Fidelity Strategic Income Fund Excels In Hard Year for Bonds

The fixed-income market was volatile in 2023, but this Fidelity bond fund outperformed its peers thanks to strategic moves by management.

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(Image credit: Getty Images)

At long last, "there's income back in fixed income," says Fidelity Strategic Income (FADMX) fund co-manager Ford O'Neil. The Bloomberg Aggregate U.S. Bond index now yields better than 5%, which "makes us optimistic about this asset class," he adds. 

The backdrop, of course, is the terrible year that bonds had in 2022, as the Federal Reserve raised interest rates. (Bond prices and interest rates move in opposite directions.) Strategic Income – a member of the Kiplinger 25, our favorite no-load mutual funds – lost 11% that year, compared with a 13% decline in the Agg index. 

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Nellie S. Huang
Senior Associate Editor, Kiplinger's Personal Finance

Nellie joined Kiplinger in August 2011 after a seven-year stint in Hong Kong. There, she worked for the Wall Street Journal Asia, where as lifestyle editor, she launched and edited Scene Asia, an online guide to food, wine, entertainment and the arts in Asia. Prior to that, she was an editor at Weekend Journal, the Friday lifestyle section of the Wall Street Journal Asia. Kiplinger isn't Nellie's first foray into personal finance: She has also worked at SmartMoney (rising from fact-checker to senior writer), and she was a senior editor at Money.