The FSA Spy market buzz – 6 September 2024
Machine learning Chinese investment, BlackRock’s AI patience, Time Magazine’s AI cover, happier staff equal better returns, do wealth managers add value? sexy legs and much more.
Multi-asset funds, which aim to provide an income stream and deliver a smoother ride through market volatility due to their diversified assets, seem to have become an attractive investment product in 2018.
Multi-asset Ucits funds had net inflows of €64bn ($73.3bn) from European and Asian investors during the first eight months of the year, according to Matias Mottola, associate director for multi-asset and alternatives at Morningstar.
“Investors continue to be interested in allocation funds as the expected returns for fixed income are still so low. So by adding more risk through an allocation solution, investors expect to receive a little bit more of income or return and are willing to take a slightly higher risk,” he said.
Returns for fixed income have turned sour this year, with only US high yield bonds returning positively, according to Standard Chartered Private Bank’s weekly market report.
The equities market is also down, with only the US and Middle East markets returning positively, according to the report.
Against this backdrop, FSA asked Mottola to look at two global multi-asset funds: the Blackrock GF Global Multi-Asset Income Fund and the Fidelity Global Multi-Asset Income Fund.
Blackrock |
Fidelity |
|
Size |
$8.51bn |
$7.81bn |
Inception |
June 2012 |
March 2013 |
Manager/s |
Michael Fredericks, Justin Christofel, Alex Shingler |
Eugene Philalithis, George Esftathopoulos, Chris Forgan |
Yield |
5-6% |
4-5% |
Three-year reutrn* |
11.24% |
13.70% |
YTD alpha** |
0.69 |
1.42 |
YTD volatility** |
3.82 |
4.47 |
Morningstar analyst rating |
Silver |
Bronze |
Morningstar star rating |
**** |
– |
FE Crown fund rating |
** |
**** |
OCF (retail share class) |
1.74% |
1.67% |
OCF (clean share class) |
0.85% |
1% |
Machine learning Chinese investment, BlackRock’s AI patience, Time Magazine’s AI cover, happier staff equal better returns, do wealth managers add value? sexy legs and much more.
Part of the Mark Allen Group.