ONEQ - Fidelity Intermediate Municipal Income Fund Q1 2025 Review
2025-05-06 05:40:00 ET
Summary
- Fidelity Intermediate Municipal Income Fund is a diversified national municipal bond strategy investing primarily in intermediate-maturity general obligation and revenue-backed securities.
- The fund's interest rate sensitivity is targeted closely to that of its benchmark to prevent interest rate speculation from overwhelming research-based strategies that we deem to have a higher likelihood of long-term success.
- Heavy new-issue supply and a sharp decline in investor demand in March crimped returns for investment-grade tax-exempt municipal bonds for the first quarter of 2025.
Investment Approach
- Fidelity® Intermediate Municipal Income Fund is a diversified national municipal bond strategy investing primarily in intermediate-maturity general obligation and revenue-backed securities. Our investment approach focuses on fundamental credit analysis, yield-curve positioning and an analysis of the structural characteristics of each security. The fund's interest rate sensitivity is targeted closely to that of its benchmark to prevent interest rate speculation from overwhelming research-based strategies that we deem to have a higher likelihood of long-term success. We emphasize a total-return approach that seeks to generate a high level of tax-exempt income, consistent with the preservation of capital.