Fidelity

Fidelity’s Multi Asset team review the investment landscape across global markets. As business confidence continues to rise and employment gains remain in positive territory, discover the major issues influencing our views across different asset classes and investment regions.

Inflation concerns are building and feeding into uncertainty over the outlook for financial markets. Romain Boscher, Global CIO Equities, outlines how equity investors should approach this environment and highlights why it makes sense to favour more economically-sensitive areas in the short-term, albeit with a keen focus on earnings and profitability.

With the latest US inflation release representing the highest year-on-year increase since 2008, portfolio manager Tim Foster analyses whether a more inflationary environment could be here to stay. He outlines what this means for fixed income investors and highlights the current opportunity in inflation-linked bonds.

The market rotation from working from home winners to reflation and recovery has left behind a number of high-quality dividend-paying companies. Fidelity Global Dividend Fund Manager Dan Roberts reviews this overlooked opportunity set and highlights the compelling investment opportunity it has created.

With talk of central bank tapering increasing, how should fixed income holders approach this environment? Fidelity Strategic Bond Fund Investment Director Steve Bramley discusses why it need not be all doom and gloom, while also outlining some of the opportunities emerging in higher beta areas like high yield and emerging market debt (EMD).

Sam Morse and Marcel Stötzel, portfolio managers of the Fidelity European Fund, outline why they maintain a positive outlook for European equities. In particular, they discuss why a focus on robust and cash generative dividend-payers looks well placed to continue to reward investors with a longer-term view.

Alex Wright, portfolio manager of Fidelity Special Situations & Fidelity Special Values PLC, outlines why he believes the recent rally in UK value stocks and sectors could be just the start of a sustained longer-term rebound. He looks at what’s driving this shift in market leadership and how his portfolios are positioned to capitalise.

As we move through the second quarter of 2021, the global economic recovery continues apace, although market volatility and ‘mini tantrums’ are testing central bank credibility. Against this evolving market and macroeconomic backdrop, our Global Macro and Strategic Asset Allocation team explain why they are still pro-risk for now and outline their highly selective approach to asset allocation.

Paras Anand, CIO of Asset Management, Asia Pacific, debates the investment outlook for the region. After a strong run in regional markets, he outlines why headline returns could be more modest going forward, with potentially significant shifts in market leadership. How should investors approach this new environment?

With the global economic recovery largely on track, our thoughts are inevitably turning to what the next phase of the cycle will have in store for markets. Against this backdrop, Fidelity Strategic Bond Fund Co-Manager Tim Foster shares his latest views on the evolving opportunity set across fixed income assets, with an eye to sustainability considerations.

EM equities have begun to rally after a protracted period of relative underperformance. Meanwhile, supply constraints, stimulus and a transition to a greener economy lend support to commodities. Fidelity Emerging Markets Fund Manager Nick Price looks at historical correlation of EM equities with commodities, which suggests that the breakout could be sustained.

Paras Anand, CIO of Asset Management, Asia Pacific sets out the case for why growth opportunities in post-pandemic Asia are positioned to propel a long-term boom in equity capital markets. The region continues to draw in ever greater flows from investors starved of returns in global equities and so, with this potential paradigm shift brewing, what’s the case for Asian equities?

The Covid-19 pandemic has accelerated numerous pre-existing macroeconomic trends, including a dramatic rise in global debt. Our global macro and strategic asset allocation team examines the primary driver behind this: fiscal spending to mitigate the effects of the pandemic. We also assess the differing approaches to fiscal policy taken by the US, the European Union and China.

The reflation narrative is gathering steam and many investors are questioning the extent to which the recent back-up in core government bond yields can continue. Against this backdrop, Fidelity Strategic Bond Fund Co-Manager Claudio Ferrarese gives his outlook for rates and outlines the factors which suggest that this may well present a buying opportunity.

Global Head of Macro Salman Ahmed debates the potential for a tantrum in markets due to the risks emanating from fiscal dominance and inflation moving higher. He also looks ahead and considers future central bank intervention and how this could impact returns across asset classes.

Covid-19 has left over 400,000 maritime workers stranded at sea, prohibited from disembarking at port or unable to secure flights home. Find out how more investors are joining our campaign through an open letter to the UN, calling for urgent action to address this humanitarian crisis and preserve the sustainability of global supply chains.

Investors often shy away from complexity, with mergers, acquisitions and spin-offs prime examples. We look at how these areas often create pricing inefficiencies for fundamental investors willing to do the work and outline how the Fidelity Global Special Situations Fund is set up to continue benefit from event-driven opportunities over 2021.

Fidelity Strategic Bond Fund co-portfolio managers Tim Foster and Claudio Ferrarese outline how they have effectively navigated an eventful last 12 months in global fixed income markets. If 2020 was a year of dramatic changes, they also look ahead and discuss why they expect 2021 to be more focussed on alpha and picking the right opportunities.