The Fidelity Funds - Global Short Duration Income Fund (A-ACC-USD) seeks to provide income while preserving capital by investing primarily in a diversified global portfolio of short-duration fixed income securities, including investment-grade and sub-investment-grade bonds with relatively short maturities.
Investment Objective
By focusing on short-duration bonds (typically those maturing within 1–3 years), the fund aims to generate income while minimizing sensitivity to interest rate movements. This makes it suitable for investors seeking income with lower volatility than longer-duration bond funds.
Why Short Duration?
- Lower interest rate risk: Short-duration bonds decline less in value when interest rates rise
- Capital preservation: Faster maturity means invested capital is returned sooner, reducing risk
- Income generation: Even short-term bonds offer meaningful yield in most rate environments
- Portfolio stability: Acts as a stabilizer in a broader portfolio during equity market volatility
Global Universe
The fund can invest in short-duration bonds globally, including US Treasuries, European government bonds, Asian investment-grade corporates, and short-dated high-yield debt. This global approach allows the manager to optimize yield while maintaining the short duration constraint.
Accumulating Share Class
The ACC share class compounds income by reinvesting it into the fund.
Risk Considerations
While lower than long-duration bonds, interest rate risk still exists. Credit risk applies especially for high-yield holdings. In environments of rising short-term rates, new investments may offer better yields but existing holdings may decline modestly in value.
Risk & Return Metrics
Share class: A-ACC-USD | ISIN: LU0390710027 | Data: yfinance (1005 trading days, annualised at 252 days/year)
| Metric | Daily | Annualised |
|---|---|---|
| Expected Return | 0.0193% | 4.97% |
| Risk (Std Dev) | 0.1312% | 2.08% |
| Metric | Value |
|---|---|
| First NAV | 11.8200 |
| Last NAV | 14.3300 |
| Total Return (period) | 21.24% |