Best Performing Fidelity Newsletter For The Past 30 Years www.fmandi.com
Growth Model Portfolio
Track Record Turns 30 In late 1986, I introduced the Growth Model in the first
issue of Fidelity Monitor. At that time, Eric Kobren’s
Fidelity Insight had been in publication for almost a
year with a Select Portfolio. Over time,
both of us added models.
We bought out Fidelity Insight in
late 2009, then merged the two newslet-
ters in late 2012. Monitor’s portfolio
history was retained (see page 8), as it
reflected my history of investment deci-
sions, as tracked by The Hulbert Finan-
cial Digest.
Dow Jones shut down Hulbert’s last April. Some
newsletters (including our own) expressed interest in
keeping the tracking service alive, so Mark Hulbert
formed a new firm, adopted a new business model, and
re-hired his lead analyst.
It will be a few months before we have ranking data,
but our own tracking shows there are no other Fidelity
newsletters with a better 30-year return. Over the past
three decades, our Growth Model returned 10.8% annu-
ally, versus 10.1% for the S&P 500. Over the past 28
years, our Select Model gained 13.2% per year, versus
10.1% for the S&P 500.
So what does the future hold? The stock market has
become more efficient over the last three decades, mak-
ing it harder for active managers to outperform. The
Growth and Unique Opportunities models have both
struggled with weakness in smaller and foreign stocks
over the last five years, but I’m encouraged by the re-
cent rally in small-caps. It may have room to run, setting
the stage for improved model performance in 2017.
Smaller firms are less affected by a strong dollar, and
may benefit more from reduced tax rates, regulatory and
perhaps health care relief, too. Financial reform may
give them better access to capital. And their valuations,
on a price-to-sales basis, are still relatively cheap.
Sincerely,
Jack Bowers
Another Good Year For Stocks,
Despite A Potential Correction “Far more money has been lost by investors preparing
for corrections, or trying to anticipate corrections, than
has been lost in corrections themselves.” — Peter Lynch
I start with the above quote from
Fidelity’s legendary fund manager
because some pundits are already
warning that a correction is imminent.
The S&P 500 advanced 12.0% in
2016, with about half of that gain
coming just since Trump was elected.
And, if the stock market continues on that torrid pace, no
doubt the calls for a correction will become louder.
As the title above indicates, I do see a correction as a
possibility. The sharp rise since the election has been
largely fueled by optimism that Trump’s plans for tax
cuts, regulation roll-backs, and infrastructure spending
will ignite much faster economic growth. Since the elec-
tion, investor sentiment quickly shifted from extremely
negative to strongly positive. In the American Associa-
tion of Individual Investors weekly sentiment survey
taken on November 3, only 23.6% were bullish versus
the historical average of 38.5%. Today that figure has
jumped to 44.6%! With any impact from increased infra-
structure spending years away, should Trump fail to suc-
ceed on regulation reform and tax cuts early on, we
could see those gains disappear as fast as they came.
However, I suggest you take Peter’s advice to heart
and stay with your stock fund investments as I expect
that even if we do get a correction, when all is said and
done, stocks will deliver another year of solid gains.
Earnings Growth Should Lift Stocks
Overlooked in all the attention to Trump’s plans for
boosting growth is this: After seven quarters with year
over year declines in earnings, the third quarter of 2016
turned positive. The big difference was a recovery in
energy earnings. The sector moved from a negative
contribution of 5.2% in 2015’s third quarter to a positive
0.9% this year. And, as long as the price of oil remains
around $50 or higher, we can expect this boost from
Market Outlook cont’d on page 3
John M. Boyd
2 Fidelity Monitor & Insight — January 2017
See Model Portfolios Key on p. 3
For aggressive members who have no need for income or principal for more than 10 years.
For aggressive members who have no need for income or principal for more than 10 years.
For members needing income and protection of their purchasing power against inflation.
For moderately aggressive members who want equity-dominated portfolios and have no income needs for at least 10 years.
A good choice for members retiring in 5-10 years looking for less volatility than the market.
Unique Opportunities 2016 Return: 8.2%
Stocks: 97.3% Bonds: 0.0% Cash: 2.6% Alternatives*: 0.0% Yield: 0.6%
Holdings Ticker NAV Shares Value Dec Ret
Blue Chip Growth FBGRX $67.36 1,370.43 $92,312 0.6%
Low-Priced Stock FLPSX 49.48 1,613.14 79,818 0.6
Event Driven Opps FARNX 12.95 5,702.65 73,849 2.4
Small Cap Enh Idx FCPEX 14.23 4,846.09 68,960 4.4
Growth Strategies FDEGX 33.99 1,929.12 65,571 0.9
Large Cap Value Enhcd FLVEX 12.00 5,391.92 64,703 2.5
Current Value (3/31/99 = $100,000) $445,213 1.8%
Target Risk: 1.20 (Current: 1.10) Foreign Holdings: 9.1%
Blue Chip Growth
21%
Low-Priced Stock18%
Event Driven Opps 17%
Small Cap Enh Idx 15%
Growth Strategies
15%
Large Cap Value Enhcd
14%
Select 2016 Return: 12.5%
Stocks: 96.3% Bonds: 0.3% Cash: 3.5% Alternatives*: 0.0% Yield: 0.6%
Holdings Ticker NAV Shares Value Dec Ret
Technology FSPTX $130.13 5,004.52 $651,238 0.8%
Consumer Discretionary FSCPX 35.34 18,366.98 649,089 -0.3
Insurance FSPCX 77.56 7,542.50 584,997 2.7
Telecommunications FSTCX 69.82 7,239.13 505,436 6.2
Industrials FCYIX 32.35 12,825.72 414,912 0.8
Construction & Housing FSHOX 58.86 6,354.40 374,020 2.0
Current Value (12/31/88 = $100,000) $3,179,691 1.9%
Target Risk: 1.20 (Current: 1.07) Foreign Holdings: 9.3%
Technology21%
Consumer Discretionary
20%
Insurance18%
Telecomm16%
Industrials13%
Construction & Housing
12%
Growth 2016 Return: 6.7%
Stocks: 97.9% Bonds: 0.0% Cash: 2.1% Alternatives*: 0.0% Yield: 0.7%
Holdings Ticker NAV Shares Value Dec Ret
Contrafund FCNTX $98.46 4,614.85 $454,379 0.5%
Small Cap Enh Idx FCPEX 14.23 30,583.17 435,198 4.4
Low-Priced Stock FLPSX 49.48 7,426.47 367,462 0.6
Large Cap Value Enhcd FLVEX 12.00 28,830.50 345,966 2.5
Growth Strategies FDEGX 33.99 8,740.79 297,100 0.9
Blue Chip Growth FBGRX 67.36 4,275.41 287,992 0.6
Current Value (12/31/86 = $100,000) $2,188,096 1.6%
Target Risk: 1.00 (Current: 1.02) Foreign Holdings: 8.9%
Contrafund21%
Small Cap Enh Idx
20%
Low-Priced Stock17%
Large Cap Value Enhcd
16%
Growth Strategies
13%
Blue Chip Growth 13%
Growth & Income 2016 Return: 8.2%
Stocks: 62.2% Bonds: 16.2% Cash: 4.0% Alternatives*: 17.6% Yield: 2.0%
Holdings Ticker NAV Shares Value Dec Ret
Growth & Income FGRIX $32.92 4,409.82 $145,171 2.0%
Total Bond FTBFX 10.52 11,496.46 120,943 0.5
Contrafund FCNTX 98.46 1,190.93 117,259 0.5
Low-Priced Stock FLPSX 49.48 2,344.52 116,007 0.6
High Income SPHIX 8.71 9,911.91 86,333 2.3
Current Value (12/31/93 = $100,000) $585,713 1.2%
Target Risk: 0.66 (Current: 0.71) Foreign Holdings: 15.4%
Growth & Income
25%
Total Bond20%
Contrafund20%
Low-Priced Stock 20%
High Income
15%
Income 2016 Return: 6.7%
Stocks: 22.7% Bonds: 48.9% Cash: 3.7% Alternatives*: 24.7% Yield: 3.0%
Holdings Ticker NAV Shares Value Dec Ret
Total Bond FTBFX $10.52 9,525.89 $100,212 0.5%
Equity Dividend Income FEQTX 26.84 3,313.05 88,922 2.3
High Income SPHIX 8.71 9,102.60 79,284 2.3
Short-Term Bond FSHBX 8.59 7,251.29 62,289 0.0
Limited Term Bond FJRLX 11.45 4,297.02 49,201 0.1
Current Value (12/31/91 = $100,000) $379,908 1.2%
Target Risk: 0.33 (Current: 0.36) Foreign Holdings: 13.9%
Total Bond26% Equity Div
Income 24%
High Income21%
Short-Term Bond 16%
Limited Term Bond 13%
Fidelity Monitor & Insight — January 2017 3
Growth: For large-cap exposure ... Blue Chip Growth and Growth
Company are aggressive options; Contrafund is a more conservative
choice. Large Cap Value Enhanced Index provides lower-risk exposure
to big-cap stocks, whereas Growth Strategies adds mid-cap exposure.
Event Driven Opportunities and Small Cap Enhanced Index are
smaller-cap choices that broaden portfolio diversification.
Growth & Income: Growth & Income and Equity Dividend Income
provide exposure to higher-yielding large-cap value stocks.
High-Yield Bond: High Income’s yield compensates for its higher r isk.
Taxable Bond: Limited Term Bond and especially Short-Term Bond limit
interest-rate risk. Investment Grade Bond limits credit risk but boosts
yield via additional interest-rate risk; Total Bond provides the greatest
bond diversification boosting its yield through well-managed credit risk.
Muni Bond: Conservative Muni Income, which is nationally diversified
and has only modest interest-rate-risk, is our preferred choice for highly
taxed investors.
Model Portfolios Key: 1Alternative investments include such areas as high-yield bonds, commodities, real estate. Portfolio trades and total returns do not take taxes into account, however, redemption and exchange fees are included. Some percentage figures may not sum to 100 due to rounding. Dividends are
reinvested. Consider the tax implications of trades before you decide to buy or sell any fund. Any trades are detailed on p. 3 and are announced on Friday evening Hotline updates via telephone, e-mail, and web (see p. 16). Annuity Model Portfolios are on p. 10.
As initially announced on our Hotline update of December 23 (and repeated on De-cember 30), on Wednesday December 28, we made trades in four model portfolios:
Unique Opportunities Model: We sold our entire position in Value Strategies. With the proceeds, we pur-chased Large Cap Value Enhanced Index [ticker: FLVEX].
Growth Model: We sold our entire position in Value Strategies. With the proceeds, we pur-chased Large Cap Value Enhanced Index [ticker: FLVEX].
Annuity Growth Model: We sold our entire position in VIP Value Strategies. With the proceeds, we purchased VIP Equity-Income, whose ticker is FLOLC.
Annuity Growth & Income Model: We are selling our entire position in VIP Value Strategies. With the pro-ceeds, we purchased VIP Equity-Income, whose ticker is FLOLC.
Trade Rationale & Notes:
Value Strategies paid a significant distribution on Tuesday December
27. While this was a taxable event for some shareholders, most of the distri-
bution was in the form of less-taxed, long-term capital gains. So we waited
until after the distribution to sell the fund.
As for the funds themselves, Value Strategies and its clone VIP Value
Strategies have not been appropriately positioned to take full ad-
vantage of the rally in mid-cap value stocks. While the funds’ new manager
is in the process of repositioning his portfolios and performance has picked
up, Large Cap Value Enhanced Index (as well as both Equity-Income
funds) already provides greater exposure to financials — especially bank
shares — that we seek. The fund is also less volatile and should perform in
line with its benchmark.
energy to continue. In 2015’s fourth
quarter, energy subtracted 10.5%
from S&P 500 earnings, whereas
the forecast for 2016’s fourth quar-
ter is a positive 2.1%. That’s a big
reason for a forecasted 32% jump in
fourth-quarter earnings. And energy
was a negative right through the
second quarter of 2016, making for
a similar (though lesser) boost to
those quarters in 2017.
As a result, as shown in the
above chart, earnings for the next
four quarters (fourth quarter of 2016
through the third quarter of 2017)
are forecasted to be quite robust,
which should provide a lift for
stocks. And importantly, those fore-
casted earnings largely do not re-
flect any boost in economic growth
from Trump’s plans.
