Fidelity is merging the Fidelity Wealthbuilder fund with the Fidelity Open World fund
Funds and products affected by this merger are:
Sterling Fidelity WealthBuilder
Sterling Fidelity WealthBuilder
Sterling ISA and Sterling Investment Account:
Fidelity Wealthbuilder Y Acc
Zurich Fidelity Managed EP*
Zurich Fidelity Managed 1% AP*
Zurich Fidelity Managed 2000 AP*
Zurich Fidelity WealthBuilder ZP
Zurich Investment Bond:
Zurich Fidelity Managed AL*
Zurich Fidelity Managed 2001 AL*
*These funds invest in the Fidelity Wealthbuilder fund
Zurich Intermediary Platform:
Fidelity Wealthbuilder Acc GBP FI62 GB00B8FDN994
Fidelity WealthBuilder N Acc GBP Clean JJFR GB00BC7GXH28
Fidelity Wealthbuilder Y Acc GBP Clean ID0W GB00B8HWDF03
How will my clients be affected?
The Sterling and Zurich funds (both Managed and Wealthbuilder) all invest in the Fidelity Wealthbuilder fund. On 22 February, we’ll replace the Fidelity Wealthbuilder fund with the Fidelity Open World fund.
The Fidelity Managed funds will continue to be called Fidelity Managed. The Sterling and Zurich Fidelity Wealthbuilder funds will change their name to:
Sterling Fidelity Open World
Sterling Fidelity Open World 2
Zurich Fidelity Open World ZP
If you have clients invested in the fund in a Sterling ISA or Investment Account then we’ll add Fidelity Open World N Acc to our fund range and merge the two funds on 22 February. We’ll also move any regular withdrawals or direct debits to the receiving fund.
If you have clients invested in the fund on the Zurich Intermediary Platform then we’ll merge the funds on 22 February but you will need to reallocate any regular payments and update any model portfolios.
How do the two funds compare?
Fidelity has advised us that both funds are managed using a similar approach and share many investments in common. Merging them will achieve efficiencies of scale that can be passed on in the form of lower ongoing charges.
Please note that following the merger, your clients’ fund charges will reduce by 0.25%.
Fidelity Wealthbuilder Objective & Investment Policy
The fund aims to provide long-term capital growth through global exposure to higher risk assets (e.g. shares). The fund provides global exposure to a diversified range of assets by primarily investing in funds. The fund typically invests more than 70% in sub-funds of an Irish UCITS fund (Fidelity Common Contractual Fund II) operated by Fidelity which subsequently utilise the experience and specialisms of a number of investment managers (which may include Fidelity) to manage the underlying assets. It may also invest directly in transferable securities (which includes company shares and bonds), money market instruments, cash and deposits.
The fund can invest in bonds issued by governments, companies and other bodies and can use derivatives with the aim of risk or cost reduction or to generate additional capital or income in line with the fund's risk profile. May also make extensive use of derivatives including more complex instruments or strategies to achieve the investment objective and these may result in leverage.
Fidelity Open World Objective & Investment Policy
The fund aims to provide an average annual return of 7% after deduction of ongoing fund charges over a typical market cycle of 5-7 years. The return target assumes the deduction of the ongoing charges figure (OCF) on the Y share class. There is no guarantee that this return will be achieved by the fund. The fund typically has a large exposure to equities meaning that it is likely to experience short-term price fluctuations in line with these markets. The fund invests in a range of global assets providing exposure to global markets mainly in equities. It provides global exposure to a diversified range of assets by primarily investing in funds.
The fund typically invests more than 70% in sub-funds of an Irish UCITS fund (Fidelity Common Contractual Fund II) operated by Fidelity which subsequently utilise the experience and specialisms of a number of investment managers (which may include Fidelity) to manage the underlying assets. The fund can also invest directly into transferable securities, money market instruments, cash and deposits, and is also able to use derivatives for efficient portfolio management and investment purposes.