Fidelity is to overhaul its £423m Global Focus fund in a bid to build a more concentrated portfolio with a greater skew to mid-cap stocks.
The investment objective on the fund, run by Amit Lodha, will change on June 30 to reduce the portfolio's potential number of holdings from between 80 and 120 to a range of 40 to 60.
The vehicle's investment focus will also shift, from large to mid caps.
In a communication to investors, Fidelity's head of client services Debbie Wates said: "Having fewer investments in the portfolio will enable the fund manager, Amit Lodha, to be more focused in his choice of companies, and to concentrate the fund’s assets on those investments in which he has the highest levels of conviction.
"At the same time, the bias towards medium-sized companies will give him a greater range of stocks to choose from."
The move comes at a time when concentrated approaches may appear more attractive for fund firms, with active managers under pressure to provide alpha and differentiate themselves from lower-cost passives.
Ms Wates added that the overall aim of the changes was to "increase the potential for investors to benefit from [the manager's] strongest investment ideas".
"This will be possible because when there are fewer investments in the portfolio, changes in the prices of individual stocks, whether they are positive or negative, are likely to have a greater effect on the performance of the fund as a whole," she said.
According to FE Analytics the fund has performed well versus its peer group, returning 61.7 per cent over three years against the IA Global sector's average of 44.6 per cent.
Fidelity said the fund's risk profile would not change as a result of the shift and that a re-alignment towards mid-cap stocks would occur over the coming months.
