Fidelity launches a global fixed income fund with maturity in 2027
3 OCT, 2024
After many months of inflation and a long period of restrictive monetary policy, the ECB's rate cut seems to indicate the start of a more favorable phase for fixed income funds. In this context, fixed maturity fixed income funds could represent an opportunity for investors who value the stability of a constant income flow in a more expansive monetary policy context.
Thus, the FAST - Fixed Maturity 2027 fund is born, which, through a strategic combination of corporate bonds, public debt and high yield bonds, we believe represents a valid alternative to public debt with an equivalent maturity (such as Italian BTPs), as well as a possible complement to the profitability offered by deposits.
Other distinctive features are the payment of a stable income flow in the quarterly distribution classes and the diversification of the portfolio among multiple bonds that helps to mitigate the potential risk of individual corporate defaults.
Management Team
Lucette Yvernault is responsible for the Portfolio Engineering Group (PEG) in the fixed income area. Lucette has 16 years of experience in the investment sector and has solid experience in managing customized solutions, designing tailor-made portfolios and developing advanced strategies to meet the constantly evolving needs of clients.
Ilia Chelomianski is a fund manager of the Systematic Fixed Income team with 10 years of experience in the sector. Before joining the team, Ilia worked as an Investment Director covering a wide range of strategies, such as institutional mandates and managed portfolios of SyFI. Ilia joined Fidelity in 2016.
5 reasons to invest in the fund
- Daily net asset value and 3-year maturity.
- A source of diversification, with around 70/80 positions in the portfolio.
- A portfolio that aims to maintain an average investment grade rating.
- Also available in a class with a quarterly fixed coupon.
- The fund invests in an international portfolio that covers the risk of currencies other than the euro.
The fund develops a fixed income buy and hold strategy, with a predetermined maturity in December 2027. In addition, it offers these two advantages:
- Active management: Although it is a "buy and hold" strategy, managers have flexibility to replace specific titles in the portfolio if the credit quality of an issuer deteriorates, in order to preserve the risk/return profile of the fund.
- Integration of ESG characteristics in the assessment of risks and investment opportunities: When determining ESG characteristics, investment managers take into account the ESG rating of Fidelity or an external agency. The fund's goal is to achieve an ESG score in the portfolio higher than that of the reference investment universe, highlighting the commitment to sustainable and responsible investment practices.
