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Dampier expects Bolton fund to stay open

Hargreaves Lansdown head of research Mark Dampier says he would be surprised if Anthony Bolton ultimately opts for a closed-ended structure for his new Fidelity China fund.

Bolton is keen to limit the amount of money in the fund, which is set to launch in March, and says he is weighing up the benefits and drawbacks of a closed-ended structure versus an open-ended Ucits III fund.

A closed fund would allow Fidelity to cap the assets and let Bolton gear the portfolio but Dampier believes this may stop some IFAs investing in the fund.

He says: “Closed-ended products are a niche investment and it would not be a good mix with one of the most popular fund managers for investors in the UK.

“What happens if the product is really popular and goes to a premium to NAV? There is only one way to go from there, which is down, and if it goes to 20 or 30 per cent discount to NAV then questions would be asked. The only downside I see for this fund being run as an open-ended vehicle is if China completely imploded over the next couple of years.”

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