View more on these topics

Sterling effort from Fidelity

Fidelity Investments

Sterling Bond Fund

Type: Oeic

Aim: Income and growth by investing in UK investment-grade bonds, high-yield bonds and international fixed-interest securities

Minimum investment: Lump sum 1,000, monthly 50

Investment split: 100% in UK investment-grade bonds, high-yield bonds and international fixed-interest securities

Isa link: Yes

Pep transfers: Yes

Charges: Initial 3.5%, annual 1%

Special offer: Initial charge reduced to 3%

Offer period: Until May 31, 2005

Commission: Initial 3%, renewal 0.5%

Tel: 0800 414181

The Fidelity sterling bond fund is an Oeic which invests in UK investment-grade bonds, high-yield bonds and international fixed-interest securities.

Capital Trust Financial Management partner Bruce MacFarlane thinks this is a strange time for Fidelity to introduce a bond fund. He says: “The sterling bond fund aims to provide investors with a relatively high income from a portfolio of predominantly investment-grade bonds and is therefore relatively low risk.”

However, MacFarlane says the fund would hold little interest to Capital Trusts clients in the current economic cycle because it is possible to get a better return from cash deposits without any risks or costs.

He says: “There is nothing about this particular fund that I dont like – indeed if I wished to purchase a bond fund Fidelity would be on the buy list. In general, I dislike all bond funds at this current time in the economic cycle and prefer cash or near cash alternatives.”

MacFarlane considers the Fidelity literature as excellent says the adviser remuneration and charges are all as expected with this sort of fund. He thinks the fund will be attractive when wrapped in an Isa.

Discussing potential competitors, MacFarlane says: “All corporate bond funds which are skewed towards investment-grade bonds will be in competition. I believe that cash deposits in the short term will provide competition against investment-grade bond funds where returns are actually greater without any risks involved.”

BROKER RATINGS

Suitability to market: Average
Investment strategy: Average
Charges: Average
Adviser remuneration: Average

Overall 6/10

Recommended

Winterthur adds three new managers

Winterthur Life has appointed three new business development managers as part of its strategy to grow adviser services.Russell Anderson joins from Scottish Life and will be responsible for supporting IFAs in Northern Ireland.David Arthur joins from Standard Life and will be responsible for a panel of intermediaries in Edinburgh and Glasgow.Don Provan joins from prudential […]

WMS launches new adviser products

Wealth Management Software has launched two new products aimed at the IFA software market.WMS says it continues to invest in its FAIRS IFA Manager product which offers a complete back office and point of sale administration solution for advisers.The first is LISA Portfolio Manager, a portfolio modelling, performance attribution and client reporting system for high […]

F&C appointed to manage 1.2bn of Swiss Life UK insurance assets

F&C is appointed to manage 1.2bn of Swiss Life UK insurance assets, in a contract effective from July 1 2005. The appointment follows a tender process resulting from the sale of Swiss Life Groups UK life insurance business to Resolution Life Group.F&C manages 78.6bn of assets for European insurance clients, including Resolution Life Group, Friends […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment