Skandia Investment Group awards fixed interest mandate to Fidelity
Skandia Investment Group (SIG) has awarded one of its largest ever single UK mandates – £200m – to Fidelity’s UK Fixed Interest Team.
The mandate underpins the Skandia Corporate Bond Fund which is part of the group’s Signature range of single manager funds and was previously run by Royal London.
Fidelity’s fixed interest team manages close to £40bn across a variety of strategies but with a large focus on UK fixed interest. The team is exceptionally well resourced with a comprehensive credit analyst team. Furthermore, Fidelity has invested heavily in quantitative resources, giving them superior tools for managing risk and generating trade ideas.
Adam Smears, SIG Head of Fixed Income, said, “Fidelity is a higher conviction manager and has demonstrated greater risk adjusted returns over the full cycle. Furthermore, their strategy is more liquid, in keeping with a core corporate bond portfolio. Their risk management techniques have proved to be very effective in the bear market of 2007/08 and the subsequent recovery in 2009.”
Gary Shaughnessy, UK Managing Director at Fidelity Investment Managers said, “Fidelity is naturally extremely pleased to have been appointed by Skandia Investment Group to manage this Corporate Bond mandate. As one of the most important asset classes for investors in today’s uncertain markets, the need to deliver consistently good performance is paramount. We have invested in our fixed income capability for many years and we look forward to using the team’s experience and skill to the benefit of Skandia’s clients.”