Fidelity International has launched two more tranches of its international multi-asset 'target fund...
Fidelity International has launched two more tranches of its international multi-asset 'target funds', designed for long-term investors who want their bond exposure to increase over time.
The multi-manager funds, to be headed by Richard Skelt, can invest in global equity funds, global bond funds and cash. The proportion of the assets allocated to bonds and cash rises over time up to almost 100% to reduce volatility as the products reach their end dates. In the two new tranches, these have been set at 2025 and 2030.
Minimum investment in these Luxembourg-based products is E2,000, with an annual management charge of 1.5%. They are open-ended funds so investors can buy and sell at will.
Skelt said: "These are time-based funds that give investors a convenient way to save for long-term goals. Unlike a conventional fund of funds with a fixed asset allocation, these funds are actively managed, so in the early stages, more aggressive equity funds are the main holding and, in time, this changes to include a greater level of bonds and cash."
Target funds launches so far that have maturity dates 2010, 2015 and 2020 have been available from Fidelity since 2003 and have a 'AA' ratings from Standard & Poor's.
Fund name: Fidelity Target 2025 and 2030
Manager: Richard Skelt
Minimum investment: e2,000
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