FF Global Multi Asset Income Fund (FF GMAI) celebrates its 5th
anniversary. The Fidelity home fund has registered a
overall performance of 22,3% (in USD*) since inception, delivering natural income
in the order of 4-5% per annum, observes a note from the group in which it recalls that "the fund, diversified globally, offers access to the best income opportunities of the various asset classes, including non-traditional areas such as loans ) or infrastructure, which significantly reduce the correlation within the portfolio, thus increasing its stability”.
During the first half of 2018, the investment team managed – through portfolio protection strategies – to mitigate “by more than 2/3 the drawdown against global equities (MSCI World). Even more recently, the defensive positioning adopted by the fund towards the debt of peripheral countries has proved rewarding during the most recent phases of strong volatility that have affected the Italian and European markets”.
For the coming months, the fund expects more volatile markets “in the face of expectations of a tightening of the
central bank policy and rising inflation. In this context, the investment team is adopting a "barbell" approach, in which higher yielding positions are balanced by risk hedging and investments," the statement said.
“To navigate these more volatile markets, a number of procedures must be adopted
risk management involving a periodic assessment of positions to weight the
investment case,” said Eugene Philalithis, principal manager of FF GMAI Fund.
“Also the allocation of the fund to alternative instruments represents an important advantage, in
as it favors diversification compared to traditional asset classes. In this context they are
confident that the fund is well positioned to continue to generate income and pursue the
long-term growth, always maintaining a solid focus on risk containment".
