Fidelity’s two new short-term credit funds eye launch next week

By Toni Weeks

San Luis Obispo, Calif., March 20 – Fidelity Salem Street Trust said its new fixed-income fund, the Fidelity Series Short-Term Credit Fund, is expected to launch next week. The effective date of an N-1A filing with the Securities and Exchange Commission on Friday was given as March 23.

As previously reported, the fund will seek to obtain a high level of current income consistent with the preservation of capital. It will normally invest at least 80% of its assets in medium- and high-quality investment-grade debt securities of domestic and foreign issuers as well as repurchase agreements for those securities.

The fund will be managed to have similar overall interest rate risk to the Barclays U.S. 1-3 Year Credit Bond index and will normally maintain a dollar-weighted average maturity of three years or less.

Robin Foley and Robert Galusza will be the co-portfolio managers.

The ticker symbol is “FYBTX.”

There will be no shareholder fees. Including a management fee of 0.35%, total annual operating expenses are expected to be 0.45%.

Fidelity Salem Street Trust is also launching a sister fund, the Fidelity Advisor Series Short-Term Credit Fund with the same investment objective and strategy and portfolio management team. The ticker symbol is “FYATX.”

Boston-based Fidelity Management & Research Co. will act as the funds’ investment manager.

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