Fidelity adds bond, multi-asset choices to model portfolios

Fidelity has expanded its model portfolio offering by adding a portfolio for bond income and one for multi-asset income. The additions are the first models offered by Fidelity that include exchange-traded funds, along with active and passive mutual funds. The new models aim to generate a high level of income while focusing on managing risk through fixed-income and multi-asset class investing, Fidelity said, and they are intended to provide financial advisers with a way to help clients plan for income before and during retirement. The fund giant launched its model portfolios last July with five asset mixes that align with different risk profiles. The bond model portfolio invests primarily in high-yield securities, preferred stock, U.S. government and emerging-market securities. The multi-asset income portfolio invests primarily in equity and debt securities, including common and preferred stock, U.S. government debt, high-yield debt securities, emerging-market debt and floating-rate securities. (More: DOL fiduciary rule helped birth new model portfolio breeds)​