Fidelity multi-asset moves to overweight equities and fixed income, underweight cash
"In equities there is the possibility of a last leg in the bull market, but given the significant disparities in global equity regions, we are being highly selective in spending our risk budget," wrote James Bateman, chief investment officer, multi asset at Fidelity International.
Fidelity increased its allocation to emerging market equities to overweight, saying valuations are attractive and the headwinds of dollar strength and high oil prices are fading.
The fund moved to underweight cash, saying fixed income and equities were better investments "in case inflation does rear its head".
Fidelity has 236.5 billion pounds in assets under management.
(Reporting by Helen Reid, Editing by Josephine Mason)