Fidelity shifts from buying third-party funds to segregated mandates on multi-asset range

More cost effective

James Bateman, Fidelity's chief investment officer for multi-asset, has said the firm is moving its multi-asset funds from investing in third-party funds to segregated mandates in order to cut costs and gain access to a wider investment universe.

The manager, who joined Fidelity's multi-asset team in 2012 from Barclays Wealth, said the group has already begun making the switch away from third-party funds.  "We are in the process and intend to move to segregated mandates in the second quarter of next year instead of buying third-party funds," he said.  "This means we will be able to have our own pool of assets which are managed to our own specifications. The cost of segregated mandates is less than pooled funds so this is more cost-effective and means the cost to the end client is lower. "It also delivers better risk-adjuste...