Fidelity® Strategic Income Fund

Class No Load (FSICX)
Scorecard
4 / 5 Stars
Lipper
4 4 3 5 2
Zacks Investment Research
4 (Sell)
Standard & Poor's
4 / 5 Stars
TheStreet.com
C (Hold)

#11 in Multisector Bond

U.S. News evaluated 80 Multisector Bond Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.

See all Fidelity Investments funds

See full Multisector Bond rankings

See more fund rankings

Performance

The fund has returned 8.67 percent over the past year, 5.73 percent over the past three years, 9.04 percent over the past five years, and 7.46 percent over the past decade.

Trailing Returns Updated 06.30.2014
Year to date 5.9%
1 Year 8.7%
3 Years (Annualized) 5.7%
5 Years (Annualized) 9.0%
10 Years (Annualized) 7.5%

See more FSICX performance

Summary

Fidelity Strategic Income's approach comes with some risks, but for the most part, patient investors have been rewarded.

As of July 03, 2014, the fund has assets totaling almost $8.77 billion invested in 606 different holdings. Its portfolio consists of a number of different types of bonds.

This fund sports quite the unique mixture of fixed-income investments. The tamer part of its portfolio is comprised of U.S. treasuries, which as of the end of 2010 comprised a bit under a fifth of its bond holdings. The fund also has exposure to the sovereign debt of a number of other countries. Some of them, including Britain and Canada, are developed countries, while others, such as Russia and Venezuela, are in the developing/emerging category. The latter , of course, comes with added risk, as does the fund's exposure to below-investment-grade corporate bonds. The fund takes a barbell approach to credit quality, overweighting the higher and lower ends of the spectrum. Overall, though, the lower end wins out. The fund's average credit quality is BB, which is considered to be "junk" status. In other words, management is willing to take on risks in pursuit of higher returns. The fund has returned 8.67 percent over the past year and 5.73 percent over the past three years. 

Don't expect this fund to track the broader bond market. In 2008, for instance, it underperformed the Barclays Capital U.S. Aggregate Bond Index by nearly 17 percentage points, only to beat the same index the next year by nearly 26 percentage points. Over time, the fund's returns have been solid. As of the end of the first quarter, it was averaging returns of upwards of 8 percent per year over the trailing 10-year period. The fund has returned 9.04 percent over the past five years and 7.46 percent over the past decade. 

Investment Strategy

The fund invests in a combination of U.S. treasuries, sovereign debt of other countries, and corporate bonds. With more than 1,000 bond holdings, the fund is broadly diversified (although it is somewhat concentrated by sector). Management is willing to take on a fair amount of risk in pursuit of higher returns. 

Role in Portfolio

Morningstar calls the fund a supporting player.

Management

A large team of co-managers runs the fund.

Fees

Fidelity® Strategic Income Fund has an expense ratio of 0.69 percent. 

See more FSICX fees

Risk

Management is willing to take on a fair amount of risk.

See more FSICX risk

Fund Opinions

The fund's Value Line Overall Rank, a measure of risk-adjusted performance and relative growth in fund returns, is 1 on a scale of 1 to 5, with 1 being the best and 5 the worst.

Value Line 2014-06-11

The fund's Value Line Growth Persistence rank, which awards funds that consistently outperform their broad universes, is 1 for one year, 1 for five years, and 1 for 10 years. Scores are on a 1 to 5 scale, with 1 being the best and 5 the worst.

Value Line 2014-06-11

The fund's Value Line Risk Rank, a measure of volatility, is 3 on a scale of 1 to 5, with 1 being the least volatile and 5 the most.

Value Line 2014-06-11

Morningstar gives this fund a stewardship rating of C on a scale of A to F.

Morningstar 2011-06-12

Morningstar gives this fund a stewardship rating of C on a scale of A to F.

Morningstar 2011-06-12