Fidelity International has launched an OEIC version of its Fidelity Absolute Return Global Equity SICAV.
The UK-domiciled vehicle, which can invest in long and short positions across regions, sectors and market caps, has been launched owing to an increase in demand for portfolio diversification and alternative sources of returns, according to Fidelity.
Co-managed by Matt Jones, Hiten Savani and Daniel Swift, the fund will adopt the same approach as its Luxembourg-domiciled equivalent. The SICAV, which was launched in 2020, currently has more than $1.6bn in assets.
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According to data from FE fundinfo, it has returned 37.7% since launch and has done so with a maximum drawdown – which measures the most money an investor would have lost had they bought and sold at the worst possible times – of 6.2%. Its benchmark – the FRB of New York Secured Overnight Financial Rate – has gained 15.4% over the same time frame with a maximum drawdown of 14%.
Commenting on the launch, Dennis Pellerito, head of UK and Ireland asset management client group at Fidelity International, said: “Market neutral funds represent a powerful diversifier within investment portfolios, particularly for clients seeking to mitigate overall volatility, enhance risk-adjusted returns, and build resilience across market cycles.
“This launch, in response to client demand, marks an important addition to our investment range, making a well-established strategy more accessible to UK investors.
“By combining the expertise of an experienced portfolio management team with Fidelity’s global research platform, the fund is designed to help investors navigate market volatility by seeking consistent, uncorrelated returns across market cycles.”
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