Fidelity to make Bolton's China fund closed ended

The investment trust industry has welcomed the news that Fidelity appears to have registered Anthony Bolton's  soon to be launched China fund as a closed ended vehicle.

The group registered the name Fidelity China Special Situations Limited at Companies House last Friday (22nd January) with a launch date expected within the next two months.

Bolton, who stepped down from running the open ended Fidelity UK Special Situations at the start of 2007, has plenty of experience running investment trusts.

He ran the Fidelity European Values (Ordinary Share) from 1991-2001 as well as its Fidelity Special Values (Ordinary Share) investment trust which was launched for him in 1994.

Investment trust commentators welcomed the news that the firm was likely to launch Bolton's fund within a closed ended structure, saying that it would help to raise the profile of the sector, as well as allowing Bolton to control  where and when and he invested the proceeds.

Wins Investment Trusts analyst James Brown told Citywire: 'It would be great thing for the investment trust industry as Bolton is so well known in the wider investment universe and should bring greater publicity to the sector.'

'It will be good that he also has discretion over where he invests the assets raised and he will also be able to take advantage of gearing to maximise the potential growth.'

Brown did however question whether Bolton's promise to run the fund for at least two years would be extended. 

'It will be interesting to see how he commits himself after that.'

Charles Stanley head of investment trust research, Stephen Peters, told Citywire: 'This is good news for the sector. Fidelity are not known  as keen advocates of it despite running a number of large trusts.'