Fidelity International (“Fidelity”), a global asset manager and retirement savings business, today announces the upcoming launch of the Fidelity WealthBuilder Model Portfolio Service (MPS) – a new range of globally diversified model portfolios designed to give advisers greater flexibility in meeting evolving client needs.
Fidelity WealthBuilder MPS is built around three complementary portfolio ranges, enabling advisers to align investment style, cost and outcome expectations to individual clients. Each range contains seven carefully modelled portfolios with clearly defined risk and return parameters. All portfolios are independently rated by Defaqto, Dynamic Planner, FinaMetrica, Mabel Insights and Synaptic.
- The Active range: Designed for clients seeking enhanced returns through high-conviction active management. The strategies aim to generate alpha through a research-intensive approach that identifies skilful, proven managers and dynamically constructs portfolios to capture opportunities across asset classes.
- The Blended range: For clients prioritising balance and consistency, the Blended range combines active and passive strategies to deliver global diversification across market cycles. Seven risk-rated portfolios delivering global diversification with the best of active and passive strategies built to deliver cost-effective, consistent results through changing markets.
- The Passive Plus range: Built for cost-conscious clients seeking efficient market exposure, the Passive Plus range actively selects low-cost passive strategies from leading managers. The seven portfolios incorporate factor exposures such as value, quality and momentum, offering cost-efficient alpha with tactical flexibility to optimise global diversification and risk-adjusted returns.
Portfolio managers, Caroline Shaw and Chris Forgan, can draw on the power and expertise of a global research network to apply investment ideas and to support their asset allocation decisions within a disciplined, risk-aware framework. The portfolio managers will be supported by an experienced multi asset team made up of over 100 professionals including research analysts with 30+ years’ experience of providing multi asset solutions and assets under management and administration of $86 billion (USD) globally1
Designed for flexibility, access and pricing efficiency
Available from mid-April, Fidelity WealthBuilder MPS will be delivered through an open architecture structure, supported by ten, exclusive ‘managed funds’ that serve as core holdings across the portfolios. The managed fund structure provides:
- Improved access – portfolio managers have a broad toolkit to access equities, fixed income and alternative assets via mutual funds, ETFs, direct securities and exchange-traded commodities (ETCs), alongside index futures and options. The portfolios can incorporate both Fidelity and third-party strategies across UK, European, US, Japanese, emerging market and global equities, global bonds and specialist alternatives.
- Increased flexibility – access to an array of assets and investment wrappers allows the portfolio managers to make active portfolio and asset allocation decisions at any point, including intra-day trading, as opposed to fixed or quarterly rebalancing opportunities, providing dynamic and nimble asset allocation for clients
- Competitive pricing – The managed fund framework supports highly competitive fees, with underlying ongoing charges figures (OCFs) ranging from 0.10% to 0.55% and a Discretionary Fund Management fee between 0.10% and 0.15%.
From mid-April, advisers will be able to access Fidelity WealthBuilder MPS across a range of distribution platforms including Fidelity Adviser Solutions, Quilter, Aberdeen, Aviva and Transact, among others.
Dennis Pellerito, Head of Wholesale, Fidelity International, comments: “We are pleased to launch Fidelity WealthBuilder MPS as part of our commitment to delivering the best of Fidelity in the format advisers and clients increasingly prefer. Model portfolio services represent a structural evolution in UK wealth management, and clients are demanding access to institutional-quality investment expertise through scalable, risk-rated solutions.”
Graham Folley, Head of Model Portfolio Service and Intermediary Solutions at Fidelity International, said: “Fidelity WealthBuilder MPS has been designed with one objective in mind: helping advisers deliver better outcomes for their clients.
“The managed fund structure truly differentiates this proposition. It gives our portfolio managers broader access to asset classes, investment vehicles and specialist strategies, allowing them to construct portfolios with greater precision and flexibility.
“For advisers and their clients, this means access to a wider opportunity set, dynamic asset allocation and competitive pricing, all within a robust, risk-rated framework designed to support long-term financial outcomes.”
