Fidelity GNMA Fund (FGMNX)

Fidelity GNMA Fund (FGMNX) is an intermediate government mutual fund offered by Fidelity Investments. It focuses in bonds of Ginnie Maes.

Fidelity GNMA Fund (FGMNX)

The investment aim of Fidelity GNMA Fund is to seek a high level of current income consistent with prudent investment risk. Its secondary objective is capital gains. The fund normally invests >80% of assets in Ginnie Maes and its repurchase agreements. It invests in other U.S. government bond or securities. The fund invests in U.S. government securities issued by entities that are chartered or sponsored by Congress but whose securities are neither issued nor guaranteed by the U.S. Treasury. It seeks to have similar overall interest rate risk to the Barclays GNMA Index.

Fund Details
Fidelity GNMA Fund (FGMNX)
Fidelity fund
  • Fund Inception Date: November 7, 1985
  • Ticker Symbol: FGMNX
  • CUSIP: 31617K105
  • Beta (3yr): 0.71
  • Rank in category (YTD): 24%
  • Category: Intermediate Government
  • Dividend Yield: 2.20%
  • Capital Gains: 0%
  • Expense Ratio: 0.45%
  • Net Assets: $ 10.3 billion
  • Number of Years Up: 26 years
  • Number of Years Down: 1 year
  • Average Duration: 4.8 years
  • Average Maturity: 3.2 years
  • Annual Turnover Rate: 263%
Updated on 4/9/2013

Before 1996, this fund was formerly known as GNMA Portfolio. This Fidelity fund is currently managed by William Irving. He started managing it in October 2004. This intermediate government mutual fund has large total net assets of $10.3 billion. It has a decent dividend yield of 2.20%. The most recent distribution was given in February 2013 in the amount of $0.02. The annual expense ratio is only 0.45%. The category average is 0.97%.

Best Performing Intermediate Government Mutual Funds February 2013

Morningstar analysts rank this taxable bond fund with the highest rating of 5-stars and Gold rating. The fund’s YTD return is -0.14% in 2013 (3/31/2013). Since its inception in 1985, the fund has recorded in 26 years of positive return and only 1 year of negative return. Based on the load adjusted return, the fund’s performance is as below:
  • 1-year: 2.62%
  • 3-year: 5.29%
  • 5-year: 5.92%
  • 10-year: 5.09%
This FGMNX fund can be purchased from 84 brokerages. The minimum initial investment for brokerage or retirement account is $2,500. This is also a no load fund. There is no management fee and also no front-end sales load fee. E Trade Financial, Schwab Institutional, T. Rowe Price, JP Morgan, EP Fee Small are some of the brokerages.

 The top 5 issuers as of December 2012 are GNMA Guaranteed Pass Thru Cert, GNMA II, Government Nat MTG AS REMIC PT, Government Nat MTG ASSN HECM and Freddie Mac. It has 253 total holdings.

According to the fund website, the principal investment risks are Interest Rate Changes, Prepayment
Issuer-Specific Changes, Leverage Risk, etc.

Disclosure: No Position


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