Fidelity China Special S... Share Discussion Threads

[the avoint] 18/7/2011 22:55

Can anyone explain why this is trading at a fractional discount to NAV when something like FJV is negative 10-15%?

[imperial3] 18/7/2011 22:32

Will you still remain so come the end of the week.

[whizzy1] 18/7/2011 14:19

The yanks need to sort out their default chaos on Friday, still in profit though ( for the moment lol )

[strollingmolby] 18/7/2011 13:44

Bolton reveals losses at China holdings accused of fraud

[imperial3] 18/7/2011 11:58

As is so often the case,the initial enthusiasm has waned,and the general poor market sentiment has taken over.

[masurenguy] 18/7/2011 11:54

It really depends upon your strategy here. In the short term this has been a good trading share but it remains to be seen how good an investment this will be as a long term hold !

[imperial3] 18/7/2011 11:49

Of course.These were heavily promoted to the general public,without whom,they would not be making money.They have got the cash now,and good for them.But currently for the private investor who holds these,the story is not as good.

[gbb483] 18/7/2011 11:23

The MMs, Fidelity ...

[imperial3] 18/7/2011 10:43

Now, who is making money out of these?

[roman2325] 18/7/2011 10:01

I'll sell you some more if you want Whizzy

[whizzy1] 18/7/2011 09:44

Not looking good this week, hmmm....

[imperial3] 15/7/2011 14:04

So,if for example £1000 was invested what % would go to the promoters?

[imperial3] 15/7/2011 08:32

I wonder what commission was paid to financial intermediaries to promote these.

[edwardt] 12/7/2011 09:18

corporate governance issues in china are goign to send this one a lot lower. enjoy .

[roman2325] 12/7/2011 08:23

Still looking bullish Whizzy??

[whizzy1] 05/7/2011 13:13

Looking bullish now & back to a premium, remarkable, but it may still go lower as bad news from Europe hits the markets.

[whizzy1] 30/6/2011 17:45

Signing in from my Caribbean hotel bathroom (only place the WiFi seems to work)anyway, nice to see that my two week stay looks like it has just been payed for (on paper) by my Re-punt into China.
Nice one.

[a1samu] 22/6/2011 16:02

Fidelity's Anthony Bolton is not yet a star turn in China
Comeback tours often prove disappointing. As Fidelity's star fund manager Anthony Bolton may soon discover.

Fidelity's Anthony Bolton is not yet a star turn in China
Anthony Bolton's China fund has underperfromed its benchmark index and is trading at a slight discount to net asset value.

By Richard Fletcher, Daily Telegraph City Editor

6:00AM BST 22 Jun 2011

CommentsComment

Bolton updated investors yesterday on the performance of his China fund, which was launched almost 18 months ago in a blaze of publicity.

Back then Fidelity obviously didn't bill it as a comeback tour, although Bolton's new fund – launched three years after he had stepped back from day-to-day fund management – proved almost as popular as a reformed boy band.

Bolton's fund was always going to be a sell-out. Okay, past performance may be no guide to future returns – as the disclaimer runs – but Bolton had a pretty impressive past performance.

During his 28 years in charge of Fidelity's UK Special Situations Fund he outperformed rivals consistently, delivering annual returns of 19.5pc.

Unfortunately the new fund hasn't, to date, lived up to the hype – or even got close to matching that sort of performance. In fact it has underperfromed its benchmark index and is trading at a slight discount to net asset value.
Related Articles

Anthony Bolton: 'It's been a disappointing year'
21 Jun 2011

"I remain optimistic," Bolton told Telegraph.co.uk yesterday.

It would be unfair to write Bolton off on the basis of one year's performance – but one thing is clear: he isn't yet hitting the right notes in China.

[jonwig] 18/6/2011 12:50

M S-W prefers Japan as a way to play the China growth story; I must say I'm inclined to agree, and the Japanese are less likely to riot on the streets:

One way of checking the confidence levels of investors, at least in the UK, might be to look at the share price of the Fidelity China Special Situations Fund.

