Fidelity Multi Asset Allocator Range

Aminatidi

Does anyone have a view on this range please?

I have around £180K in FTSE Global All Cap that I'm looking to de-risk a little and whilst I really want to like LifeStrategy I never quite feel comfortable with Vanguard's sodding great home bias.

The Fidelity range look to be roughly market cap allocations rather than a home bias.

But I'm not sure if the bond component is hedged and whether it's something I should be bothered by.

I have around £127K in HSBC Global Strategy Balanced in a different unwrapped account and one option is to just stick with that for the lot.

I'd be looking at Multi Asset Allocator Growth which is 0.2% fees.

https://www.fidelityinternational.com/FILPS/Documents/en/current/pro.en.gb.GB00B9C3GS90.pdf

Albermarle

The Fidelity fund has grown by about 2% more than VLS60 over 5 years, presumably due to the lack of UK bias.
However the Fidelity fund has underperformed HSBC GS Balanced over 5 years by around 2%.
Will that trend continue in future - nobody knows of course, but in the end the differences are pretty small.
If you have some in each you hedge your bets a little bit I guess.

masonic

For a quick reference, see the oft-quoted Monevator guide at https://monevator.com/passive-fund-of-funds-the-rivals/
Suggests they do have unhedged bonds, but that's not something I'd be concerned about unless going very low risk. Refraining from currency hedging can be advantageous, as it has been to date, as it gives some protection from a declining fiscal situation in the home country. When global fixed interest makes up about 40% of the portfolio and a smaller portion of that will be ex-UK, hedging isn't likely to make a significant difference to the outcome, and it will be increasingly likely to be a drag on performance the longer your investment horizon as hedging always has a fee associated with it.

El_Torro

I use 3 multi asset funds in more or less equal proportions in my SIPP:

Fidelity Multi Asset Allocator
HSBC Global Strategy
Vanguard Life Strategy

Like you I'm not a fan of VLS's home bias, though having it as a third of my multi asset funds means I still have some home bias, though not as much as if I had VLS on its own. 

Other than the bonds one thing to bear in mind is that Fidelity also has some small caps in its portfolio, which can be a good or a bad thing, depending on what markets are doing. 

For what it's worth if I was to consolidate to just one multi asset fund it would probably be Fidelity. I believe HSBC GS has performed better in recent years, though the fact that HSBC doesn't have a fixed bond allocation doesn't sit well with me, despite recent performance.

Aminatidi

Thanks all I think as you say trying to figure out which will perform best is a mugs game.

What I'm slowly finding is that being invested passively works.

So I want investments that mean I have the least "is it because of what I'm investing in?" moments.

I hadn't appreciated the Fidelity funds are static allocation I thought they were volatility managed similar to HSBC but I was wrong.

https://professionals.fidelity.co.uk/static/uk-professional/media/pdf/articles/multi-asset-allocator-range-overview.pdf

Albermarle

I hadn't appreciated the Fidelity funds are static allocation I thought they were volatility managed similar to HSBC but I was wrong.

I think until about 3? years ago they had a floating equity allocation, but changed to a fixed one ( like VLS but without the home bias) 

Aminatidi

I still haven't done anything about this mostly because of concerns about transferring away from Vanguard (too many bad stories about transfer times)

As a small follow-up though I noticed the AUM of these funds appears to be what I'd consider really small for example the "Growth" 60/40 fund is "only" £800M in size.

Fidelity are a large fund platform (I thought) and offer their own managed service (I thought) so I'm just a little surprised they don't seem to be larger than they appear to be?