Fidelity is to launch a global portfolio that is designed to perform in all markets through the use of five asset classes.
The multi-asset strategic fund will look to provide diversified capital gains with low volatility by investing in equities, bonds, property, cash and commodities.
Essentially a fettered fund of funds, the cautious managed portfolio will invest in around 15 Fidelity funds from its entire Oeic range to gain exposure to four asset classes while it will use the futures index for the commodities segment.
Managed by director of asset allocation Trevor Greetham, the fund can follow the market by raising or lowering exposure to each asset class in accordance with market performance.
Each asset class has its own benchmark, with 35 per cent in equities (15 per cent UK and 20 per cent US), 40 per cent in bonds, 10 per cent in cash and commodities and 5 per cent in property.
The fund is set for launch on January 22 and will be marketed as an ideal core holding. Greetham will decide which asset allocation position to adopt through the use of an investment clock which analyses market characteristics to decipher whether a market is in recovery or on a downturn.
Greetham says: “What this fund does is look not only for the best market but the best time to strike and therefore maximise returns.”