Slow, But Steady Economy
GDP growth has remained
slow, but steady, for the past few
years at around 2.0% per year.
Absent any pick-up from tax cuts or
regulatory reform, we expect mostly
more of the same for 2017, but with
a chance for acceleration. The third
quarter of this year grew at 3.5%,
the fastest rate in two years. The
Atlanta Fed’s “GDPNow” forecast
for the fourth quarter is 2.5%,
though others have it as low as
Market Outlook cont’d from page 1
Market Outlook cont’d on page 4
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
S&P 500 Quarterly Earnings (Y/Y % Change)
2015 2016 2017
——- Actual ———
— Forecast —
4 Fidelity Monitor & Insight — January 2017
1.8%. If the Atlanta Fed is closer to
the mark, it’s a nicely rising trend,
suggesting that a modest improve-
ment in economic growth could be
in the cards for 2017.
Recent economic indicators sup-
port this case. The combined sales
of new and existing homes in No-
vember were the highest since the
recovery began. Industrial produc-
tion, while still declining on a year-
over-year basis, has been moving
fairly steadily towards positive terri-
tory, rising from -2.3% in December
2015 to -0.6% in November 2016.
Moreover, chemical industry activi-
ty, which tends to lead industrial
production, hit a new all-time high
in December. And both the ISM
Manufacturing Index and the ISM
Services Index had solid gains in
November.
S&P 500 operating earnings for
the trailing 12 months through the
third quarter of 2016 (we won’t
know fourth quarter earnings until
Feb/Mar) were $101.42. With the
S&P 500 at 2168 at the end of Sep-
tember, that gives us a P/E (price/
earnings) ratio of 21.4, slightly
above the 25-year average of 19.2.
Not excessive — as seen in the
Market Outlook cont’d from page 3 chart, P/Es peaked at much higher
levels before the last two bear mar-
kets — but not cheap, either.
Since Trump was elected, inter-
est rates have been moving higher
in anticipation of faster economic
growth and higher inflation. The Fed
hiked rates a quarter point in De-
cember and suggested three more
hikes to come in 2017. But because
rates are rising from a very low
base, that should not derail stocks.
JP Morgan notes that when the
10-year Treasury yield rises from a
level below 5%, stocks have a posi-
tive correlation to the direction of
the move. Bank of America/Merrill
Lynch analyst, Stephen Suttmeier,
adds that “the current secular bull
trend best fits the 1950-1966 secular
bull market. The U.S. 10-year yield
bottomed near 1.5% in late 1945 and
the S&P 500 remained firmly within
its secular bull market until yields
moved to 5-6% in the mid 60s.”
But Will Be Tough On Bonds
Bonds are another story. Rising
rates caused losses on all of Fideli-
ty’s taxable bond funds in the fourth
quarter, with the lone exception of
Conservative Income, which is
more like a money market fund. Un-
less the economy stumbles, 2017
could be a difficult year for taxable
bond funds. Our advice is to stick
with shorter-term bonds which will
be less affected by rising rates, and
to take on some credit risk through
high-yield bonds.
High-yield bonds tend to weath-
er rising rates driven by improving
economic conditions better than
investment-grade funds. That’s be-
cause a healthier economy reduces
default risk. High-yield bonds were
mostly higher in the fourth quarter
and had double-digit returns for the
full year. As such, their yield spread
versus comparable Treasurys has
fallen from seven percentage points
a year ago, to four today — below
the historical average of 5.6 points.
So don’t expect returns like we saw
last year. More likely, high-yield
funds will earn their yields in 2017.
Still Favor U.S. Over Foreign
We have argued in favor of U.S.
stocks over foreign shares for sever-
al years and we continue to hold that
view. As usual, the emerging mar-
kets offer the best potential growth,
but the strengthening dollar, rising
U.S. interest rates, and high volatili-
ty are problems. In the developed
markets the strong dollar has been
the big problem. In local currencies,
the EAFE index has risen about 7%
in the last three months, but in U.S.
dollars it is down 1.0%! If the dollar
stops climbing (especially versus the
euro) developed markets could be
attractive, but for now we will wait.
Summing It By The Numbers
The current estimate for the next
four quarters of S&P 500 operating
earnings is $126. However, analysts
are usually too optimistic at the out-
set reducing their estimates as the
year goes along. But as I have noted
before, the rate of reductions has
been declining steadily from a 20%
haircut in 2016’s first quarter, to just
a 9% drop for the third. So let’s take
10% off the $126 figure, bringing it
down to $114. If we multiply that by
the most recent P/E of 21.4, we get a
projected level of 2435 for the S&P
500 next year — or a gain of about
9%. Of course, the P/E could de-
cline. But I believe that tax cuts and
regulatory reforms will be enacted
(though maybe not early enough to
avoid a correction), and the resulting
boost to economic growth forecasts
would make that less likely. In addi-
tion, earnings estimates might then
not fall much, if at all. If we take
$126 in earnings times the current
P/E, we would have a 19.7% gain in
the S&P 500!
I’m not predicting that. But cor-
rection or not, I expect a solid year
for U.S. stocks. So follow Lynch’s
advice and stay invested.
— John M. Boyd
21.4
25-Year Avg: 19.2 10
14
18
22
26
30
12/97 12/00 12/03 12/06 12/09 12/12 12/15
S&P 500 P/E Ratio
0%
1%
2%
3%
4%
Q3 Q4 Q1 Q2 Q3 Q4
Quarterly GDP Growth (Annualized)
2015 2016
Forecast
Fidelity Monitor & Insight — January 2017 5
Fund Old Comments
Blue Chip Value B H Trailing other large-cap value offerings.
Disciplined Equity B H Prefer other large-cap blend funds.
Export & Multi B H Prefer other large-cap blend funds.
Focused Stock H S Concentrated fund struggling to beat benchmark.
Global Balanced H S Low bond yields and currency risk are negatives.
Int'l Capital Apprec B H Slow growth and currency risk are negatives.
Int'l Discovery B H Slow growth and currency risk are negatives.
Int'l Enhanced Idx H B See "Enhanced Index" article on p. 16.
Int'l Growth B H Slow growth and currency risk are negatives.
Int'l Small Cap B B Slow growth and currency risk are negatives.
Int'l Value S H Large slug in financials now boosting returns.
LC Core Enh'd Idx B B See "Enhanced Index" article on p. 16.
LC Grow Enh'd Idx H B Fund is a relatively strong performer.
LC Value Enh'd Idx B B See Model Portfolio Trades on p. 3.
Mid Cap Enh'd Idx B B See "Enhanced Index" article on p. 16.
New Millennium H B Decade-long record of market-beating returns.
Nordic H S Not diversified; huge, 50%-plus bet on Sweden.
Small Cap Stock B H Prefer other funds within the small-cap space.
Value Discovery B B Performance has turned on smart financials bet.
Value Strategies B B See Model Portfolio Trades on p. 3.
VIP Int'l Cap App B H Slow growth and currency risk are negatives.
VIP Overseas B B New manager has solid record at Overseas fund.
VIP Value Strat B B See Model Portfolio Trades on p. 3.
Factor ETFs
Core Dividend NA B Strategy has presently led to shrewd bet in energy.
Div for Rising Rates NA B Current play is on the value side of technology.
Low Volatility Factor NA H Tends to hold more richly priced shares.
Momentum Factor NA S Pharma, tech, other high-growth shares hurting.
Quality Factor NA H Leaning towards out-of-favor big-cap growth.
Value Factor NA B Fund currently positioned in market's sweet spot.
January Scorecard Rating Changes
New
Ratings
B = Buy; B = OK to Buy; H = Hold; S = OK to Sell; S = Sell, NC = No change
() Rating upgraded; () Rating downgraded.
2016 was a year of stunning surpris-
es — including the Cubs winning
their first World Series in 108 years!
But apart from that pleasant dis-
traction, Americans haven’t been
this divided since the Vietnam War.
Geopolitical events are usually
background noise to investors who
are focused on corporate earnings
and other mundane matters. But the
new uncertainties sprung by Brexit
and Donald Trump sent Wall Street
into a tizzy last year: “If a new eco-
nomic and political world order is
unfolding,” investors asked, “what
do we do with our money now?”
It remains to be seen if Britain’s
exit from the European Union and
Trump’s presidency are mere anom-
alies or are actually related. But we
will soon find out.
In April, the French will elect a
new president. And later this year,
the Germans also go to the polls.
Should France lean right and should
Angela Merkel be ousted, nothing
less than the dissolution of the EU
will be on the table at a time when
the new U.S. president is looking to
rewrite trade deals and reconsider
existing alliances.
While a listless West has been
grappling with its very own sover-
eignty, China and Russia continued
to assert themselves in this vacuum.
In light of the Brexit and the
Trump “resets,” is it any wonder that
so many on Wall Street got “it”
wrong last year? Certainly, some
Fidelity managers did — including
some of their best. Understandably,
many embraced high-quality stocks.
But when the market suddenly real-
ized that a new political order at
home might favor economic growth
above all other concerns (including
regulatory, environmental and defi-
cit spending), it immediately pivoted
towards risk-assets.
Here’s how your Fidelity funds
endured a year of political surprises.
In A Year Of Political Surprises,
Stocks Soar And Bonds Struggle Market Indexes
After repeated attempts at 20000
in the last two weeks of 2016, the
Dow Jones Industrials encountered
resistance and ultimately failed to
break past that milestone. Still, the
blue-chip indicator gained 3.4% in
December and rose a very solid
16.5% for the year. In the weeks
immediately after the Trump victo-
ry, bank stocks played an important
role in pushing the Dow higher.
As for that other large-cap in-
dex, the S&P 500, it rose 2.0% last
month and chalked up a return of
12.0% for the year.
Moving down the market-cap
scale, the Russell Mid Cap gained
1.1% in December and 13.8% for
the year, while the small-cap Russell
2000 fared even better with gains of
2.8% and 21.3%, respectively, for
the month and year.
As for the tech– and biotech-
rich Nasdaq Composite, it rose 1.2%
last month and 8.9% for the year.
Fund Commentary cont’d on p. 12
6 Fidelity Monitor & Insight — January 2017
Notes : *Fi del i t y ’s U.S. Bond Index used as a proxy for the Barclays Aggregate Bond Index. 1Relative Volati li ty (Rel Vol) versus the S&P 500 over the last 36 months; 1.50 means the fund has been 50% more volatile. 2Dura-tion is a measure of interest rate sensitivity. 3Stated yield is actual distributed yield over prior 12 months. 4Also available in a Premium share class with a minimum of $10,000, but a lower expense ratio. (p) Partial year; () Rating upgraded; () Rating downgraded.
