Fidelity International has been given the green light by the Financial Conduct Authority to launch its first long-term asset fund.
The Fidelity Diversified Private Assets LTAF will provide diversified private markets exposure across private equity, private credit, infrastructure, real estate and natural resources, as well as exposure to public assets for liquidity purposes.
Henk-Jan Rikkerink, global head of solutions and multi asset at Fidelity International, said: “A number of clients are already asking to include private assets in their solutions and we only expect this to grow over the coming years. In a world of challenged returns and reduced diversification from more traditional asset classes, clients are looking for a wider range of options to meet their long-term investment objectives.”
Fidelity said its strategy focuses on high-quality private asset funds globally, while considering environmental, social and governance sustainability risks in the investment process and implementing Fidelity’s exclusion list.
While the new fund is aimed at clients looking for greater access to private assets within an open-ended structure for defined contribution schemes aiming to enhance retirement outcomes for members, Fidelity said it may also be an attractive investment for investors with longer-term investment horizons.
Rikkerink added: “Our LTAF will aim to provide DC pension schemes with diversified exposure to private assets in a single, convenient vehicle. We believe that investing in private assets broadens the investment opportunity set and will improve the risk-adjusted returns and diversification characteristics of a portfolio over the long term.”
Main image: harli-marten-n7a2OJDSZns-unsplash
