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Fidelity Quarterly Bond Strategy Selection (For 2nd Quarter, 2016)

I have published an article on SA about a tactical Fidelity Quarterly Bond Strategy. The selection for next quarter is FMSFX. Here are the 3-month total returns for the three funds in the strategy:

FCTFX = 1.77%

FMSFX = 1.88%

FAGIX = 0.58%.

So the top-ranked fund is FMSFX. FMSFX passes its 3-month SMA, so it is the selection.

For the Schwab version (whose universe is NHMAX, FAGIX and VFIIX), the winner is NHMAX. NHMAX had a 3-month total return of 2.89%.

I started investing in the Schwab version of this strategy at the start of the 4th quarter, 2015. The selection has been NHMAX for each quarter so far. Total return has been 5.5% over the last two quarters. The benchmark bond ETF (NYSEARCA:AGG) has returned 3.0% over this time, and the Vanguard Total Bond Fund (MUTF:VBMFX) has returned 3.1%.

Disclosure: I am/we are long NHMAX, FMSFX.