Fidelity Launches Global Multi Asset Income Fund in Hong Kong

Fund aims to offer Attractive and Regular Income via Flexible Asset Allocation

Please note:

  • This fund invests in global fixed income securities and global equities.
  • The fund is subject to equities risk, foreign currency risk, the risks of investing in emerging markets and in loans, Real Estate Investment Trusts risks and real estate securities risks.
  • This fund may invest in bonds or debt securities which may be subject to credit, liquidity, counterparty and market risks, and may invest in non-investment grade bonds which may be more volatile and subject to greater credit and liquidity risks.
  • This fund can invest in derivative instruments which may involve additional risks. (For example, leverage may cause greater volatility.).
  • Dividends may be paid out of gross income and on occasion out of capital at the discretion of the board of Directors of the fund. There is a risk that dividends paid out of capital may erode the capital value of the underlying investments and may result in an immediate reduction in the fund's net asset value per share. In case of distribution of gross investment income, all or part of the fund’s fees and expenses may be charged to the capital at the discretion of the board of Directors of the fund, resulting in an increase in distributable income for the payment of dividends by the fund and therefore, the fund may effectively pay dividend out of capital.
  • Investors may suffer substantial loss of their investments in the fund and should not invest in the fund solely based on the information provided in this document and should read the prospectus (including potential risks involved) for details.

- First monthly dividend yield was 0.448%1, equal to an annualised rate2 of 5.51%
- Highly diversified across geographies and asset classes
- Attractive risk/return profile
- Seeks best thematic opportunities to generate higher potential yield and returns

HONG KONG, 15 May 2013 – Fidelity Worldwide Investment (Fidelity) announced today the launch of Fidelity Funds - Global Multi Asset Income Fund (the “Fund”), a diversified multi asset income solution, which aims to provide attractive and regular income and moderate capital growth by investing in global fixed income securities, equities and opportunistic assets, such as listed infrastructure, loans and REITs.

Designed to be highly flexible, the Fund allocates actively to different asset classes and geographies based on their potential to generate income and capital growth within the portfolio. The main asset classes in which the Fund will invest include:

- Income-generating asset classes such as investment grade bonds and emerging market debt
- Income/growth hybrid asset classes, such as high-yield bonds
- Growth-generating asset classes, such as global/regional dividend equities
- Opportunistic assets, such as infrastructure securities, loans and REITs

“In the current low growth, low interest rate economic environment, the search for yield from traditional sources such as government bonds and time deposits has become increasingly difficult. Central banks are forcing income investors to go up the risk spectrum to get a higher yield but this can lead to significant volatility in returns in today’s risk-on/riskoff environment. By strategically spreading the investment across a range of asset classes, the Fund offers a greater opportunity to maintain a high income, yet presents a relatively low volatility of returns,” says Eugene Philalithis, Lead Portfolio Manager of Fidelity Funds - Global Multi Asset Income Fund.

The Fund offers a monthly income share class, Class A-MINCOME, with the first monthly dividend declared to investors at 0.448%1, which equal to an annualised rate2 of 5.51% on the HKD share class.

“The Fund aims to generate ‘natural’ income by the coupons and dividends from the bonds and equities it is invested in. It also has the flexibility to invest in opportunistic asset classes to navigate through changing economic cycles,” adds Mr. Philalithis.

“During both inflationary and deflationary scenarios across economic cycles, there are opportunities for a multi asset product to seek income and capital growth from beyond traditional equities and bonds without increasing the overall risk profile. To optimise the yield in the current ‘recovery’ phase of the cycle, the Fund currently allocates about 30% to income-generating assets, 40% to hybrid assets, 15% to growth-generating assets and 15% to opportunistic assets3,” says Mr. Philalithis.

Supported by Fidelity’s London-based Investment Solutions Group (ISG), the Fund is managed by ISG’s fixed income team leader Eugene Philalithis, with Nick Peters, equity team leader, as the co-portfolio manager. The co-portfolio structure is consistent with Fidelity’s team-based approach and is intended to add rigour to portfolio decision making. Mr. Philalithis is an experienced income investor with a solid track record. Another multiasset income fund he manages in the UK was ranked in the top quartile over one, three and five years amongst its peer group4.

The ISG is a global team comprising about 20 investment professionals based in London, Paris, Hong Kong, Singapore and Tokyo. It manages in excess of US$42 billion5 in assets for retail and institutional investors around the world.

- Ends -

1 A-MINCOME –HKD share class. Source: Fidelity, as of 1 May 2013. NAV to NAV, with dividends re-invested. Any such payments out of capital will only be made to seek to maintain a stable payment per share but the payment per share is not fixed
2 Annualised rate is for indicative purpose only, it may be higher or lower than the actual annual dividend yield. Dividend yield of the fund does not represent the return of the fund, and past dividend yield does not represent future dividend yield. The dividends are not guaranteed. Annualised rate = (1+Monthly dividend yield)12 -1
3 Source: FIL Limited, 30.04.2013.
4. Source: FIL Limited, data to 30 April 2013. Peer Group: Morningstar IMA Mixed Investment 0-35% Shares
5 Source: FIL Limited, 31.03.2013. Data are unaudited

Notes to editors:

About Fidelity Worldwide Investment
Fidelity Worldwide Investment is one of the global leaders in asset management, providing investment products and services to individuals and institutions in the UK, continental Europe, the Middle East and Asia Pacific. Established in 1969, the company has over 6,000 staff in 24 countries and manages or administers client assets of US$309.7 billion. It has over five million customer holdings and manages more than 650 equity, fixed income, property and asset allocation funds. The company’s fund managers receive research from one of the largest proprietary research teams, based in 12 countries around the world. Fidelity Worldwide Investment is an independent asset management company which is privately owned.
Data as at 31 March 2013


Patricia Chua

Kate Cheung

Head of Corporate Communications (Hong Kong)

Manager, Corporate Communications

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