Fidelity China discount tightens despite Bolton exit

The board of the Fidelity China Special Situations trust has moved to keep its discount under control after the announcement of manager Anthony Bolton's retirement.

The board bought back 500,000 shares in the trust yesterday afternoon, following on from the morning announcement that Bolton (pictured) will retire in April 2014. The move helped drive down the trust's discount, which stood at 7.6% prior to the news, to 6.3% this morning, according to brokerage firm Numis. The narrowing of the discount also reflects support for Bolton's successor - Dale Nicholls - who has managed Fidelity's offshore Pacific fund since 2003. Analysts at Numis expect Fidelity's board to continue buying back shares to ensure the company is trading at an attractive le...