Fidelity Ohio Municipal Income Fund (FOHFX) Fund Overview

Fidelity Ohio Municipal Income Fund (FOHFX) Financial Services Profile

Fidelity Ohio Municipal Income Fund (FOHFX) specializes in tax-exempt income for Ohio residents, investing primarily in investment-grade municipal securities. With a focus on Ohio-specific municipal bonds, FOHFX offers a high profit margin and dividend yield, distinguishing itself in the competitive asset management sector.

What Is the Investment Thesis for FOHFX?

Fidelity Ohio Municipal Income Fund (FOHFX) presents a focused investment opportunity within the municipal bond market. With a high profit margin of 84.8% and a dividend yield of 2.79%, FOHFX offers attractive income potential for Ohio-based investors seeking tax advantages. The fund's beta of 0.91 indicates moderate volatility relative to the broader market. Growth catalysts include potential increases in Ohio's infrastructure spending, which could lead to new municipal bond issuances. Additionally, changes in federal or state tax laws could further enhance the attractiveness of tax-exempt municipal bonds. However, potential risks include rising interest rates, which could negatively impact bond values, and credit downgrades of Ohio municipal issuers. The fund's ability to maintain its investment-grade focus and manage interest rate risk will be crucial for its long-term performance.

Based on FMP financials and quantitative analysis

FOHFX Key Highlights

Market Cap of $0.51B indicates a mid-sized closed-end fund focused on Ohio municipal bonds.

• Profit Margin of 84.8% demonstrates efficient management and strong income generation from its investments.
• Gross Margin of 100.0% reflects that the fund's income is not offset by any cost of goods sold, typical for investment funds.
• Beta of 0.91 suggests the fund's price is slightly less volatile than the overall market.
• Dividend Yield of 2.79% provides a steady income stream for investors seeking tax-exempt returns in Ohio.

Who Are FOHFX's Competitors?

FOHFX is benchmarked below against 6 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are FOHFX's Key Strengths?

Tax-exempt income for Ohio residents.

• Experienced portfolio management team.
• Established brand and reputation of Fidelity Investments.
• High profit margin of 84.8%.

What Are FOHFX's Weaknesses?

Concentration in Ohio municipal bonds.

• Sensitivity to interest rate changes.
• Dependence on the financial health of Ohio municipalities.
• Limited growth potential compared to broader asset classes.

What Are the Key Risks for FOHFX?

Rising interest rates negatively impacting bond values.

• Credit downgrades of Ohio municipal issuers.
• Changes in federal or state tax laws reducing the attractiveness of tax-exempt bonds.
• Economic downturn in Ohio affecting the financial health of municipalities.

What Are FOHFX's Competitive Advantages?

• Tax-exempt status of municipal bond interest provides a significant advantage.
• Focus on Ohio municipal bonds creates a niche market.
• Established brand and reputation of Fidelity Investments.
• Expertise in managing municipal bond portfolios.

What Does FOHFX Do?

Fidelity Ohio Municipal Income Fund (FOHFX) is a closed-end management investment company. The fund's primary objective is to provide current income exempt from federal and Ohio personal income taxes. Established as part of the Fidelity Investments family, FOHFX focuses on investing at least 80% of its assets in investment-grade municipal securities. These securities are specifically chosen for their interest being exempt from both federal and Ohio personal income taxes, making the fund attractive to Ohio residents seeking tax-advantaged income. The fund strategically allocates its investments across various market sectors and maturities within the municipal bond market. A key aspect of FOHFX's investment strategy involves investing more than 25% of its total assets in municipal securities that finance similar types of projects. This concentration allows for specialized knowledge and potential economies of scale in specific sectors of the Ohio municipal bond market. The fund's investment decisions are guided by the expertise of its portfolio management team, which conducts in-depth research and analysis to identify opportunities that align with the fund's objectives. FOHFX operates within the broader asset management industry, catering to investors who prioritize tax-efficient income generation. Its focus on Ohio municipal bonds differentiates it from broader national municipal bond funds. The fund's performance is influenced by factors such as interest rate movements, credit quality of municipal issuers, and overall economic conditions in Ohio.

What Products and Services Does FOHFX Offer?

• Invests primarily in investment-grade municipal securities.
• Focuses on securities exempt from federal and Ohio personal income taxes.
• Allocates assets across different market sectors and maturities.
• Invests more than 25% of assets in municipal securities financing similar projects.
• Provides current income to shareholders.
• Offers tax-advantaged investment options for Ohio residents.

How Does FOHFX Make Money?

• Generates income from interest payments on municipal bonds.
• Distributes income to shareholders as dividends.
• Manages a portfolio of municipal bonds to optimize yield and minimize risk.
• Benefits from tax exemptions on municipal bond interest.

What Industry Does FOHFX Operate In?

Fidelity Ohio Municipal Income Fund operates within the asset management industry, specifically focusing on fixed-income municipal bonds. The municipal bond market is influenced by factors such as interest rates, credit ratings, and state and local government finances. The industry is competitive, with various national and state-specific municipal bond funds vying for investor capital. FOHFX differentiates itself by concentrating on Ohio municipal bonds, offering tax advantages to Ohio residents. The municipal bond market is expected to see continued demand as investors seek stable, tax-advantaged income streams.

Who Are FOHFX's Key Customers?

• Ohio residents seeking tax-exempt income.
• Investors looking for stable, fixed-income investments.
• Individuals and institutions seeking to diversify their portfolios.
• Financial advisors seeking tax-advantaged options for their clients.

Return on equity for Fidelity Ohio Municipal Income Fund stands at 4.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 4.0%, showing how much profit it generates from its asset base. A current ratio of 0.95 means current liabilities exceed short-term assets, a liquidity point worth watching.

Fidelity Ohio Municipal Income Fund's Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 6.10 places it in the safe zone, indicating low near-term bankruptcy risk.

FOHFX Financials

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What Investors Ask About Fidelity Ohio Municipal Income Fund (FOHFX) — Financials

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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