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Fidelity to launch two onshore funds

Fidelity is to launch an onshore version of China consumer fund in February next year.

The China consumer fund will be managed by the same manager who runs the £155m offshore fund, Raymond Ma, and will typically invest in 80 to 120 stocks.

The fund’s benchmark is the MSCI China Index. The standard retail initial charge is 3.5 per cent and the retail annual management charge is 1.5 per cent. The minimum investment in the fund is £1,500.

Fidelity portfolio manager Raymond Ma says: “The Chinese consumer sector is expanding rapidly with over 100 consumer-related initial public offerings (IPOs) now being made every year. This compares to just 10 per year on average in pre-development years.”

He adds: “The expansion of the consumer sector is reflected in the size of companies too. A decade ago, the majority of consumer stocks had a market capitalisation of less than US$500 million. Today, market capitalisation typically ranges from US$2-3 billion. As more pro-consumption policies are introduced in the next few years, I believe consumption will rise significantly, creating more and more investment opportunities.”

Since launch, the UK sterling version of the £155m offshore fund, managed by Raymond Ma, has generated returns of 9 per centcompared to the benchmark return of 3.1 per cent.

An onshore version of Fidelity’s Luxembourg domiciled global real asset securities fund will be launched on September 14. Fund manager Amit Lodha who runs the $250m offshore fund will manage the onshore fund.

It will invest in between 50 to 70 stocks and the fund will typically have around 70 to 90 per cent active money.

The standard retail initial charge is 3.5 per cent and the retail annual management charge is 1.5 per cent. The minimum investment in the fund is £1,500.

Meanwhile, Fidelity International has rebranded for the second time in the space of a year, as Fidelity Worldwide Investment.

The change comes a year after its previous rebrand to Fidelity Investment Managers, which was subsequently dropped earlier this year.

The rebrand includes a new simplified corporate logo, which is a departure from both the current logo and the previous rebrand.

On the asset manager’s website, the company states that the move has “freshened” its brand identity.


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