Fidelity is expanding its range of UK multi-manager funds with the launch of Special Situations and Equity Income portfolios.
The new offerings are both high alpha funds and are concentrated portfolios investing in six funds at launch. The Special Situations Portfolio targets high total returns by looking for the best blend of aggressive funds with a view to reducing risk and achieving outperformance over the medium term. The fund is in the UK All Companies sector and will not be confined to funds with "special situations", "opportunities" or "dynamic" in their title.
The Equity Income Portfolio is run in a similar vein, but will target aggressive funds in the UK Equity Income sector, which can be supplemented with specialist and growth funds from the UK All Companies sector. Chris Ralph, multi-manager analyst and portfolio manager at Fidelity, said: "The fund selection for these two new funds is done in exactly the same way as our existing multi-manager offerings. The research is done through both a quantitative and qualitative approach, in terms of meeting managers and evaluating fund figures. We are looking for funds with both high alpha potential and where the combination of funds offers low correlation."
Richard Wastcoat, UK managing director, said: "Advisers say that they want more aggressive products in multi-manager structures. These two new products should deliver just that - high alpha returns from the best of UK investment management talent."
The new funds are unveiled on 16 January and will come with a 2% ceiling on their total expense ratio (TER). The funds will both have a 3.5% initial charge, 3% of which advisers can take as upfront commission. There is also an annual management fee of 1% and an ongoing commission payment of 0.5%.
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