Fidelity has registered a China Special Situations company at Companies House in the clearest indication yet Anthony Bolton's new fund will be an investment trust.

The asset manager registered the new company at Companies House on 22 January, with the fund slated for launch in March.

Details of the fund are still being hammered out with the regulators but an investment trust is the most likely structure.

Bolton is keen for strong supporters of his Special Situations fund throughout its 28 history to have the chance to access the new fund. IFAs have been notably large backers and the investment trust structure is one which the retail market is known to be comfortable with, both here and in Hong Kong.

David Fuller's view I am delighted to hear that the new China fund which Anthony Bolton will run for Fidelity is to be an investment trust. I prefer ITs (closed-end funds) because their costs are generally lower; they can be bought or sold like shares, and will range between a discount and a premium to net asset value. However, this may be a problem at the launch and for at least a few months following, if interest in the fund is very strong, as predicted.

I assume that it will be difficult to participate in the launch, unless one was among the "strong supporters of his Special Situations fund". Consequently, Bolton's China IT could easily jump to a significant premium to NAV once listed, despite current market jitters which may or may not have ended by the Fund's launch.

My rule of thumb on ITs is that we should only purchase them when they trade at discounts to NAV, which is the norm. Also, it has generally been a good idea to take profits on ITs when they trade at premiums to NAV of more than a few points. If the article above is correct, I will almost certainly participate in Bolton's new fund at some point, but only when I can commence buying at a discount to NAV.