The £623.5m Fidelity China Special Situations investment trust may see a move away from banks and a boost to industrials exposure when Dale Nicholls takes over the portfolio following Anthony Bolton’s retirement next year.
Speaking at the Fidelity Asia Investment Insight Forum in Hong Kong this week, Nicholls said while there are no large differences in investment style between himself and Bolton there are some names in the industrial sector he finds interesting, which Bolton has lower weightings in.
He said: “It is too early to tell what exact changes I will be making but I will probably be taking a closer look at the valuations in some of the bigger financial holdings he [Bolton] has, such as the HSBCs of the world, which have broad geographic exposure, and looking at their position size, with the potential to reduce.”
Nicholls added that based on his view of markets he is unlikely to alter the fund’s current level of gearing at around 20 per cent.
Whitechurch Securities head of research Ben Willis says: “Dale is likely going to have some different views on different businesses that he wants to invest in, but ultimately the trust will probably be run in a similar style and that is probably the right way to go. You do not want a wholesale change.”
Adam Lewis was in Hong Kong as a guest of Fidelity