Detailed, overall analysis of substantial bond portfolio

The report’s evaluations fall into three categories:

Risks

• A Ratings view evaluates your holdings relative to your risk tolerance.
• Product Type assessments look at your exposure to a specific sector/market or inform your reallocation decisions
• Interest rate sensitivity is captured by two measures:
  • Duration measures the sensitivity of the price of a bond to a change in interest rates
  • Convexity is the sensitivity of the duration of a bond to changes in interest rates

Return

• Both annual and monthly cash flow presentations help you evaluate reinvestment opportunities or consider future investments over a specific time–horizon
• Yield analyses examine yields at an overall portfolio level, taxable vs. tax–exempt level or even the position level
• A coupon assessment shows the average coupon return for the overall portfolio

Tax Considerations

• Cost–basis calculations at a position level account for both Original Issue Discount (OID) and non–OID instruments
• Gain/Loss figures are shown from a position, taxable and non-taxable, and portfolio perspective
• A breakdown of AMT vs. non–AMT securities helps reveal the AMT exposure in your portfolio

Does this sort of analysis make sense for you?

Typically, this sort of analysis only makes sense for investors with substantial, complex bond holdings that already require a high level of service. At Fidelity, customers with this kind of portfolio are normally covered by the HNW Bond Desk, which requires fixed income assets of $3 million or greater domiciled at Fidelity. If you keep some of your portfolio at another institution, we can work with you to transfer those assets.

Contact your Fidelity Private Client Group Account Executive with questions about the Fixed Income Analytics report. If you feel it makes sense for you, your Private Client Group Account Executive can establish your relationship with the HNW Bond Desk.