Alternative Investments: Fidelity Diversifying Solutions To Meet Investors’ Need For Portfolio Diversification

June 22, 2022 | Alternative Investments, News
https://dailyalts.com/wp-content/uploads/2022/06/fidelity-office.jpg

Fidelity Diversifying Solutions was launched in October 2021.

Fidelity Diversifying Solutions was launched to address the growing demand from investors for alternative products that offered diversification and better performance compared to the fast-diminishing returns from traditional [60:40] products such as bonds and stocks. (Pensions&Investments)

Led by president Vadim Zlotnikov, the unit has already received SEC approval and registration for two mutual funds — Fidelity Global Macro Opportunities Fund and Fidelity Risk Parity Fund.

In an interview, Zlotnikov said there was robust demand for alternatives from institutional, retail and adviser client segments, given the pressing need for higher returns at lower risk.

In a report last month, KKR, the $475 billion alternative-asset manager, said: “Without question, the 2010s were a golden decade for the ‘60/40′ investor. In particular, the stars were perfectly aligned for the ‘60/40′ allocation to perform strongly after the Great Financial Crisis of 2008. Stocks rose and rates fell; thus bond prices rose and the stock-bond correlation was muted. However, we believe each of these premises will be at risk in the next decade and are now beginning to turn.”

“We’ve heard from our clients that they are looking to diversify,” beyond traditional stocks and bonds, Zlotnikov had said when the unit was launched. “We’ve explored these areas in the past, but today and going forward we have a strategic commitment to building a world-class alternative franchise.”

Related Story: Fidelity Starts New Unit Offering Liquid Alternatives

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2023/05/webimage-5e3ef5d0-aee9-4a3e-9d3e-c26109b53529.png
FinTech: Klarna’s All-In Efforts To Achieve Profitability Getting Traction
May 26, 2023     FinTech, News

Swedish fintech company Klarna achieved a significant improvement in its financial performance during the first quarter, as it halved its net loss compared to the same period last year. The…

https://dailyalts.com/wp-content/uploads/2023/05/ai-generated-g831120c83_640.jpg
Alternative Investments/AI: Euclidean Technologies Launches ETF For AI-Selected Value Stocks

Seattle-based investment advisor Euclidean Technologies Management has launched its first exchange-traded fund (ETF), the Euclidean Fundamental Value ETF (ECML US). The actively managed US equity fund utilizes artificial intelligence (AI)…

https://dailyalts.com/wp-content/uploads/2023/05/aditya-siva-6rDbvXzIVpQ-unsplash.jpg
Venture Capital: Matrix Partners Raises $550M For Its Fourth India Fund
May 26, 2023     News, Venture Capital

Matrix Partners India, a venture capital firm focused on investments in India, has announced the closure of its latest fund, securing over $550 million in commitments. This new fund from…

https://dailyalts.com/wp-content/uploads/2023/05/52747633301_b52ecbc442_c.jpg
Artificial Intelligence: AI Helps Researchers Find A Compound To Kill The Drug-Resistant A. baumannii Bacterium

Scientists at MIT and McMaster University have used artificial intelligence (AI) to identify a new antibiotic that can combat drug-resistant infections caused by Acinetobacter baumannii. The bacterium is commonly found…