Fidelity launches Equity Growth Defender fund

Fidelity International is launching a new UK equity fund which aims to never fall more than 20% from its highest ever NAV.

The Fidelity Equity Growth Defender fund, to be unveiled on 13 September, uses a combination of equities and cash to actively protect capital and provide smoother returns for investors over the cycle. When the fund price moves up, the equity exposure is increased, while it is reduced in falling markets. The allocations are reviewed daily. Fidelity says it has put the product through rigorous stress testing and believes the systematic allocation ensures the fund's price should never fall below 80% of its highest ever price. It has been running with seed money since October 2009, and...