Fund Evaluator:

Fidelity Advisor Real Estate Income Z Overview

Fidelity Advisor Real Estate Income Z (FIKMX) is an actively managed Allocation Miscellaneous Allocation fund. Fidelity Investments launched the fund in 2018.

The investment seeks higher than average income; as a secondary objective, the fund also seeks capital growth. The fund is normally investing at least 80% of assets in debt and income-producing equity securities of companies principally engaged in the real estate industry and other real estate related investments. Debt securities include corporate bonds, government securities (including treasury securities), repurchase agreements, money market securities, mortgage and other asset-backed securities, loans and loan participations, and other securities, such as hybrids and synthetic securities, believed to have debt-like characteristics.

About Fidelity Advisor Real Estate Income Z (FIKMX)

There are 1 members of the management team with an average tenure of 7.34 years: Bill Maclay (2019). Management tenure is more important for actively managed funds than passive index funds.

The fund has 5 primary benchmarks: Bloomberg US Universal TR USD index with a weighting of 100%, MSCI REIT Preferred index with a weighting of 25%, Bloomberg US CMBS ex AAA TR USD index with a weighting of 15%, FTSE Nareit All REITs TR index with a weighting of 20% and ICE BofA US Real Estate TR USD index with a weighting of 40%. Fidelity Advisor Real Estate Income Z has 591 securities in its portfolio. The top 10 holdings constitute 16.1% 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 Real Estate Income Z is part of the Allocation global asset class and is within the Allocation fund group. Fidelity Advisor Real Estate Income Z has 0.3% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 22.0%. There is 0.0% allocated to foreign stock, and 11.5% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 61.6% (61.2% domestic bond, 0.3% foreign bond and 0.0% convertible bond). Fidelity Advisor Real Estate Income Z has 5.3% of the portfolio in cash.

Assets Under Management

The fund has $1 billion in total assets, which is above the $579 million average for the Miscellaneous Allocation 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.

FIKMX 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 Real Estate Income Z expense ratio is average compared to funds in the Miscellaneous Allocation category. Fidelity Advisor Real Estate Income Z has an expense ratio of 0.57%, which is 41% lower than its category average, making the fund expense ratio grade a B. 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 Real Estate 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 17% for the Miscellaneous Allocation category.

Recently, in the month of June 2026, Fidelity Advisor Real Estate Income Z returned 0.2%, which earned it a grade of D, as the Miscellaneous Allocation category had an average return of 0.4%. 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 Real Estate Income Z has a trailing yield of 4.64%, which is above the 2.97% category average. The fund normally distributes its income quarterly and its capital gains semi-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 Real Estate Income Z Grades

Year to date, the fund has returned 4.2%, 1.7 percentage points worse than the category, which translates into a grade of D. The fund has returned 7.8% over the past year (grade of D), 8.3% over the past three years (grade of D) and 3.6% per year over the past five years (grade of D) and 5.5% per year over the past 10 years (grade of C).

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