According to the US wealth manager, the Global Bond Funds would be ideal for investors looking for a core holding which invests across multiple countries and currencies, while offering diversified taxable bond exposure.
Similarly, the International Bond Funds provide equal prospective benefits as the Global Bond Funds, but also cater to investors looking for targeted exposure primarily to non-US debt, said Fidelity.
The International Bond Funds may invest up to 20% of their assets in lower quality debt securities.
Commenting on the launch of new funds, Fidelity’s Fixed Income division president Charlie Morrison said that global economies have undergone significant change over recent years and the opportunities that exist in fixed income markets outside of the US are unprecedented.
"Leveraging our significant global fixed income investment management capabilities, we believe these new funds will appeal to investors seeking diversified global and international investment-grade debt and currency exposure," Morrison added.
The firm has appointed Jamie Stuttard, head of International Bond Portfolio Management, as the lead portfolio manager for the Global Bond Funds and the International Bond Funds, while Curt Hollingsworth and Jeff Moore will co-manage the Global Bond Funds.
Additionally, Matt Conti will manage the high yield assets of each fund while Hollingsworth will also co-manage the International Bond Funds.
The funds are utilized to invest in sovereign government debt and a corporate and securitized credit security, measured against a GDP (Gross Domestic Product)-weighted index, which is different from the market capitalization-weighted approach, claims the firm.
