6
Morningstar Analyst Rating
06-17-14
Œ
Morningstar Pillars
Process
Performance
People
Parent
Price
Positive
Positive
Positive
Positive
Positive
Morningstar Analyst Rating
Morningstar evaluates mutual funds based on five key pillars, which
its analysts believe lead to funds that are more likely to outperform
over the long term on a risk-adjusted basis.
Analyst Rating Spectrum
Œ „ ´ˇ ¨
Pillar Spectrum
Positive
§
Negative
¶
Neutral
NAV
9.50
9.37
9.34
8.64
8.94
8.46
6.04
8.61
9.06
8.78
9.09
8.94
Total Return %
4.25
6.68
14.87
3.43
13.73
51.46
-23.72
2.32
10.78
3.45
9.69
27.35
+/-BC Agg Bnd
0.32
8.70
10.66
-4.41
7.19
45.53
-28.96
-4.65
6.45
1.02
5.35
23.25
+/-BofAML HY Master
-1.39
-0.74
-0.72
-0.95
-1.46
-6.05
2.67
0.08
-0.94
0.71
-1.18
-0.80
Income Return %
2.64
5.64
6.06
6.94
7.85
9.79
7.60
7.56
7.40
6.91
7.87
9.38
Capital Return %
1.61
1.04
8.81
-3.51
5.88
41.67
-31.32
-5.24
3.38
-3.46
1.82
17.97
Total Rtn % Rank Cat
78
48
45
48
58
30
38
35
32
23
53
29
Income $
0.25
0.51
0.51
0.60
0.64
0.57
0.63
0.66
0.63
0.61
0.68
0.69
Capital Gains $
0.02
0.06
0.05
0.00
0.00
0.01
0.00
0.00
0.00
0.00
0.00
0.00
Expense Ratio %
0.72
0.72
0.76
0.75
0.75
0.77
0.74
0.75
0.76
0.77
0.77
0.79
Income Ratio %
5.58
5.96
6.79
7.44
8.09
9.04
7.36
7.31
6.97
7.07
7.67
8.82
Turnover Rate %
56
44
35
55
65
27
33
39
40
65
.
81
Net Assets $mil
6,454
6,001
6,494
4,788
7,248
6,942
4,113
5,200
4,509
3,355
3,114
2,902
Performance
06-30-14
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2010
2011
2012
2013
2014
4.21 -1.11
6.64 3.49 13.73
3.98 0.30
-6.81 6.42
3.43
5.72 1.22
4.65 2.58 14.87
2.88 -2.02
2.25 3.50
6.68
2.41
. . . .
Trailing
Total
+/- BC +/- BofAML %Rank Growth of
Return% Agg Bnd HY Master
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
1.80 -0.24
-0.77
75 10,180
4.25 0.32
-1.39
78 10,425
10.33 5.96
-1.51
62 11,033
8.21 4.55
-1.06
53 12,671
12.58 7.73
-1.36
53 18,084
8.26 3.33
-0.65
24 22,115
5.91 0.31
-1.61
75 23,662
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
5.61
40
2.40
43
9.85
39
2.42
33
5.53
18
2.52
40
Potential Capital Gain Exposure: 5% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
10.33
3 Yr
8.21
Avg
Avg
5 Yr
12.58
Avg
+Avg
10 Yr
8.26
+Avg
Avg
Incept
9.39
Other Measures
Standard Index
Best Fit Index
BC Agg Bnd Credit Suisse HY USD
Alpha
6.9
-2.4
Beta
0.32
1.15
R-Squared
2
99
Standard Deviation
6.80
Mean
8.21
Sharpe Ratio
1.19
Morningstar’s Take
by Sarah Bush 06-17-14
Fidelity High Income deserves a closer look.
Judged on its recent record, this fund doesn’t really
stand out. Its 13.1% five-year annualized gain through
May 2014 is just average relative to its high-yield
peers. And it has fared a bit worse for 2014 to date;
thanks in part to struggles at NRG Energy NRG and
modest exposure to some of the market’s
strongest-performing junior debt names, it lags roughly
80% of its peers.
However, there are reasons to look beyond this only
middling recent performance. For starters, although
manager Fred Hoff has been a bit more bullish on CCC
bonds recently (16% as of April 2014), he typically
favors the B rated (46%) tiers of the junk bond market,
which, he argues, offer the best opportunities to pick
out firms likely to enjoy improving fundamentals.
Unlike some more-adventurous peers, he generally
steers clear of common stock. That’s left the fund
largely in the middle as the high-yield market has
swung between CCC led rallies and credit sell-offs
during which BB bonds have significantly
outperformed. Meanwhile, the default rate has
remained low, offering few opportunities for this fund,
which generally avoids macro bets and focuses on
avoiding blowups, to distinguish itself.
Fortunately, this fund has more going for it. For
starters, Hoff has distinguished himself over the long
haul, faring particularly well through the 2008 credit
crisis and its aftermath; during that period, his ability
to avoid some of the hardest-hit areas served the fund
well. Indeed, since the beginning of 2002 (which
excludes roughly 18 months after Hoff took over,
during which he remade this formerly aggressive
portfolio), the fund s 8.9% annualized gain tops about
85% of its peers . Hoff s long tenure at this fund, and
his significant prior experience as an analyst, also
count in its favor, as does the sizable credit staff
supporting him.
