Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Fidelity plans to double MoneyBuilder tracker range

Fidelity plans to double MoneyBuilder tracker range

Three new index trackers in Fidelity’s MoneyBuilder suite will be launched in the months ahead, the group has confirmed, as it seeks to plug holes in its product range.

Fidelity already offers MoneyBuilder trackers that follow UK, US, European and world equities. To this it will add index funds focused on emerging markets and Asia including and excluding Japan.

Hugh Mullan, Fidelity’s UK managing director, told Wealth Manager that the three funds would be available ‘early next year’. Fidelity has yet to determine their pricing; the existing UK, US and world funds charge 0.1%, and the European one 0.6%.

Mullan (pictured) acknowledged that Fidelity has not traditionally been known as a passive provider, but said that did not mean the house was fundamentally opposed to trackers.

‘Fidelity is a pragmatic organisation,’ said Mullan. ‘Our platform should offer the products that customers want. If you don’t offer a component of what your customers want, you will drive them to competitors.’

However, Mullan stated that Fidelity had no plans to begin manufacturing exchange-traded funds.

Elsewhere in the Fidelity portfolio, Mullan disclosed that he would be looking to roll out more enhanced income funds, which use covered calls to boost dividends. For Mullan, this reflected the shift among older investors from accumulation to decumulation. ‘We’re going to become a retirement business,’ he claimed, noting the success Fidelity’s US arm had enjoyed from building out of its pensions division.

Mullan was more sceptical about the scope for expanding into structured products and absolute-return strategies. He voiced concerns about the former’s lack of transparency, and the unsuitability of the latter for retail investors.

Fidelity does run absolute-return funds for institutional clients, branded as Fidelity Active Strategy (FAST), but Mullan declined to follow other groups’ push into the space. ‘Absolute-return funds work for a while but inevitably they won’t work forever,’ he commented.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Picton: the UK property hotspots for rental income

Picton: the UK property hotspots for rental income

Picton Property Income CEO Michael Morris reveals how he is planning to ride the ‘ripple effect’ as UK economic growth spills out from the capital across the country.

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

This week Brewin Dolphin's head of research talks to Mike Riddell, fund manager at Allianz Global Investors, about the forces driving bonds markets in a tumultuous week for markets.

Play Henderson's Hermon: how to be defensive in smaller caps

Henderson's Hermon: how to be defensive in smaller caps

Hermon, who manages the Henderson Smaller Companies trust, talks about he will tackle a 'challenging' 2016.

Your Business: Cover Star Club

Profile: 'what we are doing at Mosaic is Darwinian'

Profile: 'what we are doing at Mosaic is Darwinian'

The changes in financial services over the last few years may leave some destitute warns Marco Sambucci of Mosaic Money Management

Wealth Manager on Twitter