Change to investment policy of Fidelity Multi-Asset Open Strategic Fund
We have received notification from Fidelity International ("Fidelity") of an upcoming change to the investment policy of the Fidelity Multi Asset Open Strategic Fund (the “Fund”). These changes will take effect from 29 March 2023 (the “Effective Date").
AVAILABLE IN OUR DEFINED FUND RANGE PRODUCTS
The Fund can be found in our defined fund range products Oracle, Paragon, Quantum, RSP (including Malaysia variants), LifePlan, and Protected Lifestyle.
SUMMARY OF CHANGES
Currently, the portfolio manager of the Fund must invest more than 65% of the Fund within an Irish UCITS fund - the Fidelity Common Contractual Fund II (CCF II). As of 29 March 2023, the portfolio manager will be removing this minimum threshold to enable them to utilise a more diverse range of underlying investments. Fidelity believe this added flexibility will enable them to deliver enhanced outcomes for investors across a range of market conditions.
The CCF II will remain an important component of the Fund, but the portfolio manager will be able to complement existing exposure with other actively managed and index tracking funds managed by Fidelity and other third parties.
The transition to more diverse portfolios is expected to take 24-36 months to complete in the most efficient manner. Fidelity expect over time these changes to provide greater value for investors, with the long-term aim of passing on cost savings through lower ongoing charges. Fidelity have stated that there will be no change to the investment approach and the outcome of the Fund will remain the same. There is also no anticipated change to the risk profile of the Fund.
There will be some transitional costs incurred as a result of making these changes, although they are not expected to exceed 0.17% of the Fund total value. The Fund (and therefore the investors of the Fund) will incur these transitional costs. As noted above, the realignment will be gradual and integrated into the trading activity for the Fund.
Please refer to the Fidelity Notification opposite for full details of the revised investment policy of the Fund.
AVAILABLE IN OUR OPEN-ARCHITECTURE PRODUCTS
The Fund features in our open-architecture products and will be subject to changes detailed in the Fidelity Notification opposite.
For more information regarding Fidelity International funds visit www.fidelity.co.uk