Fidelity Investments has taken the plunge of offering a new advisor share class of the Fidelity Ultra-Short Bond Fund. Ultra-short bond funds are seen as a low-risk alternative to fledgling money market mutual funds with less volatility than intermediate-term fixed-income instruments. The sustained climate of low interest rates has taken the wind out of money market funds' sails and increased the popularity of ultra-short funds. . Fidelty has cashed in on the trend this week by introducing new loaded share classes of its ultra-short fund for sales through advisors who subsist from commissions. The new advisor share classes are available in A, T and institutional shares. The Fidelity Ultra-Short Bond Fund is managed by Andrew Dudley and typically maintains 80% of its portfolio in various investment-grade securities with an average weighted maturity of two years or less.
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