Fidelity International is planning to build a global multi-manager business based on its existing UK-distributed multi-manager offering. ...

Fidelity International is planning to build a global multi-manager business based on its existing UK-distributed multi-manager offering. The new platform will offer a comprehensive range of investment strategies to both retail and institutional clients according to the company. Fidelity is launching 12 new Luxembourg-listed multi-manager SICAV funds for investors across Europe – three multi-asset portfolios designed to be core holdings and nine single strategy funds for specialist holdings reflecting more specialist objectives. Data shortly to be released by research company Cerulli Associates shows that new sales of multi-manager products have far outstripped sales of conventional funds. Worldwide, net growth in new sales of multi-manager portfolios have grown at 17 per cent per annum over the past five years, compared with 5 per cent per annum for all mutual fund assets, according to Cerulli. “Multi-manager assets are forecast to grow even faster over the next few years, averaging an annual rate of 18 per cent between now and 2009 - three times higher than mutual fund assets overall. Investors and advisors are increasingly appreciating the merits of a multi-manager approach, said Simon Fraser, President of Institutional Business at Fidelity International. The 12 new funds will be offered to investors across most European markets and will be domiciled in Luxembourg. The SICAV range complements the five-strong family of MultiManager OEICs in the UK, including the recently launched Fidelity MultiManager Distribution Fund, a multi-asset product mixing equities, bonds and property securities funds. The SICAV funds fall into two broad categories: Core multi-asset portfolios: the diversified and balanced products give investors exposure to a mix of cash, bonds, equities and other asset classes, while the global high income product invests in income generating assets. Specialist portfolios: these nine funds include a group of high alpha equity products (Global, European, US, Asia, Japan), two sector portfolios (Natural Resources and European Property) and two emerging market portfolios (Global and Europe).