Fidelity continues to build fixed income capability in Australia with launch of new fund
Fidelity International has launched the Fidelity Global Bond Fund in Australia, jointly managed by Rick Patel, Ario Emami Nejad and Daniel Ushakov.
The Fund invests mainly in investment grade global sovereign bonds and global corporate bonds, but also provides some exposure to global high yield bonds and emerging market bonds. The Fund has an overall average AA-investment grade credit rating*.
Commenting on the launch, Managing Director, Lawrence Hanson, highlighted growing client interest in, and demand for, investments in quality government and investment-grade corporate bonds.
“Clients are increasingly seeking alternative investment options with lower risk exposures to complement their current investment strategies. “
“The launch of the Fidelity Global Bond Fund further expands our service offering in Australia, providing investors with investment choice and diversification, and access to our global investment capabilities.”
Global Cross Asset Specialist Lukasz de Pourbaix believes the fund offers a number of benefits for investors in the current environment.
“We’re arguably edging closer to the end of the interest rate tightening cycle. Should central banks begin easing interest rates once inflation is deemed to be under control, this would be positive for bond strategies, particularly those that are exposed to duration risk such as government bonds or strategies benchmarked against the Bloomberg Global Aggregate Bond Index.
Besides regular income distributions, the Fund also offers the potential for higher returns than traditional cash investments over the medium to long term.
“The Fidelity Global Bond Fund is an actively managed portfolio of global bonds. To generate attractive returns, we combine diversified investment positions advised by our in-house fundamental credit research, quantitative modelling and specialist traders.”
“The fund provides a broad and diversified exposure to global bond markets, and we have the ability to allocate exposure to different geographies, currencies, sectors, and maturities to meet the Funds’ return and risk objectives. “
The fund has a suggested minimum investment period of five years and is suitable for investors with a medium tolerance for risk.
*As rated by internationally recognised rating agencies
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