Fidelity International has launched a UK-domiciled version of the Fidelity Absolute Return Global Equity fund for investors and advisers seeking alternative sources of return and greater diversification.
The new fund is an Oeic that mirrors the Luxembourg-domiciled Fidelity Absolute Return Global Equity Sicav, which launched in 2020 and has more than $1.6bn in assets.
Since launch, Fidelity Absolute Return Global Equity has made a 37.7% total return, compared with 20.8% from its average peer in the offshore FO Absolute return sector.
Performance of Fidelity Absolute Return Global Equity vs sector since launch
Source: FE Analytics. Total return in sterling between 25 Sep 2020 and 28 Sep 2026
Fidelity said the new fund allows easier access to the strategy through domestic investment platforms, familiar tax treatment and regulatory alignment.
Like the Sicav, the UK-domiciled fund will be co-managed by Matt Jones, Hiten Savani and Daniel Swift, with support from Fidelity’s global research platform, and invest in long and short positions across regions, sectors and market capitalisations.
Fidelity said the launch comes at a time of heightened market uncertainty, elevated valuations and increased concentration across global equity markets.
Dennis Pellerito, head of UK & 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.”