Fund Fund Sht-Term $Price Rel Vol
No. Ticker Fund Name Fee (NAV) Advice Dec 2016 3 Mo. 1 Yr 3 Yr 5 Yr 10 Yr (Risk)1
S&P 500 2238.8 2.0 12.0 3.8 12.0 8.9 14.7 6.9 1.00
Nasdaq Composite 5383.1 1.2 8.9 1.7 8.9 10.2 17.1 9.5 1.24
Dow Jones Industrials 19762.6 3.4 16.5 8.7 16.5 8.7 12.9 7.5 1.05
Russell 2000 (Small Caps) 1357.1 2.8 21.3 8.8 21.3 6.7 14.5 7.1 1.49
Barclays Aggregate Bond* 0.2 2.5 -3.1 2.5 2.9 2.1 4.0 0.30
Unique Opportunities 1.8 8.2 4.4 8.2 4.9 12.9 5.8 1.10
Select 1.9 12.5 3.5 12.5 8.1 15.6 8.3 1.07
Growth 1.6 6.7 3.1 6.7 5.9 11.8 5.0 1.02
Growth & Income 1.2 8.2 2.0 8.2 6.1 10.2 5.1 0.71
Income 1.2 6.7 1.0 6.7 4.6 5.4 4.4 0.36
Rel Vol Assets
(Risk)1 ($Mil)
LARGE CAP GROWTH 1.0 4.5 0.3 4.5 6.6 14.2 1.16
312 FBGRX Blue Chip Growth 67.36 Buy 0.6 1.6 -1.6 1.6 7.4 15.3 1.19 $13,702
307 FDCAX Capital Appreciation 31.68 OK to Sell 0.0 3.2 1.5 3.2 5.2 14.1 1.18 4,978
22 FCNTX Contrafund 98.46 Buy 0.5 3.4 -0.6 3.4 6.4 13.5 0.98 74,246
3 FFIDX Fidelity Fund 41.15 Hold 1.3 4.8 1.6 4.8 6.9 12.9 1.03 3,714
333 FTQGX Focused Stock 18.36 OK to Sell 0.5 3.3 -3.8 3.3 3.1 12.0 1.11 1,558
25 FDGRX Growth Company (Closed) 136.78 Buy 1.4 6.0 1.9 6.0 9.4 16.4 1.33 21,138
339 FDSVX Growth Discovery 25.42 OK to Buy 0.6 0.7 -1.6 0.7 6.3 13.4 1.10 974
73 FDFFX Independence 33.48 OK to Sell 0.4 -1.2 0.5 -1.2 3.4 13.2 1.35 3,265
21 FMAGX Magellan 91.36 OK to Buy 1.1 5.2 2.1 5.2 7.7 14.8 1.08 12,927
300 FMILX New Millennium 36.04 OK to Buy 1.9 14.9 3.8 14.9 6.0 13.6 1.07 3,045
93 FOCPX OTC 83.32 OK to Buy 1.7 3.1 -1.3 3.1 10.0 16.8 1.50 9,602
320 FDSSX Stock Selector All Cap 36.39 Hold 1.7 9.6 2.0 9.6 6.8 14.0 1.06 6,174
5 FTRNX Trend 84.03 OK to Buy 1.1 4.6 -0.5 4.6 7.4 14.7 1.10 1,536
LARGE CAP BLEND 1.7 11.8 4.8 11.8 7.0 14.1 1.06
315 FDEQX Disciplined Equity 33.22 Hold 1.5 6.2 2.5 6.2 6.0 13.5 0.99 1,172
330 FDGFX Dividend Growth 32.21 OK to Buy 1.9 8.1 3.3 8.1 6.3 13.4 0.96 5,747
332 FEXPX Export and Multinational 20.85 Hold 0.9 10.0 2.7 10.0 6.7 12.2 0.95 1,516
27 FGRIX Growth & Income 32.92 Buy 2.0 16.1 7.0 16.1 7.8 14.8 1.14 6,021
338 FLCSX Large Cap Stock 29.36 Buy 2.0 16.7 6.9 16.7 7.6 15.9 1.20 2,704
361 FGRTX Mega Cap Stock 17.40 Buy 1.9 13.6 6.3 13.6 7.7 14.8 1.14 3,219
LARGE CAP VALUE 2.4 14.2 6.2 14.2 7.3 13.8 1.0
1271 FBCVX Blue Chip Value 17.26 Hold 2.8 11.2 6.1 11.2 7.3 13.8 1.02 397
319 FEQTX Equity Dividend Income 26.84 Buy 2.3 15.9 6.3 15.9 8.0 13.3 0.96 5,310
23 FEQIX Equity-Income 57.31 Buy 2.1 17.4 6.3 17.4 7.2 13.0 0.97 6,604
708 FSLVX Stock Sel Large Cap Value 18.65 OK to Buy 2.3 16.0 6.4 16.0 8.2 14.3 0.98 714
832 FVDFX Value Discovery 25.85 Buy 3.0 13.2 7.3 13.2 8.0 14.9 0.97 1,828
14 FSLSX Value Strategies 38.14 OK to Buy 2.3 11.3 4.6 11.3 4.9 13.8 1.17 713
MID-CAP GROWTH 1.4 9.4 2.6 9.4 6.0 13.3 1.07
324 FDEGX Growth Strategies 33.99 Buy 0.9 2.7 -0.2 2.7 6.4 13.2 1.02 2,081
337 FMCSX Mid-Cap Stock 34.62 OK to Buy 1.7 14.9 3.3 14.9 6.1 13.8 1.05 5,381
2412 FSSMX Stock Selector Mid Cap 34.80 OK to Buy 1.5 10.6 4.6 10.6 5.6 13.1 1.15 222
MID-CAP BLEND 0.9 7.3 4.2 7.3 2.1 13.1 1.31
122 FLVCX Leveraged Company Stock 33.29 OK to Buy 0.9 7.3 4.2 7.3 2.1 13.1 1.31 2,728
MID-CAP VALUE 1.8 12.4 5.1 12.4 6.5 14.7 1.05
316 FLPSX Low-Priced Stock 49.48 Buy 0.6 8.8 3.3 8.8 5.2 13.1 0.92 28,407
762 FSMVX Mid Cap Value 24.78 OK to Buy 2.7 12.4 6.7 12.4 7.8 15.7 1.07 2,347
39 FDVLX Value 109.78 Buy 2.0 16.1 5.3 16.1 6.6 15.2 1.16 7,075
SMALL CAP GROWTH 1.3 11.0 1.8 11.0 6.8 14.8 1.35
1388 FCPGX Small Cap Growth 1.50%/90d 20.59 Buy 1.3 11.0 1.8 11.0 6.8 14.8 1.35 1,698
SMALL CAP BLEND 2.6 17.1 9.0 17.1 7.4 13.7 1.34
2624 FARNX Event Driven Opportunities 12.95 Buy 2.4 20.0 12.3 20.0 9.6 -- 1.50 193
384 FSCRX Small Cap Discovery (Closed) 1.50%/90d 31.64 OK to Buy 2.5 20.3 9.8 20.3 6.5 15.7 1.34 5,676
340 FSLCX Small Cap Stock 2.00%/90d 18.84 Hold 2.9 12.9 7.0 12.9 7.4 12.7 1.21 1,840
336 FDSCX Stock Selector Small Cap 1.50%/90d 26.18 OK to Buy 2.7 15.4 6.9 15.4 6.0 12.8 1.30 1,469
SMALL CAP VALUE 3.1 21.3 10.7 21.3 8.4 15.9 1.19
1389 FCPVX Small Cap Value (Closed) 1.50%/90d 18.81 OK to Buy 3.1 21.3 10.7 21.3 8.4 15.9 1.19 2,569
Comparative
Indexes
Model
Portfolios
Category Averages
Avg Annual (%)
Category Averages
Total Return (%)
Category Averages
Category Averages
Category Averages
Category Averages
Category Averages
Category Averages
Category Averages
Fidelity Monitor & Insight — January 2017 7
Fund Fund Sht-Term $Price Rel Vol Assets
No. Ticker Fund Name Fee (NAV) Advice Dec 2016 3 Mo. 1 Year 3 Year 5 Year (Risk)1 ($Mil)
SPECIALTY
304 FBALX Balanced 22.02 OK to Buy 1.3 7.0 0.8 7.0 5.8 10.0 0.72 $20,471
308 FCVSX Convertible Securities 26.71 Hold 1.5 6.0 0.5 6.0 1.6 8.8 0.91 1,490
334 FGBLX Global Balanced 22.10 OK to Sell 0.4 0.9 -5.7 0.9 -0.1 5.2 0.71 402
2120 FFGCX Global Commodity Stock 1.00%/90d 11.29 OK to Sell 1.6 30.4 5.6 30.4 -5.4 -2.5 1.78 243
1960 FDYSX Global Strategies 8.64 Hold 1.0 5.9 -1.3 5.9 2.7 5.8 0.65 82
1368 FIREX International Real Estate 1.50%/90d 9.49 OK to Sell -0.2 -1.6 -6.8 -1.6 1.5 11.1 0.99 310
4 FPURX Puritan 20.58 OK to Buy 1.1 5.0 0.3 5.0 5.8 10.1 0.72 19,127
833 FRIFX Real Estate Income 0.75%/90d 11.79 OK to Buy 1.5 10.2 -0.9 10.2 8.1 9.3 0.50 2,568
303 FRESX Real Estate Investment 41.69 Hold 4.6 7.8 -2.8 7.8 14.1 12.2 1.41 4,725
1329 FSDIX Strategic Dividend & Income 14.61 OK to Buy 2.3 12.7 1.6 12.7 8.1 11.3 0.73 3,313
1505 FSRRX Strategic Real Return 8.77 Hold 1.3 9.1 0.7 9.1 0.7 1.6 0.48 463
311 FIUIX Telecom & Utilities 24.74 Hold 4.7 17.0 1.3 17.0 7.8 10.7 0.95 954
ASSET ALLOCATION
328 FASIX Asset Manager 20% 13.01 Hold 0.6 4.7 -0.9 4.7 2.8 4.1 0.30 4,714
1957 FTANX Asset Manager 30% 10.46 Hold 0.8 5.5 -0.9 5.5 3.3 5.3 0.39 934
1958 FFANX Asset Manager 40% 10.79 Hold 0.9 6.0 -0.5 6.0 3.6 6.3 0.48 1,087
314 FASMX Asset Manager 50% 16.72 Hold 1.1 6.4 -0.3 6.4 3.8 7.2 0.58 7,401
1959 FSANX Asset Manager 60% 11.11 Hold 1.2 6.8 -0.1 6.8 3.9 8.1 0.67 1,431
321 FASGX Asset Manager 70% 19.61 Hold 1.4 7.1 0.3 7.1 4.0 9.0 0.77 3,927
347 FAMRX Asset Manager 85% 16.50 Hold 1.6 7.4 0.7 7.4 4.2 10.4 0.91 1,442
EQUITY INDEX
650 FUSEX 500 Index4 78.34 Hold 2.0 11.9 3.8 11.9 8.8 14.6 1.00 3,873
2341 FPEMX Emerging Markets Index4 1.50%/30d 8.46 Hold -0.1 11.2 -5.2 11.2 -2.2 0.9 1.51 19
398 FSEMX Extended Market Index4 55.54 Buy 1.8 16.1 5.7 16.1 6.5 14.5 1.29 812
355 FFNOX Four-in-One Index 38.22 Hold 1.9 8.3 1.7 8.3 5.0 10.6 0.86 4,463
2345 FSGUX Global ex U.S. Index4 10.88 Hold 2.1 4.5 -2.0 4.5 -2.0 4.8 1.14 36
2010 FIENX International Enhanced Index 1.00%/60d 8.08 Buy 3.0 1.9 -0.3 1.9 -0.1 7.8 1.11 176
399 FSIIX International Index4 35.32 Hold 2.8 1.2 -1.4 1.2 -1.7 6.5 1.12 716
1827 FLCEX Lrge Cap Core Enhcd Index 12.52 Buy 1.9 10.9 4.3 10.9 7.8 14.1 0.99 496
1829 FLGEX Lrge Cap Growth Enhcd Index 15.60 Buy 1.6 8.2 2.4 8.2 8.4 14.3 1.03 698
2823 FSUIX Lrge Cap Growth Index4 10.42 Hold 1.3 4.4p 1.0 -- -- -- -- 1
1828 FLVEX Lrge Cap Value Enhcd Index 12.00 Buy 2.5 16.3 8.0 16.3 8.7 15.1 1.02 2,191
