View more on these topics

Fidelity increases exposure to risk assets across multi-asset range

Fisher-Andrew-480.jpg
Fidelity head of tactical asset allocation Trevor Greetham

Fidelity has upped its exposure to risks assets across its multi-asset range of funds on the back of a surge in global growth.

The group has added exposure to both equities and commodities to take it from the neutral position it has held since June, to an overweight risk-on stance across the range.

Fidelity head of tactical asset allocation Trevor Greetham says: “We took equities to a large overweight position during recent market weakness. With valuations fair and earnings growth set to improve we think stocks can weather a rise in bond yields.”

While Greetham has increased his commodity investments he has however maintained an overall underweight position relative to other risk assets.

He says: “Commodities could benefit from a stabilisation in China but dollar strength and excess capacity are headwinds.”

In addition, with global growth expanding, Greetham trimmed his positions in the US and Japan equities to shrink underweights in Europe and Asia Pacific.

Greetham however remains underweight in global emerging markets where he believes any positive news coming from China may be outweighed by concerns over a more rapid removal of the Federal Reserve’s quantitative easing programme. He has also cut his allocation to government bonds to the bare minimum.

AWD Chase de Vere head of communications Patrick Connolly says: “With multi-managers moving in this direction, I think the question advisers need to ask is whether fund managers are moving more into risk assets because they are genuinely bullish or is it because they are the best option relative to other assets? While equities have performed well, they still present strong potential risks.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com