Fidelity High Income Fund Q1 2025 Review

2025-05-07 00:30:00 ET

Summary

• Fidelity High Income Fund is a diversified high-yield bond strategy focused on investing primarily in the bonds of non-investment-grade companies.
• For the first quarter of 2025, the fund's Retail Class shares gained 0.81%, versus 0.94% for the benchmark, the ICE BofA US High Yield Constrained Index.
• As the second quarter begins, the global business cycle remains in expansion, with a broad shift to monetary easing.

Investment Approach

• Fidelity High Income Fund is a diversified high-yield bond strategy focused on investing primarily in the bonds of non-investment-grade companies.
• We apply a core investment approach, with the majority of the fund concentrated in securities rated B and BB, and typically below-benchmark exposure to the more opportunistic, lower-rated (CCC or below) credit tiers.
• We take a consistent, conservative approach, focusing on higher-quality, less-cyclical industries and businesses. In particular, we seek companies with strong balance sheets, high free cash flow, improving business/industry fundamentals and solid management teams. In doing so, we take a longer-term investment outlook, with a focus on the best risk-adjusted opportunities that we can find in the market.
• We strive to uncover these companies through in-depth fundamental "bottom-up" credit analysis, working closely with Fidelity's high-income and global research teams.

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