Bolton's China trust joins FTSE 250

Anthony Bolton’s Fidelity China Special Situations investment trust will join the FTSE 250 index on 18 June.

The investment trust raised £460m during its initial public offering in April this year, making it one of the most successful emerging market fund launches in more than 20 years.

Bolton says he has been travelling extensively and meeting a large number of companies in China since launching the fund.

"I have been able to make the most of the market correction to purchase companies at attractive valuations and have now fully invested the proceeds from the IPO," Bolton says. "My enthusiasm for China after three months in the region is unstinted and I still believe it remains one of the best investment opportunities of the next decade.

"All markets have entered a volatile phase and although it is never easy to predict the short-term direction of the market, I believe this to be the normal consolidation that follows the first leg of a bull market. China was earlier into its consolidation phase than other markets and could, as it did in 2008/9, lead world markets again in the bull market's next phase."

Fidelity China Special Situations chairman John Owen says: "I am very pleased we have been able to create a FTSE 250 company within three months. Inclusion in the index now makes the company of greater interest to a broader range of investors. This will inevitably have a beneficial effect on the share price which is very good news for our existing and prospective shareholders."

Bolton returned to Fidelity to launch China Special Situations after retiring as manager of the Fidelity Special Situations fund at the end of 2007. Over the course of his 28-year tenure, £10,000 invested in the fund at launch would have grown in value to £1,432,000.