Product category:
General insurance
News Release from: Fidelity International | Subject: Insurance
Edited by the Insidemoneytalk Editorial
Team on 20 August 2007
Fidelity International global bond
portfolios - overweight credit,
underweight Eurozone bonds
Fidelity's global bond portfolio managers have continued to see the current bond market volatility as an opportunity for selective buying opportunities
The slightly overweight corporate bonds position in Fidelity's global bond portfolios is countered by a marginally underweight move from bonds issued by US government and government-sponsored agencies, banks, utilities and also Eurozone government bonds Andy Weir, fixed income portfolio manager at Fidelity International, comments, "Whilst markets are moving rapidly, our conviction is that fundamentals remain strong"
This article was originally published on Insidemoneytalk on 12 Apr 2007 at 8.00am (UK)
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"Eurozone gross domestic product data remains robust* and in general corporate earnings have been good".
""What we have seen is investors who have had exposure to US sub-prime mortgages acting in fear of illiquidity - more simply that they won't be able to sell their investments.
In response central banks have been proactive in injecting liquidity into the market which seems to have partially improved market confidence".
""Fidelity International's global fixed income funds have not been directly exposed to the US sub prime market - which means we have not suffered from liquidity issues and have not had to sell liquid and profitable positions to compensate losses in illiquid positions".
"We believe it is therefore an opportune moment to add selected securities to portfolios".
""Opportunities have been thrown up by widened credit spreads - the additional returns offered by corporate bonds over government bonds.
We have taken this opportunity to marginally increase our overweight credit and underweight Eurozone government bond positions.
The latter driven by less tight Euro credit market valuations, which reduce incentives for off benchmark strategies".
""Within our credit allocation we have taken selected positions in emerging markets debt, and investment grade insurance and telecoms debt".
"At the same time underweights include agencies, banks, government bonds and utilities." Fidelity International Limited ("FIL") and its subsidiary companies serve the major markets of the world by providing investment products and services to individuals and institutional investors outside the US.
The FIL Organisation manages a total of £145.0 billion of assets.
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