Fidelity’s MultiManager Investment team has increased its European exposure within the Fidelity MultiManager distribution fund after adding Resolution Argonaut’s European equity income fund.
Fidelity says it hopes the addition of the first European equity income fund will allow it to exploit the attractive yields currently available in Europe.
Fidelity co-portfolio manager of MultiManager distribution fund Simon Mungall says until now the fund has benefited from exposure to European fixed income but Fidelity believes this move will bring additional diversification.
He says: “Currently, there are attractive yields available in Europe – as well as the positive impact of historically high earnings on corporate cash flows, we have seen dividend payout ratios increase in recent years as European companies play catch-up with their Anglo Saxon peers. The Resolution Argonaut European Income Fund is positioned to enable us to exploit this.”