Leverage in FUMBX?

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kwg2005
Posts: 3
Joined: Tue Mar 24, 2020 7:14 pm

Leverage in FUMBX?

Post by kwg2005 » Wed Mar 25, 2020 8:02 pm

Hi All,

I decided to buy FUMBX for the cash part of my portfolio. It is slightly longer than I want with 2.6 year maturity, but it will do. My only concern is this statement from Fidelity under Fund Overview / Strategy: "Engaging in transaction that have a leveraging effect on the fund." The prospectus also discusses Leverage Risk. I'm not sure if that's boiler plate or if it's implying this fund will use leverage. I am not too worried but I am parking quite a bit of cash here so any input is appreciated.

Thanks

typical.investor
Posts: 1447
Joined: Mon Jun 11, 2018 3:17 am

Re: Leverage in FUMBX?

Post by typical.investor » Wed Mar 25, 2020 8:12 pm

kwg2005 wrote:
Wed Mar 25, 2020 8:02 pm
Hi All,

I decided to buy FUMBX for the cash part of my portfolio. It is slightly longer than I want with 2.6 year maturity, but it will do. My only concern is this statement from Fidelity under Fund Overview / Strategy: "Engaging in transaction that have a leveraging effect on the fund." The prospectus also discusses Leverage Risk. I'm not sure if that's boiler plate or if it's implying this fund will use leverage. I am not too worried but I am parking quite a bit of cash here so any input is appreciated.

Thanks
Seem fine.

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