View more on these topics

Fidelity treads multi-asset path with caution

Fidelity has brought out its multi-asset strategic fund, a fund of funds providing exposure to equities, bonds, property shares, commodities and cash.

The fund will sit in the IMA Cautious Managed sector and is designed to perform in all market conditions. Unlike traditional cautious managed funds, this product includes property shares and commodities. Fidelity believes these asset classes will provide greater diversification and enhance performance while reducing the overall volatility compared with pure UK funds.

The fund will be managed by Fidelity director of asset allocation Trevor Greetham. He has 16 years’ investment experience including 10 years at Merrill Lynch.

Greetham will select funds from Fidelity’s own range across the asset classes but it will not invest directly in commodities. instead it will buy futures contracts on a commodities index.

Greetham will drawing on research from Fidelity’s Asset Allocation Group to identify the current stage of the economic cycle and what mix of assets is most appropriate for each stage.

The neutral weightings for each asset class can be varied up or down by up to 10 per cent to reflect the most appropriate mix for any given point in the cycle. Greetham will be defensive when the portfolio needs to be, but will move into more growth-oriented assets when necessary.

Any asset shift in the portfolio will tend to be a gradual process because the transition from one stage in the economic cycle to another tends to be piecemeal rather than large leaps.

This fund could attract IFAs who are looking to outsource asset allocation decisions to a well known name with a lot of resources at their disposal.

However, gaining exposure to the underlying asset classes only through Fidelity funds is a double edged sword. While Greetham will know the underlying funds intimately, he will not be able to tap into good managers outside his own investment group.


Warning over lenders’ annual interest calculations

Moneyfacts has warned of lenders that use annual interest that ends up costing customers dear.It says that 20 lenders charge interest on an annual basis, meaning the total annual interest is calculated on the balance at the start of the year, not taking into accounts repayments that reduce the balance.The 20 lenders include Bristol and […]

Derbyshire appoints RS&A for GI

Royal & SunAlliance has today been appointed by Derbyshire Building Society as the sole provider of its buildings, contents and creditor insurance policies. The deal will be worth approximately £30m in GWP over the three years of the contract. New business will launch on February 5, 2007 and the claims handling for the existing delegated […]

Warning that life firms could lose over 5bn

Morgan Stanley warns that 5.5bn of life insurers’ investment bond and pension business is under threat due to the growth of wrap platforms.Leaked internal research says Norwich Union, Friends Provident and Prudential are likely to be the worst hit, with Transact, Old Mutual through Skandia/Selestia, Standard Life and Legal & General through Cofunds the best […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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