Spreadbury avoids rush to risk despite 'disappointing' returns

Fidelity Worldwide Investment's bond manager Ian Spreadbury has said his fund has lagged competitors in the last year because of his ongoing caution amid a move by peers to add equity-like risk to their portfolios.

Spreadbury’s two main funds – the £3.1bn MoneyBuilder Income fund and the £1.4bn Strategic Bond fund – are both behind their respective sector averages in the last year. However, Spreadbury said he has held back from going ‘headlong’ into financials and high yield debt in order to protect investors if markets turn, especially with liquidity remaining poor. “Ultra-low rates have focused minds on yields, and investors have subsequently pushed down yields on many bonds,” he said. “The problem is many bond funds have gone a long way up the risk curve, and now correlations with equities...