FundsNetwork, an investment supermarket operated by Fidelity, is launching its own range of multi-manager funds.
The five risk graded open-ended fund of funds are designed to suit varying levels of risk, with Defensive, Cautious, Balanced, Adventurous and Aggressive managed funds. The different risk profiles of the funds will be reflected in their equity allocations with 10% equity weighting in the Defensive fund through to 100% equity in the Aggressive.
The new funds will be managed by Fidelity’s multi-manager team and can invest in any funds already on FundsNetwork as well as those outside the network. This allows the managers to access specialist funds that are not open to retail investors.
“We think that there’s a gap in the market after consultation with IFAs who were looking for ways to offer their smaller clients access to areas of the market they wouldn’t otherwise be able to get at,” says Rob Fisher, head of FundsNetwork.
The funds are being launched to help advisers faced with the new regulations set to be outlined by the Financial Services Authority in their Retail Distribution Review.
The FIL FundsNetwork PortfolioManager Funds will have two distinct share classes. The A class shares will have an annual charge of 1% and offers flexible commission, including supporting customer agreed remuneration. The other offers a commission-free option for advisers who are fee-based.
The funds are set to be launched on February 4 and will be available through FundsNetwork’s tax wrappers, which include ISAs, self invested personal pensions and bonds.