Winterflood analysts sceptical of Bolton’s Chinese adventure

Michael Bow
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ANALYSTS at market maker Winterflood Securities yesterday warned fund veteran Anthony Bolton that his faltering China fund was too highly geared for retail investors.

Researchers at the firm’s investment trust arm said the fund’s 20 per cent gearing and its level of stock analysis raised questions about its “suitability” for its retail investor base.

Analyst Simon Elliott said: “People are not fully aware of the risks in the fund. The level of gearing is punchy – it’s very high compared to other trusts and the fact that he’s using derivatives detracts from the investment message.”

Bolton’s Fidelity China Special Situations fund launched in Asia in 2010.

Following the fund’s annual meeting a week ago, Bolton said: “The fact that the fund has been geared in a down market has not helped.

“What I hope is that the factors that have acted against me, will, in a better market environment, do the reverse and accentuate any recovery.”

Hargreaves Lansdown’s Mark Dampier said: “This is not a core holding – it’s a specialised fund.”