Fidelity Investments has launched a multi-asset-class fund that is focused on outpacing inflation.
The Fidelity Strategic Real Return Fund will be
structured around four sub-portfolios composed of about 30% in
inflation-protected debt securities, 25% in floating-rate loans, 25% in
commodity-linked notes and related investments, and 20% in REITS and
other real estate investments.
The fund will be offered as both a retail no-load
fund and in the form of five Advisor share classes. Fidelity now has 81
Advisor Fund products. This is Fidelity's third strategic fund using
multiple asset classes.
The fund will be co-managed by Derek Young and Chris
Sharpe, who co-manage several other Fidelity funds. Young joined
Fidelity in 1996 and Sharpe started with the company in 2002.
"Fidelity Strategic Real Return Fund is a product
that has the potential to provide two distinct benefits to our
customers," says Sanjiv Mirchandani, executive vice president of
Fidelity Personal Investments. "First, it will seek to provide
investors with greater portfolio diversification by investing in
securities that are not conventional domestic equities and bonds, and
second, it presents the opportunity for solid investment results when
inflation rises."