Fidelity International is to launch the Fidelity equity growth defender fund, which will aim to offer investors equity growth while protecting both capital and growth from the full impact of market declines.
Fidelity says investors can put money into the Oeic fund at any stage of the market cycle as the fund will benefit from market rises while protecting gains and capital during market downturns.
The Fidelity equity growth defender fund will be predominantly invested in UK equities, although up to 20 per cent can be invested in other countries.
Its expected protection is set at 80 per cent of the fund’s highest ever price. This means that the higher the fund price is, the higher the expected protection. Though this is not a guaranteed outcome; if the fund falls by more than 20 per cent in a single day, the expected protection will fail, something which Fidelity says is an extremely unlikely scenario.
Stephen Fulford will manage equity and cash allocations and James Griffin will manage equity holdings.
Reviewed on a daily basis, the key driver of performance will be the mix of equities and cash. As the fund price moves up, the managers will increase its equity exposure. If the fund price falls, they will cut its equity exposure and increase cash.
The fund is scheduled for launch on September 13.