Asset management group Fidelity has handed the Fidelity Funds – Euro Stoxx 50 fund to US-based Geode Capital Management to capitalise on the firm’s expertise in indexing.
The move will mean the Boston-based group, which oversees $240 billion in assets, will take over responsibility for the Luxembourg-domiciled fund from 3 January.
In a notice to shareholders, Fidelity said the move was being undertaken to aid the depth and coverage of the fund and also leverage Geode’s specialist investment approach.
‘We believe the depth of Geode’s index investment experience, combined with a disciplined investment process, sophisticated technology and a robust infrastructure, make it a suitable sub-investment manager for the fund,’ it said.
Fidelity stressed there would be no change in the investment objective, risk profile or fees following the handover.
The Fidelity Funds – Euro Stoxx 50 returned 7.85% in euro terms over the three years to the end of November 2016. This is compared with a 7.25% rise by its Citywire-assigned benchmark the EURO STOXX 50 NR EUR, over the same period.