View more on these topics

China fund could be the biggest-ever opener for a trust

If Fidelity meets its target of 3630m for Anthony Bolton’s China special situations fund, it will be the biggest investment trust cash-raising ever seen.

Investment trust experts have reacted positively after Fidelity unveiled the details of the raising. The trust has a minimum investment of £2,500 and is only available for lump sum investments. It has an annual charge of 1.5 per cent.

The public offer opens on February 26 and closes on April 5, with admission to the London Stock Exchange and dealing to start on April 19.

Winterflood Securities head of research Simon Elliot says Bolton is known for his time on UK and European equities but he has been involved in the Chinese market for some years.

Bolton also has investment trust experience, having managed the Fidelity European values and special values funds.

Elliot says: “The key point is that Fidelity has a huge long-standing team in that region and Anthony always says his success has been helped by the backing of his analyst in the UK. It is not a one-man show, so fears over him only committing to two years should not be overstated.”

The fund will be China-listed and will be able to invest in securities in China and Hong Kong and Chinese companies listed elsewhere. It will be available in a Fidelity Isa in both tax years and will pay 0.5 per cent trail commission within an Isa.

Charles Stanley head of investment trust research Stephen Peters says the trust may end up in the FTSE250, given the managers’ history and support, but he warns that new issues by top managers can often be seen as the top of the market for investment trusts.

“There will be lots of retail investors who follow the name, rather than looking at whether China is suitable. It also pays trail commission, which is uncommon.”

Miton Asset Management fund manager Nick Greenwood says the launch is a symptom of the fact that for an investment strategy to be successful these days, it needs to be closed rather than open-ended.

He says: “People seem to regard the closed-ended sector as being in decline but, quietly over the past five years, it has grown from £40bn to 3100bn and it is because people are moving away from the old-style closet trackers. The fact that one of the biggest launches in the cycle is closed-ended reflects that.”

Recommended

2

Pearl Group to rebrand as Phoenix

Directors of Pearl Group are seeking to resurrect the brand Phoenix Group to rename Hugh Osmond’s closed life business ahead of its stock market float planned for the first half of 2010.

1

Cook taking over from Fuller at Just Retirement

Just Retirement chief executive Mike Fuller is retiring in July and will be replaced by LV= life and pensions managing director Rodney Cook. Private equity group Permira bought the firm in September 2009 in a deal worth almost £230m. Fuller, 64, who founded the business in 2004, will remain Just Retirement’s second-biggest investor after Permira. […]

1

FSA urged to clarify cover disclosure

Association of British Insurers’ protection strategy committee chairman Richard Verdin is calling for greater clarification of the FSA’s requirements for commission disclosure on protection sold alongside investment advice.

1

FSA must be vigilant on lending rules

The FSA has clearly indicated its intention to press ahead with reforms to mortgage regulation after publishing its recent consultation paper. In terms of arrears handling, the proposals seem to do little more than seek to enshrine into rules what would be existing best practice for most firms. Of course, experience has shown that some […]

How can I help develop my professional connections?

Graeme Ballantyne, business consultancy manager, looks at how you can maximise the opportunities through your professional connections As we move through the summer months it’s perhaps a good time to pause and reflect on whether the plans you’ve made for your business are bearing fruit. One area we at PruConsulting know many advisers have been […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com