Investing Ideas

Seeking higher, more consistent fixed income returns

Why multi-strategy credit might be a consideration in the bond investment mix.

By: Scott Mensi

Updated: 10/14/2025

Key Takeaways

Multi-strategy credit funds seek to enhance fixed income returns and diversification by combining a range of credit exposures—including public and private markets—under a single actively managed structure.
Active managers of these funds can shift between different credit categories, including high-yield bonds, convertible bonds, and private credit, to take advantage of performance dispersion.
The Fidelity Multi-Strategy Credit Fund balances foundational and opportunistic investments and, within a fixed range, the managers of this fund can change the mix based on market conditions.
Multi-strategy credit funds complement—not replace—core bond holdings in a diversified portfolio and come with trade-offs that include higher fees, more complexity, and lower liquidity.

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Seeking higher, more consistent fixed income returns

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