By Kate Burgess and Alice Ross 2010-02-10

Anthony Bolton, one of the best-known names in fund management, is
launching one of the biggest-ever investment trusts for private
investors and hopes to raise £630m ($1bn) from private investors to
pump into China.

Shares in the new fund, to be called Fidelity China Special Situations
in an echo of the fund which made Mr Bolton’s name as a star fund
manager, will start trading on the London Stock Exchange in April.

Mr Bolton became one of the UK’s top fund managers after Fidelity
Special Situations trust returned 19.5 per cent a year on average for
28 years from December 1979 to 2007.

Analysts have heralded the launch as a boost to the investment trust
sector, which has fallen out of favour in recent years as shares have
fallen to wide discounts to assets held by trusts.

Investment trusts have struggled to raise money as bank funding has
dried up, with barely any new companies being launched, in spite of a
wave of investor interest in China. Jupiter was last year forced to
withdraw the launch of an investment company focusing on China after
it failed to attract funding, while Invesco Perpetual is still seeking
backing for a new split capital investment trust that was mooted to
launch in December 2009.

Unusually, the new fund will pay commission on launch to financial
advisers who recommend the fund to clients in a nod to Mr Bolton’s
core fan base of advisers. Advisers often shun investment trusts,
which rarely pay commission.

But Charles Cade, analyst at Numis, warned: “$1bn is an awful lot of
money to invest in Chinese stocks. And historically the most hyped
retail issues end up disappointing investors’ high expectations”.

Mr Bolton was inspired last year by a visit to Hong Kong to return to
money management. He has yet to receive a licence from the Chinese
authorities to invest directly in Chinese companies but moves
permanently to the region next month and expects to start investing
the money raised by the initial public offer in April.

Mr Bolton 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.”

He said China “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. … Never before has this
kind of development happened in a country of over 1.3bn people.”

The structure of the fund as a closed-end investment company will
enable Fidelity to limit the size of the fund, controlling the money
flowing into the fund and stopping it becoming unmanageable.

It remains unclear who will be assisting Mr Bolton in Hong Kong after
Fidelity last month suspended two of its portfolio managers – one of
whom had been expected to work alongside Mr Bolton – over a potential
breach of its code of ethics

作者:英国《金融时报》 凯特•伯吉斯,艾丽丝•罗斯 2010-02-10


新基金将命名为富达中国特殊情况基金(Fidelity China Special Situations),将于今年4月开始在伦敦证券交易所(LSE)交易。

Special Situations)年均回报率达到19.5%,让波顿成为英国的顶级基金经理之一。