Fidelity to convert retirement fund

Fidelity will convert its £15.3m Retirement Income fund to a Multi Asset Income fund next week.

From February 13, the fund will be jointly managed by Richard Skelt, co-head of multi asset investment at Fidelity, and Eugene Philalithis, manager of the MultiManager Income fund.

While the fund will hold a minimum of 60% in interest bearing instruments, it will invest across a range of assets including corporate bonds, equities, infrastructure equities, physical property, European high yield and real estate investment trusts (Reits).

The new fund will sit in the IMA Mixed Investment 0-35% Shares sector and target a dividend yield of between 4-6%. The AMC is set at 1.25%.