Fidelity launches two new stock funds to tap global dividends

BOSTON, Thu May 10, 2012 – Fidelity Investments has tapped one of its up-and-coming portfolio managers to run two new mutual funds geared toward finding companies around the world that have stable cash flow and a willingness to pay dividends.

Boston-based Fidelity, which manages $1.6 trillion in assets, said on Thursday that Ramona Persaud would run two global equity income funds.

It’s the first time Fidelity has offered an equity income fund with a global reach. It now offers 10 equity income-oriented funds with more than $32 billion in assets under management.

With near-zero interest rates in the United States and financial turmoil in Europe, Fidelity is betting that investors nearing retirement or already in retirement will embrace the two funds that seek income-producing stocks around the globe.

Global stocks excluding the United States have delivered a dividend yield between 2 percent and 3.5 percent over the past decade, compared with a dividend yield of 1 percent to 2 percent for U.S. stocks, according to Fidelity.

“The gap is even higher when a global equity income subset of global equities is compared with global and U.S. equities,” a research report from the money manager said.