Fidelity International has today announced regulatory approval from the FCA to launch a Long-Term Asset Fund (LTAF), the Fidelity Diversified Private Assets LTAF.
According to Fidelity, the Fidelity Diversified Private Assets LTAF aims to provide globally 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. The LTAF seeks to provide diversified private assets exposure for investors in a single building block and may serve as a complement to a traditional public assets portfolio. The strategy focuses on high-quality private asset funds globally, while considering environment, social & governance sustainability risks in the investment process, and implementing Fidelity International’s firmwide exclusions list.
Fidelity International says that it has developed a solution for clients seeking greater access to private assets within an open-ended structure for defined contribution (DC) schemes aiming to enhance retirement outcomes for members. More broadly, the LTAF may be an attractive investment for an extensive range of eligible professional investors with longer-term investment horizons.
The fund aims to facilitate access to high-quality private assets using a transparent and open architecture approach to deliver value for clients and support Fidelity International’s commitment to offer market-leading investment capabilities.
Henk-Jan Rikkerink, Global Head of Solutions and Multi Asset, Fidelity International commented: “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.
“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.”
