Summary

• Fidelity Corporate Bond Fund delivered a return of -0.55% for the first quarter of 2026, compared with the -0.48% result of the benchmark Bloomberg U.S. Credit Bond Index.
• At quarter end the fund has substantial investments in Alphabet, Meta Platforms and Oracle, whereas before it had essentially no exposure to AI-related issuers.
• Fidelity Corporate Bond Fund's allocation to banks was roughly neutral with the benchmark at the end of Q1, while management continued to overweight insurers, real estate investment trusts and finance companies.
• During the period, management trimmed the fund's allocation to U.S. Treasuries and cash, which are held for liquidity and risk-management purposes.
• Security selection aided performance in financials, led by underweight exposure to banks, including Goldman Sachs, HSBC and Citigroup.

Taxable Bond Market Review

U.S. taxable investment-grade bonds posted a roughly break-even result in the first quarter, as measured by the Bloomberg U.S. Aggregate Bond Index. A positive start to the year was upended in March by a sudden