Objectives and Approach

The Fund aims to deliver an income with the potential to increase the value of your investment. The Fund is part of the Fidelity Sustainable Family of Funds and adheres to the Fidelity Sustainable Family framework under which at least 70% of the fund’s net assets will be invested in issuers deemed to maintain sustainable characteristics. The Fund will also adhere to the Fidelity Sustainable Family exclusion policy. Investments with sustainable characteristics are those which the Investment Manager believes have effective governance and management of environmental and social issues and deliver long term sustainable outcomes through positive societal impact. Such investments are identified through Fidelity’s Sustainable Investing Process, which is built on three related elements; integrated environmental, social and governance (‘ESG’) analysis, engagement, and collaboration. Sustainable characteristics based on ESG considerations are analysed by Fidelity and principally assessed based on criteria such as but not limited to, climate change mitigation and adaptation, water and waste management and biodiversity, product safety, supply chain, health and safety and human rights. The Fund will be at least 70% exposed to sterling-denominated (or hedged back to sterling) investment grade debt instruments (with a bias towards corporate bonds but may also include securitised bonds). The Fund may hold investments in countries considered as emerging markets as determined by the Investment Manager at its sole discretion. The Fund is actively managed. The Investment Manager identifies suitable opportunities for the Fund utilising in-house research and investment capabilities. The Investment Manager will, when selecting investments for the Fund and for the purposes of monitoring risk, consider the ICE BofA Euro-Sterling Index (the “Index”). However, the Investment Manager has a wide degree of freedom relative to the index and may invest in issuers, sectors, countries and security types not included in the Index in order to take advantage of investment opportunities. This means the Fund’s investments and therefore performance may vary significantly from the Index. The Fund may also invest in issuers which demonstrate improving sustainable characteristics and may also invest in other transferable securities, collective investment schemes, money market instruments, cash and near cash deposits. Derivatives may be used for efficient portfolio management and investment purposes and may include (but are not limited to) derivatives on exchange rates, interest rates, inflation and credit. Such investments will be made to take advantage of investment opportunities consistent with the income and growth objectives of the Fund. The Fund may also take positions which enable it to benefit from falling asset prices.