JPM Cazenove downgrades Bolton China trust

The group has downgraded the trust from 'neutral' to 'underweight' after it delivered a NAV total return of -3.7% fifteen months from inception, lagging the MSCI China's (£) index, which returned 4.9%. The analysts said until there is meaningful recovery in relative performance, the trust will not be upgraded from its underweight recommendation. Matthew Hose, an analyst at the group, said he is also concerned about the discount risk of the trust when Bolton's tenure ends in April 2013. "The shares currently trade on a 1% discount to cum-income NAV, although has de-rated from the 8%...