Solved. Anthony Bolton’s nice-to-have Chinese problem.
From Fidelity’s China Special Situations fund on Tuesday afternoon:
In the period from admission to trading on the London Stock Exchange on 19 April 2010 to 8 November 2010, the net asset value per Share has increased from 99.01p to 115.02p, representing an increase of 16.2 per cent and the Share price has increased from the issue price of 100p to 127.9p. As at 8 November 2010, the shares were trading at a premium to the latest published net asset value of 9.67 per cent.
The NAV has over this period outperformed the benchmark MSCI China Index by 5.49 per cent.
In view of this and following the announcement on 1 November 2010 that the Board were considering ways in which demand for the shares of the Company could be satisfied, the Board now announces that it is intending to increase the number of shares in issue, subject to shareholder approval, through an open offer of shares in which priority will be given to shareholders as part of a public offer for subscription and placing.
John Owen, chairman of FCSS, says the share issue should help meet demand from potential investors — those who want to buy FSCC shares but are worried about overpaying — as well as safeguard the interests of existing shareholders.
And if the ducks are quacking why not feed them (with new stock)?
Related link:
Demand for Bolton fund drives premium – FT Alphaville
Bolton’s comeback – the details – FT Alphaville
Chasing the dragon - FT Alphaville
Bolton’s new China investment trust unveiled – FT