Fidelity Sustainable USD Emerging Markets Bond Fund (FESE)

Overview

The Fidelity Sustainable USD Emerging Markets Bond Fund emerges as a mutual fund specifically structured to provide investors with a gateway into U.S. dollar-denominated debt securities issued by emerging market entities. This fund is instrumental in offering broad access to a varied selection of bonds originating from developing countries, thus presenting opportunities for investors to benefit from the economic upsurge in these regions while also mitigating currency risks through its dollar denomination. With an emphasis on sustainability, the fund incorporates Environmental, Social, and Governance (ESG) criteria into its investment strategy, fostering support for businesses and government practices that are conscious of their impact on the environment and society. This positions the fund not only as a vehicle for financial investment but also as a means for contributing to global sustainability efforts.

Products and Services

This fund impacts a wide range of sectors and industries within the rapidly growing economies of Asia, Latin America, Africa, and Eastern Europe. Below are the key products and services offered by the Fidelity Sustainable USD Emerging Markets Bond Fund:

• Access to Emerging Market Debt Instruments

  Offers investors exposure to a diverse array of bonds issued in U.S. dollars by governments and corporations in emerging markets. This access facilitates investment in regions that generally showcase faster economic growth and potentially higher yields than those found in more developed markets, albeit with a corresponding increase in risk.

• Sustainability-Focused Investment

  Integrates Environmental, Social, and Governance (ESG) criteria into its investment decision-making process. This approach allows the fund to selectively invest in entities that are not only financially promising but also adhere to responsible and sustainable practices, reflecting a commitment to making a positive global impact.

• Currency Risk Management

  By dealing exclusively in U.S. dollar-denominated securities, the fund provides a strategic benefit to investors wary of the currency volatility often associated with investments in foreign countries. This framework insulates investors from the fluctuations in local currencies, focusing instead on the growth potential and yields of emerging markets.

• Diverse Portfolio Diversification

  Through its investment in a wide range of bonds across various sectors and geographic regions, the fund offers significant portfolio diversification benefits. This diversification not only spreads the risk associated with investing in high-growth, high-risk regions but also enhances the potential for returns, making it an appealing option for investors looking to expand their investment horizons.