Fidelity investments plan to launch their Sterling bond fund in April.
The fund, which will be available from April subject to FSA approval, will be managed by Ian Spreadbury. It will sit alongside the Fidelity MoneyBuilder and Extra Income funds.
Ian Spreadbury will invest principally in UK investment grade bonds, but he is also free to invest in international fixed income securities and to allocate up to 20 per cent of the portfolio in high-yield securities.
The fund is modelled on Fidelitys offshore sterling bond fund, also managed by Ian Spreadbury and based in Luxembourg. This fund is ranked in the top quartile of its peer group over three, five and ten years.
The new fund will qualify for inclusion in an ISA and will have a minimum contribution of 1,000.
Fidelitys head of UK distribution Michael Jones says: “This new fund complements our range of existing fixed income funds, sitting between MoneyBuilder and Extra Income on the risk/return spectrum”.