The Fidelity Funds - Asian Bond Fund (A-ACC-USD) seeks to provide income and capital growth by investing primarily in a diversified portfolio of investment-grade and sub-investment-grade bonds and other debt instruments issued by governments, government agencies, supranational organizations, and companies in the Asian region.
Investment Objective
The fund invests across the Asian fixed income spectrum, including sovereign bonds, quasi-sovereign bonds, and corporate debt from both investment-grade and high-yield issuers. Geographic coverage typically includes China, South Korea, Indonesia, India, Malaysia, the Philippines, Singapore, and Thailand.
Asian Bond Market
The Asian bond market has developed significantly over the past two decades, with total market size now exceeding several trillion USD. Asian bonds often offer higher yields than equivalent-rated bonds in the US and Europe, reflecting a risk premium for emerging market exposure, though this gap has narrowed as the market matures.
Duration and Credit
The fund manager actively manages duration (interest rate sensitivity) and credit quality. In a rising rate environment, shorter duration positioning can help protect capital, while in a falling rate environment, longer duration bonds tend to outperform.
Accumulating Share Class
The ACC share class compounds income by reinvesting it into the fund, suitable for investors focused on total return.
Risk Considerations
Key risks include interest rate risk, credit/default risk, currency risk (especially for local currency bonds), liquidity risk for high-yield issuers, and geopolitical risks unique to the Asian region.
Risk & Return Metrics
Share class: A-ACC-USD (Y-class proxy) | ISIN: LU0605512606 | Data: yfinance (998 trading days, annualised at 252 days/year)
| Metric | Daily | Annualised |
|---|---|---|
| Expected Return | 0.0046% | 1.17% |
| Risk (Std Dev) | 0.3424% | 5.43% |
| Metric | Value |
|---|---|
| First NAV | 15.6800 |
| Last NAV | 16.3200 |
| Total Return (period) | 4.08% |