Fidelity’s Bolton to retire as his China trust gets new manager

Chinese lanternsFund manager Anthony Bolton will retire from Fidelity Worldwide Investments in April 2014 and hand over the management of his Fidelity China Special

Situations investment trust to Dale Nicholls.

 The Fidelity China Special Situations has £713 million (€840 million) of assets under management, according to the Association of Investment Companies. Its net asset value is £94.7, with 17% gearing, and the trust trades at a discount of 9.3%.

Fidelity says the board will continue to monitor the share rating of the trust and use other tools, such as tender offers or enhanced buybacks, to manage any imbalances between supply and demand of its shares.

The board currently has powers enabling it to buy back up to 14.99% of shares in issue in any one year, and intends to renew these powers at the annual general meeting on July 24.

The trust went through a period of bad performance in 2011 and 2012 but has performed above its sector average this year, which allows Bolton to end on a positive note.

The board of the trust says the appointment of Nicholls reflects the wish of the board to continue with the current investment approach and strategy following the change of manager.

“Like Anthony, Dale is a bottom-up stock picker with a growth bias and a significant tilt towards smaller and mid-cap companies,” says a statement.

Nicholls has managed the Fidelity Funds Pacific Fund since September 2003 and has 17 years of investment experience.

When the trust was launched in April 2010, Bolton indicated his intention to manage the vehicle for at least two years. Having extended this minimum management period on two occasions, he recently informed the board of his intention to retire in April 2014.

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