Fidelity Limited Term Municipal Income Fund Q1 2025 Commentary

2025-05-08 00:45:00 ET

Summary

• Fidelity Limited Term Municipal Income Fund is a diversified national municipal bond strategy investing in general obligation and revenue- or tax-backed municipal securities across the short-intermediate part of the yield curve.
• 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.
• Going forward, the political landscape will continue to be intertwined with the larger macroeconomic environment, including fiscal spending and monetary policy, the factors that have historically dominated muni bond performance.

Investment Approach

• Fidelity® Limited Term Municipal Income Fund is a diversified national municipal bond strategy investing in general obligation and revenue- or tax-backed municipal securities across the short-intermediate part of the yield curve.
• 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.

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