As China continues to open up to international investors, experts warn that it may be wise to remember one of the lessons from 2011 – find out what you are invested in.
This was a lesson that Anthony Bolton, high profile manager of Fidelity’s China Special Situations investment trust was clearly slow to learn. As he announced losses in November last year, he also said Fidelity had taken on the services of five firms to provide specialised due diligence following the “disappointment” of his investment in Chinese reverse merger stocks.
Fidelity would not reveal the names of firms it had engaged, but many in the industry believe it could be investing in the kinds of services provided by Kroll, a company that specialises in fraud investigations, business intelligence and forensic accounting, among other services.