2827 FLCDX Lrge Cap Value Index4 10.95 Hold 2.5 10.0p 6.6 -- -- -- -- 1
2012 FMEIX Mid Cap Enhanced Index 14.11 Buy 1.5 13.5 5.8 13.5 7.8 15.3 1.08 1,024
2349 FSCLX Mid Cap Index4 18.15 OK to Buy 1.1 13.6 3.2 13.6 7.7 14.5 1.09 53
1282 FNCMX Nasdaq Composite Index 70.63 OK to Buy 1.2 8.8 1.6 8.8 10.0 16.9 1.24 2,708
2353 FRXIX Real Estate Index4 0.75%/30d 15.44 Hold 4.6 6.4 -2.5 6.4 13.4 11.5 1.42 30
2011 FCPEX Small Cap Enhanced Index 14.23 Buy 4.4 22.8 11.8 22.8 8.3 16.0 1.44 911
2356 FSSPX Small Cap Index4 18.34 OK to Buy 2.8 21.4 8.8 21.4 6.8 14.4 1.49 35
2831 FTIGX Total International Index4 1.00%/30d 10.00 Hold 1.9 0.4p -2.3 -- -- -- -- 3
397 FSTMX Total Market Index4 64.53 Hold 2.0 12.6 4.2 12.6 8.3 14.5 1.03 706
INTERNATIONAL 0.9 3.8 -4.7 3.8 -0.2 7.0 1.22
309 FICDX Canada 1.50%/90d 48.90 Hold 1.6 20.1 1.4 20.1 -0.2 3.5 1.27 1,228
352 FHKCX China Region 1.50%/90d 23.78 Hold -5.0 -5.2 -9.0 -5.2 -1.9 7.3 2.04 965
325 FDIVX Diversified International 33.30 OK to Buy 1.7 -3.7 -4.7 -3.7 -1.3 7.5 1.09 10,186
351 FSEAX Emerging Asia 1.50%/90d 31.05 Hold -2.6 4.7 -8.4 4.7 1.3 5.5 1.41 884
2053 FEMEX Emerg Europe, MidEast, Africa 1.50%/60d 8.41 Hold 6.7 28.8 4.9 28.8 -1.1 3.5 1.62 74
322 FEMKX Emerging Markets 1.50%/90d 22.31 Hold -0.6 3.3 -8.9 3.3 -1.9 2.3 1.31 2,807
2374 FEDDX Emerging Mkts Discovery 2.00%/90d 11.42 Hold -1.1 10.1 -6.1 10.1 -1.3 5.5 1.30 67
301 FIEUX Europe 33.62 Hold 3.0 -5.6 -6.4 -5.6 -3.0 7.7 1.28 1,014
2406 FGILX Global Equity-Income 1.00%/90d 12.17 OK to Buy 1.5 3.4 -0.7 3.4 4.0 -- 0.89 71
335 FIVFX International Cap App 15.98 Hold 0.7 -3.1 -8.6 -3.1 0.9 9.5 1.05 1,688
305 FIGRX International Discovery 36.48 Hold 1.1 -5.8 -5.5 -5.8 -2.3 7.3 1.07 6,128
1979 FIGFX International Growth 10.64 Hold 1.1 -3.3 -6.2 -3.3 -0.9 7.3 1.04 987
818 FISMX International Small Cap 2.00%/90d 23.30 OK to Buy 1.4 8.2 -3.9 8.2 2.9 11.8 1.00 910
1504 FSCOX International Small Cap Opps 2.00%/90d 14.55 OK to Buy 2.0 -1.1 -5.2 -1.1 2.5 10.7 0.95 749
1597 FIVLX International Value 1.00%/30d 7.70 Hold 2.6 -1.5 -0.8 -1.5 -2.8 6.2 1.07 305
350 FJPNX Japan 1.50%/90d 11.98 Hold -0.6 2.7 -4.5 2.7 0.7 6.7 1.15 345
360 FJSCX Japan Smaller Companies 1.50%/90d 14.65 OK to Buy 0.6 8.8 -2.6 8.8 5.0 13.8 1.01 560
349 FLATX Latin America 1.50%/90d 19.05 Hold -0.3 19.6 -7.4 19.6 -11.1 -9.6 2.23 505
342 FNORX Nordic 1.50%/90d 44.91 OK to Sell 5.4 -2.5 -5.8 -2.5 1.1 13.4 1.20 383
94 FOSFX Overseas 39.54 Buy 2.1 -1.3 -4.3 -1.3 1.0 10.3 1.08 4,415
302 FPBFX Pacific Basin 1.50%/90d 26.46 OK to Buy -1.8 2.9 -8.4 2.9 3.2 10.9 1.09 675
2369 FTEMX Total Emerging Markets 1.50%/60d 10.74 Hold 0.5 12.2 -4.4 12.2 0.5 4.3 1.11 98
1978 FTIEX Total International Equity 1.00%/60d 7.44 Hold 1.2 -0.6 -4.8 -0.6 -1.6 6.2 1.05 271
318 FWWFX Worldwide 21.81 OK to Buy 0.9 -0.6 -3.6 -0.6 1.1 10.1 1.04 1,388
Avg Annual (%)Total Return (%)
Category Averages
8 Fidelity Monitor & Insight — January 2017
Fund Fund Sht-Term $Price Rel Vol Assets
No. Ticker Fund Name Fee (NAV) Advice Dec 2016 3 Mo. 1 Year 3 Year 5 Year (Risk)1 ($Mil)
SELECT PORTFOLIOS Category Averages 1.5 14.2 4.0 14.2 6.1 13.3 1.56
34 FSAIX Air Transportation 0.75%/30d 74.28 OK to Buy 1.9 20.0 16.4 20.0 12.0 20.3 1.34 $329
502 FSAVX Automotive 0.75%/30d 34.94 Hold 3.4 -5.8 2.8 -5.8 -1.0 12.4 1.67 53
507 FSRBX Banking 32.20 OK to Buy 5.8 26.8 27.2 26.8 11.2 18.6 1.73 868
42 FBIOX Biotechnology 174.05 OK to Sell -5.6 -23.7 -9.3 -23.7 5.4 21.5 2.87 9,587
68 FSLBX Brokerage & Investment 0.75%/30d 67.56 Hold 1.3 6.7 12.2 6.7 0.5 14.1 1.77 351
69 FSCHX Chemicals 147.40 Hold 0.3 18.0 7.5 18.0 5.4 14.6 1.56 1,438
518 FSDCX Communications Equipment 0.75%/30d 32.81 Hold 1.5 19.9 2.6 19.9 7.4 10.9 1.44 206
7 FDCPX Computers 0.75%/30d 74.18 Hold 1.6 15.8 0.9 15.8 4.6 11.4 1.53 418
511 FSHOX Construction & Housing 0.75%/30d 58.86 Buy 2.0 5.1 2.9 5.1 9.1 16.8 1.39 394
517 FSCPX Consumer Discretionary 35.34 Buy -0.3 4.3 0.3 4.3 6.6 15.7 1.20 790
98 FSVLX Consumer Finance 0.75%/30d 13.38 Hold 3.5 14.6 10.8 14.6 5.3 15.8 1.36 94
9 FDFAX Consumer Staples 89.87 OK to Buy 2.9 3.1 -2.6 3.1 6.5 11.1 1.09 1,619
67 FSDAX Defense & Aerospace 129.13 Buy -1.1 17.9 9.4 17.9 7.9 16.1 1.20 1,388
60 FSENX Energy 46.76 Hold -0.8 33.8 6.3 33.8 -2.4 3.8 2.10 2,542
43 FSESX Energy Service 0.75%/30d 55.80 OK to Sell 6.7 36.6 17.9 36.6 -8.6 -0.1 2.48 573
516 FSLEX Environment & Alt Energy 0.75%/30d 22.55 OK to Buy 2.2 20.7 5.8 20.7 5.5 12.6 1.26 116
66 FIDSX Financial Services 98.72 OK to Buy 4.6 18.7 17.2 18.7 8.1 16.6 1.27 878
41 FSAGX Gold 19.16 Sell 2.3 47.3 -19.9 47.3 3.4 -14.0 3.92 1,131
63 FSPHX Health Care 184.81 Hold -0.1 -10.7 -8.4 -10.7 8.1 19.1 1.57 6,382
505 FSHCX Health Care Services 0.75%/30d 82.51 Hold -1.0 2.3 2.4 2.3 10.6 15.1 1.23 728
510 FSCGX Industrial Equipment 0.75%/30d 39.12 Buy -0.0 12.7 3.6 12.7 5.1 13.2 1.27 196
515 FCYIX Industrials 32.35 Buy 0.8 15.5 8.0 15.5 6.2 14.9 1.27 888
45 FSPCX Insurance 0.75%/30d 77.56 Buy 2.7 18.2 9.8 18.2 10.4 18.3 1.23 653
353 FBSOX IT Services 41.91 OK to Buy 1.0 5.2 0.9 5.2 8.1 18.3 1.30 1,653
62 FDLSX Leisure 0.75%/30d 136.85 Hold -1.1 6.3 4.7 6.3 6.0 13.4 1.10 399
509 FSDPX Materials 76.09 Hold -0.0 12.0 4.4 12.0 0.7 8.4 1.54 801
354 FSMEX Medical Equipment 36.82 Hold 1.6 8.7 -10.4 8.7 13.8 19.2 1.34 2,701
503 FBMPX Multimedia 0.75%/30d 74.51 Hold 1.6 9.5 6.8 9.5 5.1 17.8 1.40 541
513 FSNGX Natural Gas 0.75%/30d 29.58 Hold 0.8 48.5 10.3 48.5 -6.7 0.8 2.69 500
514 FNARX Natural Resources 0.75%/30d 30.58 Hold -1.0 30.2 4.1 30.2 -3.6 1.7 2.09 981
580 FPHAX Pharmaceuticals 17.04 Hold 0.7 -16.3 -9.0 -16.3 3.9 12.6 1.38 1,110
46 FSRPX Retailing 109.72 OK to Buy 0.1 4.4 0.1 4.4 11.5 20.0 1.24 1,972
8 FSELX Semiconductors 0.75%/30d 95.52 OK to Buy 2.6 32.4 4.3 32.4 23.3 22.0 1.62 2,377
28 FSCSX Software & IT Services 128.80 Buy -0.1 10.3 -1.5 10.3 9.7 18.7 1.36 3,914
64 FSPTX Technology 130.13 Buy 0.8 11.9 -2.2 11.9 10.0 15.5 1.37 3,474
96 FSTCX Telecommunications 69.82 Buy 6.2 22.8 5.7 22.8 9.2 13.4 1.03 648
512 FSRFX Transportation 0.75%/30d 90.09 OK to Sell 1.0 25.9 13.6 25.9 11.2 17.8 1.46 520
65 FSUTX Utilities 71.28 Sell 3.9 14.0 -0.8 14.0 7.3 9.8 1.15 694
963 FWRLX Wireless 0.75%/30d 8.40 Hold 4.2 10.1 0.2 10.1 3.2 10.4 1.06 205
SECTOR ETFs
FDIS MSCI Consumer Discretionary 32.17 Buy -0.1 6.5 2.7 6.5 7.4 -- 1.22 226
FSTA MSCI Consumer Staples 31.20 OK to Buy 3.2 5.6 -1.6 5.6 9.0 -- 0.97 236
FENY MSCI Energy 21.18 Hold 1.6 27.1 7.3 27.1 -4.2 -- 1.88 492
FNCL MSCI Financials 34.58 OK to Buy 4.2 24.9 20.7 24.9 12.2 -- 1.34 438
FHLC MSCI Healthcare 32.89 Hold 0.4 -3.4 -4.2 -3.4 9.0 -- 1.27 577
FIDU MSCI Industrials 32.22 Buy 0.1 20.5 7.0 20.5 7.4 -- 1.24 232
FTEC MSCI Information Technology 36.91 Buy 1.4 13.9 1.3 13.9 12.3 -- 1.32 553
FMAT MSCI Materials 28.84 Hold -0.3 21.1 5.7 21.1 4.8 -- 1.63 149
FREL MSCI Real Estate 23.45 Hold 4.4 7.8 -3.2 7.8 -- -- -- 210
FCOM MSCI Telecomm Services 32.10 Buy 7.4 23.0 6.8 23.0 10.6 -- 1.17 114
