Fidelity changes bond mandate to reduce duration

clock

Fidelity is changing the investment parameters of its £182m Fidelity Global Inflation Linked Bond fund, allowing manager Andy Weir to reduce average duration.

The portfolio, which was launched in 2008, will be given a new benchmark in early March, halving its average duration to five years. Previously it was benchmarked against the Barclays Capital World Govt Inflation Linked (All Maturities) index, which had an average duration of 10 years. The new benchmark is the Barclays Capital World Govt Inflation Linked (1-10 year) index, which has an average five-year duration. The change will allow the fund to move plus or minus two and a half years from the benchmark, giving Weir more options to avoid capital losses when interest rates are rising,...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Future of Investment Festival: Our specialist sessions for advisers

Future of Investment Festival: Our specialist sessions for advisers

Future-proofing advice, building sustainable portfolios, all things SDR

Professional Adviser
clock 19 April 2024 • 2 min read
Why non-transparent managers are behind most failed acquisitions

Why non-transparent managers are behind most failed acquisitions

‘They don’t understand the importance of culture and cohesion’

Rami Cassis
clock 12 April 2024 • 3 min read
Partner Insight: Understanding the investment universe

Partner Insight: Understanding the investment universe

Invesco
clock 12 April 2024 • 6 min read