Fidelity Extra Income
Launched in 1999, this fund has been managed by Ian Spreadbury since 2002, with Sajiv Vaid joining him earlier this year.
Scooping the top prize in this category on its first appearance in the 100 Club, the fund invests primarily in high yield and investment grade corporate bonds denominated in sterling and euros, although currency is hedged back to sterling.
It is suggested that the combination of these two asset classes lowers volatility while at the same time offering high return/income potential. In addition, the team has the ability to invest in “out-of-index strategies as a means of adding performance”, but the overriding priority is to achieve the investment objective of producing a relatively high level of income.
The largest geographical allocation is to the UK and Ireland at 69.7 per cent of the portfolio, with the US and rest of North America a distant second at just 8.7 per cent of total net assets.
Sector positioning is more evenly spread, however, with a 14.2 per cent allocation to communications securities, and just over 13 per cent in banks and brokers, while 12.3 per cent is invested in asset-backed and mortgage-backed securities.
What the judges say
The winner is a fund that has benefited from its distinctive relative value style, rather than simply taking directional views, according to the judges.
In numbers
£448m
Fund size
40%
Five-year actual return
0.78%
Ongoing charges
Club members
Allianz Sterling Total Return
Aviva Investors Higher Income Plus
Axa Sterling Strategic Bond
Baillie Gifford Corporate Bond
