Fidelity Investments has marked the launch of its Sterling Bond Fund with a discount on the initial charges for investors buying before noon on 31 May 2005.
The fund is managed by Ian Spreadbury, who also runs the Fidelity MoneyBuilder Income and Extra Income funds. Early investors will benefit from a reduced initial charge of 3% until 31 May, after which the charge rises to 3.5% (3% initial commission for advisers and 0.5% trail commission). The fund has an annual charge of 1%.
The bond will principally invest in UK investment-grade bonds, but it can also invest in international fixed income securities and is also allowed to invest 20% of the portfolio in high yield securities. The fund was immediately awarded a 'AA/S4' rating on its launch by Standards and Poor's.
The Sterling Bond Fund will be available on a variety of platforms including FundsNetwork, Cofunds, Transact, III (Ample), Amex and Lifetime.
Head of UK distribution at Fidelity Investments, Mike Jones, said: "This new fund complements our range of existing fixed income funds, sitting between MoneyBuilder Income and Extra Income on the risk/return spectrum."
The fund has a minimum lump-sum contribution of £1,000 and is benchmarked against the Merrill Lynch Sterling Large Capitalisation Index.
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