(PUB) Investing 2016

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Data through February 29, 2016 FINRA members: For internal or institutional use only.
Fidelity® High Income Ticker
SPHIX
Yield
6.4%
SEC Yield
7.91%
Total Assets
$3,916 mil
Mstar Category
High Yield Bond
Benchmark 1: BofAML US HY Master II TR USD
Benchmark 2: Barclays US Agg Bond TR USD
Morningstar Analyst Rating 02-22-16
„
Morningstar Pillars
Process ∞ Positive
Performance ∞ Positive
People ∞ Positive
Parent ∞ Positive
Price ∞ 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 „ ´ ‰ Á
Pillar Spectrum
∞ Positive § Negative ¶ Neutral
10.0
12.5
15.0
17.5
20.0
Historical Profile
Return
Risk
Rating
Average
Average
QQQ
Neutral
3 Investment Style
Fixed Income
Growth of $10,000
Investment Values of
Fund
Investment Values of
Benchmark 1
* * * * ( * * * * ) ( Performance Quartile
(within Category)
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 02-16 History
9.06 8.61 6.04 8.46 8.94 8.64 9.34 9.37 8.90 7.95 7.73 NAV
10.78 2.32 -23.72 51.46 13.73 3.43 14.87 6.68 1.53 -5.40 -1.78 Total Return %
-0.99 0.13 2.67 -6.05 -1.47 -0.95 -0.72 -0.74 -0.97 -0.76 -0.65 +/- Bmark 1
6.44 -4.65 -28.96 45.53 7.18 -4.41 10.65 8.70 -4.43 -5.95 -3.87 +/- Bmark 2
7.40 7.56 7.60 9.79 7.85 6.94 6.06 5.64 5.38 5.73 0.99 Income Return %
3.38 -5.24 -31.32 41.67 5.88 -3.51 8.80 1.04 -3.85 -11.13 -2.77 Capital Return %
32 35 38 30 58 48 45 48 47 77 73 Total Rtn % Rank Cat
0.63 0.66 0.63 0.57 0.64 0.60 0.51 0.51 0.49 0.50 0.08 Income $
0.00 0.00 0.00 0.01 0.00 0.00 0.05 0.06 0.13 0.00 0.00 Capital Gains $
0.77 0.75 0.75 0.77 0.75 0.75 0.76 0.72 0.72 0.72 . Expense Ratio %
6.97 7.31 7.36 9.04 8.09 7.44 6.79 5.96 5.58 5.38 . Income Ratio %
40 39 33 27 65 55 35 44 56 37 . Turnover Rate %
4,509 5,200 4,113 6,942 7,248 4,788 6,494 6,001 5,365 4,162 3,916 Net Assets $mil
Performance 02-29-16
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
2011 3.98 0.30 -6.81 6.42 3.43
2012 5.72 1.22 4.65 2.58 14.87
2013 2.92 -2.06 2.25 3.50 6.68
2014 2.41 1.80 -2.09 -0.53 1.53
2015 2.26 0.00 -5.10 -2.51 -5.40
Trailing Total
Return%
+/- Bmark
1
+/- Bmark
2
%Rank
Cat
Growth of
$10,000
3 Mo -4.37 -0.70 -6.14 72 9,563
6 Mo -7.36 -1.58 -9.56 80 9,264
1 Yr -9.54 -1.00 -11.04 76 9,046
3 Yr Avg -0.40 -1.04 -2.62 72 9,880
5 Yr Avg 2.89 -1.01 -0.71 65 11,534
10 Yr Avg 5.71 -0.74 1.01 33 17,424
15 Yr Avg 5.65 -1.06 0.77 57 22,793
Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated) -2.98 63 2.59 54
5 Yr (estimated) 0.37 57 2.45 44
10 Yr (estimated) 3.03 25 2.53 42
Potential Capital Gain Exposure: -19% of assets
Rating and Risk
Time
Period
Load-Adj
Return %
Morningstar
Rtn vs Cat
Morningstar
Risk vs Cat
Morningstar
Risk-Adj Rating
1 Yr -9.54
3 Yr -0.40 -Avg Avg QQ
5 Yr 2.89 Avg Avg QQQ
10 Yr 5.71 Avg Avg QQQ
Incept 8.33
Other Measures Standard Index Best Fit Index
Alpha -1.6 -1.0
Beta 0.58 1.01
R-Squared 10 98
Standard Deviation 5.50
Mean -0.40
Sharpe Ratio -0.06
Portfolio Analysis 10-31-15
Total Fixed Income: 530
Date of
Maturity Amount 000
Value
$000
%
Assets
Chs / Cmnty Health Sys 6. 02-01-22 66,920 67,422 1.44
Tenet Healthcare 8.125% 04-01-22 60,720 64,211 1.37
Altice Sa 144A 7.75% 05-15-22 59,000 56,788 1.21
Laureate Educ 144A 9.25% 09-01-19 67,979 54,043 1.15
Post Hldgs 7.375% 02-15-22 43,400 45,726 0.98
Laureate Edu Term B 06/16 06-16-18 53,587 45,594 0.97
Hockey Mergersub 144A 7.8 10-01-21 43,830 43,720 0.93
Tronox Worldwide 6.375% 08-15-20 60,170 42,853 0.91
Citigroup FRN 12-31-49 41,035 40,615 0.87
Columbus Intl Inc 144 144 03-30-21 32,965 34,284 0.73
Ardagh Packaging 144A 6.7 01-31-21 31,530 32,318 0.69
Serta Simmons Hldgs 144A 10-01-20 30,343 32,164 0.69
Sprint Cap 6.9% 05-01-19 32,719 31,410 0.67
