Fidelity Strategic Bond

A flexible fixed income fund that invests in across fixed income markets including high yield bonds, investment grade bonds, government bonds, preference shares and other bonds.

The fund can be thought of as a best ideas expression of the various fixed income teams at Fidelity, although Ian will make any final decisions for the fund. The team structure is one that allows a good degree of information flow across research, quantitative analysis, trading and portfolio management. The fund is invested across the global fixed income universe with a highly flexible mandate, albeit limited to 50% exposure high yield bonds. One of the strengths of Fidelity is their superior quantitative analysis team that provide a solid understanding of risk in the portfolio while also providing trading ideas and strategic insights.

We like the fund due to the fluid flow of ideas between research and trading teams, knitted together by Iain’s ‘safe pair of hands’. The degree of support from credit and quantitative research places Fidelity close to the top of the peer group in terms of the strength of investment proposition.

Fund type UK OEIC
Asset class Bonds
Sector Flexible Bonds
Managed by Timothy Foster & & Claudio Ferrarese
Held in EQ PortfoliosAbsolute Return

Manager Profile

Tim Foster is a portfolio manager of Fidelity’s money market, inflation linked and total return bond disciplines. Tim joined Fidelity in 2003 as a Quantitative Analyst and became a Portfolio Manager in 2007. Through this time he has widened his portfolio management responsibility beyond short dated portfolios, including into corporate and inflation linked bonds. Tim has a BA, MSci in Natural Sciences from Cambridge University and is a CFA charter holder. He also has a Certificate in Quantitative Finance.

Claudio joined Fidelity in 2006. He has been co-manager of the Fidelity Strategic Bond Fund since April 2017. His first role at Fidelity was as part of the quantitative research team, where his main responsibility was portfolio construction and trade idea generation in credit, rates, FX, structured credit and credit options. Claudio became an assistant portfolio manager in 2015, where he was attached primarily to total return and absolute return strategies. He was appointed to co-portfolio manager in 2016. Prior to joining Fidelity, he works as a structured finance analyst at Capitalia Banking Group, Rome. Claudio has an MSc Financial Mathematics from Kings College in London.

Fund performance

Fidelity International

Fidelity Worldwide Investment was founded in 1969, originally established as the international arm of Fidelity Management and Research, a US company founded in 1946. The two businesses became independent in 1980. The business is privately owned by senior management, founding family interests and some charities making up the balance.