Fidelity Multi-Asset fund avoids equities as stagflation mounts

The £39m fund remains overweight in commodities, bonds and cash – with no changes expected until world markets stabilise. Greetham feels ‘stagflation’, the combination of weak global growth and rising inflation, helps explain the success of commodities and bonds in Q1 this year. The fund was down 1.91% in the first quarter, compared to the 2.84% benchmark loss. “The new quarter is starting off on a strong note for stocks but bear market rallies are often short-lived,” he says. "I remain underweight equities and property with the overweight distributed across commodities, bonds and cash....