This fund’s strengths, which include an attractive
price tag, contribute to its Morningstar Analyst Rating
of Gold. But, with absolute yields low and valuations
tight, investors should temper their expectations.
Address:
Fidelity Summer Street Trust
Boston, MA 02109
800-544-6666
Web Address:
Inception:
08-29-90
Advisor:
Fidelity Management & Research Company
Subadvisor:
FMR Co., Inc. (FMRC)
NTF Plans:
Fidelity Retail-NTF, CommonWealth NTF
Minimum Purchase:
$2500
Add: $0 IRA: $500
Min Auto Inv Plan:
$2500
Add: $200
Sales Fees:
No-load, 1.00%R
Management Fee:
0.56%
Actual Fees:
Mgt:0.56% Dist:
.
Expense Projections:
3Yr:$230
5Yr:$401 10Yr:$894
Income Distribution:
Monthly
Data through June 30, 2014
Fidelity High Income
Ticker Status Yield SEC Yield Total Assets Mstar Category
SPHIX Open 5.2% 4.22% $6,454 mil
High Yield Bond
46
34
53
77
63
60
78
61
51
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 06-14
Historical Profile
Return
Risk
Rating
Above Avg
Average
Above Avg
Investment Style
Fixed Income
Income Rtn %Rank Cat
Manager Change
Partial Manager Change
Growth of $10,000
Investment Values of
Fund
Investment Values of
BC Agg Bnd
Performance Quartile
(within Category)
History
10.0
14.0
18.0
22.0
26.0
Portfolio Analysis
04-30-14
Date of
Amount
Value % Net
Total Fixed-Income:615
Maturity
$000
$000 Assets
Trinseo Matls Oper Sca /
02-01-19 56,420 60,087 0.92
Laureate Educ 144A 9.25% 09-01-19 53,814 56,774 0.87
Chs / Cmnty Health Sys 8
11-15-19 50,985 55,765 0.86
Chs / Cmnty Health Sys 1
02-01-22 53,230 55,160 0.85
Tenet Healthcare 8.125%
04-01-22 48,910 54,290 0.83
Rite Aid 6.75%
06-15-21 43,080 46,850 0.72
Tronox Worldwide 6.375% 08-15-20 43,875 44,753 0.69
Serta Simmons Hldgs 144A
10-01-20 37,328 40,967 0.63
Sprint Cap 6.9%
05-01-19 36,939 40,541 0.62
First Data Corp Term Ext
03-24-18 38,040 37,850 0.58
Claires Stores 144A 9%
03-15-19 35,000 36,400 0.56
Intelsat Luxembourg S A
06-01-21 34,085 35,534 0.54
Intl Lease Fin 8.75%
03-15-17 30,306 35,306 0.54
Jmc Steel Grp 144A 8.25% 03-15-18 34,740 35,087 0.54
Dunkin Brands Term B-4 2
02-07-21 33,705 33,410 0.51
Ardagh Packaging 144A 6.
01-31-21 31,530 32,870 0.50
Upcb Fin Iii 144A 6.625%
07-01-20 29,492 31,483 0.48
Gardner Denver Term B 07
07-30-20 30,225 30,188 0.46
Sprint Nextel 6%
11-15-22 29,940 30,165 0.46
Cdw Term B 04/29/2020
04-29-20 30,458 30,115 0.46
Current Investment Style
1
1
Avg Eff Duration
.
Avg Eff Maturity
.
Avg Credit Quality
B
Avg Wtd Coupon
6.82%
Avg Wtd Price
104.94% of par
figure provided
by fund
Duration
Ltd Mod Ext
Quality
High
Med Low
Special Securities
Restricted/Illiquid Secs
36
Exotic Mortgage-Backed
0
Emerging-Markets Secs
2
Options/Futures/Warrants
No
Credit Analysis
% bonds 04-30-14
AAA
8
AA
0
A
0
BBB
1
BB
27
B
46
Below B 16
NR/NA 2
Sector Breakdown
% of assets
Government
0
Corporate Bond
75
Bank Loan
12
Convertible
1
Preferred
2
Agency MBS
0
Non-Agency Residential MBS 0
Commercial MBS
0
Asset-Backed
0
Covered Bond
0
Municipal
0
Cash & Equivalents
10
Other
0
Composition - Net
Cash 10.3
Bonds 87.5
Stocks 0.3
Other
2.0
Coupon Range
% of Bonds Rel Cat
1.00=Category Average
0% PIK
0.8 1.2
0% to 8%
73.6 1.2
8% to 11%
24.7 0.7
11% to 14%
0.9 0.2
More than 14%
0.0 0.0
©
2014Morningstar, Inc.All rights reserved.The informationherein is not represented orwarranted tobeaccurate, correct, completeor
timely. Pastperformance is no guarantee of future results.Access updated reportsat
Toorder reprints, call312-696-6100.
mfb.morningstar.com.
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