Fidelity Conservative Income Bond Fund (FCONX)

Fidelity Conservative Income Bond Fund (FCONX) is an ultrashort bond mutual fund. It invests mainly in money market and high quality bonds.

Fidelity Conservative Income Bond Fund (FCONX)

The Fidelity Conservative Income Bond Fund objective is to obtain a high current income level, consistent with capital preservation. The mutual fund utilizes its assets to purchase a portfolio of U.S. dollar-denominated money market and high quality investment-grade debt securities of all types, and repurchase agreements for those securities. It invests >25% of total assets in the financial services industries. The fund normally retains a dollar-weighted average maturity of 0.75 years or less. It invests in fixed rate securities with a maximum maturity of two years or less and floating rate securities with a maximum maturity of three years or less.

Fund Profile
Fidelity Conservative Income Bond Fund
FCONX fund
  • Fund Inception Date: March 2, 2011
  • Ticker Symbol: FCONX
  • CUSIP: 316146539
  • Beta (3yr): N/A
  • Rank in category (YTD): 35%
  • Category: Ultrashort Bond
  • Yield: 0.70%
  • Capital Gains: 0%
  • Expense Ratio: 0.40%
  • Net Assets: $ 2.4 billion
  • Number of Years Up: 1 year
  • Number of Years Down: 0 years
  • Average Duration: 0.3 years
  • Average Maturity: 0.7 years
  • Annual Turnover Rate: 31% 
Updated on as of March 31, 2013

As part of Fidelity Investments fund, it has total net assets of $2.4 billion. Its annual expense ratio is only 0.40%. The annual holdings turnover as of March 12, 2013 is 31%. It also has a low yield of 0.70%. Kim Miller is the current fund manager.

more: Top Performer Inflation Protected Bond Mutual Funds January 2013

Since this fund is still new, it has no rating from Morningstar yet. The fund risk is categorized as low risk. In 2013, it has 0.23% YTD return. Last year, in 2012, the fund has returned 1.38%. The fund is on the 35th rank in the category.

This no-load ultrashort bond fund has no 12b1 fee and no front-end sales load fee. The minimum initial investment is $2,500 for regular brokerage account and $500 for retirement account (IRA). There is no minimum subsequent investment. Currently, there are only 24 brokerages that provide the sale of this fund. They are JP Morgan, Scottrade Load, Raymond James, Fidelity Retail Funds Network, Trade Station Securities, etc.

The top issuers as of December 2012 are Bank America FDG Corp, Citigroup Inc, JPMorgan Chase & Co, General Electric Capital Corp and Societe Gen No Amer Inc. These top 5 issuers represent 16.9% of the total portfolio out of 141 holdings. The top country diversification is USA (71.94%). Banking (54.50%) and Industrial (32.25%) are the top corporate sector diversification.

According to the fund prospectus, the principal investment risks are Interest Rate Changes, Foreign Exposure, Financial Services Exposure, Prepayment, Issuer-Specific Changes, etc.

Disclosure: No Position


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