Fidelity is overhauling its Retirement Income fund to offer a dividend yield of between 4% and 6%, while changing its name to the Multi Asset Income fund.
Philalithis already forms part of Fidelity's multi-manager division.
Together the duo will aim to deliver an increased income of up to 6% a year, with low capital volatility and an element of capital protection.
The vehicle will remain a fund of funds and will be classified as an interest fund, holding a minimum of 60% of interest bearing instruments.
Fidelity said the fund can invest in a range of assets, including corporate bonds, equities, infrastructure equities, physical property, European high yield debt and real estate investment trusts (reits).
It will sit in the newly launched Investment Management Association (IMA) 0%-35% sector. It has an annual management charge of 1.25% and the standard initial charge is 3.5%.