Fidelity has appointed the Applied Research Group to manage its index tracker funds following manager Raheel Altaf’s resignation from the firm.
Altaf, who manages the £843m moneybuilder UK and £205m moneybuilder European index funds, is leaving after nine years at Fidelity “to pursue other opportunities”.
A team of seven analysts at the Applied Research Group will take over the management of the tracker funds from July 1.
The group forms part of the research support function that feeds information to Altaf to help him manage the funds. Altaf will continue as manager of the funds until the handover.
The moneybuilder UK index fund is third quartile and has returned 11.2 per cent over a three-year period compared with an IMA sector average of 12.9 per cent.
The moneybuilder European index fund is down 2.5 per cent over a three-year-period compared with the Euro STOXX 50SM index which is down 1.4 per cent.
A Fidelity spokeswoman says: “We have been doing a lot of work with the Applied Research Group so that clients are comfortable with the group itself.”
Skerritt Consultants head of investment Andrew Merricks says: “If you are running a tra-cker, you are meant to be devoid of personal interest, so a team-based approach is better than having an individual running the fund. The process of constantly rebalancing a fund will be more effective with more resources.”