Fund Evaluator:

Fidelity Advisor New Markets Income Z Overview

Fidelity Advisor New Markets Income Z (FGBMX) is an actively managed Taxable Bond Emerging Markets Bond fund. Fidelity Investments launched the fund in 2018.

The investment seeks high current income; capital appreciation is a secondary objective. The fund normally invests at least 80% of assets in securities of issuers in emerging markets and other investments that are tied economically to emerging markets. Emerging markets include countries that have an emerging stock market as defined by MSCI, countries or markets with low- to middle-income economies as classified by the World Bank, and other countries or markets that the Adviser identifies as having similar emerging markets characteristics.

About Fidelity Advisor New Markets Income Z (FGBMX)

There are 2 members of the management team with an average tenure of 6.64 years: Timothy Gill (2019), Nader Nazmi (2020). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: JPM EMBI Global TR USD index with a weighting of 100% and JPM EMBI Glb Diversified Linked TR USD index with a weighting of 100%. Fidelity Advisor New Markets Income Z has 532 securities in its portfolio. The top 10 holdings constitute 17.2% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Fidelity Advisor New Markets Income Z is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Fidelity Advisor New Markets Income Z has 88.9% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.4% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 93.3% (4.8% domestic bond, 88.5% foreign bond and 0.0% convertible bond). Fidelity Advisor New Markets Income Z has 6.4% of the portfolio in cash.

Assets Under Management

The fund has $529 million in total assets, which is above the $325 million average for the Emerging Markets Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

FGBMX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Fidelity Advisor New Markets Income Z expense ratio is above average compared to funds in the Emerging Markets Bond category. Fidelity Advisor New Markets Income Z has an expense ratio of 0.69%, which is 32% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Fidelity Advisor New Markets Income Z has a portfolio turnover rate of 24%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 82% for the Emerging Markets Bond category.

Recently, in the month of June 2026, Fidelity Advisor New Markets Income Z returned 0.8%, which earned it a grade of C, as the Emerging Markets Bond category had an average return of 0.7%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Fidelity Advisor New Markets Income Z has a trailing yield of 4.98%, which is below the 5.95% category average. The fund normally distributes its income monthly.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Fidelity Advisor New Markets Income Z Grades

Year to date, the fund has returned 4.5%, 1.1 percentage points better than the category, which translates into a grade of A. The fund has returned 13.9% over the past year (grade of A), 12.2% over the past three years (grade of A) and 4.2% per year over the past five years (grade of A) and 4.0% per year over the past 10 years (grade of B).

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