Bermuda-headquartered asset manager Fidelity International has launched a US small caps fund.
The fund aims to achieve capital growth over the long term, investing at least 70% of its assets in equities of small companies that are listed, headquartered, or do most of their business in the United States.
In a press statement, the firm said that the US small cap universe is under researched and “offers opportunities to identify growth stories which are overlooked or underappreciated by other investors”.
It will provide exposure to the US economy while diversifying away from concentrated parts of the market, such as large-cap tech. Instead, it targets businesses with a local focus, with stand to benefit amid increased trade tensions. Employing a risk-managed strategy, the fund seeks to capture gains when small caps perform well, while employing valuation discipline to mitigate losses during downturns.
This equity investment strategy is sub-managed by portfolio manager Forrest St. Clair from Fidelity Investments, a separate U.S.-based company based in Boston. The fund is available to clients of Fidelity International via a Luxembourg SICAV (UCITS) fund for the first time. Fidelity International is the Management Company of the fund, while Fidelity Investments is the sub-manager responsible for the investment strategy and the research.
Dennis Pellerito, Head of Wholesale, UK, at Fidelity International, said: “This new fund provides a differentiated avenue to access the US market through a complementary approach to large cap investments, potentially enhancing risk-adjusted returns within client portfolios.”
