Fidelity

Our Multi Asset team's views on which asset classes and markets are presenting the greatest opportunities and risks.

A combination of low savings rates and high inflation has the potential to materially erode the real value of cash holdings over time. With UK inflation showing signs of being broader and stickier than first anticipated, we outline the benefits of short-dated credit as a tool for investors looking to sweat the cash element of a well-diversified portfolio.

Financials markets are at a transition point, with shifting policy and inflation dynamics prompting a “global reset”. Amid this disruption, Global CIO Andrew McCaffery believes Asia stands in a relatively strong position, with China starting to look increasingly attractive as it re-emerges from lockdowns.

The Chinese government’s will to reform its important property sector is balanced against the more urgent task of reviving a slowing economy. With policy showing signs of softening, we assess what happens next and look at the investment opportunities in ancillary areas related to building maintenance and upgrades.

Portfolio manager Tim Foster takes stock of what has been a very challenging period for fixed income investors. He discusses how the market environment is likely to evolve over the coming months and outlines how the portfolio is positioned to capitalise on the pockets of value emerging across rates and credit markets.

Central banks are moving from tough talk to action to bring inflation under control. With history showing that policymakers rarely succeed in raising rates without triggering a downturn, Steve Ellis, Global CIO Fixed Income, believes investors should consider adding duration to portfolios as recession risks grow.

While the UK recently celebrated the Queen’s Platinum Jubilee, there has been less to be jubilant about in fixed income following a very challenging period in markets. Against this backdrop, Fidelity Strategic Bond Fund co-manager Claudio Ferrarese discusses whether we could be approaching an inflection point in yields, highlighting where we now see investment potential across rates and credit markets.

The recent UN treaty on global plastics is a big step towards reducing the millions of tons of plastic seeping into the environment. As governments get to work on the details, find out how we are pressing consumer companies to deliver real world solutions to one of the planet’s biggest challenges.

Worries about the ongoing Russia-Ukraine war, snarled supply chains, rising inflation and fears about possible recessionary slowdown have resulted in weakness across markets, particularly in tech-related areas. Fidelity Global Special Situations portfolio manager Jeremy Podger shares his observations on recent developments and discusses where opportunities are starting to emerge.

Nicholas Price, portfolio manager of Fidelity Japan Trust PLC, reviews recent market movements in Japan amid a sharp rotation of away from growth stocks and sectors. He discusses what lies ahead for investors and outlines the compelling long-term opportunity among small and medium-sized companies with sustainable growth prospects.

Alex Wright, portfolio manager of Fidelity Special Situations & Special Values PLC, shares his latest outlook for UK equities. As investor sentiment shows signs of turning overly pessimistic, he outlines why, as a contrarian investor with a value focus, he is growing increasingly optimistic about certain areas of the domestic market.

The war in Ukraine is leading to temporarily higher emissions as some countries switch to dirtier fuels and away from politically toxic Russian oil and gas. Over the longer-term however, portfolio managers Velislava Dimitrova and Cornelia Furse believe the conflict will accelerate the adoption of alternative energy solutions. They review the factors they see indicating the growing momentum of the climate movement.

Global CIO Andrew McCaffery shares his latest outlook for Asia. He discusses how the region is likely to fare against a global backdrop of looming stagflation and outlines three themes we will be focusing on over the coming months: China’s direction, inflation dynamics, and the search for income.

Value stocks and sectors have rallied sharply over recent times, driven by shifting expectations for inflation and monetary policy. Our value-focused portfolio managers discuss what lies ahead for investors in the US and UK markets, with a focus on the evolving opportunity set in the financials sector.

Having recently gone through a successful 10 years at the helm of Fidelity Global Situations, portfolio manager Jeremy Podger looks ahead to what the next decade could have in store for investors. In particular, he identifies 10 trends that are set to increasingly influence returns and discusses what this means for stock selection and portfolio construction.

Steve Ellis, Global CIO Fixed Income, provides his outlook for bond markets against a challenging macro backdrop of slowing growth and inflationary risks. He outlines why investors should not fear duration in the current environment and, within this construct, reveals three key areas where we are focusing our attention: inflation protection, high quality credit and Asia.

Something unusual has been happening in China’s currency and bond markets. As several major currencies have weakened against the US dollar this year, China’s renminbi has held up surprisingly well. Chinese government bonds have also been an oasis of relative stability as yields have shot up elsewhere. So, is China flirting with global safe-haven status?

Discover the key themes set to drive markets and the investment implications. We have also included the asset class views and investment implications for Q2 2022.