The fund will be managed by Dmitry Solomakhin and will take long and short positions in global equity market to capitalise on over- and under-valued stocks. The fund will consist of a high conviction portfolio of 70-110 of the manager’s best long and short ideas from across the globe.
Solomakhin has run the Luxembourg-domiciled Fidelity Funds Global Technology fund since 2008. Over five years, the fund has risen 102.2%, compared to a rise in the wider IMA Technology & Telecoms sector of 96.5%. Recent performance has been particularly strong, with the fund up 24.5% over one year, compared to 12% for the wider sector.
Richard Lewis, head of global equities at Fidelity Worldwide Investment, said that the new global fund is aimed at professional investors, and adds to the line-up of Fidelity’s active extension products which include FAST European, FAST Japan, FAST UK, FAST Emerging Markets, FAST European Opportunities, FAST Asia and FAST US funds.
Net equity exposure in FAST Global will be in the range of 90%-110% under normal market conditions. Short positions are limited to a maximum of 30% of the fund’s assets. The fund will have an annual management fee of 1% for the Y (GBP) share class, where the minimum investment is $1m. A performance fee of 20% of the out-performance is applicable if the class exceeds the return of the MSCI AC World Index (N) by more than 2% on an annualised basis.
Of the existing FAST range, the largest is the European fund, which was launched in 2006 and has drawn in €2.835bn. The majority of the funds in the range have launched more recently and remain relatively small at sub-€100m.
Separately, Fidelity has launched an Undiscovered Talents fund, managed by Nick Peters and James Bateman, which is to be marketed to its high net worth direct customer base. The fund is a fund of funds offering, designed to produce long-term capital growth by investing in ‘undiscovered’ equity funds from around the globe.