Bermuda-based Fidelity International has launched two global equity funds. Both new funds will provide Fidelity International investors with access to established investment approaches developed by Fidelity Investments, a separate U.S.-based company.
Fidelity International will act as the management company for the funds, while a subsidiary of Fidelity Investments serves as sub-investment manager and will be responsible for the investment strategy and underlying research.
The Global Smaller Companies Fund aims to achieve capital growth over the long term by focusing on opportunities across the global small-cap universe, an area of the market that is often less extensively researched and can therefore offer a broad opportunity set for active investors.
The fund will combine qualitative stock selection with quantitative risk management to identify opportunities across the global small-cap universe. It will typically hold around 125 companies and will be managed by Shah Badkoubei.
The Global Founders Fund aims to achieve capital growth over the long term by investing in companies where a founder, their family or foundation remain closely involved in leadership or governance. The strategy is based on the philosophy that significant ownership of a business confers a positive impact on both corporate and stock market performance.
Managed by portfolio manager Thomas Williams, the portfolio will invest in around 40-60 attractive businesses captured in Fidelity Investments’ proprietary global database of founder-led companies.
Dennis Pellerito, Head of Wholesale, UK at Fidelity International, said: “Investors are increasingly looking for differentiated ways to access global equity markets, particularly in an environment where market leadership has narrowed and many portfolios are becoming more correlated. These new funds expand the range of value-add strategies available to our clients, providing unique access to Fidelity Investments’ global research capabilities and distinctive investment approaches to help investors build more resilient portfolios.”
