Fidelity Advisor Total Bond Fund - Class C (FCEPX)

Overview

The fund is designed to provide investors with broad exposure to the debt security market, including a diverse range of investment-grade and high yield asset classes. By adhering to a strategy that involves investing at least 80% of its assets in various types of debt securities and engaging in repurchase agreements for those securities, the fund aims to align its portfolio with the opportunities presented across different credit qualities and geographies, including emerging markets. Utilizing the Bloomberg U.S. Universal Bond Index as a benchmark for allocation, the fund seeks to manage its investment mix, navigating through the complexities of investment-grade securities, high yield options (also known as junk bonds), and the nuances of emerging market debts. With a flexibility to invest up to 20% of its assets in lower-quality debt securities, the fund offers a balanced approach towards achieving potential returns while managing the risks associated with less than investment-grade quality assets.

Products and Services

• Debt Securities of All Types

This includes a wide range of debt instruments such as bonds, debentures, and other debt papers issued by governments, municipalities, and corporations. By investing in these securities, the fund provides its investors exposure to a variety of credit risks and maturity profiles, aiming to harness gains from interest payments and capital appreciation.

• Repurchase Agreements

These are short-term investment products that involve the sale of a security with an agreement to repurchase it at a future date at a set price. The fund employs repurchase agreements as a strategy for accessing short-term liquidity and achieving additional returns, while also managing its exposure to counterparty risks.

• Investment-Grade Securities

Securities that are rated within the investment-grade category offer a lower risk of default compared to lower-rated securities. The fund invests a significant portion of its assets in these securities, providing a stable income stream with relatively lower risk, following the guidance of the Bloomberg U.S. Universal Bond Index.

• High Yield Debt Securities or Junk Bonds

The fund allocates a portion of its assets to high-yield debt securities, which are ranked below investment grade. These securities offer higher interest rates to compensate for the increased risk of default, thus potentially enhancing the overall yield of the fund’s portfolio.

• Emerging Market Asset Classes

By investing in debt securities from emerging markets, the fund aims to capture the growth potential of these regions. Such investments carry higher risks but can offer significant returns due to the economic growth and higher interest rates prevalent in these markets.