Omnis Boosts UK Smaller Companies Fund with Fidelity International

Omnis Boosts UK Smaller Companies Fund with Fidelity International

Omnis Investments Limited (Omnis), the investment arm of The Openwork Partnership, which has more than £10 billion of assets under management, has appointed Fidelity International as an additional manager to its UK Smaller Companies fund.

The appointment to run the £198.2* million fund in conjunction with existing manager Franklin Templeton takes effect from June 7th.

Fidelity International’s appointment follows a careful and considered selection process and is part of Omnis’s focus on the continued development of the fund which has returned 33.5% in the past three years against its benchmark of 18.1%, as at the end of May 2022 (Source: FE fundinfo).

Fidelity brings a successful track record in UK smaller companies investing with more than 14 years of experience as well as being one of the few UK smaller companies’ managers with a dedicated analyst team covering the market.

That resource enables it to unearth ideas across an eclectic universe of companies which includes highly liquid UK smaller companies. Its different investment style of looking for unloved companies going through positive change is complementary to Franklin Templeton’s focus on companies with good-quality fundamentals which are looking to grow.

Appointing a second manager on a fund benefits advisers and their clients by enhancing diversification enabling complementary investment strategies to be implemented while also addressing longer-term potential capacity constraints and liquidity.

Robert Jeffree, Chief Investment Officer of Omnis, said: “Fidelity International’s strong track record and expertise in UK smaller companies and differentiated investment style will complement Franklin Templeton making the appointment of a second manager the logical step in the development of our fund.

“We are excited to be working with a new investment manager and are confident the appointment will deliver value for advisers and their clients invested in the Omnis UK Smaller Companies Fund.”

Jonathan Winton, Portfolio Manager - UK Smaller Companies, Fidelity International said: “We are pleased to partner with Omnis to manage a sleeve of their UK Smaller Companies Fund. At Fidelity, we have been managing UK equity portfolios since 1979, and a dedicated UK Smaller Companies strategy since 2008. We have always found exciting investment opportunities at the smaller end of the market cap spectrum, which is an under researched part of the market where our in-house analyst team can add considerable value. Our focus has been investing in companies that are temporarily out of favour but where we see the potential for positive change.”

* as at end May 2022.