Fidelity has recently launched the Multi Asset Defensive Fund. The fund is designed for more cautious investors looking for a fund that has lower volatility.
The fund can invest in cash, bonds, shares, property and commodities but given that it is aimed at the more cautious investor it is likely to have a higher allocation towards cash and bonds compared to the other assets. The asset allocation can range between 65-100% in cash and bonds and up to 35% in shares, property and/or commodities.
If for example, the manager Trevor Greetham is bearish on the market and economy, he can invest the entire portfolio into bonds and cash. If he is bullish, he can invest up to 35% in shares, property and commodities. This allocation is expected to ensure the fund has less volatility than the overall market.
The fund also has the ability to use wider investment tools which may increase risk.
Multi asset portfolios are still a relatively new breed of funds and we would like to see how this fund performs on a longer term view. With this in mind, the fund is not currently on the Wealth 150 list of our favourite funds in each sector.
Key Features of the Fidelity Multi Asset Defensive Fund
Meera Patel, Senior Analyst
The fund can invest in cash, bonds, shares, property and commodities but given that it is aimed at the more cautious investor it is likely to have a higher allocation towards cash and bonds compared to the other assets. The asset allocation can range between 65-100% in cash and bonds and up to 35% in shares, property and/or commodities.
If for example, the manager Trevor Greetham is bearish on the market and economy, he can invest the entire portfolio into bonds and cash. If he is bullish, he can invest up to 35% in shares, property and commodities. This allocation is expected to ensure the fund has less volatility than the overall market.
The fund also has the ability to use wider investment tools which may increase risk.
Multi asset portfolios are still a relatively new breed of funds and we would like to see how this fund performs on a longer term view. With this in mind, the fund is not currently on the Wealth 150 list of our favourite funds in each sector.
Key Features of the Fidelity Multi Asset Defensive Fund
Meera Patel, Senior Analyst
