fidelity taps into multi-asset demand

Fidelity is expanding its multi-asset range by renaming and slightly changing the focus of an existing fund, run by Richard Skelt.

fidelity taps into multi-asset demand


The Retirement Income Fund will be called the Multi-Asset Income Fund from 13 February and will sit in Fidelity’s Investment Solutions Group, which portfolio manager Richard Skelt part of.

Following the shift Fidelity will offer eight multi-asset funds, four run by Trevor Greetham in his multi-asset range, three low cost options in the multi-asset allocator range, and this one.

The Multi-Asset Income Fund will not be a low-cost proposition like the allocator funds because it will invest in active, rather than passive, funds.

The Retirement Income Fund was launched in 2007 and targeted people looking for an income in retirement, it has been managed by Skelt since inception.

It was designed to produce a yield of 4% from capital and income, which Fidelity said it has delivered on since launch.

Under its new name, the fund is targeting a dividend yield of 4% to 6% and aims to achieve this through investing a minimum of 60% in interest bearing instruments.

A spokesperson for Fidelity said Skelt would use the fund’s ability to invest in Reits, infrastructure and high yield bonds to boost the yield.
"Because of RDR there is more of a demand for managed-type solutions from IFAs that want to outsource investment decisions," Fidelity said.

The Multi-Asset Income Fund will not have an official benchmark, but will continue to sit in the IMA Mixed Investment 0-35% Shares Sector.

"Around half will be in corporate bonds, but the real unique thing will be the fund can invest in infrastructure equities," the spokesperson concluded.



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