Fidelity Environmental Bond Fund
FFEBX
NASDAQ- -
USD
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Capital Structure
FRC
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in mil. unless spec.Working Capital
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in mil. unless spec.Growth Rates
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in mil. unless spec.Quarterly Revenue
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in mil. unless spec.Quarterly Earnings Per Share
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in mil. unless spec.- Sector
- Financial Services
- Industry
- Asset Management - Bonds
- Address
- 245 Summer Street Boston MA United States of America 02210
- IPO Date
- Jun 15, 2021
- CIK
- 0000751199
- Website
- fundresearch.fidelity.com
- Similar Companies
- Business
- Fidelity Environmental Bond Fund (FFEBX) is an open-end mutual fund that seeks a high level of current income by investing at least 80% of its assets in environmental debt securities, including green bonds, sustainable bonds, sustainability-linked bonds that support environmental projects or solutions, and debt issued by entities with higher environmental ratings. The fund primarily holds investment-grade fixed-income securities from U.S. and international issuers, with up to 20% allocated to lower-quality debt; its portfolio features significant exposure to U.S. Treasury notes and bonds, corporate bonds, agency mortgage-backed securities, and asset-backed securities, benchmarked primarily against the Bloomberg U.S. Aggregate Bond Index with a duration-neutral strategy and secondary reference to the Bloomberg MSCI Global Green Bond Index. It operates in the intermediate core-plus bond category, targeting institutional and retail investors interested in sustainable fixed-income strategies that integrate environmental considerations. Launched on June 15, 2021, the fund is managed by Fidelity Investments, headquartered in Boston, Massachusetts, with assets under management of approximately $47 million as of recent reports and a net expense ratio of 0.45%. Geographically, it invests across U.S. and non-U.S. bond markets, with about 90% in U.S. bonds and 15% in non-U.S. bonds, diversified across government (46%), corporate (40%), and agency mortgage-backed sectors. The fund employs a thematic sustainable fixed-income approach, emphasizing issuers that recognize, disclose, and reduce environmental risks, while maintaining competitive risk-adjusted returns. In recent developments, the fund delivered a fiscal year return of 3.06% ending August 31, 2025, slightly trailing its benchmark's 3.14% amid market volatility from inflation, interest rates, and policy shifts under the Trump administration, including reciprocal tariffs implemented in April 2025. Portfolio managers Celso Munoz and John Houston maintained a contrarian risk approach, with positive contributions from corporate bond selection (particularly financials and real estate investment trusts), overweight global green securities, and underweights in U.S. Treasurys; the fund benefited from a fixed-income rotation in early 2025 and Federal Reserve rate cuts in late 2024. Fidelity Investments continues to expand its ESG offerings, as evidenced by the 2024 launch of the Fidelity Funds 2 – Blue Transition Bond Fund by its international arm, complementing environmental bond strategies like FFEBX launched in 2021 as part of five new ESG funds.