Fidelity and abrdn China funds to merge

Two global asset managers have chosen to consolidate their respective China funds in order to improve liquidity. Abrdn China Investment Company (ACIC) will merge with Fidelity China Special Situations (FCSS) to create a combined trust with US$1.5 billion in net assets – the bulk of which will come from Fidelity’s $1.26 billion fund. Under the terms of the merger, which is still subject to shareholder approval, ACIC will be wound up and its cash and assets transferred to FCSS which will continue to be managed by FIL Investment Management (Hong Kong). Fidelity will pay $631,000 and eight month management fee for the transferred assets and the cost of the merger. The move further reduces Abrdn’s investment trust range in the region – ACIC was formed in 2021 from the merger of Abrdn Emerging Markets and Abrdn New Thai. And in July, Abrdn folded its New Dawn investment trust into its Asia Dragon fund. “The board has concluded that the best practicable option to address the company's over-concentrated register and to provide significantly improved liquidity to our shareholders is to merge with FCSS, which is both sizeable and the clear leader in the China investment company sector,” said Helen Green chair of the ACIC board. ©2023 funds global asia

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