In its Q2 2024 letter, the Fidelity Asset Manager 85 Percent Fund outlined its strategic approach to maintaining a diversified portfolio with a predominant focus on equities, which constitute 85% of the fund's allocation. This strategy is designed to capitalize on long-term growth opportunities in the equity markets while managing risk through a complementary allocation to fixed income and alternative investments.
The fund's investment rationale is rooted in the belief that equities offer superior growth potential over the long term. By maintaining a significant equity exposure, the fund aims to benefit from market upswings while employing tactical asset allocation to navigate volatility. The fund managers highlighted their commitment to adjusting the portfolio in response to changing market conditions, ensuring that the fund remains well-positioned to achieve its growth objectives.
During the second quarter of 2024, the fund made several tactical adjustments to its asset allocation, increasing exposure to sectors poised for recovery and growth. The letter emphasized the importance of diversification across geographies and sectors to mitigate risks and enhance returns. The fund also continues to leverage its fixed income and alternative investments to provide stability and income, balancing the overall risk profile.
Overall, the Fidelity Asset Manager 85 Percent Fund remains committed to its strategic allocation framework, focusing on equities for growth while utilizing fixed income and alternatives for risk management. The fund's adaptive approach to asset allocation aims to optimize returns in varying market environments, aligning with its long-term investment objectives.
Read full letter at gurufocus fidelity asset manager 85 percent fund q2 2024 review 2024 Q2 page.
