Oversubscribed tender offer for Fidelity trust 'spells trouble'

Oversubscribed with 85.1% electing to tender

Kathleen Gallagher
clock • 2 min read

Shareholders of the £1.2bn Fidelity Emerging Market’s trust expressed their lack of confidence in the new management as its 25% tender offer was significantly oversubscribed, commentators have said.

In a stock exchange announcement today (19th October) the board trust said the 25% tender offer at a 2% discount to NAV was oversubscribed with £103.3m, representing 85.1% of shares, in issue electing to tender. Fidelity Investment Management recently took over the management of the company from Genesis Investment Management. "Huge take-up for Fidelity Emerging tender spells trouble," said James Carthew, head of investment company research at QuotedData. "The size of the vote against this decision was one indication that shareholders were uneasy. However, now we have decisive evidence...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week