Fidelity Launches Fund For FoFs

Date: Monday, October 27, 2008

Fidelity Investments plans to launch a new underlying fund for its funds of funds lineup in December. The Fidelity Strategic Advisers Value Fund will not be available for sale to the general public, but will instead be offered “exclusively to certain clients of Strategic Advisers,” a Fidelity subsidiary, according to filings with the Securities and Exchange Commission.

“Fidelity has been creating more products of late that make it easier for their funds of funds to invest,” said John Bonnanzio, editor of Fidelity Insight. “When money is erratic, it’s much more difficult to manage,” he explained, saying that by having a captive fund inside of a fund of funds, flows could be directed to help prevent disruptive redemptions or inflows. The fund is subadvised by Cohen & Steers Capital Management, Eaton Vance and Pyramis Global Advisers. John Stone and Kristina Stookey of Strategic Advisors act as lead managers.