Fixed Income Funds

Fidelity has established an outstanding reputation in the management of fixed income portfolios. Our impressive performance is the result of a well-defined investment philosophy, a commitment to research and an established portfolio management process. 

The Euro Bond Fund employs a multi-strategy approach to fixed income management investing primarily in investment-grade bonds issued in the Eurozone countries. Our Global Bond Fund follows the same approach investing in a diversified international portfolio of government and non-government bonds.
 
Introducing Fidelity’s new higher alpha bond fund

The challenge

Across Europe, defined benefit pension schemes are facing continuing funding, covenant and maturity challenges. Regulatory frameworks, along with a greater understanding of the asset class, has inevitably drawn public attention to the increasing role of fixed income in diversifying portfolios and matching liabilities.

• The ability of traditional fixed income portfolios to add value consistently has been squeezed.
• Pension managers need to effectively manage their risk budget and are looking for their fixed income assets to contribute more “alpha” or return above the benchmark.
• They need asset managers who can make use of wider investment parameters.

Fidelity’s solution

Fidelity has long understood the benefits of looking globally and using derivatives when constructing traditional bond portfolios. Our new bond fund encapsulates this strategy for the European institutional marketplace.

The Euro Core Plus Bond Fund is designed to add substantial value over a Euro benchmark.

• The fund takes advantage of the wide variety of investment opportunities within the global fixed income markets and the precise use of bond derivatives.
• Using Fidelity’s multi-strategy investment approach, a large number of lowly correlated positions are combined to create highly efficient portfolios, with unwanted risks such as non-sterling currency exposure hedged out.
• The aim is to make your bond exposure work harder to achieve better returns.

Watch a video presentation on the Euro Core Plus Bond Fund