Fidelity Total Bond Fund: Take the Work Out of Choosing Fixed Income Investments
Investors looking for a core bond fund for their portfolio may want to consider Fidelity Total Bond Fund, a broad bond market fund that can help investors meet their long-term goals.
Fund Strategy
Fidelity Total Bond Fund is actively managed to seek a high level of current income. The fund mainly invests in investment-grade fixed income securities, but also has the flexibility to invest up to 20% of the portfolio in high yield and emerging market debt, which are less interest rate sensitive sectors of the bond market. Because the fund has exposure to a wide range of different types of bonds that behave differently as market conditions change, it is well positioned to take advantage of many potential market scenarios.
Investment Approach
Fidelity Total Bond Fund is managed for total return, and to provide consistent and strong performance relative to the fund's benchmark, the Lehman Brothers Aggregate Bond Index1. We focus on bottom-up research provided by a dedicated team of portfolio managers, traders, credit analysts and quantitative analysts, making sure that the best ideas make their way into the fund. The fund manager also works closely with Fidelity's U.S. and international equity and high yield analysts, leveraging Fidelity's resources and research across all investment classes.
Who May Want to Invest
•
Investors seeking broad fixed income exposure with a single fund.
•
Investors looking to diversify a stock-heavy portfolio.
•
Income-oriented investors with a slightly higher risk tolerance.
•
Investors with an intermediate to long-term time horizon.
Fund Highlights
•
Increased investment opportunities by including high yield and emerging market debt as part of its investment universe.
•
Diversification within the fixed income asset class with a single purchase of a mutual fund.
•
Greater income and return potential than a comparable duration, pure investment-grade bond fund.
The Fidelity Advantage
Fidelity's Fixed Income Division is an industry leader. Fidelity manages more than $375 billion in fixed-income assets including more than $260 billion in bond and money market mutual funds2. Our funds offer strong historical performance and expert money management, backed by what we believe to be the most extensive research capabilities in the industry.
Additional Factors to Consider
Fixed income can be an important part of an overall asset allocation strategy. As with any investment, it is important to keep in mind the following factors when making your investment decision:
•
In general, bond prices rise when interest rates fall and vice versa. This effect is usually pronounced for longer-term securities.
•
Non-diversified funds tend to be more volatile than diversified funds and the market as a whole.
•
Foreign markets, particularly emerging markets, can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market, or economic developments and can perform differently from the U.S. market.
•
Diversification does not ensure a profit or guarantee against loss in a declining market.
•
Past performance is no guarantee of future results.
1 The Lehman Brothers® Aggregate Bond Index is a market value-weighted index of investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of one year or more.
2 As of June 30, 2004.
Please carefully consider the fund's investment objectives, risks, charges and expenses before investing. For this and other information, call or write to Fidelity for a free prospectus, or view one online. Read it carefully before you invest or send money.
