Fidelity International has launched a UK-domiciled version of its Absolute Return Global Equity Fund, giving UK investors and advisers access to a market-neutral equity strategy through a domestic OEIC structure.
The new fund is based on Fidelity’s Luxembourg-domiciled equivalent, which was launched in 2020 and has grown to more than $1.6bn in assets.
The launch comes at a time when some investors are looking beyond traditional equity and bond allocations in response to ongoing market uncertainty, elevated valuations and increased concentration within global equity markets.
Unlike conventional equity funds, absolute return strategies aim to generate positive returns regardless of broader market direction.
Market-neutral approaches typically seek to reduce exposure to overall market movements by combining long positions in companies expected to perform well with short positions in those expected to underperform.
As a result, these strategies are often used as a source of diversification within wider portfolios, with returns intended to be less dependent on the direction of equity markets.
The Fidelity Absolute Return Global Equity Fund will be managed by Matt Jones, Hiten Savani and Daniel Swift.
The managers will draw on Fidelity’s global research resources to identify long and short opportunities across different regions, sectors and market capitalisations.
Commenting on the role of the strategy, 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.”
The launch also highlights continued interest in liquid alternative strategies as advisers and investment committees seek additional sources of return that are not closely correlated with traditional asset classes.
Pellerito added: “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.”
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