Fidelity to merge away £443m MoneyBuilder Global

Fidelity to merge away £443m MoneyBuilder Global

Fidelity has proposed to merge its £443m MoneyBuilder Global fund into one of the multi-asset vehicles recently handed to Bill McQuaker (pictured), citing the advantage of the latter's unfettered approach.

Under plans which go to a unitholder vote next month, MoneyBuilder Global could be merged into the £218m Open World vehicle.

While the two funds are both part of Fidelity's multi-asset range and carry the same risk profile, the asset manager cited the advantages of Open World's unfettered approach to buying funds. The MoneyBuilder Global vehicle invests in other Fidelity funds.

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"Fidelity Open World is able to invest in funds managed by other companies, not just Fidelity's own," said head of client services Debbie Wates in a note to investors.

"This gives the fund manager access to a broader range of investment expertise. In addition, Fidelity Open World has an ongoing fund charge of 1.75 per cent, compared with 2.14 per cent for Fidelity MoneyBuilder Global."

The proposal, which would come into effect in April if approved, comes after Fidelity handed its five-strong Multi Asset Open range to Mr McQuaker, who joined the company in October after leaving Henderson.

Fidelity is also to revise the investment objectives on the funds in March to show "specific return targets and provide enhanced clarity on the underlying investments". The changes will not affect the funds' risk profiles, the firm said.

Last year, Newton similarly attempted to move its fettered multi-asset income vehicle into its significantly smaller direct investing fund, citing dwindling demand for the fettered approach. However, the move was rejected by unitholders.