Fidelity China Special S... Share Discussion Threads

[izziebon] 18/1/2011 22:36

We need to remember the primary reason for the new placing; the need for more shares to allow the 'big boys' to join the AB China party, which we know was doing pretty good already, once it had been somewhere near fully invested and mostly sold out. The China 'cake' is so potentially large that there's a lot more upside than even ABolton saw initially. Hold!

[bluesbeater] 18/1/2011 12:41

Time table - does today's drop indicate a low subscription of placing?

18 February 2011 Board meeting to agree allotment of C shares

18 February 2011 Announcement of results of the open offer, offer for
subscription and placing



25 February 2011 C share admission to LSE

28 February 2011 C shares convert into new ordinary shares

[madengland] 18/1/2011 11:02

I am not buying more either. No need for more exposure

[strudwick] 14/1/2011 15:17

I don't think I'll take mine up, It's hardly worth the bother. Besides do I want to put in more money if this sort of thing is going to affect the premium.

Does anyone know if the cost of raising these extra funds is borne by the fund itself ?

[bigwilly1986] 14/1/2011 11:57

yeah it's just cynical money-grabbing from fidelity. I'm staying in for the long term but will not be buying more.

[woodpecker25] 13/1/2011 17:02

I agree with you whizzy.

I'm currently looking into switching to First State Greater China Growth. At first glance its' performed equally well since April, appears not to pay the Fund manager such huge fees/commission, and does not appear to dilute existing holders stakes everytime market demand for the share increases (i.e. the share trades at a premium to NAV).

All IMO.

[whizzy1] 13/1/2011 16:31

Share holder feedback? here's some.... pi55ed off with AB big time. What is wrong with the stock trading at a premium? it's market driven! so just as we get a decent run, he waters down the beer via a share option, don't tell me they aren't related either. Will he do it again in months to come?
Fed up & thinking of pulling out for now. Just my personal op.

[shiv1986] 13/1/2011 10:55

Warala-Cheers for that....I sort of figured it out based on all of the previous posts....but thanks for the tip and the clarification....

[warala] 13/1/2011 10:35

shiv1986.If you go to their web page it is all explained.Your £333 will buy you 282 shares at £1.18 say in todays market.And you will have to pay the normal charges also.Your 333 C shares at £1.00 when converted you will get approx 287. Thats with the NAV at 113p. You get 5 free shares.A previous poster hits the nail on the head its really for the big boys.I suppose if you have the money and wanted to invest any way go for it.Hope this helps.

[shiv1986] 12/1/2011 14:46

Hi there...

I currently hold 1000 shares bought at the IPO...I was wondering with this C share issue, does this entitled me to only to 333.33 shares at the issue price of 100p?

Then if I wanted to buy another 1000 shares total....does that mean the other 666.66 shares will be bought at the current price?

Lastly...would it be the NAV at conversion date or went the C shares are admitted to the LSE?

I was just wondering about this aspect, cheers for clearing up the value of the C share conversion....

[roman2325] 12/1/2011 10:23

C share is solely there to raise more money (hence bigger fees for Fidelity) and irradicate the premium - not designed to reward/benefit holders. Market-makers/arbs will ensure its neither here nor there whether you buy C shares or ords

[bigwilly1986] 12/1/2011 10:22

indeed uquilp, there may be some benefit (stamp duty?) but it's only worth buying if you were going to anyway IMO

[uquilp] 12/1/2011 09:50

bigwilly
yes- having re-read the offer I agree with warela and yourself.
It certainly makes the the offer unattractive to me.

[bigwilly1986] 12/1/2011 09:27

no uquilp that isn't how it works, the C shares convert at NAV, warala is correct

[uquilp] 12/1/2011 05:54

Warela
In your example, in my opinion, the 1600 'c' shares would convert on 1st. March to 1560 ordinary shares(97.5%) ranking equal in all respects to existing shares.

[warala] 11/1/2011 20:27

4800 divide by 3 =1600.Converted you will receive approx 1380. For your £1600 to buy in the market in the morning at £1.18 you will get 1355 shares.A difference of 25 shares.Not as good as it seems.

[derekhess] 11/1/2011 19:02

I bought £4800 worth in the original IPO and I still hold them all. If they offer 1 for 3, I'll take it provided I can come up with the cash by Feb 11.

[dgs2] 11/1/2011 18:43

Thanks warala, but problem solved, apparently I bought them in the last tax year on the IPO so should be OK to buy some more as haven't used her ISA allowance yet.

[warala] 11/1/2011 12:39

CRACKED IT.Say you apply for 1000 shares today at£1.18 you get 847 shares plus expences.Say you apply for 1000 C shares you get 862 no expences.An extra 15 shares.Its all on the Fidelity web site.Conversion 1000 multiply by 97.5 and then divide by the nav of say 113.Easy as pie.

[warala] 11/1/2011 09:28

If you contact your ISA provider they will let you know what you can do.If you get no joy i will ask my advisor for you and let you know.Its a bit confusing this conversion method.

[dgs2] 11/1/2011 00:07

I bought some FCCS in my wife's name for her ISA allowance this year. If I take up the 1 for 3 offer I will go over her ISA limit. I am still allowed to take up this offer if I put them in a different share dealing account?

[warala] 10/1/2011 12:15

bigwilly thanks for your posting.More thought needed on what is best to do.

[bigwilly1986] 10/1/2011 11:38

as the shares are converted at NAV, one C share will only be worth approx 85% of an ordinary share on conversion, I probably won't be taking up my rights...