Bestinvest says
The portfolio manager is one the most respected in the industry. He has a reputation as being one of the more conservative investors with a keen eye on risk and diversification at the portfolio level; these attributes were particularly evident in the recent credit crisis. He benefits from the resources and global reach of Fidelity International. His Strategic Bond Fund represents a more unconstrained version of this fund from an asset allocation perspective.
The fund will invest primarily in sterling corporate and high yield bonds, in addition the fund may also include exposure to euro denominated corporate and high yield debt and US denominated high yield. The benchmark for comparative performance purposes is 60% Merrill Lynch Euro Sterling, 25% Merrill Lynch Sterling High Yield and 15% Merrill Lynch Euro High Yield. Exposure to high yield is not fixed but will be managed within predefined bands according to the prevailing market conditions. By mixing the two asset classes the manager will seek to diversify risk. The intention is that the volatility of the fund will be managed not to exceed that of a pure corporate bond fund. Returns are anticipated to be driven primarily by asset allocation, credit strategies and stock selection. Duration management within investment grade bonds will not be a major contributor to fund alpha.