C&S Grp Enterprises 144A 07-15-22 33,260 30,433 0.65
Apx Grp 6.375% 12-01-19 29,630 28,815 0.62
Minerva Luxembourg S A 14 01-31-23 27,680 27,334 0.58
Advanced Disposal Tm B-2 10-09-19 26,728 26,377 0.56
Argos Merger Sub 144A 7.1 03-15-23 24,805 26,107 0.56
Jbs Invts Gmbh 144A 7.75% 10-28-20 24,505 26,110 0.56
Chs / Cmnty Health Sys 5. 08-01-21 25,040 25,854 0.55
Current Investment Style
Quality High Med Low
Duration
Ltd Mod Ext
1 figure provided by
fund
Avg Eff Duration1 —
Avg Eff Maturity —
Avg Credit Quality B
Avg Wtd Coupon 6.49%
Avg Wtd Price 96.52% of par
Coupon Range % of Bonds
0% PIK 0.1
0% to 4% 8.5
4% to 6% 30.1
6% to 8% 42.5
8% to 10% 16.7
More than 10% 2.1
Credit Analysis % bonds 10-31-15
AAA 4 BB 29
AA 0 B 46
A 0 Below B 18
BBB 1 Not Rated 1
Sector Breakdown % Assets
Government 1
Government Related 0
Corporate 96
Agency MBS 0
Non-Agency Residential MBS 0
Commercial MBS 0
Covered Bond 0
Asset Backed 0
Municipal 0
Cash & Equivalents 3
Other 0
Composition - Net
Cash 3.3 Bonds 94.0
Stocks 0.3 Other 2.5
Special Securities
Restricted/Illiquid Secs 44
Emerging-Markets Secs 2
Options/Futures/Warrants 0
Morningstar's Take by Eric Jacobson 02-22-16
Manager Fred Hoff has distinguished himself at this fund
since the beginning of 2002 (excluding the 18 months
after Hoff took over, during which he remade this formerly
aggressive portfolio). The fund fared well through the
2008 credit crisis and its aftermath, for example, avoiding
some of the hardest-hit areas. This fund's strengths,
which include an attractive price tag, continue to make it
a strong Morningstar favorite, but because of concerns
over experience on the analyst team, we are lowering its
Morningstar Analyst Rating to Silver from Gold.
Fidelity’s analyst resources generally defy criticism
given the quality and number of analysts the firm is
typically able to hire. The firm's analyst staffs have a
reputation as a stepping stone for those seeking to move
on to management roles, rather than as a destination for
permanent careers. Though turnover doesn’t appear to
have been alarming in recent years, the team’s makeup
is notable. Of its 17 analysts (not including associates,
bank-loan, and quant specialists), more than a third had
a year or less of experience working at Fidelity as of
September 2015, while their median experience at the
firm was three years. The group’s median industry-
tenured analyst, meanwhile, wasn’t even in the business
during the financial crisis. That’s not an indictment, but
it’s meaningful given how crucial experience and
fundamental research are in the high-yield sector.
It’s difficult to draw a straight line between staffing
and performance hiccups in recent years. Decisions to
underweight BB and overweight CCC bonds hurt in 2015,
but Hoff has generally been on the market’s less
aggressive side and has made good sector calls like
downplaying the imploding energy sector in 2014 and
2015. In contrast, individual security picks were a primary
cause of trouble during the latter.
Overall, we still have a high level of conviction that
this fund, and Hoff, will serve investors well, but our
staffing concerns are sufficient to warrant continued
monitoring.
Address: Fidelity Summer Street Trust Minimum Purchase: $2500 Add: — IRA: $2500
Boston, MA 02109 Min Auto Inv Plan: — Add: —
800-544-8544 Sales Fees: No-load, 1.00%R
Web Address: Management Fee: 0.45%
Inception: 08-29-90 Actual Fees: Mgt:0.56% Dist:—
Advisor: Fidelity Management & Research Company Expense Projections: 3Yr:$230 5Yr:$401 10Yr:$894
Subadvisor: FMR Investment Management (U.K.) Limited Income Distribution: Monthly
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