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Video
An opportunistic approach to high income investing
Income investing isn’t limited to traditional bonds.
Key Takeaways
- Fidelity’s Brian Chang, portfolio manager of Fidelity and Fidelity Advisor Capital & Income Fund, discusses high yield bonds – a potentially overlooked sub asset class within fixed income. High-yield bonds offer higher yield potential compared to their investment-grade counterparts, albeit with more risk.
- Success in high yield investing means not only buying bonds that offer the best return potential, but also avoiding issuers that may default on their debt. With one of the most comprehensive research teams in the industry, Fidelity’s high-yield bond team has the resources to examine a company's full capital structure and develop a view of its fundamentals. Combined with valuation analysis, this approach helps identify the best risk-adjusted investment opportunities.
- Fidelity & Capital and Income is a high-yield bond fund with a flexible mandate to invest across the entire capital structure, from bank loans to common stocks. This flexibility allows the fund’s managers to adjust allocations based on the current market outlook and corporate fundamentals, becoming more defensive or opportunistic as conditions warrant.
Next steps to consider
FA Capital & Income Fund
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Views expressed are as of the date indicated, based on the information available at that time, and may change based on market and other conditions. Unless otherwise noted, the opinions provided are those of the authors and not necessarily those of Fidelity Investments or its affiliates. Fidelity does not assume any duty to update any of the information.
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