Bestinvest says
The idea of this fund is based on the fact that different asset classes tend to perform differently, at different times; therefore the asset mix of the fund will change to reflect a blend suitable for where the global economy is at any given point in time. The manager's use of Fidelity's “investment clock” to guide this allocation is based on a range of technical factors that tells the manager at which phase the economic cycle is in, complimented with analysis that suggests which asset classes perform best in such an environment. This is quite a systematic approach and whilst it has some merit, we prefer our recommended "one stop shop" multi-asset funds.
The fund aims to provide moderate long-term growth by providing an investment exposure to bonds, property, commodities, equities and cash. The portfolio primarily consists of Fidelity's in-house funds, though exchange traded funds (ETFs) are used to access commodities. The allocation to each asset class will vary over time, depending on the manager's view of the global economy. This is guided by Fidelity's "Investment Clock" model, which splits the economic cycle into four phases: Reflation, Recovery, Overheat and Stagflation. The portfolio will be tilted towards asset classes expected to perform in each phase. For instance, equities will be overweighted during the recovery stage of the economic cycle. The process incorporates technical analysis (a price momentum overlay) to avoid moving into assets that are still performing poorly. Portfolio construction also includes the views of Fidelity’s Asset Allocation Group - these act as an override adjustment to the asset allocation suggested by the Investment Clock. When the manager believes that the prospects for global growth and thus more riskier assets is extremely good (bullish scenario) the fund could have up to a maximum of 70% in growth asset classes (equities, commodities and property) and 30% in defensive assets (bonds and cash). The other way round would apply in the most bearish scenario.