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Fido gets a bit junkier

David_Snowball
in The Bullpen
Perhaps a sign of the times. Fidelity just announced that the neutral allocation for Fidelity Strategic Income (FSICX) is shifting. They've decided to inch up its exposure to junk bonds by 5% and drop its exposure to investment grade issues by the same.
The fund uses a neutral mix of approximately 45% high yield, 25% U.S. Government and investment-grade, 15% emerging markets, and 15% foreign developed markets. Engaging in transactions that have a leveraging effect on the fund.
That second sentence from the "primary strategies" strikes me as regrettably illiterate.

In any case, you'll recall that Vanguard also made a recent allocation shift in its target-date and lifestyle products, away from core US stocks and bonds and toward international. Both sets of moves imply an enduring judgment about the risk/return characteristics of the underlying asset classes, I should imagine.

For what curiosity that piques,

David
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