Bond investing in today’s environment

When considering asset allocation, it may make sense to consider some exposure to bonds in your portfolio, no matter the interest-rate or inflation environment. Whether you enjoy building a portfolio of individual bonds yourself or you prefer to have someone else construct and manage your bond portfolio, there can be benefits and risks to consider. In this recorded webinar, our fixed-income professionals explore both approaches to help you determine what might make the most sense for you and your financial goals.

During this hour-long session, we discuss:

  • How to leverage Fidelity’s extensive bond inventory, tools and resources to manage your own portfolio
  • Fidelity’s approach to professionally managed Fixed-Income Separately Managed Accounts (SMAs)

Download transcript (PDF) | Download slides (PDF)

In general, the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk, liquidity risk, call risk, and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so holding them until maturity to avoid losses caused by price volatility is not possible. Any fixed income security sold or redeemed prior to maturity may be subject to loss. The municipal market can be affected by adverse tax, legislative, or political changes, and by the financial condition of the issuers of municipal securities.

Past performance is no guarantee of future results.

Views expressed are as of the date indicated, based on the information available at that time, and may change based on market or other conditions. Unless otherwise noted, the opinions provided are those of the speakers and not necessarily those of Fidelity Investments or its affiliates. Fidelity does not assume any duty to update any of the information.

All indexes are unmanaged, and performance of the indexes includes reinvestment of dividends and interest income, unless otherwise noted. Indexes are not illustrative of any particular investment, and it is not possible to invest directly in an index.

Bloomberg Municipal Bond Index is an unmanaged index that includes investment-grade, tax-exempt, and fixed-rate bonds with at least one year until final maturity selected from issues larger than $75 million.

Bloomberg U.S. Aggregate Index is an unmanaged index that tracks domestic investment-grade bonds, including corporate, government, and mortgage-backed securities.

Fidelity® Strategic Disciplines provides nondiscretionary financial planning and discretionary investment management for a fee. Fidelity® Strategic Disciplines includes the Fidelity® Intermediate Municipal Strategy and the Fidelity® Core Bond Strategy. Advisory services offered by Fidelity Personal and Workplace Advisors LLC (FPWA), a registered investment adviser. Brokerage services provided by Fidelity Brokerage Services LLC (FBS), and custodial and related services provided by National Financial Services LLC (NFS), each a member NYSE and SIPC. FPWA, FBS, and NFS are Fidelity Investments companies.

FPWA has engaged Fidelity Management & Research Company LLC , a registered investment adviser and a Fidelity Investments company, to provide the day-to-day discretionary portfolio management of Fidelity® Intermediate Municipal Strategy and Fidelity® Core Bond Strategy accounts, including investment selection and trade execution, subject to FPWA's oversight.

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