Richard Skelt and his team at Fidelity are being given scope to use the full range of investment possibilities under the UK equity income and UK all companies sector rules when managing the new multi-manager equity income and multi-manager special situations funds. This means they will be able to invest up to 20 per cent outside UK equities.In the equity income fund, this extra flexibility might help control volatility, steady returns and provide higher levels of income. In the special situations fund, it might add extra spice by investing in higher-octane markets where returns are less correlated with the UK. Both funds will invest in a minimum of six funds where managers are not afraid to diverge away from the index. The special situations fund is a less than subtle attempt by Fidelity to attract business that might have gone to its own special sits fund run by Anthony Bolton. Interestingly, the multi-manager team has made a conscious decision not to invest in Bolton’s fund. The UK all companies sector offers a range of investment styles. Blending these in the special situations fund is likely to offer the potential to outperform but with the possibility of lowering volatility. The UK equity income sector offers less variety in management styles for the equity income fund so this is where being able to invest in fixed interest and property securities funds will help to diversify risk and maximise opportunity.