Annualised return and volatility from monthly returns 01/01/1980 - 31/12/2019 using MSCI World Total Return Index and ICE BofA US Government Bond Total Return Index, both in USD. Source: Refinitiv, Fidelity International, June 2024.
Rolling 1-year maximum drawdown from monthly returns 01/01/1980 - 31/12/2019 using MSCI World Total
Return Index and ICE BofA US Government Bond Total Return Index, both in USD. Source: Refinitiv, Fidelity International, June 2024.
The painful memory of 2022 may tempt investors to alter their strategies. However, unexpected fluctuations in conditions are unavoidable, and changing approach in response to each bout of short-term volatility often results in worse outcomes. Diversification will remain a crucial component of a robust long-term portfolio even if correlations are higher and more volatile in future.
Fidelity Multi Asset Allocator range
The Allocator range has been designed for investors that are looking to access global financial markets in a consistent, liquid, and diversified manner. We seek asset classes that demonstrate correlation benefits and combine them in an optimised portfolio using low-cost index trackers and ETFs across five risk profiles. The asset allocations are based on Fidelity’s long term Capital Market Assumptions (CMAs). These are tested rigorously and updated twice a year, built on the analysis of our Global Macro & Strategic Asset Allocation team as well as input from bottom-up research teams across our global investment platform.
The global economy will always conjure up the unexpected, which is why it is important to diversify your portfolio, not just by asset class but also by region and sector. The Fidelity Multi Asset Allocator range provides diversified exposure to different asset classes to generate attractive long-term returns for investors, over a typical market cycle of 5-7 years.
We still believe a diversified approach based on long-term asset allocation research is best for consistent risk-adjusted returns over the long term.
Find out more about Fidelity’s Multi Asset Allocator range
Chris Forgan, Portfolio Manager, Fidelity Multi Asset Allocator range
Important information
This information is for investment professionals only and should not be relied upon by private investors. The value of investments and the income from them can go down as well as up and clients may get back less than they invest. Past performance is not a reliable indicator of future returns. Investors should note that the views expressed may no longer be current and may have already been acted upon. The investment policy of these funds means they invest mainly in units in collective investment schemes. Fidelity’s Multi Asset funds use financial derivative instruments for investment purposes, which may expose the fund to a higher degree of risk and can cause investments to experience larger than average price fluctuations. Changes in currency exchange rates may affect the value of an investment in overseas markets. Investments in emerging markets can also be more volatile than other more developed markets. The value of bonds is influenced by movements in interest rates and bond yields. If interest rates rise and so bond yields rise, bond prices tend to fall, and vice versa. The price of bonds with a longer lifetime until maturity is generally more sensitive to interest rate movements than those with a shorter lifetime to maturity. The risk of default is based on the issuers ability to make interest payments and to repay the loan at maturity. Default risk may therefore vary between government issuers as well as between different corporate issuers. Due to the greater possibility of default, an investment in a corporate bond is generally less secure than an investment in government bonds. Reference in this document to specific securities should not be interpreted as a recommendation to buy or sell these securities, but is included for the purposes of illustration only. Issued by FIL Pensions Management, authorised and regulated by the Financial Conduct Authority. Investments should be made on the basis of the current prospectus, which is available along with the Key Investor Information Document (KIID), current annual and semi-annual reports free of charge on request by calling 0800 368 1732. Fidelity, Fidelity International, the Fidelity International logo and F symbol are trademarks of FIL Limited UKM0624/386981/SSO/NA
