Fidelity® Core Bond Strategy
A separately managed account that seeks to generate income from investment-grade bonds while limiting risk to principal over the long term
Fidelity Core Bond Strategy provides you with an actively managed portfolio of investment grade bonds that generally provide income and are typically less volatile than stocks and high-yield bonds. As a result, we believe they should be part of a diversified portfolio.
Seeks income from high-quality bonds
The Fidelity Core Bond Strategy commonly maintains a portfolio of investment-grade bonds that has an average credit rating of at least A–, with 80% rated A– or better at the time of purchase. These high-quality bonds are typically issued by the U.S. Treasury, U.S. government agencies, and corporations that are established, have fairly healthy balance sheets, and possess a positive growth outlook.
The Strategy invests in a diverse mix of investment-grade bonds across a range of sectors and varying maturities. A decline in one sector could hopefully be offset by a gain in another, which may help smooth out portfolio volatility.
Strives to balance income vs risk
Fidelity Core Bond Strategy considers both income and price appreciation as potential sources of return and seeks bonds with a favorable risk/reward trade-off. Using a research-based approach, the investment management team strives to avoid bonds that will not compensate bond holders for their investment risk.
To also help manage risk, the strategy targets an overall duration that is in line with the benchmark3 which typically has an average duration4 of 4-6 years. In general, portfolios with shorter durations are less sensitive to changes in interest rates than portfolios with longer durations.
Tapping Fidelity's Fixed Income expertise
Fidelity Management & Research Company LLC (FMR) brings investors a rich history of managing fixed income investments for over 50 years. Using proprietary research, models and tools, FMR can analyze thousands of securities across the investment-grade bond universe. This capability allows them to build a diversified core bond strategy to help generate income and manage risk—all while helping your account stay aligned with your preferences.
Fidelity's Fixed Income division believes investment success is a function of teamwork—involving portfolio managers, quantitative analysts, credit analysts and traders. Their investment team will actively manage your account, putting their knowledge, experience, and resources to work as they seek to uncover opportunities in all types of markets.