Fidelity launches multiple asset fund
Tuesday, 23 Jan 2007 09:39
Fidelity International has launched a new fund offering investors access to a broad range of asset classes through a single portfolio.
The new Multi-Asset Strategic Fund aims to provide diversified long-term capital gains coupled with low volatility.
It is set to invest in equities, bonds, property, commodities and cash depending on how the fund’s manager - Trevor Greetham - sees the economic cycle.
"The fund is a departure from the conventional breed of cautiously managed funds as it combines bonds, cash and equities with property and commodities," Mr Greetham said.
"Right now, our model indicates that the world economy is set to decelerate in 2007, which suggests that global bonds will perform better than equities or commodities.
"Besides an overweighted position in bonds, initially this fund will have exposure to developed market equities in Europe and North America.
"By sector, the investments will be weighted towards interest-rate sensitive financial and consumer companies rather than industrials or technology."
The Fidelity Multi Asset Strategic Fund is designed in the fund of funds style - with almost all the underlying holdings single-strategy Fidelity funds utilising the stock selections of a broad range of specialist Fidelity fund managers.
The commodity index and additional equity sector exposure will be achieved using liquid derivative instruments.
The fund’s estimated total expense ratio - a measure of all costs including management charges - is 1.63 per cent. There is an initial charge of 3.5 per cent and Fidelity is offering a 0.5 per cent discount on ISA and Pep transfers received before April 5th 2007.