Fidelity China Special Situations issue
Discussion
Is this the fund managed by Anthony Bolton? I think it might be the one being pushed by Hargreaves Lansdown at the moment that I had a brief look at recently.
I've made very good returns in my SIPP in China in the last few years but must say that I recently cashed in entirely due to various commentary that I have read of concerns of a bust. In contrast, I've retained my similar performing India funds. I'm not savvy enough to give a detailed analysis of what I have read, suffice to say a lot of talk of it overheating.
I've made very good returns in my SIPP in China in the last few years but must say that I recently cashed in entirely due to various commentary that I have read of concerns of a bust. In contrast, I've retained my similar performing India funds. I'm not savvy enough to give a detailed analysis of what I have read, suffice to say a lot of talk of it overheating.
Oi_Oi_Savaloy said:
But if considered over the long term - 15 years plus say - surely China has wonderful growth potential? So too India but surely China has good potential?
Piece on the radio was saying that 5-10 years would be Ok. There is concern that the bubble will burst in the short term. China has spectacular growth.
That is their problem because with growth comes inflation. For the mega rich that isn't a problem but for the ordinary Chang (Joe) essentials go up in price leaving less for discretionary spending (luxuries) and the growth cycle slows. Earnings do not reach estimates and then there is a correction.
With every correction the panic sellers get burnt and that money does not return to the market.
Most people will sit through a correction.
A reason for selling China or India today would be if it were too high a percentage of your total portfolio. Single country fund and all that
I have "trimmed" mine a couple of times.
The alternatives are 1% growth in the UK or 2% in US.
So.....if you think you are underweight in China take up the issue, if not, don't.
Note: An issue generally means that you will own a lower percentage of the total fund. Usually not an issue for us mortals
Percentage of your total investments much more important.
That is their problem because with growth comes inflation. For the mega rich that isn't a problem but for the ordinary Chang (Joe) essentials go up in price leaving less for discretionary spending (luxuries) and the growth cycle slows. Earnings do not reach estimates and then there is a correction.
With every correction the panic sellers get burnt and that money does not return to the market.
Most people will sit through a correction.
A reason for selling China or India today would be if it were too high a percentage of your total portfolio. Single country fund and all that

I have "trimmed" mine a couple of times.
The alternatives are 1% growth in the UK or 2% in US.
So.....if you think you are underweight in China take up the issue, if not, don't.
Note: An issue generally means that you will own a lower percentage of the total fund. Usually not an issue for us mortals

Has anyone else gone in? NAV close to original issue price in anticipation of the share distribution. Shareprice hovering around 106. I've lost a bit of money on these and today is the day I must decide whether I go for this latest issue. My gut says no and sell the rest when I recoup the loss. I'm not sure about Bolton.
Anyone else have thoughts?
Anyone else have thoughts?
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