HEAD-TO-HEAD: Fidelity Strategic Bond vs M&G Optimal Income

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Like modern day football, funds that retain managers for a significantly long time are rare.

However, both M&G Optimal Income and Fidelity Strategic Bond have been run by the same person since inception, which could explain why the funds are so consistent in their performance.

Richard Woolnough (left) and Stefan Isaacs (centre)

“Few, if any, fixed interest managers can demonstrate that they can add value through interest rate exposure management, asset allocation and stock selection,” said McDermott. “That is not the case with Woolnough, and the flexible mandate of this fund provides the perfect vehicle for him to exhibit his investment prowess.”

“The bond team at M&G are an interesting bunch, with both youth but also experience on their side,” Prior added. “Woolnough has done a fantastic job of creating a franchise in the strategic space at a time when the market has been thirsty for a little more than traditional corporate bond like performance.”

Ian Spreadbury (right)

“Meeting Ian Spreadbury is like wrapping a warm blanket of knowledge and experience around fragile shoulders,” said Prior. “He is not afraid to admit that his fund is not going to keep up in the racier times, but always comes back to traditional bond investing and what any bond fund should be trying to achieve for investors.

“The appointment of Sanjiv Vaid and the five-year plan that Fidelity have in place for his succession is a positive, and Ian has committed to the group for five years while teaching his ways to an already seasoned investor.”

McDermott added: “Ian is a seasoned fixed interest investor and has the experience to navigate the complex waters of the fixed interest market.

“He has been able to generate returns and an income stream with low volatility by selecting the right asset allocations for the majority of the time, though he is extremely bearish on markets at the moment and the portfolio is very defensively positioned across a large number of holdings.”

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