FUTY MSCI Utilities 31.60 Sell 4.5 17.1 0.8 17.1 12.3 -- 1.28 181
FACTOR ETFs
FDVV Core Dividend 26.15 OK to Buy 1.3 5.9p 3.6 -- -- -- -- 21
FDRR Dividend for Rising Rates 26.49 OK to Buy 1.6 6.2p 4.0 -- -- -- -- 30
FDLO Low Volatility Factor 25.85 Hold 1.5 4.5p 2.8 -- -- -- -- 5
FDMO Momentum Factor 25.54 OK to Sell 1.7 2.5p 0.7 -- -- -- -- 8
FQAL Quality Factor 26.27 Hold 1.7 5.3p 3.3 -- -- -- -- 14
FVAL Value Factor 27.30 Buy 1.9 9.7p 7.7 -- -- -- -- 9
Total Return (%) Avg Annual (%)
88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
Regular Models
Un Opp 33.8 -20.5 1.6 -2.1 43.2 20.6 18.8 16.6 11.6 -47.6 45.8 19.3 -5.8 16.8 36.3 5.3 1.3
Select 23.4 31.3 35.3 20.4 25.9 -0.9 39.0 5.2 29.3 21.7 44.9 -14.9 -7.3 -14.7 38.4 7.4 15.0 13.6 15.6 -39.3 35.4 11.6 1.2 19.2 37.5 14.6 -2.1
Growth 26.0 30.4 -4.4 40.6 15.7 31.9 -2.1 27.2 19.2 25.5 9.9 29.0 -10.8 -6.4 -17.1 46.1 12.4 11.2 15.7 7.3 -42.7 31.8 17.7 -1.7 16.0 26.5 9.7 1.6
G&I -3.7 21.6 15.8 18.7 11.1 12.2 2.7 1.3 -6.4 33.0 11.5 8.2 13.7 6.1 -33.5 28.1 12.2 -0.3 13.4 20.3 9.3 0.8
Income 10.1 11.3 -2.1 14.8 9.0 10.5 3.5 3.0 0.3 5.6 5.4 8.4 4.2 3.6 6.9 4.0 -18.2 20.0 9.1 6.3 10.7 2.9 7.1 0.1
Fidelity Monitor & Insight — January 2017 9
Yields on municipal funds are not directly comparable to yields on taxable funds. In muni funds your effective yield will be higher as your tax-bracket
increases. *12-month distributed yield
Fund Fund Sht-Term $Price SEC Dur2 Rel Vol
No. Ticker Fund Name Fee (NAV) Advice Dec 2016 3 Mo. 1 Yr 3 Yr 5 Yr %Yield (Yrs) (Risk)1
TAXABLE BOND 0.1 2.5 -3.1 2.5 2.1 1.8 1.95 5.1 0.32
2267 FCONX Conservative Income Bond 10.03 Buy 0.1 0.9 0.3 0.9 0.5 0.7 0.87 0.3 0.02
2208 FCBFX Corporate Bond 11.28 Buy 0.8 6.5 -2.6 6.5 4.3 4.2 3.22 7.0 0.41
2423 FGBFX Global Bond 8.61 OK to Sell 0.2 2.7 -6.4 2.7 -0.7 -- 1.52 6.8 0.50
15 FGMNX GNMA (Ginnie Mae) 11.43 OK to Buy -0.1 1.6 -1.6 1.6 3.0 1.9 1.97 3.0 0.20
54 FGOVX Government Income 10.17 Hold -0.2 1.0 -3.3 1.0 2.3 1.4 1.73 5.3 0.29
794 FINPX Inflation-Protected Bond3 11.93 Hold -0.1 4.4 -2.7 4.4 1.8 0.4 0.14* 5.7 0.40
2415 FSIQX Inflation-Protected Index4 9.68 Hold 0.1 4.8 -2.6 4.8 2.1 -- 0.03* 5.7 0.41
32 FTHRX Intermediate Bond 10.79 Buy 0.2 2.8 -2.0 2.8 2.2 2.2 2.28 4.0 0.21
452 FSTGX Intermediate Gov't Income 10.45 Hold -0.0 0.9 -2.1 0.9 1.4 1.0 1.44 3.8 0.21
1561 FIBIX Intermediate Treasury Index4 10.63 Hold -0.1 0.9 -4.8 0.9 2.9 1.4 2.12 6.5 0.44
2428 FINUX International Bond 8.15 OK to Sell -0.1 1.4 -8.8 1.4 -3.2 -- 2.07 7.4 0.70
26 FBNDX Investment Grade Bond 7.79 Buy 0.4 5.3 -2.5 5.3 3.1 2.8 2.23 5.5 0.30
2622 FJRLX Limited Term Bond 11.45 Buy 0.1 2.5 -0.8 2.5 1.8 2.0 1.76 2.5 0.14
662 FFXSX Limited Term Government 9.93 OK to Buy -0.1 0.6 -1.2 0.6 0.8 0.6 1.15 2.7 0.13
1562 FLBIX Long-Term Treasury Index4 12.58 Hold -0.4 1.1 -12.1 1.1 7.6 2.3 2.87 18.0 1.11
40 FMSFX Mortgage Securities 11.20 OK to Buy 0.0 1.9 -1.9 1.9 3.2 2.4 2.12 3.3 0.20
450 FSHBX Short-Term Bond 8.59 Buy 0.0 1.5 -0.4 1.5 1.0 1.2 1.31 1.7 0.07
1560 FSBIX Short-Term Treasury Index4 10.38 Hold 0.0 0.8 -1.2 0.8 0.8 0.6 1.28 2.7 0.14
820 FTBFX Total Bond 10.52 Buy 0.5 5.8 -2.1 5.8 3.6 3.3 2.92 5.2 0.29
651 FBIDX U.S. Bond Index 11.50 Hold 0.2 2.5 -3.1 2.5 2.9 2.0 2.30 5.6 0.30
HIGH-YIELD BOND 1.6 11.7 0.4 11.7 3.9 5.9 4.51 3.6 0.51
38 FAGIX Capital & Income 1.00%/90d 9.71 OK to Buy 1.7 10.7 1.5 10.7 5.2 8.3 4.17 4.1 0.57
814 FFRHX Floating Rate High Income 1.00%/60d 9.64 OK to Buy 1.0 9.9 1.9 9.9 2.9 3.9 2.89 0.3 0.29
1366 FHIFX Focused High Income 1.00%/90d 8.49 OK to Buy 1.5 10.9 1.0 10.9 3.7 5.4 4.23 3.8 0.50
2297 FGHNX Global High Income 1.00%/30d 9.27 OK to Buy 1.6 11.9 -0.5 11.9 3.6 6.5 4.84 3.7 0.56
455 SPHIX High Income 1.00%/90d 8.71 Buy 2.3 16.0 1.8 16.0 3.7 6.4 6.01 3.5 0.58
331 FNMIX New Markets Income 1.00%/90d 15.60 OK to Buy 2.3 14.7 -2.3 14.7 6.3 6.1 6.38 5.9 0.72
2580 FSAHX Short Duration High Income 1.00%/30d 9.46 OK to Buy 1.6 10.6 1.5 10.6 2.3 -- 4.00 2.3 0.46
368 FSICX Strategic Income 10.66 OK to Buy 1.1 8.8 -1.3 8.8 3.5 4.3 3.52 4.9 0.39
MUNICIPAL BOND 0.8 -0.0 -3.6 -0.0 3.6 3.0 2.15 5.7 0.30
434 FSAZX Arizona Muni Income 11.82 Hold 1.0 0.0 -4.0 -- 4.6 3.5 2.21 6.6 0.34
1534 FCSTX Calif Limited Term Tax Free 10.49 OK to Buy 0.3 -0.5 -2.1 -0.5 1.5 1.4 1.36 3.1 0.17
91 FCTFX California Muni Income 12.69 Hold 0.9 -0.2 -4.3 -0.2 4.6 4.0 2.22 6.4 0.35
407 FICNX Connecticut Muni Income 11.26 Hold 1.1 -0.4 -4.3 -0.4 3.8 2.6 2.42 6.6 0.35
2578 FCRDX Conservative Income Muni 10.00 Buy 0.1 0.2 -0.3 0.2 0.3 -- 0.88 0.8 0.03
36 FLTMX Interm Municipal Income 10.21 Hold 0.7 -0.0 -3.2 -0.0 2.9 2.4 2.06 4.9 0.26
404 FSTFX Limited Term Muni Income 10.43 OK to Buy 0.2 -0.4 -2.0 -0.4 1.0 1.0 1.42 2.8 0.15
429 SMDMX Maryland Muni Income 11.08 Hold 0.8 -0.1 -4.4 -0.1 3.9 2.7 2.22 6.6 0.33
70 FDMMX Mass Muni Income 11.98 Hold 1.1 -0.1 -4.1 -0.1 4.3 3.3 2.40 7.2 0.35
81 FMHTX Michigan Muni Income 11.94 Hold 1.1 -0.2 -3.7 -0.2 4.2 3.1 2.37 6.5 0.32
82 FIMIX Minnesota Muni Income 11.42 Hold 1.0 0.1 -3.2 0.1 3.3 2.5 2.05 5.6 0.28
37 FHIGX Municipal Income 12.86 Hold 0.9 -0.0 -4.5 -0.0 4.5 3.7 2.55 7.0 0.36
416 FNJHX New Jersey Muni Income 11.50 Hold 0.6 0.5 -4.7 0.5 3.8 2.9 2.60 6.4 0.37
71 FTFMX New York Muni Income 13.02 Hold 0.9 0.1 -4.0 0.1 4.4 3.3 2.29 6.5 0.33
88 FOHFX Ohio Muni Income 11.91 Hold 1.0 0.2 -4.2 0.2 4.8 3.6 2.40 7.3 0.37
402 FPXTX Pennsylvania Muni Income 10.97 Hold 0.7 0.3 -3.6 0.3 4.3 3.4 2.38 6.4 0.30
90 FTABX Tax-Free Bond 11.27 Hold 0.9 0.4 -4.2 0.4 4.7 3.8 2.71 6.9 0.35
Total Return (%) Avg Annual (%)
Category Averages
Category Averages
Category Averages
SEC
Dec YTD %Yield
55 FDRXX Gov't Cash Reserves 0.02 0.09 0.24
458 SPAXX Government MM 0.01 0.04 0.17
631 FGMXX Retirement Gov't MM 0.01 0.06 0.20
630 FRTXX Retirement Gov't MM II 0.01 0.05 0.19
2742 FZFXX Treasury MM 0.01 0.02 0.11
415 FDLXX Treasury Only MM 0.00 0.01 0.08
454 SPRXX Money Market 0.05 0.36 0.64
10 FTEXX Municipal Money Market 0.03 0.15 0.40
275 FMOXX Tax-Exempt MM 0.02 0.15 0.33
Total Return (%) TAXABLE GOV'T MONEY MARKETS
PRIME MONEY MARKETS
NATIONAL MUNICIPAL MONEY MARKETS
SEC
Dec YTD %Yield
433 FSAXX Arizona Muni MM 0.02 0.17 0.30
97 FCFXX California Muni MM 0.02 0.11 0.29
457 FSPXX California AMT Tax-Free 0.03 0.22 0.46
418 FCMXX Connecticut Muni MM 0.02 0.08 0.29
426 FMSXX Mass AMT Tax-Free 0.03 0.24 0.46
74 FDMXX Massachusetts Muni MM 0.02 0.10 0.30
420 FMIXX Michigan Muni MM 0.02 0.16 0.26
417 FNJXX New Jersey Muni MM 0.02 0.08 0.29
423 FSJXX New Jersey AMT Tax-Free 0.03 0.19 0.47
92 FNYXX New York Muni MM 0.02 0.10 0.31
422 FSNXX New York AMT Tax-Free 0.03 0.23 0.47
419 FOMXX Ohio Muni MM 0.02 0.09 0.28
401 FPTXX Pennsylvania Muni MM 0.02 0.09 0.28
Total Return (%) STATE MUNICIPAL MONEY MARKETS
10 Fidelity Monitor & Insight — January 2017
VIP Technology 27%
VIP Cons Discretionary 26
VIP Telecom 25
VIP Industrials 22
Total Return:
Dec: 1.9% 2016: 12.9%
Annuity Sector
Fund Allocation
VIP Disciplined Sm Cap 24%
VIP Contrafund 20
VIP Equity-Income 17
