Fidelity has launched a global demographic fund designed with a focus on companies that stand to gain from long-term sociological developments.
The Fidleity Global Deographics fund will be managed by Hilary Natoff and Nicky Stafford and represents an unconstrained portfolio of between 50 and 80 stocks, covering an investment universe of 1,000 companies.
Hilary Natoff, co-manager of the Luxembourg-domiciled fund, says: “The appeal of this fund is very straightforward.
“Demographics are, quite simply, the most powerful forces we will see in our investment lifetimes and we want to own the stocks which have the most to gain from this.”
Examples of the kind of trends the fund will be tracking are population growth, the emergence of new middle classes and population ageing. The latter will see a bias towards healthcare and consumer stocks. (article continues below)
The fund will divide its focus between two types of companies; those which are already dominant in their respective areas and leaders in new growth markets.
Fidelity has labelled this split focus as between the “winners of today” and the “winners of tomorrow”.
Minimum investment will be sterling equivalent of US$2,500 and carries an annual management charge of 1.5%.