Fidelity is to launch four sector-based funds focusing on healthcare, industrials, financial service...
Fidelity is to launch four sector-based funds focusing on healthcare, industrials, financial services and consumer trends, writes Kira Nickerson.
The four will form part of the group's Luxembourg domiciled Fidelity Funds range and are to be launched in September.
The umbrella already contains two sector funds covering technology and telecommunications.
Although domiciled offshore, the funds will have a sterling share class and will be available within an Isa. As of September, the technology and telecoms funds will also be available within an Isa. At the moment they are only eligible for direct investments and have an initial charge of 5.25%.
The group will be introducing renewal commission on the telecoms and technology funds via the Isa, as well as making it available on the other four.
For Isa sales there will be a 3% initial commission offered as well. The first two of the sector fund range were launched last September and have since attracted more than $1bn in funds.
Dave Cowdell, associate director of Fidelity's UK Wholesale Division, said: "The launch of the funds provides investors with the ability to construct global portfolios. The funds will be geographically diversified, offering exposure to the major regional markets. The fund managers will seek to identify the major themes or trends in each sector and capitalise on these in terms of stock selection."
The group has not yet announced who will manage the portfolios but it will be utilising its network of analysts. The funds are developed using sector-based research, where analysts are located in the local market and organised on a sectoral basis. Cowdell said: "The launch of these funds reflects a growing interest among investors in sectoral investment as companies increasingly compete and operate globally rather than in their local markets. IFAs will be able use these funds to offer their clients access to top-performing sectors, without any geographical limits."
The funds will be made available within Fidelity's fund supermarket, FundsNetwork.
In the US Fidelity is regarded as the second largest fund manager of sector funds, with a range of 45 funds and $46bn in assets.
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From 6 April 2019