(PUB) Investing 2016

121 / 708

23 Morningstar FundInvestor March 2016
Data through February 29, 2016 FINRA members: For internal or institutional use only.
Fidelity® Growth & Income Ticker
FGRIX
Yield
2.2%
Total Assets
$5,817 mil
Mstar Category
Large Blend
Benchmark 1: Russell 1000 TR USD
Benchmark 2: S&P 500 TR USD
Morningstar Analyst Rating 02-23-16
´
Morningstar Pillars
Process ∞ Positive
Performance ¶ Neutral
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
15.0
20.0
5.0
Historical Profile
Return
Risk
Rating
Below Avg
Above Avg
QQ
Below Avg
7 7 4 4 4 4 4 1 Investment Style
Equity
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
31.15 27.28 13.17 16.06 18.30 18.24 21.26 27.86 30.21 28.92 26.93 NAV
10.71 0.74 -50.89 23.05 14.57 1.39 19.10 33.40 10.38 -2.28 -6.88 Total Return %
-4.75 -5.03 -13.29 -5.38 -1.52 -0.11 2.68 0.29 -2.85 -3.20 -1.47 +/- Bmark 1
-5.08 -4.75 -13.89 -3.42 -0.49 -0.72 3.10 1.02 -3.30 -3.66 -1.79 +/- Bmark 2
0.86 1.05 1.08 0.88 0.57 1.65 2.33 2.11 1.88 1.96 0.00 Income Return %
9.86 -0.30 -51.97 22.16 14.00 -0.26 16.78 31.30 8.51 -4.24 -6.88 Capital Return %
89 89 97 78 37 27 8 32 66 67 76 Total Rtn % Rank Cat
0.27 0.31 0.29 0.12 0.09 0.30 0.42 0.45 0.52 0.59 0.00 Income $
6.08 3.81 0.03 0.01 0.00 0.01 0.03 0.01 0.00 0.01 0.00 Capital Gains $
0.69 0.68 0.68 0.78 0.75 0.72 0.71 0.68 0.65 0.64 . Expense Ratio %
0.94 0.84 1.29 1.07 0.63 1.09 1.95 2.04 1.86 1.83 . Income Ratio %
120 52 52 122 98 129 62 49 41 35 . Turnover Rate %
30,214 19,209 6,241 6,244 5,612 4,698 4,949 6,471 6,699 5,562 5,086 Net Assets $mil
Performance 02-29-16
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
2011 4.54 -0.07 -13.97 12.82 1.39
2012 13.43 -3.31 7.55 0.96 19.10
2013 10.58 4.49 5.62 9.30 33.40
2014 1.18 5.11 0.50 3.27 10.38
2015 0.36 1.39 -9.36 5.94 -2.28
Trailing Total
Return%
+/- Bmark
1
+/- Bmark
2
%Rank
Cat
Growth of
$10,000
3 Mo -9.19 -2.07 -2.60 79 9,081
6 Mo -5.16 -3.13 -4.24 74 9,484
1 Yr -11.09 -3.88 -4.90 73 8,891
3 Yr Avg 7.96 -2.47 -2.79 69 12,583
5 Yr Avg 9.02 -0.90 -1.12 41 15,398
10 Yr Avg 2.10 -4.39 -4.34 98 12,313
15 Yr Avg 1.90 -3.42 -2.96 99 13,269
Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated) 7.33 44 0.58 16
5 Yr (estimated) 8.43 23 0.54 20
10 Yr (estimated) 1.15 98 0.94 55
Potential Capital Gain Exposure: -42% of assets
Rating and Risk
Time
Period
Load-Adj
Return %
Morningstar
Rtn vs Cat
Morningstar
Risk vs Cat
Morningstar
Risk-Adj Rating
1 Yr -11.09
3 Yr 7.96 Avg +Avg QQQ
5 Yr 9.02 Avg Avg QQQ
10 Yr 2.10 Low +Avg Q
Incept 9.39
Other Measures Standard Index Best Fit Index
Alpha -3.2 -3.1
Beta 1.07 1.06
R-Squared 96 96
Standard Deviation 11.99
Mean 7.96
Sharpe Ratio 0.69
Portfolio Analysis 01-31-16
Total Stocks: 180
Share change since 12-31-15 Sector YTD Ret % % Assets
YJPMorgan Chase & Co Finan Svcs -14.07 3.97
YGeneral Electric Co Industrl -5.71 3.57
TMicrosoft Corp Technology -7.64 3.56
YApple Inc Technology -7.65 2.95
TBank of America Corporati Finan Svcs -25.61 2.75
YProcter & Gamble Co Cnsmr Def 1.94 2.51
TChevron Corp Energy -6.06 2.33
TJohnson & Johnson Hlth Care 3.15 2.31
YCitigroup Inc Finan Svcs -24.83 2.29
YTarget Corp Cnsmr Def 8.81 1.94
YCoca-Cola Co Cnsmr Def 0.40 1.88
Alphabet Inc A Technology -7.81 1.86
TQualcomm Inc Technology 2.57 1.86
Comcast Corp Class A Comm Svcs 2.75 1.73
TGlaxoSmithKline PLC ADR Hlth Care — 1.67
YAlphabet Inc C Technology — 1.56
Teva Pharmaceutical Indus Hlth Care — 1.55
YVisa Inc Class A Finan Svcs -6.47 1.51
TState Street Corp Finan Svcs -17.45 1.43
YUnited Parcel Service Inc Industrl 1.14 1.41
Current Investment Style
Large Mid Small
Value Blend Growth Market Cap %
Giant 56.6
Large 27.5
Mid 14.1
Small 1.7
Micro 0.2
