Fund manager Fidelity has launched the Fidelity Global Future Leaders Fund, a new investment vehicle focusing on developed market small and mid-cap equities identified by the company as become future global frontrunners.

Fidelity says these stocks are often in the early stages of growth underpinned by a “structural shift, technology-led disruption or changing consumer behaviour. “

Portfolio managers James Abela and Maroun Younes will aim to build a diversified portfolio providing more consistent returns through different market cycles.

The portfolio will hold 40-70 listed global small to mid-caps that are a blend of ‘quality’ (c. 40%), ‘value’ (c. 30%), ‘transition’ (c. 20%) and ‘momentum’ (c. 10%) companies.

A minimum of 50% of the fund’s assets will be invested in securities with ‘sustainable’ characteristics.

The fund has an Oeic structure with ongoing charges of 0.9%. Its base currency is US$.

James Abela, portfolio manager, Fidelity, 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.”