Shareholders of Abrdn China voted in favour of winding down the trust and selling its assets to Fidelity China Special Situations at an extraordinary general meeting this morning (13 March).
It will sell £126.6m of its net assets to the Fidelity trust, which currently has assets under management of £926m.
The vast majority of shareholders supported the notion, with 99.9% of the 27.4 million votes cast approving the merger.
Its share price is down 18.7% over the past five years, with the net asset value of the portfolio falling even further (28.7%).
Over that same period, the Fidelity China Special Situations trust made a positive return of 4.8%.
Despite differing performance, both trusts share three of the same top 10 holdings – Tencent, Penduoduo and Alibaba. They collectively account for 17.4% of the Fidelity portfolio versus 20.5% of the Abrdn trust.
Dale Nicholls has run Fidelity China Special Situations since 2014, with the outgoing managers at Abrdn China – Nicholas Yeo and Elizabeth Kwik – having steered the portfolio since April 2021.
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