I wasn't particularly complimentary about this at its launch. But most other people loved it and the shares immediately moved to trade at a large premium to the fund's net asset value. No more. This week they have been trading at a slight discount.

Perhaps the shift away from the idea that emerging markets are worth a premium is beginning to get going – something that might be yet another reason, if you must be in equities, to stick to developed markets for now. Currently, the price-to-book ratio for the MSCI Asia excluding Japan index is around 1.83 times. For the developed world MSCI World index it is slightly less at 1.74 times.

Finally, it might be worth noting something else about the performance of the Fidelity China Special Situations fund. If you had bought into it back in April 2010 at 100p a share, you'd be down more than 5 per cent on the deal today. If, instead, you had bought the Baillie Gifford Japan Trust at the same time, you'd be up around 2 per cent. And, right now, the price to book ratio of the Japanese market is 0.97 times. I know which I'd rather hold.

[salpara111] 18/6/2011 12:44

Have to say I could be tempted but suspect that the discount to NAV will widen in the short term.

If we see a 10% discount to NAV then I could see myself on board

[whizzy1] 17/6/2011 13:37

Sold out holdings of all other UK plc
(that are trading within UK)
Filled my boots with a hopefull China upturn.

[whizzy1] 17/6/2011 13:37

I have just put my dosh where my mouth is, im thinking oversold.
5 grand in yesterday.
In for another 20 grand today.

[spob] 17/6/2011 09:27

Bolton's flagship China fund suffers

By Robert Cookson in Hong Kong

FT

Published: June 16 2011 22:16 | Last updated: June 16 2011 22:16
Anthony Bolton: shares in the feted fund manager's China Special Situations fund have dropped 20 per cent  

Anthony Bolton, the feted fund manager at Fidelity International, has suffered a stumble with the poor performance of his new flagship China fund this year.

Mr Bolton's China Special Situations fund raised £460m ($743m) when it launched with much fanfare on the London Stock Exchange last April. But in the year to date, shares in the fund have dropped 20 per cent, a much sharper fall than the broader Shanghai and Hong Kong markets.

Over the same time, the net asset value of the fund dropped 14.4 per cent.

For the first time since May 2010, the share price of the fund dipped below its net asset value – a phenomenon that suggests a dip in investor confidence in Mr Bolton's ability to produce the consistent double-digit returns that have been the hallmark of his 30-year investing career.

Chinese stocks listed on stock exchanges across the world, including Hong Kong, London and New York, have declined this year due to worries about corporate governance problems and concern that the Chinese economy is slowing while inflation remains stubbornly high.

In the year to date, the Shanghai Composite index has fallen 5.12 per cent while the Hang Seng index in Hong Kong has dropped 4.7 per cent.

Shares in Mr Bolton's fund closed at 94p on Thursday, down 6 per cent from the price of 100p at which investors bought shares in its initial public offering.

Previously, the fund traded at a premium over its net assets that went as high as 13 per cent last November, a price investors were willing to pay for Mr Bolton's record of market-beating returns.

Mr Bolton, who does not speak Mandarin but works with a team of experienced locals, was unavailable for comment on Thursday.

His fund is due to release its annual results next week, with details of its holdings and Mr Bolton's strategy for the future.

In the fund's latest statement for the month of April, Mr Bolton said: "China is not without risks but I continue to believe that the case for investing is compelling."

In an interview last week with UK investment website Motley Fool, Mr Bolton said he was "very disappointed" with the fund's recent performance.

Almost half of his portfolio is invested in Hong Kong-listed shares, with the remainder in Chinese companies listed in Shanghai, New York and elsewhere.

Before moving to Hong Kong last year, Mr Bolton wowed investors during his 28 years at Fidelity's flagship London-based Special Situations fund by delivering an annualised return of 19.5 per cent.

Fidelity International declined to comment.

[skidaddle] 17/6/2011 09:09

Yes but he is a seasoned fund manager in UK special situations and Europe. Rather different than China I would suspect.