New products introduced over the last week include two new bond funds from Fidelity and an alternative -income fund from Palmer Square.
In addition, Thornburg Investments introduced an R6 share class and Securian offered a new optional guaranteed living withdrawal benefit rider on some variable annuities.
Here are the latest developments of interest to advisors:
1) Fidelity Launches Global and International Bond Funds
Fidelity Investments announced on Wednesday the launch of Fidelity Global Bond Fund (FGBFX) and Fidelity International Bond Fund (FINUX), available directly to investors as well as through financial advisors. Both funds, which invest in sovereign government debt and corporate and securitized credit securities, will be measured against a GDP-weighted index.
FGBFX invests in both U.S. dollar-denominated and non-U.S. dollar-denominated securities issued throughout the world, including emerging markets, normally primarily in investment-grade debt securities. It will actively manage currency exposures, and may invest up to 20% of its assets in lower-quality debt securities.
The global-bond fund will be managed against the Barclays Global Aggregate GDP Weighted Index; aggregate indices include corporate bonds, bank capital and securitized bonds, in addition to government bonds.
FINUX, the international-bond fund, invests primarily in non-U.S. dollar-denominated securities, including emerging markets, and will normally invest primarily in investment-grade debt securities. It will actively manage currency exposures and may invest up to 20% of its assets in lower quality debt securities. FINUX will be managed against the Barclays Global Aggregate ex-USD GDP Weighted Index.
Jamie Stuttard, Fidelity’s head of international bond portfolio management, will serve as the lead portfolio manager for both. Curt Hollingsworth and Jeff Moore will co-manage FGBFX, while Hollingsworth will also co-manage FINUX. In addition, Matt Conti will manage the high-yield assets of each fund.
Fidelity also published a new paper focused on global bond investing, “Transformations in Country Dynamics and the Implications for Global Bond Markets,” which analyzes the significant structural changes in the global bond landscape.