Fidelity International unveils US small-cap fund

Fidelity International has launched a US smaller companies fund to offer investors access to less concentrated areas of the US market.

The Fidelity Funds 2 – US Smaller Companies fund is sub-managed by Fidelity Investments, a separate US-based company, while Fidelity International is the management company of the fund.

Fidelity Investments’ portfolio manager Forrest St. Clair will run the fund with the support of Fidelity Investments’ research team.

The fund will focus on US small cap stocks with superior growth potential and financial characteristics selling at modest prices and provides diversification from concentrated parts of the market, such as large-cap tech.

By employing a risk-managed strategy, the fund aims to capture gains when small caps perform well while adhering to valuation discipline to mitigate losses during downturns.

The fund aims to achieve capital growth over the long term, investing at least 70% of its assets in equities of small companies that are listed, headquartered, or do most of their business in the US.

The UCITs fund is available to clients of Fidelity International through a Luxembourg SICAV.

Dennis Pellerito, head of wholesale, UK, at Fidelity International, said: “This new fund provides a differentiated avenue to access the US market through a complementary approach to large cap investments, potentially enhancing risk-adjusted returns within client portfolios.”