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Fidelity Multi Asset Strategic is merging with Fidelity Multi Asset Open Strategic

18 February 2019

Fidelity is merging the Fidelity Multi Asset Strategic fund with the Fidelity Multi Asset Open Strategic fund

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Fidelity is merging the Fidelity Multi Asset Strategic fund with the Fidelity Multi Asset Open Strategic fund

Funds and products affected by this merger are:

Sterling Bond:

Sterling Fidelity Multi Asset Strategic
Sterling Fidelity Multi Asset Strategic 2

Sterling ISA and Sterling Investment Account:

Fidelity Multi Asset Strategic Y Acc

Zurich Pension:

Zurich Fidelity Multi Asset Strategic ZP

How will my clients be affected?

We have the Fidelity Multi Asset Open Strategic fund available in our fund range so we will merge the funds as follows on 22 February:

 Sterling Fidelity Multi Asset Strategic  Sterling Fidelity Multi Asset Open Strategic
 Sterling Fidelity Multi Asset Strategic 2  Sterling Fidelity Multi Asset Open Strategic 2
 Zurich Fidelity Multi Asset Strategic ZP  Zurich Fidelity Multi Asset Open Strategic ZP
 Fidelity Multi Asset Strategic Y Acc*  Fidelity Multi Asset Open Strategic Y Inc*

 

*Please note that we’ll switch your client from the accumulation share class of the Fidelity Multi Asset Strategic fund into the income share class of the Fidelity Multi Asset Open Strategic fund as this is the share class we have available in our fund range. We’ll ensure that all income received is reinvested into the fund.

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.

Fidelity Multi Asset Strategic Objective & Investment Policy

The Fund aims to provide long term capital growth through global exposure to a balance of lower and higher risk assets.

The Fund provides global exposure to a diversified range of assets by primarily investing in funds. The Fund typically invests more than 65% 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 other collective investment schemes (including schemes operated by Fidelity), transferable securities, money market instruments, cash and deposits, and is also able to use derivatives for efficient portfolio management and investment purposes.

Asset allocation exposure of the Fund will be actively managed and typical allocation will be as follows: 50% lower risk assets (such as debt instruments e.g. bonds and cash) and 50% higher risk assets (including equities, commodities and property securities). However, the Fund’s allocation between lower risk and higher risk assets can be tactically adjusted within the following range in order to preserve capital or take advantage of market opportunities: in all market conditions, 30-70% lower risk assets and 30-70% higher risk assets.

Fidelity Multi Asset Open Strategic Objective & Investment Policy

This Fund targets an average annual return of 5% after the 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 the target will be achieved by the Fund. The Fund typically has exposure to both higher and lower risk investments meaning that there is a moderate risk of capital losses and an investor may not get back the full amount invested.

The Fund provides global exposure to a diversified range of assets by primarily investing in funds. The Fund typically invests more than 65% 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 other collective investment schemes (including schemes operated by Fidelity), transferable securities, money market instruments, cash and deposits, and is also able to use derivatives for efficient portfolio management and investment purposes.

Asset allocation exposure of the Fund will be actively managed subject to it remaining within the following parameters in all market conditions: 20-60% equity, 5-80% debt instruments (which may include high yield and emerging market debt), 0-30% cash and 0-30% alternatives (such as infrastructure securities and Real Estate Investment Trusts).

Example of letter for customer invested in Fidelity Multi Asset Strategic Y Acc
Example of letter for customer invested in Sterling Fidelity Multi Asset Strategic