Fidelity International has launched a global multi-manager business incorporating 12 Luxembourg-list...
Fidelity International has launched a global multi-manager business incorporating 12 Luxembourg-listed Sicav funds for investors across Europe.
These include three multi-asset portfolios, designed to be core holdings and nine multi-manager, single-strategy portfolios that are specialist holdings.
The core multi-asset portfolio includes the Diversified and Balanced products, which offer savers exposure to a mix of cash, bonds, equities and other asset classes. A further core fund, the Global High Income product invests in income generating assets.
The specialist portfolio includes a group of high alpha equity products (Global, US, European, Asia and Japan, two sector portfolios (Natural Resources and European Property) and two emerging market portfolios (Global and Europe).
The Sicav range complements the five-strong family of multi-manager Oeics in the UK, including the recently launched Fidelity MultiManager Distribution fund.
The new multi-manager funds that fall into the specialist category have a 5.25% initial charge. Core multi-manager funds have an initial charge of 3.5%. Initial commission on both types is 3%. The minimum investment into both core and specialist funds is $2,500 or currency equivalent for lump-sum investments and $1,000 for top-ups.
Fidelity has 20 years' experience in running fund of fund structures and has attracted more than £10bn of assets.
The creation of the global multi-manager business is a natural evolution of this enterprise, said Simon Fraser, president of institutional business at Fidelity International.
Research from Cerulli Associates has revealed that new sales of multi-manager products have far outstripped sales of conventional funds. Worldwide net growth in new sales of multi-manager portfolios has grown at 17% per annum over the past five years, compared with 5% pa for all mutual fund assets. key points
Fidelity launches 12 multi-manager Sicav funds
Growth of multi-manager exceeds conventional funds
New range complements UK Oeic range
Nine in 10 do not have income protection
Set to become part of Single Financial Guidance Body
Also plan to scrap NI on contributions
Eight-week high against US dollar
Lower cost option for advisers