Fidelity Announces New Advisor Bond Offering

July 28, 2004 ( - Fidelity Investments has launched a new bond fund providing investors access to the entire US dollar-denominated bond market through the financial advisor channel.

A Fidelity news release said the Fidelity Advisor Total Bond Fund (Class A, Class T, Class B, Class C, and Institutional Class) seeks a high level of current income by investing mainly in investment grade fixed-income securities. The fund also has the flexibility to invest up to 15% of the portfolio in less interest-rate-sensitive sectors, which include high-yield and emerging market debt, the company said.

Managed by Kevin Grant, Fidelity Advisor Total Bond Fund invests at least 80% of the fund’s assets in debt securities of all types, including investment grade, high-yield, and emerging markets. The high-yield and emerging market debt assets will be managed by dedicated sub-portfolio managers who are subject matter experts in their respective disciplines, the Fidelity announcement said.

“Financial advisors can play a key role in helping investors understand the importance of building and maintaining a well-diversified fixed-income portfolio, regardless of the current interest rate environment,” Marty Willis, executive vice president, Fidelity Investment Institutional Services Company, said in the announcement.

Grant, who also manages Fidelity Total Bond Fund, will continue to manage Fidelity Investment Grade Bond Fund, Fidelity Advisor Investment Grade Bond Fund, Spartan Investment Grade Bond Fund, and Fidelity Advisor Intermediate Bond Fund. Grant joined Fidelity in 1993 as a portfolio manager after spending two years at Morgan Stanley as a vice president and chief mortgage strategist.