Bill McQuaker is to take over management of five risk-rated vehicles in the Fidelity Multi Asset Open range, after joining the firm in October.
McQuaker joined Fidelity International as a portfolio manager last year from his position as head of multi-asset at Henderson Global Investors.
Speaking to Professional Adviser's sister magazine Investment Week, in his first interview since joining the firm, McQuaker (pictured) said he would be running five funds which make up Fidelity's Open multi-asset range from 11 January.
These portfolios were previously run on a team basis by Nick Peters, Eugene Philalithis and Ayesha Akbar.
Asia and emerging markets specialist Akbar will remain on the funds as co-manager "to provide continuity", while McQuaker will also be joined by assistant manager Mike Costa who began working at Fidelity in 2013 as an alternatives analyst.
The five-strong range consists of the £7m Multi Asset Open Defensive, £84m Multi Asset Open Strategic, £111m Multi Asset Open Growth, £9m Multi Asset Open Adventurous and £218m Open World funds.
Fidelity has also decided to set specific annual return targets for each fund, ranging from the Defensive fund aiming for a 4% return, to the Open World fund on 7%. The other three funds are targeting returns of 5%, 5.5% and 6.5%, respectively.
These new targets, introduced following consultation with clients, mark a change from the original objectives of the multi-asset range, but the risk profiles of the funds will not be impacted. They will be implemented on 14 March.
'Rationale of the refresh'
McQuaker said: "The rationale of the refresh is to make sure the funds are in the best position to deliver client outcomes in today's market environment. We have changed the rules to give more flexibility, allow us to add new trades and have more tools at our disposal.
"One of the differences being at Fidelity is I have other tools I can use to achieve stronger returns, such as being able to have long positions in a fund and short positions in the benchmark and making opportunistic trades, such as investment trusts when there is a likelihood of a fund wind-up.
"We are then able to strip that out and show investors just how those trades are contributing to returns."
The funds will be able to invest in a variety of asset classes, divided into equity-like assets, diversifying assets such as emerging market debt and property, and hedging assets like US treasuries.
McQuaker said he has a preference for equities over bonds and putting together a hedged portfolio is "demanding" given the low rates of government bonds.
James Bateman, head of Fidelity Multi Asset, said: "Bill is a highly experienced multi-asset investor with a proven track record of alpha generation and we are delighted to be passing one of our flagship fund ranges to his stewardship.
"The increased flexibility of the Fidelity Multi Asset Open range, combined with wider support from the large and experienced multi-asset team, will provide Bill with an unparalleled ability to deliver performance through our twin strengths in active asset allocation and fund manager selection."
The £218m Open World fund has returned 34.7% over one year to 9 January, according to FE, versus an IA Global sector average of 31.7%.
Aim must be preservation of capital
Targeting £10,000 for ATLAS Foundation
Unwinding EU membership is unprecedented
Highlights of group's 2017 Analyst Survey
Takes immediate effect