Fidelity is introducing an emerging Europe, Middle East and Africa fund to be managed by Nick Price.
The Luxemburg-domiciled portfolio will focus on a number of long-term investment themes, including the impact of global industrialisation, local urbanisation and natural resources.
Price says the regions have more than 80 per cent of the world’s proven oil reserves, 97 per cent of platinum reserves, 95 per cent of chromium and big reserves of other resources including iron ore, nickel, copper and gold.
The fund will not be benchmark-constrained and will typically hold between 50 and 70 stocks. It will have euro, dollar and sterling share classes. Sterling share classes have a 3.5 per cent initial charge and 1.5 per cent annual fee. Minimum investment is £1,000.
Price says: “It has an investment universe of £750bn and with low correlation to the US, Europe and UK and low inter-market correlation across the region, it offers diversification benefits and potential for significant risk-adjusted returns.
“As China and India continue to industrialise, we will see rising levels of consumption, resulting in growing demand for oil and commodities from these countries. The EMEA region will be a direct beneficiary of this trend.”