Fidelity launches two multi-asset funds for adviser market

Fidelity has made two newly-launched multi-asset income funds available to advisers.

Fidelity Multi-Asset Balanced Income and Fidelity Multi-Asset Income and Growth both have Eugene Philalithis as lead manager, and Nick Peters as co-portfolio manager.

These launches add to the existing £68m Multi-Asset Income fund, which is managed by Mr Philalithis alongside Richard Skelt.

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Both the new funds were launched a month ago but were only available to direct investors.

The Multi Asset Balanced Income fund aims to give a “stable income of between 4-6 per cent, although the firm said there was “scope to grow the monthly cash distribution over time” because the mix or assets should produce capital growth, the firm said. It will target a total return of 6.5 per cent and 7.5 per cent expected volatility.

Meanwhile, the Fidelity Multi-Asset Income and Growth fund is for investors willing to take more risk so that the capital value of the investment, and therefore the cash value of income from it could grow over time.

The fund has “greater exposure to growth assets,” to try and make sure income distributions grow faster than inflation. It will target 7 per cent return with 11 per cent expected volatility.

The company cautioned that the fund could be subject to short term fluctuations due to the greater allocation to higher risk assets.