VIP Mid Cap 16
VIP Value 12
VIP Growth Opps 11
Dec: 2.4% 2016: 10.1%
Fund Allocation
Annuity Growth
Total Return:
VIP Investment Grade 22%
VIP Contrafund 21
VIP Equity-Income 20
VIP Growth & Income 20
VIP High Income 18
Total Return:
Dec: 1.6% 2016: 7.4%
Annuity Growth & Income
Fund Allocation
VIP Investment Grade 28%
Pimco VIT Low Duration 26
VIP Equity Income 24
VIP High Income 22
Total Return:
Dec: 1.2% 2016: 7.4%
Annuity Income
Fund Allocation
Fund Fund Sht-Term $Price Rel Vol
No. Ticker Fund Name Style Fee (NAV) Advice Dec 2016 3 Mo. 1 Year 3 Year 5 Year (Risk)1
FIDELITY PERSONAL RETIREMENT ANNUITY PORTFOLIOS
Annuity Sector Model 1.9 12.9 2.6 12.9 8.1 15.2 1.04
Annuity Growth Model 2.4 10.1 5.2 10.1 6.5 12.6 1.10
Annuity Growth & Income Model 1.6 7.4 2.3 7.4 5.6 9.6 0.71
Annuity Income Model 1.2 7.4 1.1 7.4 4.2 4.7 0.38
9067 FLRQC Fid VIP Asset Manager Allocation 17.77 Hold 1.0 2.7 -0.4 2.7 2.6 6.9 0.67
9066 FAEEC Fid VIP Asset Manager: Growth Allocation 17.91 Hold 1.4 2.1 0.2 2.1 2.4 8.6 0.88
9069 FJBAC Fid VIP Balanced Allocation 20.88 OK to Buy 1.3 6.9 0.8 6.9 5.6 10.0 0.72
9081 FVHAC Fid VIP Consumer Discretionary Sector 1.00%/60d 24.50 Buy -0.2 4.9 0.3 4.9 6.2 15.3 1.19
9171 FCSAC Fid VIP Consumer Staples Sector 1.00%/60d 23.60 OK to Buy 2.3 3.4 -4.7 3.4 9.2 12.7 1.12
9065 FPDFC Fid VIP Contrafund Large Growth 22.39 Buy 1.7 7.6 2.1 7.6 6.4 12.8 1.04
9148 FPRGC Fid VIP Disciplined Small Cap Small Blend 20.02 Buy 4.4 22.2 11.8 22.2 7.8 15.4 1.44
9074 FZAMC Fid VIP Dynamic Capital App Large Growth 23.28 OK to Sell 0.0 2.6 1.3 2.6 4.6 14.1 1.19
9198 FEMAC Fid VIP Emerging Markets Emg Mkts 7.92 Hold -0.6 2.7 -9.1 2.7 -2.3 1.9 1.31
9085 FJLLC Fid VIP Energy Sector 1.00%/60d 16.74 Hold -0.7 33.4 6.3 33.4 -2.7 3.6 2.10
9061 FLOLC Fid VIP Equity-Income Large Value 19.37 Buy 2.0 17.6 6.5 17.6 6.8 12.8 0.98
9083 FONNC Fid VIP Financial Services Sector 1.00%/60d 12.27 OK to Buy 4.5 18.2 17.0 18.2 7.9 16.4 1.26
9361 FFLCC Fid VIP Floating Rate High Income High-Yield Bond 10.78 OK to Buy 1.0 8.9 1.7 8.9 2.5 -- 0.26
9157 FMPAC Fid VIP FundsManager 20 Allocation 14.36 Hold 0.3 2.6 -1.6 2.6 2.0 3.3 0.28
9158 FMPBC Fid VIP FundsManager 50 Allocation 15.75 Hold 0.8 4.0 -1.1 4.0 2.9 6.5 0.56
9197 FMPPC Fid VIP FundsManager 60 Allocation 14.76 Hold 1.1 4.5 -0.9 4.5 3.3 7.7 0.66
9159 FMPCC Fid VIP FundsManager 70 Allocation 16.11 Hold 1.1 4.7 -0.7 4.7 3.2 8.6 0.75
9160 FMPDC Fid VIP FundsManager 85 Allocation 16.13 Hold 1.2 5.4 -0.6 5.4 3.5 9.9 0.90
9062 FMNDC Fid VIP Growth Large Growth 21.26 OK to Buy 0.7 0.5 -1.7 0.5 6.0 13.1 1.11
9070 FLFNC Fid VIP Growth & Income Large Blend 22.02 Buy 1.9 15.7 6.8 15.7 7.4 14.3 1.13
9068 FIDPC Fid VIP Growth Opportunities Large Growth 21.63 Buy 1.3 0.0 -1.0 0.0 5.6 14.0 1.29
9084 FPDRC Fid VIP Health Care Sector 1.00%/60d 31.92 Hold -0.2 -10.7 -8.3 -10.7 7.8 18.6 1.57
9060 FBBLC Fid VIP High Income High-Yield Bond 19.40 Buy 2.0 14.4 1.8 14.4 3.5 6.0 0.57
9064 FXVLT Fid VIP Index 500 Large Blend 22.32 Hold 2.0 11.6 3.8 11.6 8.5 14.3 1.00
9082 FBALC Fid VIP Industrials Sector 1.00%/60d 29.46 Buy 0.8 15.4 7.8 15.4 6.1 14.7 1.27
9076 FVJIC Fid VIP Int'l Capital App Diversified Int'l 15.37 Hold 0.7 -3.2 -8.6 -3.2 0.7 9.2 1.05
9063 FTLKC Fid VIP Investment Grade Bond Inv Grd Bond 15.76 Buy 0.4 4.5 -2.6 4.5 3.0 2.5 0.30
9172 FVMAC Fid VIP Materials Sector 1.00%/60d 18.56 Hold -0.1 11.7 4.4 11.7 0.5 8.1 1.53
9071 FNBSC Fid VIP Mid Cap Mid Growth 24.08 Buy 1.2 11.8 4.7 11.8 5.2 12.6 1.19
9059 FTNJC Fid VIP Gov't Money Market Money Mkt 11.33 -- 0.0 -0.1 0.0 -0.1 -0.2 -0.2 0.01
9088 FEMMC Fid VIP Overseas Diversified Int'l 14.03 Buy 2.0 -5.4 -5.1 -5.4 -3.6 7.0 1.17
9072 FFWKC Fid VIP Real Estate Sector 22.77 Hold 4.7 5.4 -2.7 5.4 12.2 11.1 1.40
9075 FGDQC Fid VIP Strategic Income High-Yield Bond 18.24 OK to Buy 0.9 7.9 -1.6 7.9 3.0 3.8 0.38
9086 FYENC Fid VIP Technology Sector 1.00%/60d 28.68 Buy 1.0 11.1 -1.7 11.1 9.5 14.4 1.35
9173 FVTAC Fid VIP Telecommunications Sector 1.00%/60d 16.39 Buy 6.2 22.4 5.6 22.4 8.8 13.3 1.04
9087 FXRRC Fid VIP Utilities Sector 1.00%/60d 23.14 Sell 3.9 13.7 -0.9 13.7 7.1 9.7 1.15
9079 FKMSC Fid VIP Value Large Value 20.17 Buy 2.8 11.6 5.7 11.6 7.0 14.3 1.06
9073 FRBSC Fid VIP Value Strategies Mid Value 20.39 OK to Buy 2.3 9.3 4.6 9.3 4.0 13.2 1.19
9347 FBMEC Black Rock Global Allocation Global Allocation 12.12 Hold 1.0 3.7 -0.1 3.7 1.4 5.5 0.62
9349 FTMEC Franklin Templeton Global Bond Global Bond 10.88 OK to Sell 2.8 2.6 6.0 2.6 -0.2 3.0 0.54
9348 FFMEC Franklin Templeton US Gov't Intermed Gov't 10.27 Hold -0.1 0.4 -1.9 0.4 1.3 0.6 0.15
9285 FIGXC Invesco Global Core Eqty Global Stock 11.72 Hold 1.5 6.5 -0.2 6.5 1.7 7.9 1.06
9147 FPRLC Lazard Retirement Emerging Mkts Emg Mkts 14.32 Hold 2.3 20.8 -2.8 20.8 -2.7 2.1 1.66
9143 FPRMC Morgan Stanley Emerg Mkt Debt Emg Mkt Bond 17.75 OK to Buy 1.5 10.3 -4.1 10.3 3.8 3.6 0.67
9144 FPRNC Morgan Stanley Emerg Mkt Equity Emg Mkts 11.88 Hold 0.2 6.5 -8.0 6.5 -3.3 1.3 1.33
9146 FPRPC Morgan Stanley Global Strategist Diversified Int'l 12.19 Hold 1.6 5.3 -0.7 5.3 0.1 5.6 0.71
9346 FPMEC Pimco Commodity Real Return Commodities 6.01 OK to Sell 1.9 14.7 2.4 14.7 -11.5 -9.1 1.47
9276 FPMBC Pimco VIT Low Duration Shrt-Term Bond 11.52 Buy 0.5 1.1 -0.2 1.1 0.6 1.4 0.12
9277 FPNBC Pimco VIT Real Return TIPS 12.72 Hold -0.1 5.0 -2.4 5.0 1.5 0.6 0.45
9278 FPOBC Pimco VIT Total Return Intermed Bond 12.89 Hold 0.5 2.5 -2.6 2.5 2.2 2.7 0.31
Total Return (%) Avg Annual (%)
Model
Portfolios
Fidelity Monitor & Insight — January 2017 11
Ex- Fund Date Dist$ NAV$
Ex- Fund Date Dist$ NAV$
Ex- Fund Date Dist$ NAV$
Below is a list of funds and their total
year-end distributions. These gains con-
sist of profits from sold securities, plus
any income (dividends) paid to the fund
via all its holdings.
With the S&P 500 rising over each
of the past eight years, some 2016 year-
end distributions were significant. While
Fidelity has worked to optimize their
funds’ tax efficiency, it nonetheless sug-
gests that unrealized capital gains may
be accumulating. (In the case of Lever-
aged Co. Stock and Value Strategies,
their large distributions were the result of
a new manager dramatically reposition-
ing the funds.)
As with an individual taxpayer,
funds can offset their gains with losses.
But eventually they will be distributed to
their shareholders unless, of course, a
downturn in the market provides an op-
portunity for the manager to employ
some tax strategies. While we don’t be-
lieve in putting the tax “cart” before the
investment “horse,” being strategic
about taxes will ultimately help you to
keep more of your money.
If your fund went “ex-dividend” in
December (paid you), you likely noticed
that its net asset value declined. (The
NAV$ column shows the fund ’s share
price on the day it went ex-dividend or
Ex-Date.) Because it fell by the same
amount as the distribution itself, you
were no worse off than before except,
however, for the tax hit.
