Bolton backs new China leaders to lift trust as NAV falls

Fidelity's Anthony Bolton has conceded his China Special Situations trust has endured another 'disappointing' six months, but he is hopeful the upcoming leadership election could provide a boost to returns.

The trust - which has a focus on mid and small-cap companies - has once again underperformed the wider Chinese market, with the NAV per share down 6.2% at the end of September. Its share price has also fallen 9.5%, compared to a drop of 2.1% for the MSCI China index over the latest half year. Bolton said performance has been hit once again by a combination of gearing and exposure to smaller companies which have sold-off more severely than the MSCI China index. He notes the MSCI China Mid Cap and Small Cap indices are down 7.3% and 8.5% respectively, but adds he is disappointed none...