Fidelity announced today the launch of two new funds: Fidelity Global Bond Fund and Fidelity International Bond Fund, with investor and advisor classes for both.
Fidelity Global Bond Fund may be appropriate for investors looking for a core holding that invests across multiple countries and currencies, while providing diversified taxable bond exposure. Fidelity International Bond Fund provides many of the same potential benefits as Fidelity Global Bond Fund, but it also caters to investors looking for targeted exposure primarily to non-U.S. debt.
Both funds will be team managed with Jamie Stuttard, Fidelity’s head of International Bond Portfolio Management, as the lead portfolio manager, and with Curt Hollingsworth and Jeff Moore as co-managers. Matt Conti will manage the high yield assets of each fund.
In conjunction with the fund launch, Fidelity has released a paper entitled Transformations in Country Dynamics and the Implications for Global Bond Market.
The report "highlights the merits of a GDP-weighted benchmark. A GDP-weighted mandate invests in the world’s most established economies — those with the largest GDP. This approach is in stark contrast to a market-capitalization approach, where the benchmark is based on the amount of debt each issuer has outstanding. That approach explicitly favors larger, more indebted issuers, regardless of their ability to service that debt." Click here to Download the PDF.