View more on these topics

New Fidelity fund benefits from long-term demographics

Fidelity has launched the global demographics fund into its Luxemburg Sicav range.

The new fund invests in firms that stand to benefit from long-term trends such as population growth, the ageing population and the emergence of new middle classes in developing countries.

Portfolio managers Hilary Natoff and Nicky Stafford will invest in 50 to 80 stocks where demographic issues are driving sustainable earnings growth. The managers believe they can deliver strong returns with lower volatility than the broader market through a combination of ‘winners of today’ and ‘winners of tomorrow’.

Winners of today are usually big companies listed in developed markets that are global leaders, having already benefited from demographic trends to build a proven track record of earnings growth and high returns, even in tough economic conditions. Winners of tomorrow are usually leaders in new growth markets, or innovators that bring new products to the market. These companies are often small to medium in size and linked more to the domestic economy rather than global economy. They will tend to have smaller weightings in the fund because their volatility may be higher.

The fund managers will monitor around 1,000 companies, including healthcare and consumer stocks where many companies can benefit from demographic changes. Other sectors include IT, where some companies will benefit from the growth in online shopping; agriculture-related businesses that will help to supply food to a growing populati; aerospace companies which are experiencing rising demand for aircraft engines as more people travel; and emerging markets banks which are seeing demand from a new generation of savers.

Investing on the basis of global demographics may appeal to investors who feel that his type of thematic fund can reap rewards. However, Fidelity has set a high minimum of £1m for the sterling share class while it builds a track record for the fund, so the only affordable share class is denominated in dollars.



Standard Life offers higher annuity rates to its pension customers

Standard Life is offering its own pension customers a higher standard annuity rate. The provider has contacted advisers notifying them of improvements in the standard annuity rates offered to existing Active Money Sipp, Wrap Sipp and Pension Fund Withdrawal Plan customers. The offer is only being made to customers who have been with Standard Life […]

Nest appoints RLAM for active sterling corporate bond mandate

Nest has appointed Royal London Asset Management to provide an actively-managed sterling corporate bond mandate. Nest says the mandate will be one of the “underlying building blocks” for the scheme’s ‘retirement date’ funds and ‘pre-retirement’ fund. The retirement date funds invest members’ savings based on their state pension age. The pre-retirement fund is designed for […]

BoE: Inflation to rise higher than projections

Inflation is likely to exceed projections made in the Bank of England’s most recent inflation report, the latest minutes from the Monetary Policy Committee has revealed. The fall in consumer price index inflation to 3.4 per cent in February had been welcomed by the MPC, but was less than expected. The Monetary Policy Committee believes […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm