Fidelity Investment Grade Bond Fund Q1 2025 Review

2025-05-08 07:49:00 ET

Summary

• As stock and bond markets reacted, the overall trend was a reversal from the risk-on environment of Q4 to a risk-off mindset in Q1 of the new year.
• Overall, sector allocation had a positive performance impact versus the benchmark Bloomberg U.S. Aggregate Bond Index.
• U.S. Treasury yields fell across the yield curve during the quarter, led by two- to 10-year maturities.
• The U.S. Federal Reserve kept its policy rate steady during Q1 after cutting rates by one percentage point during 2024.

Investment Approach

• Fidelity® Investment Grade Bond Fund is a core fixed-income strategy providing investors one-stop access to a diverse group of U.S. high-grade bond sectors.
• Benchmarked against the Bloomberg U.S. Aggregate Bond Index, the fund seeks to deliver competitive risk-adjusted performance that is commensurate with investor expectations of a core bond fund.
• Utilizing a team-based investment process, the fund relies on experienced portfolio managers, research analysts and traders. We concentrate on areas where we believe we can repeatedly add value, including asset allocation, sector and security selection, yield-curve positioning and opportunistic trading.
• Robust governance and risk management, consisting of extensive quantitative modeling, formal and informal portfolio reviews, and proprietary tools, support the identification of both opportunities and risks.

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