Video Reports

Embed this video

Copy Code

Link to this video

Get LinkEmbedLicenseRecommend (-)Print
Bookmark and Share

By Christine Benz and Katie Rushkewicz Reichart, CFA | 01-13-2014 12:00 PM

How Fidelity Funds Stacked Up in 2013

Fidelity's growth-leaning equity funds and more conservative bond funds made for a strong year for the fund firm, says Morningstar analyst Katie Reichart.

Christine Benz: Hi, I'm Christine Benz for

In a strong equity market, Fidelity Funds held their own in 2013.

Joining me to provide a recap of the year in Fidelity Funds is Katie Reichart. She is a senior fund analyst with Morningstar.

Katie, thank you so much for being here.

Katie Reichart: Thanks for having me.

Benz: Katie, let's discuss the headlines. You looked at the median percentile rankings for Fidelity Funds. How did they stack up both in terms of equity as well as their fixed-income fund performance?

Reichart: 2013 overall was a very strong year for Fidelity. On the equity side, there were a lot of big gainers. On the domestic equity side, the average fund was in its 40th percentile of its category. International equity, 34th percentile. And then fixed-income, of course, had some more challenges on an absolute return basis. But the market definitely favored its more conservative style. So, the average fixed-income fund was in the 39th percentile.

Benz: And I know on the equity side, we usually think of Fidelity as being somewhat growth-leaning in a lot of its funds, so that probably played to its strengths last year as well?

Reichart: Exactly.

Benz: Let's drill into some specific funds within the Fidelity lineup. You brought a list of funds that performed especially well relative to their peer groups. Right at the top of the list would be Fidelity Biotechnology. Let's talk about how that fund's positioning really worked out quite well for last year.

Reichart: It was up more than 65%, so it was a huge gainer for Fidelity and within its category, too. A lot of those picks actually also filtered into some of [Fidelity's] diversified funds. You look at Fidelity Growth Company. It has a very big biotechnology stake. Some picks like Regeneron and Isis Pharmaceuticals did very well for the fund. Growth Company was up 38% for the year.

Benz: Fidelity OTC is another one that you said performed especially well relative to its peers. I'm guessing it had significant technology exposure as well as perhaps some of this biotech exposure, too?

Read Full Transcript

{0}-{1} of {2} Comments
{0}-{1} of {2} Comment
  • This post has been reported.
  • Comment removed for violation of Terms of Use ({0})
    Please create a username to comment on this article