Fidelity International has rebranded its Global Demographics fund following an internal review to align the fund with a low-cost, research investment approach.
The $100 million Fidelity Global Demographics fund previously invested in global equities that were able to benefit from demographic changes.
However, an internal review prompted Fidelity to repurpose it under a new name of Fidelity Research Global Equities fund. This will see the fund now focus on equities of companies in developed and emerging markets globally, using its research analysis to seek high conviction ideas.
Following the review, Fidelity concluded that the fund’s current investment strategy and fee structure should be revised to align with a lower-cost, research-driven investment approach aimed at supporting its long-term objectives.
The repurpose will also result in a reduction of management fee for the fund from 0.89 per cent per annum to 0.35 per cent.
The new strategy provides an opportunity for investors to leverage Fidelity’s research analysts’ best stock recommendations, in a systematically constructed portfolio to mitigate factor or style biases, with the aim of delivering strong returns primarily driven by our stock selection capabilities.
Managed by three portfolio managers, Matt Jones, Hiten Savani and Daniel Swift, the fund employs quantitative methods to capture the highest conviction ideas generated by the Investment Manager’s research analysis whilst also seeking consistency and repeatability of the investment outcomes.
Qualitative judgment is then applied to ensure that only securities that meet the investment manager’s criteria are included in the fund’s portfolio, making stock selection the primary driver of both risk and return. The objective is to provide long-term capital growth by investing in a diversified portfolio of global securities.
Simon Glazier, managing director of Australia at Fidelity International, said: “With the introduction of the Fidelity Research Global Equities Fund, we’re pleased to broaden the investment capabilities we can offer Australian investors through access to Fidelity’s global research expertise.
“This fund is designed to be a core, low-cost building block for clients who want to access Fidelity’s strong global research heritage and expertise without compromising on value. Unlike traditional passive strategies, our approach offers the potential to outperform the index by harnessing the best ideas from our global team of analysts.
“With its low correlation to standard index funds, it provides an alternative source of alpha and a compelling option for those seeking both cost efficiency and the opportunity for enhanced returns.”
