The Fidelity Funds - Emerging Market Corporate Debt Fund (A-ACC-USD) aims to provide income and capital growth by investing primarily in a diversified portfolio of corporate bonds and other debt instruments issued by companies domiciled in, or with significant exposure to, emerging market economies.
Investment Objective
The fund focuses on corporate issuers rather than sovereign debt, targeting companies in emerging markets across Asia, Latin America, Eastern Europe, the Middle East, and Africa. Corporate bonds typically offer higher yields than sovereign bonds from the same country, reflecting additional credit risk.
Emerging Market Corporate Credit
Emerging market corporates have grown to become a significant and mature asset class. Many large emerging market companies carry investment-grade credit ratings, while the high-yield segment offers higher potential income with additional risk. The fund typically blends investment-grade and high-yield holdings to optimize the risk/return profile.
Why Emerging Market Corporate Debt?
Compared to developed market bonds, EM corporate debt often provides:
- Higher yield pickup
- Diversification benefits from low correlation to developed market bonds
- Exposure to faster-growing economies
Accumulating Share Class
The ACC share class reinvests income, compounding returns over time.
Risk Considerations
Credit/default risk is the primary concern for corporate bond investors. Emerging market-specific risks include political instability, currency depreciation, regulatory changes, and lower liquidity versus developed market bonds.
Risk & Return Metrics
Share class: A-ACC-USD | ISIN: LU0900495697 | Data: yfinance (1004 trading days, annualised at 252 days/year)
| Metric | Daily | Annualised |
|---|---|---|
| Expected Return | 0.0082% | 2.10% |
| Risk (Std Dev) | 0.2651% | 4.21% |
| Metric | Value |
|---|---|
| First NAV | 13.0000 |
| Last NAV | 14.0700 |
| Total Return (period) | 8.23% |