Diversification works for Premier MA fund
The objective of the £412.6m portfolio, a top five player in the Investment Association Mixed Investment 20-60 per cent shares sector, is to provide a high level of income.
Fund manager David Hambidge and his team of three aim to have between 20 and 60 per cent invested in equities, and at least 30 per cent in fixed income and/or cash. A good share of the asset allocation is held in commercial property and alternatives, covering the world’s investment markets.
Income is paid monthly, in the form of a dividend per share. The portfolio’s historic yield is 4.5 per cent a year.
The portfolio has a 26.4 per cent UK equity bias. Corporate fixed interest is the next largest holding, at 18.1 per cent, closely followed by 17.1 per cent in property.
Its global stance sees a 14.1 per cent exposure to international equities and 13.6 per cent in global fixed interest. The remaining allocation is a 4.1 per cent exposure to alternatives, 2.3 per cent in money markets and 1.3 per cent in convertibles.
Top holdings are the £173m Franklin UK Equity Income, at 5 per cent; the £1.2bn TwentyFour Dynamic Bond, at 4.9 per cent; and £398m Fidelity Enhanced Income, at 4.6 per cent; according to its factsheet.
The minimum investment is £1,000, and the ongoing charge is 2.17 per cent.
The Fidelity Multi Asset Strategic Fund has returned 18.5 per cent in the past three years, placing it 64th in the sector, according to FE, with a large fixed-interest allocation.
The £605m portfolio has 70 per cent of its allocation in the UK and US, with UK fixed-interest its largest holding, at 33.2 per cent. Global fixed income makes up 4.3 per cent.
The fund management team of three aim to provide long-term growth through exposure to bonds, equities, commodities, property and cash, principally in funds managed and operated by Fidelity but also outside the fund’s main geographies, market sectors, industries or asset classes.
The portfolio can invest in bonds issued by governments, companies and other bodies and can use derivatives including more complex instruments or strategies to achieve its objectives, which may result in leverage.
It has a 16.1 per cent exposure to UK equities and 11 per cent in US equities. Other equity holdings are in Europe and Japan, and other exposures are in commodities and property.
