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