Changes to investment policies and ongoing charges - Fidelity Multi Asset fund range
Effective 20 June 2018, Fidelity Investments International have advised that they are changing the investment policies of their Multi Asset fund range in order to benefit from underlying investments in a wider range of asset classes and investment styles. These changes will result in an increase to ongoing charges.
Impacts on
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Impacts on
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We have been notified by Fidelity Investments International ("Fidelity") that they are amending the investment policies of the Fidelity Multi Asset fund range with effect from 20 June 2018. The changes will allow the portfolio manager of the funds in the range to invest more than 65% in Fidelity funds that use the experience and specialisms of a number of investment management companies (which may include Fidelity) to select the underlying assets.
Fidelity believe that making greater use of investment managers other than Fidelity means that investors may now benefit from underlying investments in a wider range of asset classes and investment styles.
Fidelity have advised that the costs will be higher than those charged previously, so there will be an increase in the ongoing charges for most share classes. Fidelity believe that higher costs are outweighed by the additional return potential and that the changes are therefore in the best interests of investors.
Funds affected
- Fidelity Multi Asset Strategic A Acc GBP GB00B1M29V45 (Quantum, Quantum Malaysia, Oracle, Paragon, Lifeplan, Protected Lifestyle)
- Fidelity Wealthbuilder A Acc GBP GB00B8FDN994 (Kudos)
- Fidelity Multi Asset Growth A Acc GBP GB00B3VZ2641 (PIMS Focused)
Revised investment policies
The revised investment policies for the affected funds will be as follows with effect from 20 June 2018:
Fidelity Multi Asset Strategic Fund
| Current investment policy | Revised investment policy |
|---|---|
The Fund will primarily invest in funds (including funds managed by Fidelity). The Fund may also invest directly into transferable securities, other collective investment schemes, money market instruments, cash and deposits and is also able to use derivatives for efficient portfolio management and investment purposes.
Asset allocation exposure of the Fund will be actively managed and typical allocation will be as follows: 50% lower risk assets (such as debt instruments e.g. bonds and cash) and 50% higher risk assets (including equities, commodities and property securities). However, the Fund's allocation between lower risk and higher risk assets can be tactically adjusted within the following range in order to preserve capital or take advantage of market opportunities: 30-70% lower risk assets and 30-70% higher risk assets. | The Fund provides global exposure to a diversified range of assets by primariliy investing in funds. The Fund typically invests more than 65% in sub-funds of an Irish UCITS fund (Fidelity Common Contractual Fund II) operated by Fidelity which subsequently utilise the experience and specialisms of a number of investment managers (which may include Fidelity) to manage the underlying assets.
The Fund can also invest directly into other collective investment schemes (including schemes operated by Fidelity), transferable securities, money market instruments, cash and deposits, and is also able to use derivatives for efficient portfolio management and investment purposes.
Asset allocation exposure of the Fund will be actively managed and typical allocation will be as follows: 50% lower risk assets (such as debt instruments e.g. bonds and cash) and 50% higher risk assets (including equities, commodities and property securities). However, the Fund's allocation between lower risk and higher risk assets can be tactically adjusted within the following range in order to preserve capital or take advantage of market opportunities: 30-70% lower risk assets and 30-70% higher risk assets. |
Fidelity Wealthbuilder Fund
| Current investment policy | Revised investment policy |
|---|---|
| The Fund will primarily invest in funds (including funds managed by Fidelity). The Fund can also invest directly into transferable securities, other collective investment schemes, money market instruments, cash and deposits, and is also able to use derivatives for efficient portfolio management and investment purposes. | The Fund provides global exposure to a diversified range of assets by primariliy investing in funds. The Fund typically invests more than 65% in sub-funds of an Irish UCITS fund (Fidelity Common Contractual Fund II) operated by Fidelity which subsequently utilise the experience and specialisms of a number of investment managers (which may include Fidelity) to manage the underlying assets.
The Fund can also invest directly into other collective investment schemes (including schemes operated by Fidelity), transferable securities, money market instruments, cash and deposits, and is also able to use derivatives for efficient portfolio management and investment purposes. |
Fidelity Multi Asset Growth Fund
| Current investment policy | Revised investment policy |
|---|---|
The Fund will primarily invest in funds (including funds managed by Fidelity). The Fund may also invest directly into transferable securities, other collective investment schemes, money market instruments, cash and deposits and is also able to use derivatives for efficient portfolio management and investment purposes.
Asset allocation exposure of the Fund will be actively managed and typical allocation will be as follows: 75% higher risk assets (including equities, commodities and property securities) and 25% lower risk assets (such as debt instruments e.g. bonds and cash). However, the Fund's allocation between lower risk and higher risk assets can be tactically adjusted within the following range in order to preserve capital or take advantage of market opportunities: 65-100% higher risk assets and 0-35% lower risk assets. | The Fund provides global exposure to a diversified range of assets by primariliy investing in funds. The Fund typically invests more than 65% in sub-funds of an Irish UCITS fund (Fidelity Common Contractual Fund II) operated by Fidelity which subsequently utilise the experience and specialisms of a number of investment managers (which may include Fidelity) to manage the underlying assets.
The Fund can also invest directly into other collective investment schemes (including schemes operated by Fidelity), transferable securities, money market instruments, cash and deposits, and is also able to use derivatives for efficient portfolio management and investment purposes.
Asset allocation exposure of the Fund will be actively managed and typical allocation will be as follows: 50% lower risk assets (such as debt instruments e.g. bonds and cash) and 50% higher risk assets (including equities, commodities and property securities). However, the Fund's allocation between lower risk and higher risk assets can be tactically adjusted within the following range in order to preserve capital or take advantage of market opportunities: 30-70% lower risk assets and 30-70% higher risk assets. |
Revised ongoing charges
The revised ongoing charge figure ("OCF") will be as follows with effect from 20 June 2018:
| Fund name & ISIN | Current OCF* | Revised OCF | Difference |
|---|---|---|---|
| Fidelity Multi Asset Strategic A Acc GBP GB00B1M29V45 | 1.57% | 1.85% | 0.28% |
| Fidelity Wealthbuilder A Acc GBP GB00B8FDN994 | 1.75% | 2.00% | 0.25% |
| Fidelity Multi Asset Growth A Acc GBP GB00B3VZ2641 | 1.62% | 1.90% | 0.28% |
* current OCF as at 31 October 2017
Fidelity have advised that the changes will have no impact on the risk profile of the funds. Investors do not have to take any action if they are happy with the changes.
A copy of the shareholder notification and appendix of changes can be viewed opposite.
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For more information about Fidelity visit www.fidelity.co.uk