Fidelity will launch its first long term asset fund after getting regulatory approval by the Financial Conduct Authority.
The Fidelity Diversified Private Assets LTAF will have exposure to private equity, private credit, infrastructure, real estate and natural resources, as well as to public assets for liquidity purposes.
Henk-Jan Rikkerink, global head of solutions and multi asset at Fidelity International, said: “Today, 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."
LTAFs are designed to make it easier for defined contribution pension investors to access private market investments.
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.”
Platform deal
Today (August 6) Fidelity also announced it had signed a new £29mn agreement with Bravura Solutions to continue to operate its Sonata Platform.
It will allow Fidelity to modify, and develop Sonata to meet the evolving needs of its advisers and retail investors.
Stuart Warner, head of global platform solutions at Fidelity said: “Sonata is integral to our platform business. This new agreement will allow us to bring Sonata development in-house and align further technology investment with our strategic objectives, while delivering new solutions.
“We selected Sonata in 2013 and continue to enjoy a productive and collaborative relationship with Bravura, which has allowed us to improve our adviser and client experience and support the advice process. We look forward to continuing to work in close partnership as our relationship with Bravura evolves.”
As part of the deal, a small number of Bravura’s team who are already supporting Fidelity in India and the UK will transfer to Fidelity in the next year.
Bravura is expected to continue to provide technical and operational expertise to Fidelity as it maintains and develops Sonata to meet its future needs.
tara.o'connor@ft.com
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