Finally! Fido’s answer to the Hedge Funds (?)

Fidelity is launching a multi-asset distribution fund today designed to tease out some of the £350 billion sitting in with-profits funds by offering a more diverse mix of asset classes and a greater level of transparency.

The Fidelity MultiManager Distribution fund will be 40% invested in UK equity income funds, 40% in bond funds and 20% in global property securities funds.

It will have an estimated yield of 4% and total annual expenses capped at 2%, although Fidelity has reserved the right to alter this cap in the future. The annual management charge is 1%.

Peter Hicks, head of IFA Channel for Fidelity, believes that this combination of diverse asset mix, high yield and low volatility will attract more interest than other investment vehicles vying for the large amount of with-profits money – in particular absolute return funds.

He said: ‘With absolute return funds, people don’t know how they work and clients have just had to endure that with their with-profits funds. They are told what these funds will do but can’t understand it. They are fed-up with things that are not transparent, but with this fund, it’s all straight forward.’

Uh huh…sure.

http://www.citywire.co.uk/News/NewsArticle.aspx?VersionID=84721&MenuKey=News.Funds