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Fidelity cracks the crunch

Fidelity has brought out a new fund designed to take advantage of market anomalies from the credit crunch.

The global credit opportunities fund is run by fixed-income fund manager Ian Spreadbury.

It is designed for high-net-worth investors and offers both a Luxemburg Sicav and UK Oeic version with a minimum investment of £10,000 and an annual management charge of 0.5 or 1 per cent.

Spreadbury will be assisted on the fund by the group’s credit team and will invest in investment-grade, high-yield, asset-backed and convertible bonds.

The fund will be benchmarked against the Sonia index, which is a sterling-denominated cash index.

Spreadbury expects the fund to fit into the volatile end of the market. He says: “I believe conditions are conducive to a research-led, stock-based investment strategy that aims to generate good levels of out-performance over the longer term. The flexibility the fund has and the use of derivatives should allow me to generate performance throughout the credit cycle.”

Hargreaves Lansdown head of research Mark Dampier says: “It is understandable, as no equities are selling at the moment, to offer a bond fund that has a diversified investment universe.”

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