The portfolio, which will be offered exclusively through variable annuity and variable life insurance products, seeks to manage total return volatility within a target range.
It mainly invests in US equities, foreign developed market equities, US investment grade bonds, and cash through a combination of underlying Fidelity mutual funds as well as exchange traded funds (ETFs) and index futures.
Ohio National Financial Services and Jefferson National will be the first insurance companies to package the portfolio in their annuity offerings, according to the asset management firm.
Xuehai En has been appointed as portfolio manager for the fund, while Bob Vick will act as co-manager.
The turbulent market can enhance the risk tolerance of many investors, while managing volatility provides the opportunity for more consistent returns over time, Xuehai En said.
The portfolio uses a combined benchmark as an asset allocation guide made up of the Dow Jones US Stock Market Index (42%), MSCI EAFE Index (18%), Barclays US Aggregate Bond Index (35%), and Barclays US 3 Month Treasury Bellwether Index (5%).
Established in 1946, Fidelity Investments had assets under administration of $4.1 trillion, including managed assets of $1.7 trillion, as of 31 March 2013.
