Investment firm Fidelity International is launching a new fund-of-funds based on its ‘Select 50’ list of recommended funds.
The ‘Select 50 Balanced Fund’ is managed by multi-asset fund manager Ayesha Akbar and offers clients exposure to between 20 and 40 of Fidelity’s top 50 recommended funds at any one time.
The actively managed asset allocation will have weightings in the range of a typical globally diversified balanced investment fund.
The majority will be split between equities and bonds funds while some alternatives offerings such as commodities funds will also be included, and some left as cash.
At least 80 per cent of the fund will be invested in the Select 50, with the remainder invested in funds outside the list or held as cash.
It has no specific benchmark or targeted total return at this stage, with the aim being simply to achieve ‘long-term capital growth’.
Fidelity claims the new fund offers investors ‘a quick and easy way to access the investment expertise that underpins the Select 50.’
The Select 50, is a list of 50 actively managed funds available in the UK across various asset classes which Fidelity’s investment analysts consider most worthy of recommendation.
The list includes some of Fidelity’s own in-house funds as well as third party offerings. The full list can be found below.
The ongoing fee for the new fund is 1.25 per cent. This is composed of a fixed 0.5 per cent paid to Fidelity, and around 0.75 per cent to cover the cost of the underlying funds. This element could be slightly lower depending on the make-up of the fund and the fees charged to Fidelity by third parties.
It is available for inclusion in ISAs, SIPPs and standard investment accounts via the firm’s personal investing platform.
Funds of funds have come under increased scrutiny of late as asset managers face pressure to cut down on fees and make the charges more transparent.
A fund of funds will typically have higher fees than a single strategy fund as both the firm offering it and the the underlying funds take a slice of money.
The argument justifying the greater fees centres on the claim that a fund of funds can offer investors easy access to the services of a broad range of experts in their specialist areas, resulting in better returns and lower risk.
Tom Stevenson, investment director for Personal Investing said: ‘For some investors, the challenge of putting together a portfolio of funds that complement each other is too difficult or time consuming. For others, even the narrow choice of funds on the Select 50 offers too many options.’
‘We launched the Fidelity Select 50 Balanced Fund to help this segment of investors so that we could offer them a new one-stop fund that makes it easier than ever to tap into the expertise behind our popular Select 50 ‘best buy’ list.’
‘We believe each fund that makes up the Select 50 Balanced Fund brings something unique to the table and allows us to deliver a globally diversified portfolio that will help us deliver long term capital growth for our clients,’ Akbar added.
|Majedie UK Equity|
|Lindsell Train UK Equity|
|Liontrust UK Growth|
|Fidelity Special Situations|
|Threadneedle UK Mid 250|
|Franklin Templeton UK Smaller Companies|
|JOHCM UK Equity Income|
|Old Mutual UK Smaller Companies|
|Fidelity UK Enhanced Income|
|FP Crux European Special Situations|
|Jupiter European Special Situations|
|Threadneedle European Select|
|Invesco Perpetual European Equity Income|
|Barings German Growth Trust|
|Fidelity European Growth Fund|
|JOHCM European Select Values|
|Old Mutual North American|
|Schroder US Mid Cap Fund|
|JPM US Select Equity|
|JPM US Equity Income|
|Fidelity American Special Situations|
|Aberdeen Japan Equity Fund|
|Baillie Gifford Japanese|
|Fidelity Funds Asian Smaller Companies|
|Fidelity Emerging Market Fund|
|Henderson Emerging Markets Opportunities|
|Stewart Investors Asia Pacific Leaders Fund|
|Lazard Emerging Markets|
|Old Mutual Asia Pacific|
|BNY Mellon Long Term Global Equity|
|Rathbone Global Opportunities|
|Fidelity Global Dividend|
|Invesco Global Equity Income|
|Fidelity Global Special Situations|
|M&G Optimal Income|
|Fidelity Strategic Bond|
|Jupiter Strategic Bond|
|M&G Corporate Bond|
|Fidelity MoneyBuilder Income|
|M&G European High Yield Bond|
|JPM Global High Yield|
|SLI Global Index Linked bond|
|RLAM UK Government Bond|
|Invesco Perpetual High Yield Fund|
|Blackrock Global Property Securities|
|Investec Global Gold|
|Invesco Perpetual Global Targeted Returns|
|Aviva Multi Strategy Target Return|