Fidelity Advisor Total Bond Fund Class I (FEPIX)

Overview

The fund described focuses primarily on investing in a diverse portfolio of debt securities, which encompasses a broad spectrum of assets from investment-grade to high yield and emerging market debt securities. By earmarking at least 80% of its assets for debt securities and engaging in repurchase agreements for those securities, the fund casts a wide net in capturing potential gains across various sectors of the bond market. The Bloomberg U.S. Universal Bond Index serves as a strategic benchmark for asset allocation, guiding the fund's investment decisions across different classes of debt. In addition to its core focus, the fund has the flexibility to invest up to 20% of its assets in lower-quality debt securities, also known as high yield debt securities or junk bonds, adding a layer of risk and potential reward to its investment approach.

Products and Services

• Debt Securities Investments

This product primarily focuses on investing in a diverse range of debt securities. By allocating at least 80% of its assets to various types of debt instruments, including bonds and repurchase agreements related to these securities, the fund seeks to achieve a balanced exposure to different segments of the bond market. The choice of debt securities spans from investment-grade bonds, which offer lower returns but increased safety, to high yield bonds and emerging market debts, which present higher risk but the potential for greater returns.

• Bloomberg U.S. Universal Bond Index-based Asset Allocation

Utilizing the Bloomberg U.S. Universal Bond Index as a guiding framework, the fund strategically allocates assets across different debt categories, including investment-grade, high yield, and emerging market asset classes. This guided asset allocation approach helps in diversifying portfolio risks and aiming for returns that closely mirror the performance of the bond market as captured by the index.

• Investment in Lower-Quality Debt Securities

In pursuit of higher yields, the fund also dedicates up to 20% of its assets to lower-quality debt securities. These are typically categorized as less than investment-grade or are often referred to as high yield debt securities or junk bonds. Investing in these riskier assets allows the fund to pursue greater returns, acknowledging the increased risk of default associated with these types of bonds.