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Fidelity multi-asset charges to fall after mega-merger

Fees across the fund giant's five-strong £884 million Open range will fall once it absorb the firm's £2 billion multi-asset range

Fidelity multi-asset charges to fall after mega-merger

Charges across Fidelity's multi-asset range are to fall following a merger of two fund ranges managing £2.8 billion worth of assets.

The £1.95 billion Fidelity Multi-Asset range will merge into the £884 million Fidelity Open range.

The merger, scheduled to complete in March, will result in fees falling in all five funds in the Open range (see table below) thanks to efficiency improvements through the tie-up.  

Bill McQuaker (pictured top), who joined the firm from Henderson in 2016 and leads the Open range, will run the merged suite.  

Nick Peters, who manages the Multi-Asset fund range, will remain at the company and focus on his other responsbilities. 

'Nick will focus on his Global Multi Asset Tactical funds as well as other institutional mandates,' a spokesperson for the firm said.

Fidelity said that due to the overlapping investment objectives and risk-return profiles of the two ranges, the merger made sense. 

The new Multi Asset Open range comprises five risk-profiled funds aiming to provide specific risk and return characteristics while being flexible about asset allocation.

The moves comes after Fidelity moved to a manager of manager structure last year.  

James Bateman (pictured above), chief investment officer of Fidelity's multi-asset arm, highlighted the rationale for the merger. 

'Our move to a manager of manager structure last year was a major milestone for Fidelity’s Multi Asset business,' Bateman said. 

'It has enabled lower-cost access to a broader range of third-party managers, giving our portfolio managers an enhanced toolkit to deliver the right outcomes for clients.' 

He added: 'We remain focused on extracting value for our clients at every stage of the investment process, and we’re excited to be able to offer retail investors the power of Fidelity’s global institutional infrastructure to help achieve their objectives.' 

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Nick Peters
Nick Peters Average Total Return:
349/480 in Equity - Global (Performance over 3 years)
Bill McQuaker
Bill McQuaker Average Total Return:
269/480 in Equity - Global (Performance over 3 years)

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