Fidelity International launches two new global equity funds

Fidelity International has announced the launch of two new global equity funds, the Fidelity Funds (FF) - Global Smaller Companies Fund and the FF - Global Founders Fund.

The funds aim to provide Fidelity International investors with access to investment approaches developed by Fidelity Investments.

Fidelity International is acting as the management company for the funds, while a subsidiary of Fidelity Investments serves as sub-investment manager and is responsible for the investment strategy and underlying research.

The FF Global Smaller Companies Fund looks to deliver long-term capital growth by focusing on opportunities in the global small-cap universe.

Fidelity International said this area of the market was often less extensively researched and could therefore offer a broad opportunity set for active investors.

The fund, which is managed by Shah Badkoubei, combines qualitative stock selection with quantitative risk management to find opportunities across the global small-cap universe, and typically holds around 125 companies.

Meanwhile, the FF Global Founders Fund aims to provide long-term capital growth by investing in companies where a founder, their family or foundation remain closely involved in leadership or governance.

Fidelity International said the strategy was based on the idea that significant ownership of a business confers a positive impact on both corporate and stock market performance.

The fund is managed by portfolio manager, Thomas Williams, with the portfolio investing in around 40-60 businesses captured in Fidelity Investments’ proprietary global database of founder-led companies.

“Investors are increasingly looking for differentiated ways to access global equity markets, particularly in an environment where market leadership has narrowed and many portfolios are becoming more correlated,” commented Fidelity International head of wholesale, UK, Dennis Pellerito.

“These new funds expand the range of value-add strategies available to our clients, providing unique access to Fidelity Investments’ global research capabilities and distinctive investment approaches to help investors build more resilient portfolios.”

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