Fidelity mulls global alpha and US funds for FAST range

Fidelity is gauging demand for two new equity funds to sit within its FAST range, a Global Alpha fund and a US mandate.

The Global Alpha fund will be a medium-to-high-risk total return mandate investing primarily in equities, while the US fund will be an “aggressive portfolio” aiming to provide capital growth by investing in US equities, with the ability to use shorting and leverage techniques.

Both pilot schemes are listed in the current prospectus for the group’s suite of FAST (Fidelity Active STrategy) funds, with sterling distribution share classes (Global Alpha is hedged) and has a minimum investment of $50,000 (£31,200).

A spokesperson for Fidelity says: “These funds are included in the prospectus to allow us to launch them at a future date if we see demand, but there are no immediate plans at this stage.”

Last week the group soft closed the FAST Europe fund for the second time after inflows saw it hit £2.3 billion.

Fidelity’s spokesperson says: “We are very proud of the returns that Anas Chakra has generated for clients over the last 6 years and do not want to jeopardise future performance by letting the fund get too large.

“For this reason, we have decided to reinstate the soft closure protocols that were effective when previously introduced in 2009. We have maintained a significant buffer to the fund’s final capacity level to give our clients flexibility and to ensure that Anas’ investment style is in no way compromised.”