Fidelity International is improving the transparency on one of its multi-asset ranges by showing the specific outcome targets for each fund as veteran manager Bill McQuaker takes charge.
McQuaker, formererly co-head of multi asset at Henderson, was appointed to Fidelity’s £30bn multi-asset team in April and will now manage the £512m five-strong Fidelity Multi Asset Open range.
Ayesha Akbar and Michael Costa will be co-portfolio manager and assistant portfolio manager on the funds.
The portfolios were previously run on a team basis by Nick Peters, Eugene Philalithis and Ayesha Akbar.
Following the change, the firm has decided for the first time to show the specific return targets on each funds of the range “to improve clarity” on the underlying investments. Changes will take place on 14 March but will not impact the risk profiles of the funds.
The £7.2m Multi Asset Open Defensive fund will have a 4 per cent outcome target, the £84.2m Strategic fund 5 per cent, the £111.4m Growth fund 5.5 per cent, the £9m Adventurous fund 6.5 per cent and the £218m World fund 7 per cent.
Meanwhile, a Fidelity spokesman confirmed the Multi Asset Open Defensive and Adventurous funds will remain open with “no plans” to merge despite their small size.
Fidelity Multi Asset chief investment officer James Bateman says: “Bill is a highly experienced multi asset investor with a proven track record of alpha generation and we are delighted to be passing one of our flagship fund ranges to his stewardship.
“The increased flexibility of the Fidelity Multi Asset Open range, combined with wider support from the large and experienced multi asset team, will provide Bill with an unparalleled ability to deliver performance through our twin strengths in active asset allocation and fund manager selection.”
Darius McDermott, managing director of Chelsea Financial Services welcomed the changes.
He says: “Bill is a very experienced and highly rated manager and Fidelity feel his appointment was very much a coup for them. I think it is a positive outcome for investors in the funds.
“With regard to the two smaller funds, I would see Bill’s appointment to this range as a sign that Fidelity are keen to grow the assets, rather than merge or close these particular funds. As an industry we are all aware that sub-optimal assets are not good for companies or clients though so I would imagine they will reassess towards the end of the year if they haven’t grown as much as they would like.”