slow credit expansion and I do not expect them to act in the sudden, aggressive way that can unsettle investors.

“As for a bubble, I think it is much too soon to be talking in these terms. The Chinese market began its recent rise in November 2008 and, in my experience, bubbles take several years to develop, not a little over one.”