erryl:

I don't think the problem is that Fidelity utilizes these central funds... I think that they have probably saved Fidelity investors a lot of brokerage fees in the past.  It really doesn't make sense to have different Fido funds buying and selling the same thing in the open market.

The problem that has surfaced in these central funds and consequently the Fidelity bond funds is that they bought something that they thought was safe and that turned out to be very risky.  There are a lot of reasons that happened... one is that too many people didn't look hard at Triple-A rated securities to properly evaluate the risk.  They relied on the rating and focused their attention on what they thought were more risky investments.  Most of the time, this would be a pretty smart utilization of time.  In this case, it was a mistake... one that a lot of people made.

That said... I no longer own any Fidelity bond funds and have sold off most of my FSDIX.  FSDIX is no PRWCX...  I don't like most bond funds right now... (LSBRX and PRHYX are my only bond funds -- and no, that isn't a diversified bond holding).  I don't own any Treasuries... or at least not very many.

erryl

 

 

yep thats the real issue, they dabble in stuff that they shouldnt like ultra short bond did.or inflation proof bonds.