ONEQ - Fidelity Real Estate Income Fund Q2 2024 Review
2024-07-31 01:20:00 ET
Summary
- Fidelity Contrafund is a large-cap growth biased equity strategy focused on companies with durable multiyear earnings growth potential.
- Fidelity Real Estate Income Fund seeks above-average income and capital growth by investing in a mix of commercial real estate security types, including common stock, preferred stock, corporate bonds and commercial mortgage-backed securities.
- For the second quarter, the fund's Retail Class shares gained 1.31%, outpacing the 0.11% advance of the Fidelity Real Estate Income Composite Index SM.
- We seek to achieve what we consider a reasonable absolute total return by investing in real estate stocks and bonds, aiming for a higher yield and less volatility than what is typically available by investing in REIT common stocks alone.
Investment Approach
- Fidelity® Real Estate Income Fund seeks above-average income and capital growth by investing in a mix of commercial real estate security types, including common stock, preferred stock, corporate bonds and commercial mortgage-backed securities ((CMBS)).
- Leveraging our significant experience in commercial real estate investing, we own a diversified mix of security types in an effort to generate higher yield and less volatility than can be achieved by holding real estate investment trust ((REIT)) common stocks alone. Bonds and preferred stocks help to generate attractive yield and dampen volatility, as they are higher in a company's capital structure and tend to move out of sync with common stocks.
- We seek to limit the fund's overall sensitivity to interest rates by investing in high-dividend-paying common stocks, taking intelligent credit risk backed by bottom-up research, and avoiding long-dated bonds that trade at tight credit spreads.