"A bloody good result" - Reaction to £460m take-up of Bolton China trust

Investment advisers have hailed the announcement Anthony Bolton’s Fidelity China Special Situations fund had raised £460m from its initial public offering as "a bloody good result".

Ben Yearsley, investment manager, Hargreaves Lansdown:

"At £460m into the biggest investment trust launched in 20 years, it is a bloody good result however you look at it. Though it is difficult to compare with open-ended investments, it is likely to be consistent with other flows. He wouldn't have got this much from a unit trust launch, but obviously it's a one-time opportunity.

"Emerging markets have been very popular for a good few years now and this is set to continue as clients still want them. I have a Russia fund which has doubled in a year, and a Brazil fund launched in May/June which is up 70%. Still, emerging markets don't look hideously expensive. China is one of the more expensive of the major emerging markets, probably neck and neck with India.

"But with China's economy going at 9%-10% per annum it doesn't take long for that expense to leave the market. The long-term potential is definitely there."

Darius McDermott, managing director, Chelsea Financial Services:

It is a really good effort - £460m is a huge amount of money. I am not surprised the majority of the shares have gone to retail investors. We are not massively exposed as we only mounted a small campaign to people looking to invest in China and who had invested in Bolton before. But it is still in our top five selling funds for the quarter."

Nick Bamford, chief executive, Informed Choice:

"I can't say I have really had phones ringing off the hook for China, Bolton, or a China fund run by Bolton, but neither am I shocked by this. Naturally we look at China as a powerhouse, but we don't necessarily go in for 'flavour of the month' funds. Some of our clients would go into Bolton's China fund, but only if it was right for their specific needs."

Adrian Lowcock, senior investment manager, Bestinvest:

"The sum of £460m does miss the target [of £650m] but, considering the nature of the fund and the fact this has been launched 12 months after one of the biggest bear markets in history, it should be viewed as a success for Fidelity.

"Bolton's return to fund management is exciting, but investors should temper their enthusiasm with common sense.

"China is still higher-risk and there are concerns a bubble is forming there, so investors should only consider investing a proportion of their total assets into the region."