500 Index 12/ 16 0.820 78.96
Air Transportation 12/ 16 0.490 75.04
Asset Manager 20% 12/ 23 0.108 12.98
Asset Manager 30% 12/ 23 0.059 10.44
Asset Manager 40% 12/ 23 0.065 10.78
Asset Manager 50% 12/ 23 0.150 16.71
Asset Manager 60% 12/ 23 0.175 11.12
Asset Manager 70% 12/ 23 0.296 19.64
Asset Manager 85% 12/ 23 0.220 16.55
Automotive 12/ 16 1.980 35.26
Balanced 12/ 9 0.213 22.17
Banking 12/ 16 0.245 32.03
Blue Chip Growth 12/ 9 1.763 68.20
Blue Chip Value 12/ 9 0.092 17.41
Brokerage & Invest 12/ 16 0.845 68.40
Canada 12/ 9 0.799 49.57
Chemicals 12/ 16 7.006 149.19
China Region 12/ 9 0.321 24.85
Comm Equip 12/ 2 0.304 31.77
Computers 12/ 16 4.752 75.07
Cons Discretionary 12/ 16 0.284 35.90
Const & Housing 12/ 16 2.122 59.16
Consumer Finance 12/ 16 0.207 13.46
Consumer Staples 12/ 16 3.481 90.13
Contrafund 12/ 9 3.115 100.08
Convertible Securities 12/ 27 0.646 26.88
CT Muni Income 12/ 27 0.135 11.22
Defense & Aero 12/ 16 5.485 129.08
Disciplined Equity 12/ 9 0.486 33.68
Diversified Int'l 12/ 9 0.452 33.24
Dividend Growth 12/ 9 0.235 32.47
EMEA 12/ 9 0.102 8.22
Emerg Mkt Index 12/ 9 0.125 8.63
Emerg Mkts Discovery 12/ 16 0.150 11.36
Emerg Mkts Discovery 12/ 27 0.005 11.24
Emerging Asia 12/ 9 0.391 32.04
Emerging Markets 12/ 9 0.140 22.63
Emerging Markets 12/ 27 0.009 22.00
Energy 12/ 16 0.196 47.50
Energy Service 12/ 2 0.225 53.38
Environment & Alt Ergy 12/ 2 0.251 22.06
Equity Dividend Inc 12/ 27 1.296 27.14
Equity-Income 12/ 9 0.935 57.82
Europe 12/ 16 0.508 32.93
Event Driven Opps 12/ 2 0.136 12.44
Export and Multi 12/ 2 0.496 20.51
Extd Mkt Index 12/ 16 2.207 55.81
Fidelity Fund 12/ 9 1.282 41.61
Financial Services 12/ 16 0.991 98.90
Focused Stock 12/ 9 0.199 18.77
Four-in-One Index 12/ 28 0.798 38.24
Glbl ex-US Index 12/ 9 0.216 10.97
Global Balanced 12/ 9 0.095 22.24
Global Bond 12/ 23 0.147 8.55
Global Commod Stk 12/ 9 0.173 11.56
Global Eqty-Inc 12/16 0.038 12.19
Global Strategies 12/28 0.209 8.62
Global Strategies 12/30 0.010 8.64
GNMA 12/2 0.013 11.46
Gold 12/16 0.450 17.25
Government Income 12/9 0.027 10.16
Grow th & Income 12/9 0.165 33.29
Grow th Company 12/27 8.162 140.14
Grow th Discovery 12/9 0.023 25.74
Grow th Strategies 12/27 0.199 34.43
Health Care 12/16 0.234 186.32
Health Care Services 12/16 3.003 83.79
Independence 12/27 2.091 33.98
Industrial Equipment 12/16 2.008 39.20
Industrials 12/16 1.399 32.42
Inflation-Protect Index 12/23 0.125 9.61
Inflation-Protected 12/23 0.178 11.85
Insurance 12/16 0.824 77.49
Interm Gov't Income 12/2 0.013 10.47
Interm Treas Index 12/2 0.075 10.67
International Grow th 12/9 0.132 10.59
International Value 12/9 0.209 7.77
Int'l Bond 12/23 0.041 8.09
Int'l Cap App 12/9 0.108 15.95
Int'l Discovery 12/9 0.661 36.48
Int'l Enhanced Indx 12/9 0.210 8.13
Int'l Index 12/16 0.987 35.19
Int'l Small Cap 12/9 0.629 23.32
Int'l Small Cap Opps 12/9 0.208 14.49
IT Services 12/16 0.133 42.04
Japan 12/9 0.146 12.24
Japan Smaller Cos 12/9 0.414 14.76
L Cap Core Enhcd 12/9 0.180 12.69
L Cap Grow th Enhcd 12/9 0.157 15.78
L Cap Value Enhcd 12/9 0.195 12.17
Large Cap Stock 12/2 0.619 28.73
Latin America 12/9 0.395 18.83
Latin America 12/29 0.080 19.20
Leisure 12/16 1.379 140.32
Leveraged Co Stock 12/2 6.591 32.74
Lg Cap Gow th Index 12/23 0.021 10.54
Lg Cap Value Index 12/23 0.047 11.06
Low -Priced Stock 12/9 0.922 50.36
Ltd Term Gov't 12/27 0.034 9.91
Magellan 12/2 1.858 89.91
Materials 12/16 0.799 77.00
Medical Equipment 12/16 1.855 37.05
Mega Cap Stock 12/9 0.218 17.56
Mid Cap Enhd Indx 12/9 0.183 14.44
Mid Cap Index 12/16 0.270 18.29
Mid Cap Index 12/30 0.008 18.15
Mid Cap Value 12/9 0.333 25.08
Mid-Cap Stock 12/9 1.004 34.91
Multimedia 12/16 3.538 74.97
Nasdaq Comp Index 12/27 0.672 71.98
Natural Gas 12/16 0.124 29.93
Natural Resources 12/16 0.100 30.93
New Markets Income 12/2 0.138 15.27
New Millennium 12/27 2.245 36.45
NJ Muni Inc 12/27 0.090 11.46
Nordic 12/9 0.770 43.44
OTC 12/9 2.700 83.23
Overseas 12/16 0.775 39.26
Pacif ic Basin 12/16 0.630 26.46
Pharmaceuticals 12/16 0.183 17.05
Puritan 12/9 0.277 20.74
Puritan 12/27 0.040 20.72
Real Estate Income 12/16 0.201 11.68
Real Estate Income 12/30 0.010 11.79
Real Estate Index 12/16 0.238 15.20
Real Estate Invest 12/16 0.801 41.02
Retailing 12/16 0.145 111.29
Semiconductors 12/2 1.106 90.50
Sht-Term Treas Index 12/2 0.005 10.39
Sm Cap Discovery 12/2 0.138 31.00
Sm Cap Enhanced Indx 12/9 0.093 14.49
Sm Cap Enhanced Indx 12/30 0.002 14.23
Small Cap Grow th 12/2 0.157 20.12
Small Cap Index 12/16 0.245 18.42
Small Cap Stock 12/2 0.317 18.22
Small Cap Value 12/2 0.191 18.32
Small Cap Value 12/27 0.036 18.96
Softw are & IT Svs 12/16 4.376 131.03
Stk Sel All Cap 12/9 0.379 36.78
Stk Sel Lge Cap Value 12/9 0.240 18.80
Stk Sel Mid Cap 12/27 0.261 35.17
Stk Sel Small Cap 12/9 0.426 26.61
Strategic Div & Inc 12/27 0.451 14.66
Strategic Real Return 12/9 0.065 8.76
Strategic Real Return 12/27 0.014 8.73
Technology 12/2 2.004 126.32
Telecom & Utilities 12/2 0.427 23.57
Telecommunications 12/16 4.348 69.10
Total Bond 12/9 0.011 10.49
Total Emerg Mkts 12/16 0.144 10.65
Total Int'l Equity 12/9 0.109 7.48
Total Int'l Index 12/16 0.035 9.95
Total Int'l Index 12/27 0.005 9.93
Total Mkt Index 12/16 1.237 65.00
Transportation 12/16 1.772 91.20
Trend 12/16 3.971 84.51
U.S. Bond Index 12/2 0.003 11.50
Utilities 12/2 1.710 68.49
Value 12/9 1.379 111.34
Value Discovery 12/9 0.160 25.98
Value Strategies 12/27 8.180 38.69
Wireless 12/2 0.552 7.97
Worldw ide 12/9 0.266 22.09
12 Fidelity Monitor & Insight — January 2017
30.2%
22.8%
18.7%
15.5%
14.0%
12.0%
12.0%
11.9%
4.3%
3.1%
-10.7%
Equity-Income
Large Cap Stock
Growth & Income
Stk Sel Lge Cap Value
Equity Dividend Income
New Millennium
Mega Cap Stock
Value Discovery
S&P 500
Value Strategies
Blue Chip Value
Export & Multi
Stock Selector All Cap
Dividend Growth
Disciplined Equity
Growth Company
Magellan
Fidelity Fund
Trend
Contrafund
Focused Stock
Capital Appreciation
OTC
Blue Chip Growth
Growth Discovery
Independence
17.4%
16.7%
16.1%
16.0%
15.9%
14.9%
13.6%
13.2%
12.0%
11.3%
11.2%
10.0%
9.6%
8.1%
6.2%
6.0%
5.2%
4.8%
4.6%
3.4%
3.3%
3.2%
3.1%
1.6%
0.7%
-1.2%
Equity-Income
Large Cap Stock
Growth & Income
Stk Sel Lge Cap Value
Equity Dividend Income
New Millennium
Mega Cap Stock
Value Discovery
S&P 500
Value Strategies
Blue Chip Value
Export & Multi
Stock Selector All Cap
Dividend Growth
Disciplined Equity
Growth Company
Magellan
Fidelity Fund
Trend
Contrafund
Focused Stock
Capital Appreciation
OTC
Blue Chip Growth
Growth Discovery
Independence
Comparative Index
Natural Resources
Telecommunications
Financial Services
Industrials
Utilities
Materials
S&P 500
Technology
Consumer Discretionary
Consumer Staples
Health Care
Natural Resources
Telecommunications
Financial Services
Industrials
Utilities
Materials
S&P 500
Technology
Consumer Discretionary
Consumer Staples
Health Care
Comparative Index
Stock Funds
In the fourth quarter (post-
election outcome), small-cap stocks
ramped up their performances over-
taking large-cap stocks. For exam-
ple, during the last three months of
2016 the small-cap Russell 2000
surged 8.8% versus “just” 3.8% for
the S&P 500.
Fund-wise, Fidelity’s six active-
ly run small-cap offerings finished
the year with an average gain of
16.8%, whereas the average large-
cap fund returned just 8.6%.
Among all small-cap funds, the
top performer was Small Cap
Enhanced Index (up 22.8% ). The
laggard was Small Cap Growth (up
11.0%), hampered, at least in part,
by its health-care holdings. On a
related note, Event Driven Opportu-
nities (up 20.0% ) finally hit its
stride in its third year, handily out-
pacing its Russell 3000 benchmark
(up 12.7%).
As for mid-cap stocks, their per-
formance fell between that of small-
and large-cap shares. Likewise, on
the fund level, they were also a
mixed bag. Whereas the best of this
lot was Value (up 16.1%), the worst
was Growth Strategies (up 2.7%).
Please see the facing page for
our chart of small- and mid-cap
funds.
As for Fidelity’s most widely
held stock funds, suffice it to say,
2016 was a very challenging year.
For starters, its largest fund by
assets, Contrafund (up 3.4%), dra-
matically trailed its S&P 500 bench-
mark. Likewise, Low-Priced Stock
(up 8.8%) trailed the Russell 2000
by 12.5 percentage points. Its big-
gest problem was its 30%+ slug in
foreign stocks. (More on that later.)
Selects Funds
Energy shares gushed higher in
2016 as their multi-year slide bot-
tomed in February (oil fell to below
$30 a barrel). But with the U.S.
economy improving and OPEC cob-
Fund Commentary cont’d from p. 5
These 10 broad-based Select funds represent the major industry segments of the S&P 500.
Fund returns for 29 Select subsets and 11 sector ETFs are shown on page 8 of the Scorecard.
Fidelity Monitor & Insight — January 2017 13
21.3%
21.3%
20.3%
20.0%
16.1%
15.4%
14.9%
13.8%
12.9%
12.4%
12.0%
11.0%
10.6%
8.8%
7.3%
2.7%
Russell 2000
Small Cap Value
Small Cap Discovery
Event Driven Opportunities
Value
Stock Selector Small Cap
Mid-Cap Stock
Russell Midcap
Small Cap Stock
Mid Cap Value
S&P 500
Small Cap Growth
Stock Selector Mid Cap
Low-Priced Stock
Leveraged Company Stock
Growth Strategies
Comparative Index
22.8%
21.4%
16.3%
16.1%
13.6%
13.5%
12.6%
11.9%
11.2%
10.9%
8.8%
8.3%
8.2%
6.4%
4.5%
1.9%
1.2%
Small Cap Enhcd Index
Small Cap Index
Large Cap Value Enhcd Index
Extended Mkt Index
Mid Cap Index
Mid Cap Enhcd Index
Total Market Index
500 Index
Emerging Mkts Index
Large Cap Core Enhcd Index
Nasdaq Composite Index
Four-in-One Index
Large Cap Growth Enhcd Index
Real Estate Index
Global ex-US Index
International Enhcd Index
International Index
bling together an agreement to trim
output, crude topped $53 a barrel in
December. This helped drive Natu-
ral Gas (up 48.5% ) to the top spot
among Selects; other energy–rich
funds such as Energy (up 33.8%)
fared well, too.
Elsewhere, investors flocked to
telecom shares, in part, for their
yields. This propelled Telecommu-
nications up 22.8% . But a more
important performance driver for
diversified stock funds was the late-
year rally by bank shares. Rising
interest rates hold the promise of
fatter margins on lending, and the
Trump victory further fueled that
rally with the promise of less regula-
tion. Taken together, the broad
Financial Services fund rose
18.7% in 2016, whereas the narrow-
er Banking gained 26.8%.
In the important tech sector,
Semiconductors (formerly Elec-
tronics) led the group higher with its
stellar 32.4% return last year, and
Communications Equipment (up
19.9%) was no slouch, either.
Six of Fidelity’s 10 broad Select
funds matched or outpaced the mar-
ket last year. However, about a third
of the S&P’s industry constituents
performed miserably.
Consumer Staples (up 3.1% )
eked out a gain in 2016, and Con-
sumer Discretionary was up a sim-
ilarly modest 4.3%. But even more
disappointing was Health Care
(down 10.7%), largely because Bio-
technology was down 23.7% .
Throughout the health care sec-
tor, valuations were of central con-
cern. On the delivery side, cracks
appeared owing to a fundamental
flaw in ObamaCare: not enough
healthy young people have signed
up to offset rising costs. Health Care
Services was up just 2.3% . And,
following the Trump victory, the
sector’s own health further deterio-
rated as investors tried to guess how
the new administration might refash-
ion ObamaCare.
