August 22, 2014

No investor should ignore China’s importance – Fidelity

In a statement which welcomed Dale Nicholls as the new fund manager of the Fidelity China Special Situations (FCSS) fund, FCSS chairman John Owen noted that no investor should ignore an economy of China’s importance:

“The Board believes that no investor should ignore an economy of China’s importance and every portfolio should consider dedicating a portion of funds to investing in China. The growth in China should now come from the increase in wealth of the growing middle class and a growth in domestic consumption. Over time an investment in Chinese equities should generate a good return for shareholders.”

Mr Owen also confirmed that Anthony Bolton’s replacement Dale Nicholls will continue with a research-driven stock-picking approach:

 “Stepping into the shoes of Anthony is a significant challenge so we are delighted to have appointed a portfolio manager with a demonstrable record of success investing in the Asia Pacific region and specifically within China. We selected Dale to continue the research-driven stock-picking approach which we continue to believe is the route to success in this exciting market.”

Commenting on the management of the Trust’s share rating, Mr Owen said: “The Company has always sought to address significant imbalances between supply and demand of its shares and to manage its share rating. The Board has various powers granted to it to manage this, which it uses at its discretion.

“The Board currently has powers enabling it to buy back up to 14.99% of shares in issue in any one year and the board intends to renew these powers at the AGM on 24 July 2013. The Board will continue to monitor the share rating and use any other tools, such as  tender offers or enhanced buybacks at its disposal (subject to shareholder approval, as required) to manage any imbalances between supply and demand of its shares.”

Mr Owen added:

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