US Investment Grade Credit in Focus

Risk Warning

Past performance is not a reliable indicator of future results. 

The value of investments and the income from them can go down as well as up so you/the client may get back less than you/they invest. These funds do not offer any guarantee or protection with respect to return, capital preservation, stable net asset value or volatility.

Bonds: There is a risk that the issuers of bonds may not be able to repay the money they have borrowed or make interest payments. When interest rates rise, bonds may fall in value. Rising interest rates may cause the value of your investment to fall.

Corporate Bonds: Due to the greater possibility of default an investment in a corporate bond is generally less secure than an investment in government bonds.

High Yield Bonds: Sub-investment grade bonds are considered riskier bonds. They have an increased risk of default which could affect both income and the capital value of the Fund investing in them.

Overseas Markets: These funds invest in overseas markets and so the value of investments can be affected by changes in currency exchange rates.

Currency Hedging: Currency hedging is used to substantially reduce the risk of losses from unfavourable exchange rate movements on holdings in currencies that differ from the dealing currency. Hedging also has the effect of limiting the potential for currency gains to be made.

Emerging Markets: These funds invest in emerging markets which can be more volatile than other more developed markets.

Derivatives: These funds may make increased and more complicated use of derivatives and this may result in leverage. In such situations performance may rise or fall more than it would have done otherwise. These funds may be exposed to the risk of financial loss if a counterparty used for derivative instruments subsequently defaults.

ESG: These funds promote environmental and/or social characteristics. The Investment Manager's focus on securities of issuers which maintain sustainable characteristics may affect the funds' investment performance favourably or unfavourably in comparison to similar funds without such focus. The sustainable characteristics of securities may change over time.

Other: Reference to specific securities should not be construed as a recommendation to buy or sell these securities and is included for the purposes of illustration only. TThe investment policy of these funds means it can be more than 35% invested in transferable securities and money market instruments issued or guaranteed by an EEA State, one or more of its one or more of its local authorities, a third country or a public international body to which one or more EEA States belongs.

Important Information

This document is for Investment Professionals only and should not be relied on by private investors. This information must not be reproduced or circulated without prior permission.

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This document does not constitute a distribution, an offer or solicitation to engage the investment management services of Fidelity, or an offer to buy or sell or the solicitation of any offer to buy or sell any securities in any jurisdiction or country where such distribution or offer is not authorised or would be contrary to local laws or regulations. Fidelity makes no representations that the contents are appropriate for use in all locations or that the transactions or services discussed are available or appropriate for sale or use in all jurisdictions or countries or by all investors or counterparties.

Fidelity International refers to the group of companies which form the global investment management organisation that provides information on products and services in designated jurisdictions outside of North America. This communication is not directed at, and must not be acted on by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised for distribution or where no such authorisation is required. It is your responsibility to ensure that any service, security, investment, fund or product outlined is available in your jurisdiction before any approach is made to Fidelity International. Fidelity is not authorised to manage or distribute investment funds or products in, or to provide investment management or advisory services to persons resident in, mainland China. All persons and entities accessing the information do so on their own initiative and are responsible for compliance with applicable local laws and regulations and should consult their professional advisers.

Possible reference in this article to specific securities should not be interpreted as a recommendation to buy or sell these securities, but is included for the purposes of illustration only. Investors should also note that the views expressed may no longer be current and may have already been acted upon by Fidelity. The research and analysis used in this documentation is gathered by Fidelity for its use as an investment manager and may have already been acted upon for its own purposes. This material was created by Fidelity International.

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Any performance disclosure is not compliant with German regulations regarding retail clients and must therefore not be handed out to these.

Investments should be made on the basis of the current prospectus in German/Key Investor Information Document (KIID), which is available in German along with the current annual and semi-annual reports free of charge through https://www.fidelityinternational.com, from FIL Investment Services GmbH, Postfach 200237, 60606 Frankfurt/Main

Investors/ potential investors can obtain information on their respective rights regarding complaints and litigation on the following link: Beschwerdemanagement (fidelity.de)) in German. The information above includes disclosure requirements of FIL Investment Management (Luxembourg) S.A. according to Regulation (EU) 2019/1156.

For German Wholesale clients issued by FIL Investment Services GmbH, Kastanienhöhe 1, 61476 Kronberg im Taunus. For German Institutional clients issued by FIL (Luxembourg) S.A., 2a, rue Albert Borschette BP 2174 L-1021 Luxembourg. For German Pension clients issued by FIL Finance Services GmbH, Kastanienhöhe 1, 61476 Kronberg im Taunus.

FIPM 6127 / MK14034