Avg $mil:
66,196
Value Measures Rel Category
Price/Earnings 14.77 0.90
Price/Book 1.90 0.82
Price/Sales 1.74 1.14
Price/Cash Flow 8.10 0.88
Dividend Yield % 3.30 1.43
Growth Measures % Rel Category
Long-Term Erngs 8.95 0.91
Book Value 2.23 0.48
Sales 0.02 0.01
Cash Flow -2.22 -0.43
Historical Erngs 2.02 0.34
Profitability %
Return on Equity 19.96
Return on Assets 6.00
Net Margin 14.87
Sector
Weightings
% of
Stocks
Rel
Bmark 1
h Cyclical 31.83 0.98
r BasicMat 2.76 0.95
t CnsmrCyc 5.65 0.46
y FinanSvcs 23.34 1.68
u Real Est 0.08 0.02
j Sensitive 44.92 1.13
i CommSrvs 3.12 0.71
o Energy 9.96 1.60
p Industrl 14.38 1.24
a Technlgy 17.46 0.99
k Defensive 23.24 0.84
s CnsmrDef 9.88 1.00
d Hlthcare 12.72 0.88
f Utilities 0.64 0.19
Composition - Net
Cash 0.0
Stocks 98.7
Bonds 0.1
Other 1.2
Foreign 9.8
(% of Stock)
Morningstar's Take by Andrew Daniels 02-23-16
Fidelity Growth & Income has many positive attributes but
has posted subpar returns in recent years. Despite the
underperformance, this fund has a lot going for it,
including low fees, a distinct process focused on
dividends and growth, and a talented and experienced
portfolio manager surrounded with a proven fundamental
analyst team. These strengths justify the fund’s
Morningstar Analyst Rating of Bronze.
Unlike many growth and income stock funds, this
fund has been around for years and takes a measured
approach. Manager Matt Fruhan seeks a competitive
total return with earnings growth and dividend yield in
excess of the S&P 500’s and beta roughly in line with the
benchmark. The resulting portfolio holds mostly dividend-
paying firms where short-term Wall Street consensus
earnings estimates are more pessimistic than Fruhan’s
long-term forecasts. Fruhan avoids such firms as utilities
and real estate investment trusts that pay out so much
cash that they have little left over to fund future growth.
This strategy is similar to Fruhan’s approach at Silver-
rated Fidelity Large Cap Stock FLCSX, which has
outperformed 85% of its large-blend peers over the past
10 years. But here he diversifies across a larger number
of firms, seeks a higher dividend yield, and maintains a
lower tracking error relative to the benchmark.
Fruhan is no rookie. He has only been at the helm of
this fund since February 2011, but he’s been with Fidelity
since 1995. Although the fund outperformed the
benchmark and peers between 2011 and 2013, it
struggled in 2014 and 2015. While Fruhan considers
stocks with growth potential, the fund has a clear value-
tilt, which has been out of favor in recent years. That,
along with bad bets such as overweighting the financials
and energy sectors and omitting top benchmark
performers that don’t pay dividends--such as Facebook
FB and Amazon.com AMZN--has contributed to the
underperformance. Fruhan is sticking to his knitting,
though, and despite lagging the S&P 500 during his
tenure, the fund has easily outperformed the typical fund
in the large-blend Morningstar Category.
Address: Fidelity Securities Fund Minimum Purchase: $2500 Add: — IRA: $2500
Boston, MA 02109 Min Auto Inv Plan: — Add: —
800-544-8544 Sales Fees: No-load
Web Address: advisor.fidelity.com Management Fee: 0.20%
Inception: 12-30-85 Actual Fees: Mgt:0.45% Dist:—
Advisor: Fidelity Management & Research Company Expense Projections: 3Yr:$214 5Yr:$373 10Yr:$835
Subadvisor: FMR Investment Management (U.K.) Limited Income Distribution: Quarterly
©2016Morningstar, Inc.All rights reserved. The information herein is not represented orwarranted to be accurate, complete or timely. Past
performance is no guarantee of future results.Access updated reports at . To order reprints, email ß® Mutual Funds A