Finally, Select Gold rose 47.3%
last year (which also helped to fuel
Natural Resources’ rise) even as
the precious metal itself gained a
rather modest 8.6%. How’s that pos-
sible? Shares of gold mining compa-
nies are highly leveraged to the price
of the raw material.
Specialty Funds
As previously discussed, gold
and oil were big winners last year,
so it followed that Global Commodi-
Fund Commentary cont’d on p. 14
Large Cap Growth
Index, Large Cap
Value Index and
Total Int’l Index not
shown due to partial
year returns.
14 Fidelity Monitor & Insight — January 2017
30.4%
17.0%
12.7%
12.0%
10.2%
9.1%
7.8%
7.0%
6.0%
5.9%
5.0%
0.9%
-1.6%
Glbl Commodity Stock
Telecom & Utilities
Strategic Div & Inc
S&P 500
Real Estate Income
Strategic Real Return
Real Estate Investment
Balanced
Convertible Securities
Global Strategies
Puritan
Global Balanced
Int'l Real Estate
Glbl Commodity Stock
Telecom & Utilities
Strategic Div & Inc
S&P 500
Real Estate Income
Strategic Real Return
Real Estate Investment
Balanced
Convertible Securities
Global Strategies
Puritan
Global Balanced
Int'l Real Estate
Comparative Index
28.8%
20.1%
19.6%
12.2%
12.0%
10.1%
8.8%
8.2%
4.7%
3.4%
3.3%
2.9%
2.7%
1.0%
-0.6%
-0.6%
-1.1%
-1.3%
-1.5%
-2.5%
-3.1%
-3.3%
-3.7%
-5.2%
-5.6%
-5.8%
EMEA
Canada
Latin America
Total Emerging Markets
S&P 500 Index
Emerg Mkts Discovery
Japan Smaller Cos
Int'l Small Cap
Emerging Asia
Global Equity Income
Emerging Markets
Pacific Basin
Japan
MSCI EAFE Index
Total Int'l Equity
Worldwide
Int'l Small Cap Opps
Overseas
Int'l Value
Nordic
Int'l Cap App
Int'l Growth
Diversified Int'l
China Region
Europe
Int'l Discovery
EMEA
Canada
Latin America
Total Emerging Markets
S&P 500 Index
Emerg Mkts Discovery
Japan Smaller Cos
Int'l Small Cap
Emerging Asia
Global Equity Income
Emerging Markets
Pacific Basin
Japan
MSCI EAFE Index
Total Int'l Equity
Worldwide
Int'l Small Cap Opps
Overseas
Int'l Value
Nordic
Int'l Cap App
Int'l Growth
Diversified Int'l
China Region
Europe
Int'l Discovery
Comparative Index
ty Stock (up 30.4% ) fared espe-
cially well. While the utilities por-
tion of Telecom & Utilities (up
17.0%) held back the fund, it was
still a strong performer relative to
the rest of the market.
Conversely, outside of commod-
ities, Fidelity’s Specialty funds with
large international exposures were
laggards. Most notably, International
Real Estate (down 1.6% ) sagged
under the weight of cooling property
values in Asia and elsewhere, and
suffered a secondary blow from the
rising dollar (see below).
International Funds
What do last year’s five top-
performing international stock funds
have in common?
The answer is that they all have
large exposures to oil and other
commodities. In the case of Emerg-
ing Europe, Middle East, Africa
(EMEA), (up 28.8% ), its manager
fortuitously upped his exposures to
South Africa and Russia while trim-
ming Turkey. And even though
much of South America is a political
disaster area, Latin America (up
19.6%) was a winner.
Less fortunate were those for-
eign funds with big bets in Europe.
While some markets actually en-
joyed decent gains in local currency
terms, U.S. fund investors saw their
gains evaporate owing to the dollar’s
rise. For example, the U.K. rose
19.2% in pounds, but was flat in
dollars! Post-Trump victory, the
pound has turned higher against the
greenback, whereas the euro’s fall
has accelerated.
When all was said and done, the
EAFE Index rose 5.3% last year, in
local currency terms, but gained a
more modest 1.0% in U.S. dollars.
Taxable Bond Funds
The 10-year Treasury yield end-
ed 2016 at 2.45%, up from 2.27% at
the start of the year. However, the
damage to bond funds occurred in
Fund Commentary cont’d from p. 13
Fidelity Monitor & Insight — January 2017 15
17.1%
16.0%
14.7%
11.9%
10.9%
10.7%
10.6%
9.9%
8.8%
BC High Yield Index
High Income
New Markets Income
Global High Income
Focused High Income
Capital & Income
Short Duration High Income
Floating Rate High Income
Strategic Income
Tax-Free Bond
BC Muni Bond Index
Conservative Income Muni
Intermediate Muni Inc
Municipal Inc
Limited Term Muni
Limited Term Muni Hard
6.5%
5.8%
5.3%
4.8%
4.4%
2.8%
2.7%
2.7%
2.5%
2.5%
1.9%
1.6%
1.5%
1.4%
1.1%
1.0%
0.9%
0.9%
0.9%
0.8%
0.6%
Corporate Bond
Total Bond
Investment Grade Bond
Inflation-Protected Index
Inflation-Protected Bond
Intermediate Bond
BC Aggregate Bond Index
Global Bond
Limited Term Bond
U.S. Bond Index
Mortgage Securities
Ginnie Mae
Short-Term Bond
International Bond
Long-Term Treas Index
Government Income
Conservative Income
Intermediate Gov't Income
Interm Treas Index
Short-Term Treas Index
Limited Term Government
Comparative Index
17.1%
16.0%
14.7%
11.9%
10.9%
10.7%
10.6%
9.9%
8.8%
BC High Yield Index
High Income
New Markets Income
Global High Income
Focused High Income
Capital & Income
Short Duration High Income
Floating Rate High Income
Strategic Income
0.4%
0.3%
0.2%
0.0%
0.0%
-0.4%
Comparative Index
Comparative Index
the second half. In July, the 10-year
hit a low 1.36%, and bond funds
rallied. But their returns were later
pared as yields rose considerably
(especially after the Trump victory).
Against this backdrop, U.S.
Bond Index fund (which holds a
broad array of both corporate and
government securities) returned a
modest 2.5%. Suffice it to say, with
the fund yielding 2.35% at the start
of 2016, it returned roughly just its
coupon. There was little-to-no capi-
tal appreciation.
One small, and widely anticipat-
ed quarter-point rate hike by the Fed
in December nipped at the perfor-
mance of shorter-term bonds. But
longer-term bonds were held back
by the market’s expectation of more
deficit spending and accelerating
inflation (the bane of bond inves-
tors). This weighed on “risk-free”
government debt, in particular. At
the same time, corporates fared
much better than government bonds
(especially Treasurys which were
hurt by Chinese selling to support
the yuan) as the improving economy
bodes well for their balance sheets.
For that reason, High Income
(up 16.0%) was the top performing
bond fund at Fidelity and nearly all
their high-yield funds had double-
digit gains. As for the very different
New Markets Income (up 14.7% ),
rising energy prices were a boon,
and it was little affected by the ris-
ing dollar as most of the portfolio is
in dollar-denominated securities.
As for muni funds, their long
durations (rate risk) weighed on re-
turns last year, but November did
the most damage as the specter of
lower income taxes made their tax-
free yields a bit less appealing.
Finally, the Fed’s two 0.25 per-
centage-point rate hikes over a 13-
month period pushed money market
funds yields a tad higher: Gov’t
Cash Reserves now yields 0.24% ,
up from 0.01% a year ago. And their
only “prime” money market fund,
Money Market, yields 0.64% .
— John Bonnanzio
Tax-Free Bond
BC Muni Bond Index
Conservative Income Muni
Intermediate Muni Inc
Municipal Inc
Limited Term Muni
Limited Term Muni Hard
Tax-Free Bond
BC Muni Bond Index
Conservative Income Muni
Intermediate Muni Inc
Municipal Inc
Limited Term Muni
Limited Term Muni Hard
16 Fidelity Monitor & Insight — January 2017
Fidelity Monitor & Insight (ISSN 0892-2934) is published monthly for $249 per year by Independent Fidelity Investors Inc (IFI).
Executive Editor: Jack Bowers Editors: John Boyd, John Bonnanzio Production & Design: Kim Dowgos, Sherraden Marston
Webmaster: Wayne Foster . All material presented is compiled from sources believed reliable, but accuracy cannot be guaranteed. Before buying any
mutual fund, you should read its prospectus carefully. IFI does not render legal, accounting or tax advice. Copyright ©2017. Reproductions in whole or
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Editorial Questions: editor [email protected] Subscription Questions: [email protected] or 800-444-6342 Hotline: 800-520-4630
Inside Fidelity Fees Reduced — As you’ll see in
our Scorecard, Fidelity eliminated
short-term redemption fees on 75
funds across various share classes
(except annuities). The change was
effective December 12.
Where fees remain, Fidelity has
determined that they are still neces-
sary for a variety of reasons, includ-
ing illiquidity that can lead to pric-
ing problems. For example, some
emerging market funds, where
shares can be difficult to sell, con-
tinue to charge as much as 2% on
early redemptions.
At the very least, momentum
investors risk disrupting a fund man-
ager’s trading strategies. At its
worst, a manager (or even a passive-
ly run index fund) may be forced to
sell securities into a declining mar-
ket, possibly hurting shareholders
who remain behind.
Apart from their redemption fees
(which are paid to fund sharehold-
ers, not to Fidelity), Fidelity can use
fair-value pricing and the monitor-
ing of shareholders’ round-trip
transactions to discourage excessive
traders. While limiting round-trip
transactions may make Fidelity’s
funds less appealing to frequent
traders, their growing suite of ETFs
should be a good “workaround” for
most individuals.
Corrections & Amplifications
In the December newsletter, we
incorrectly stated that Trend fund,
which was launched in 1958, is
Fidelity’s oldest offering. That dis-
tinction actually belongs to the
company’s flagship Fidelity fund
which was started in 1930.
Large Cap Value Enhanced Index On December 27, we bought Large Cap Value Enhanced Index fund for
both our Unique Opportunities and Growth Model Portfolios. As with all
Enhanced Index funds, Large Cap Value Enhanced Index is managed by
Fidelity affiliate Geode Capital Management (which also runs their regular
index funds). While we describe Enhanced funds below, our trades warrant
this discussion: Why did we sell the actively run Value Strategies for a
“quant” fund?
We sold Value Strategies because its former manager dramatically
underperformed his benchmark last year. Many of his sector bets were off
their mark, particularly overweights in consumer discretionary and health
care stocks. In addition individual stock selection was poor (see trade box
on p. 3). Of course, what we’re really after is total return, and we see a
greater likelihood of
achieving that right
now through Large
Cap Value Enhanced
Index. In particular,
this trade increases
the models’ expo-
sures to financials,
which should benefit
from Trump’s policies.
Large Cap Value En-
hanced has 24% in that
sector versus 18% for
Value Strategies.
It has also been
about 15% less risky
than the fund it’s re-
placing.
In addition to monthly dividends paid by bond and money market funds and Asset Mgr: 20%/30%, the following funds are scheduled for a distribution (if any) in Janu-ary 2017:
Convert Secs, CT Muni Inc, Equity
Div Inc, Growth Co, Growth Strategies,
Independence, Ltd Term Gov’t, Muni
Inc, Nasdaq Comp Index, NJ Muni Inc,
New Millennium, Stock Selector Mid
Cap, Strategic Dividend & Income.
The final year-end distribu-tions for December are shown on page 11.
Enhanced Index Funds
This month we’ve upgraded five “Enhanced
Index” funds (see p. 5). Though they hew
closely to specific benchmarks in terms of their
sector exposures and other metrics (such as
market cap and valuations), the funds’ managers
use computer algorithms to guide their selection
of individual stocks. The goal: to add alpha, or
returns in excess of the fund’s benchmark.
While Enhanced funds are unlikely to dramat-
ically outperform their bogey, their risk con-
trols, lower fee structure, and modicum of active
management have met with success — thus this
month’s upgrades of several Enhanced funds
and the purchase of a second one for two of our
model portfolios.
2017 Guide Independent Guide