Fidelity International expands index range with first fixed income funds

Fidelity International (Fidelity) has expanded its UK domiciled (OEIC) index fund range with the launch of two fixed income funds, covering the UK Gilt and the GBP corporate bond markets.

The Fidelity Index UK Gilt Fund and Fidelity Index Sterling Corporate Bond Fund provide investors with a low-cost passive fixed income solution. The funds will charge an Ongoing Charge Figure (OCF) of 0.10 per cent for the UK Gilt Fund and 0.12 per cent for the Sterling Corporate Bond Fund. 

The Fidelity Index UK Gilt Fund is benchmarked to the FTSE Actuaries UK Gilts Index, a widely-used market index for investors looking to measure the performance of the UK Gilt market. The Fidelity Index Sterling Corporate Bond Fund is benchmarked to the iBoxx GBP Liquid Corporates Large Cap index, a well-established and popular provider of benchmarks in the sterling corporate bond market. 

Having launched its first index fund in 1996, Fidelity extended its UK domiciled range to seven low-cost index equity funds in 2014. This move proved popular with UK investors and resulted in a number of other providers responding with price cuts to their own tracker funds. 

John Clougherty, Head of Wholesale, Fidelity International, says: “While active management remains at the heart of our business, we know that investors want choice and value when it comes to investing, whether that’s through an active fund, a tracker or both. 

“We have a well-established index equity franchise with over GBP8 billion of assets under management, and we have consistently led the market in recent years in driving down the cost for index funds. There is currently a total GBP66.5 billion invested in passive fixed income retail funds in the UK market and this is only set to increase as investors look for efficient, low cost access to the asset class.  

“Extending our passive investment capability to include our first fixed income funds reaffirms our commitment to deliver greater choice for clients.”