Investors in the fund will now pay 1.2% per annum, down from 1.5%, as the fund continues to underperform relative to the market. The latest FE fund factsheet shows the fund returned 7.6% over one year, compared to 19.9% from the country specialists Asia Pacific sector – its benchmark.
The fund has also been widely criticised for its focus on small and medium-sized firms, which is said to be a contributor to underperformance: over 50% of the portfolio’s value is held in small companies.
Defending this position, Bolton said: “I continue to think that the China story is largely a domestic one and I am looking to capitalise on a number of themes based around urbanisation and subsequent growth of the middle class in China. As a result, I find many ideas in consumer related names as the population spends its increased income. I also invest in technology firms, particularly in the internet space, as I believe this is underpenetrated and a key medium for information sharing and the trade of goods in a vast country like China.”
Below par
The fund was launched in April 2010 to much fanfare given Bolton’s track record at the helm of the Fidelity Special Situations Fund, the best performing UK retail investors fund over 28 years.
However, the fund has consistently struggled to perform, and share prices hit an all-time low towards the end of 2011 at 77p. They currently hover around 94p.
John Owen, Chairman of Fidelity China Special Situations, said: ”Both the Board and Fidelity believe that this competitive pricing will be attractive to new investors considering Fidelity China Special Situations and this will be to the benefit of investors in the company overall.”
Baillie Gifford took a similar line on competitiveness earlier this week when it announced fee cuts on four of the investment trusts it manages.
