22
We are adding
Fidelity Four-in-One Index
FFNOX
and dropping
Caldwell & Orkin Market Opportu-
nity
COAGX
.
If you like two-in-one shampoos, you’ll love Fidelity
Four-in-One Index. The fund combines an S
&
P
500
Index fund, an extended-market index fund,
a U.S. bond-market index fund, and a foreign-
stock index fund.
About half of the portfolio goes into
Fidelity Spartan
500 Index
FUSEX
, while a fourth goes to
Fidelity
Spartan International Index
FSIIX
,
15%
goes to
Fidelity Spartan U.S. Bond Index
FBIDX
, and
12%
goes to
Fidelity Spartan Extended Market
Index
FSEMX
.
We rate the fund Silver because it delivers exposure
to a wide swath of the market for just
0
.
22%
in fees.
That’s an all-in number that includes the fees of
the underlying mutual funds. That’s tough to beat for
a low $
2
,
500
minimum investment.
The biggest sacrifice you make in selecting this fund
is that you can’t adjust the allocations among
those four funds yourself. On the other hand, there
aren’t many comparable funds at a low minimum
investment. Fidelity Four-in-One Index makes a nice
starter fund, as it covers so much and charges so
little. Vanguard’s Target Retirement and LifeStrategy
funds are also worth a look for similar reasons.
See the facing page for more.
Caldwell & Orkin Market Opportunity Goes Out
We’re dropping coverage of this fund because of its
small asset base and poor performance. We no longer
rate it, but when we last did, we gave it a Neutral.
Brian Rogers Stepping Down in 2015
Just as we were going to press with
FundInvestor
, we
got some big news from Baltimore.
Brian Rogers will step down from managing
T. Rowe
Price Equity Income
PRFDX
in October
2015
, the
30
th anniversary of the fund’s launch. John Linehan,
who ran
T. Rowe Price Value
TRVLX
for a few
years, will take over for Rogers. Linehan produced
returns of
8
.
4%
versus
7
.
1%
for the Russell
1000
Value in his stint from
2003
to
2009
. Since then, he
has comanaged a separate account, Large-Cap
Value Equity, along with Rogers and Mark Finn.
Rogers plans to remain as chairman and chief
investment officer of the firm after he steps down
from the fund.
It’s been an illustrious career for Rogers, who has
produced excellent returns with modest risks.
He’s also been a key contributor to the firm’s growth
over the years.
At T. Rowe Price Equity Income, Rogers produced
returns of
11
.
3%
annualized versus
10
.
9%
for the S
&
P
500
since the fund’s start date through March
31
,
2014
. The fund’s
15
-year downside capture ratio of
81
.
8
shows that the fund has also had less risk
over the years. The
81
.
8
means the fund typically lost
81
.
8%
as much as the S
&
P in downturns.
The long transition period should make for a smooth
hand-off. We’ll provide updates as we learn more.
œ
Summary of Changes
Add
Drop
Fidelity Four-in-One Index
Caldwell & Orkin Market Opp
Category Change
To
From
Fidelity Low-Priced Stock
Mid-Cap Value Mid-Cap Blend
Pax World Balanced Individual
Mod Alloc
Agg Alloc
AMG Managers Skyline Spec Eqts
Small Blend Small Value
PIMCO All Asset
Tactical
World Alloc
Appleseed
World Alloc
Mid-Cap Value
What is Morningstar
FundInvestor
500
?
The Morningstar FundInvestor
500
features the industry’s
best and most notable funds.
Use the list to get new in-
vestment ideas and track the
funds you already own.
FundInvestor
subscribers have
access to one-page monthly
reports on all 500 funds on
mfi.morningstar.com. Just
type in the name or ticker of
the fund in the search box.
Fidelity Four-in-One Index
Finds Its Way In
Changes to the 500
|
Russel Kinnel
