I was surprised to receive a letter recently for a tender offer for up to 40% of my holding in Fidelity Asian Values Investment Trust. While I'm used to this kind of thing happening, I've never seen it happen to Fidelity before, which probably says a lot about the kind of bear market we are experiencing. While I'm not exactly bullish on the future of the developed western world economies, I'm becoming steadily convinced, especially after the Olympics, that, to twist a metaphor slightly, the economic torch for the new century was passed from the USA to China, just as the UK passed it to the USA at the beginning of the 20th century.
Given all this, it's certainly not time to cash in my holdings in this trust at such a depressed price and also a 6.5% discount on the tender under the Net asset value of the trusts' assets. In fact, there may be some uplift in the share price to reflect the departure of less committed shareholders and a lift in the NAV.
Therefore, I'm recommending this trust as a long term BUY, as long as the discount is ten percent or greater. Even better, Fidelity are one of the trust providers that allow you to invest monthly in their trusts free of any brokerage fees, from an amount as low as £50 a month. Highly recommended.
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