Fund Evaluator:

Fidelity Strategic Real Return Overview

Fidelity Strategic Real Return (FSRRX) is an actively managed Allocation Moderately Conservative Allocation fund. Fidelity Investments launched the fund in 2005.

The investment seeks real return consistent with reasonable investment risk. The fund allocates the assets among four general investment categories: inflation-protected debt securities, floating rate loans, commodity-linked derivative instruments and related investments, and real estate investment trusts (REITs) and other real estate related investments. The manager uses a neutral mix of approximately 25% inflation-protected debt securities, 25% floating rate loans, 30% commodity-linked derivative instruments and related investments, and 20% REITs and other real estate related investments. The fund invests in domestic and foreign issuers.

About Fidelity Strategic Real Return (FSRRX)

There are 6 members of the management team with an average tenure of 6.54 years: Adam Kramer (2017), Matthew Moulis (2025), Brandon Bettencourt (2019), Bill Maclay (2019), Rick Gandhi (2026), Ford O'Neil (2012). Management tenure is more important for actively managed funds than passive index funds.

The fund has 7 primary benchmarks: Bloomberg US Treasury US TIPS TR USD index with a weighting of 100%, FTSE Nareit Equity REITs TR USD index with a weighting of 10%, Morningstar LSTA US Perf Loans TR USD index with a weighting of 25%, MSCI ACWI Commodity Prd Sector NR USD index with a weighting of 15%, ICE BofA US Real Estate TR USD index with a weighting of 10%, Bloomberg US Treasury US TIPS TR USD index with a weighting of 25% and Bloomberg Commodity TR USD index with a weighting of 15%. Fidelity Strategic Real Return has 503 securities in its portfolio. The top 10 holdings constitute 48.7% 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 Strategic Real Return is part of the Allocation global asset class and is within the Allocation fund group. Fidelity Strategic Real Return has 6.9% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 17.1%. There is 6.8% allocated to foreign stock, and 2.1% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 59.2% (59.1% domestic bond, 0.1% foreign bond and 0.0% convertible bond). Fidelity Strategic Real Return has 0.8% of the portfolio in cash.

Assets Under Management

The fund has $306 million in total assets, which is below the $561 million average for the Moderately Conservative 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.

FSRRX 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 Strategic Real Return expense ratio is above average compared to funds in the Moderately Conservative Allocation category. Fidelity Strategic Real Return has an expense ratio of 0.70%, which is 30% 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 Strategic Real Return has a portfolio turnover rate of 29%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 43% for the Moderately Conservative Allocation category.

Recently, in the month of July 2026, Fidelity Strategic Real Return returned 2.0%, which earned it a grade of A, as the Moderately Conservative Allocation category had an average return of -0.3%. 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 Strategic Real Return has a trailing yield of 4.59%, which is above the 3.29% category average. The fund normally distributes its income quarterly and its capital gains annually.

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 Strategic Real Return Grades

Year to date, the fund has returned 8.1%, 3.4 percentage points better than the category, which translates into a grade of A. The fund has returned 14.4% over the past year (grade of A), 8.6% over the past three years (grade of D) and 5.8% per year over the past five years (grade of A) and 5.5% per year over the past 10 years (grade of D).

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