Fidelity's latest hire Roberts targets 4% yield with Global launch

Fidelity's Dan Roberts is aiming to deliver a yield of 4% with his new Global Dividend fund with a focus on developed markets and reducing concentration risk.

Roberts, the former Gartmore equity income manager who joined the group late last year, is aiming to deliver the yield through a portfolio of 50 stocks.

The OEIC, which launches next week, is looking to provide investors with an alternative to the vast range of UK equity income portfolios, using its global mandate to provide investors with a broader spread of stocks and sectors, and cut down on the concentration risk which was so apparent in the UK income space after the BP debacle.

At launch, Roberts expects the fund to have just 23% in the UK, with a further 40% in the US and 20% in Europe (ex UK).

He well also have about 11% in Japan, with many stocks from Asia and the broader emerging markets screened out by the yield criteria.

Roberts said: "The big advantage of the global approach is construction. A lot of UK fund managers use their overseas allocation as the opportunity to add value through stock selection in the UK is limited, but running a global fund means you can also manage stock specific risks more easily."

The fund is focusing on areas such as telecoms, healthcare, ITs and energy at launch, with only 12% in financials.

Roberts expects to hold two banks at launch, as well as a mix of other financials including asset managers.

The fund is expected to be significantly underweight materials companies compared to the benchmark MSCI All Countries World index, with no miners in the portfolio at launch.

Roberts said: "Margins in miners look unsustainable. I can understand the attractions but for me, with valuations as my anchor, I cannot see the opportunity there."