Fidelity China Special Situations (FCSS) merger + abdrn China

[monabri]

https://www.trustnet.com/news/13398040/ ... a-to-merge

"Two of the three largest investment trusts investing in China are set to merge after Fidelity China Special Situations (£999m) and abrdn China investment company (£172m) announced plans to combine.

Shareholders of abrdn China will be offered the opportunity to roll over their shares into Fidelity China Special Situations. There will also be a cash exit worth up to 33% of share capital at a 2% discount to the net asset value. The deal is subject to shareholder approval at the end of the first quarter of 2024."

"If it is successful, the new company is expected to have £1.2bn in assets under management and would remain trading as Fidelity China Special Situations. It will continue to be managed by Dale Nicholls.

Shareholders of the enlarged trust will benefit from a lower ongoing charges figure (OCF) and a drop in the second tier of management fees above £1.5bn of net assets to 0.65%, down from the current 0.7%."

[monabri]

abdrn China = ACIC

Up 10.8% today (they were higher at one point).

FCSS up 0.47%

Guess which one I hold ( ).

Source:
https://www.google.com/search?q=lon:fcs ... 8O4&ictx=1

[monabri]

The RNS from this morning.

https://www.investegate.co.uk/announcem ... up/7906262

[Laughton]

Me too. Isn't it always the way?

[stacker512]

Would people consider FCSS to be too expensive at 1.58% per year?
(1.18% of which is AMC + other costs, plus another 0.40% for the portfolio transaction costs)

source: https://www.fidelityinternational.com/F ... 2Z3C74.pdf

[jaizan]

It's only about 2 years since abdrn created ACIC, by merging the abdrn Thai trust with an emerging market trust and changing the mandate for the combined entity to China.
I had a small position in the Thai trust and was not at all happy with the enforced change, so took the maximum cash offer, at that time.
That was on the assumption that an exit at NAV would probably be advantageous to me and would also be the best way to reduce bdrn's AUM, which is what I felt that they deserved.