Bolton unveils his new China venture

Chinese lanterns

Anthony Bolton's new China trust will aim to hold £630 million and will be available for ISA investors at launch on 26 February.

The legendary fund manager announced in December that he was making a surprise return from retirement to launch the Fidelity China Special Situations investment trust.

The close-ended investment company is targeting an initial capital raising of around £630 million. Fidelity says it will invest in a “diversified” portfolio primarily made up of securities issued by companies listed in China, or Hong Kong and Chinese companies listed elsewhere.

"I am very confident that there will be very many stock-picking opportunities in China in the years to come,” says Bolton.

Investors will be able to apply for shares from 26 February, with the closing date currently scheduled for 26 March (for paper applications) and 5 April (for online ones). However, investors can register an interest now on the Fidelity website.

On the 19 April, the company will be admitted onto the London Stock Exchange, and dealing in new shares will commence.

Shares will be issued at £1 and will be eligible for ISA investments for both the current and the next tax year.

Bolton is best known for running Fidelity's Special Situations Fund, which he managed from its launch in December 1979 until the end of 2007. However, some critics have warned that he lacks experience of the emerging markets, with most of his experience from investing in the UK and Europe.

But Bolton dismisses such fears: “I see many similarities with investing in Europe in the early part of my career. Then, my longer-term, research-led approach was considered unusual in a market more used to short-term trading but it proved to be successful.

"I think the same will be the case in China and I expect that my experience in Europe will be helpful as I see the composition of the market shifting from an emphasis on manufacturing and financials to include more service-oriented companies."

Bolton says he will manage the portfolio using a contrarian approach to investing, to achieve the objective of long-term growth. He will be supported by Fidelity's Asian investment team.

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