Fidelity International has launched a new fund focused on up and coming companies identified as 'future leaders'.
The Fidelity Global Future Leaders fund will be managed by James Abela and Maroun Younes and will give investors access to developed market small and mid-cap equities.
Small cap companies are generally worth between $300mn (£242mn) and $3bn (£2.4bn) while mid cap companies are generally worth between $3bn and $40bn (£32.2bn).
Abela said: "There’s so much more to global investing than the mega household names such as Apple and Amazon that everyone is familiar with, and perhaps already own.
"There is a whole world out there and so many diverse opportunities, which are often under-researched. Yet therein lies the opportunity, since the relative lack of research on mid-caps and small-caps increases the likelihood that high-quality businesses with tremendous growth potential are flying under the radar and trading at attractive valuations.”
The portfolio will hold 40-70 listed global small to mid-caps that are a blend of ‘quality’ (40 per cent), ‘value’ (30 per cent), ‘transition’ (20 per cent) and ‘momentum’ (10 per cent) companies.
Fidelity said the stocks are typically in the early stages of growth due to technology disruption or changing consumer behaviour.
The company claims global mid and small-caps have generated higher returns than large-caps over the past 25 years.
Dennis Pellerito, head of UK Wholesale, added: “The global small and mid-cap universe is a wide and diversified opportunity set.
"Research plays a vital role in finding companies in their earlier stages of growth, which is why it’s important to choose a fund manager, like Fidelity, with the global reach to find market inefficiencies and help inform investment decisions. Our new Global Future Leaders Fund provides UK investors the opportunity to invest in global large caps of tomorrow, today.”
tara.o'connor@ft.com
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