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Building on Fidelity’s UK expertise of nearly 20 years in this field, the expansion into Europe with 12 new funds is a significant development.

About MultiManager

The multi-manager concept

The concept is quite simple — just as single fund managers review and invest in individual stocks or bonds, a 'multi-manager' fund manager reviews and invests in funds run by other managers.

The day-to-day running of each fund is left entirely to the individual manager, but the approach means the performance of other managers is constantly assessed and the best funds are blended into a portfolio.

Multi-manager funds are perfectly suited to people who are looking for a high-quality, diversified portfolio, but who may not have the ability or the time to develop and manage a large portfolio of funds.

What is Fidelity's multi-manager about?

The Fidelity multi – manager is managed as a fund-of-funds, but using unfettered’ funds (i.e. funds of other companies besides Fidelity) the funds offer a full spectrum of opportunity and are grouped into five distinct fund families: Emerging markets, High-alpha, Income, Multi-asset and Specialist. The approach is based on a track record of success from working with multi-manager funds and the unique knowledge Fidelity has built up in this market, the core strength Fidelity has in its ability to deliver high quality research and expertise from experienced analysts a proven and trusted brand with a heritage of excellence.

The new business is a natural evolution of the strategy that Fidelity has applied so well over the years in this market - to bring client-driven, best-in-class financial products to all Fidelity's investors and partners.

The investment process

Until today, there have really only been two ways of doing things in multi-manager - there are the 'risk-mitigators' who conservatively seek to control risk at all costs, and the 'aggressive asset allocators' who prefer to make large sector bets to try and drive performance.

Fidelity sees itself as an 'alpha-generator': taking the approach that to deliver long-term results you need to adopt an intelligent approach to risk and target above-benchmark returns.

Fidelity's four pillars of strength

Fidelity’s competitive advantage is founded on an investment philosophy that unites four key attributes to make its MultiManager business unique: experience, a focus on performance, a commitment to research and the backing and resources of a global investment business.

Experience

The MultiManager investment team offers nearly 20 years' experience in constructing and managing multi-fund portfolios

Performance focus

Fidelity MultiManager SICAV funds aim to outperform their respective benchmarks with an appropriate level of risk. 7 of 12 (58%) have achieved 1st or 2nd quartile performance vs. respective peer groups (sectors) since inception. Of Fidelity's other multi-fund portfolios, 13 of 15 (87%) have achieved 1st or 2nd quartile performance v. peers over 5 years, and 8 of 8 (100%) have achieved 1st or 2nd quartile performance v. peers over 10 years.*

These figures relate to past performance, which is not a reliable indicator of future results. The value of investments may go down as well as up and an investor may not get back the amount invested.'

*Fidelity’s other multi-fund portfolios excludes Fidelity MultiManager SICAV funds. Ten year statistics relate to the performance of 5 SICAVs and 3 unit trusts of which hold a 10 year performance history. The remaining multi-fund portfolios do not have a 10 year history in order to be captured. Five year statistics relate to the performance of 12 SICAVs and 3 unit trusts. The remaining multi-fund portfolios do not have a 5 year history in order to be captured. Performance basis: OEIC performance calculated bid to bid, net income reinvested excluding initial charge, in GBP. SICAV performance calculated NAV to NAV, gross income reinvested in fund currency, net of initial charges. Quartile ranking is based on relevant peer group sector for each of the funds.


Commitment to research

While the Fidelity MultiManager research approach focuses on analysing managers instead of companies, the MultiManager investment process is run with the same rigour and discipline that underpin our single-manager funds.

Global resources

The MultiManager investment team benefits from its access to Fidelity's vast array of investment and business resources. The company’s size and structure allows Fidelity's investment team to remain focused on fund research and portfolio construction.

Expert analysis, disciplined process

Fidelity's MultiManager business uses research, portfolio construction and portfolio monitoring. With quantitative and qualitative inputs working side by side it maximises the opportunity to uncover and exploit sources of alpha.

Guiding principles to a distinctive approach

At the heart of the MultiManager approach is the belief that fund management skill, style and biases can be identified and used intelligently. Fidelity's multi-manager capabilities differentiate its way of working from competitors. Rather than building a portfolio by simply selecting the best performing funds, the team strive to blend a concentrated number of uncorrelated, high-quality funds in an optimised portfolio to achieve superior risk-adjusted performance for investors.

The MultiManager fund range

With MultiManager, Fidelity is bringing to market a full spectrum of 12 core and specialised SICAV portfolios for Europe, each designed to generate alpha through a diversified, risk-budgeted approach. Together they offer an integrated suite of options that can act either as the cornerstone of a well-diversified investment strategy, or as satellites that introduce specialist opportunities into an existing portfolio.

Fidelity's MultiManager funds are grouped into five distinct families, with core multi-asset portfolios that benefit from the breadth of its resources, supported by specialist portfolios that exploit its depth.

Emerging Markets — a mix of actively managed funds seeking consistent above-benchmark returns from the world’s emerging markets.

High-alpha — this family includes funds that attempt to generate strong returns with a controlled level of risk from a specific geographic region.

Income — invests in low-volatility, actively-managed funds with the emphasis firmly on generating high levels of income for the investor.

Multi-asset — these funds provide diversification across cash, bonds and equities and are designed to form the core holdings of an investor’s portfolio.

Specialist — a niche group which invests in specific sectors such as European Property or Natural Resources, where we can offer exposure to a single industry through tightly focused funds.

Please visit www.fidelitymultimanager.com for more information about the Fidelity MultiManager Fund range