uploads///Fidelity Series All Sector Equity Fund Vs Peers

The Fidelity Series All-Sector Equity Fund’s Performance


Mar. 25 2016, Updated 12:07 p.m. ET

Fidelity Series All-Sector Equity Fund performance

In this article, we’ll outline the performance of the Fidelity Series All-Sector Equity Fund (FSAEX). The fund is invested in stocks of companies such as JB Hunt Transport Services (JBHT), Honeywell International (HON), Marsh & McLennan Companies (MMC), Phillips 66 (PSX), and Air Lease Corporation (AL).

From a purely NAV (net asset value) return standpoint, the Fidelity Series All-Sector Equity Fund stood eighth among its peer group in the one-year period ended March 18, 2016. The peer group comprises the group of 12 funds chosen for this review. For return comparison, we have chosen two ETFs: the Vanguard 500 ETF (VOO) and the iShares Russell 1000 Growth ETF (IWF).

For evaluating benchmark-related metrics, we’ve chosen the S&P 500 as the benchmark for all funds in this review, which VOO tracks.

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Other metrics

The FSAEX’s standard deviation, or the volatility of returns, in the one-year period ended March 18 was 17.2%. This is higher than the S&P 500’s 16.7% but lower than the peer group’s average of 18.4%.

The fund’s risk-adjusted returns, calculated via the Sharpe Ratio, were negative for the one-year period ended March 18. Evaluating a negative Sharpe Ratio may be misleading, so we’ll avoid that. The ratio for 2015 had placed the FSAEX joint last among its peers.

The information ratio, calculated with the S&P 500 as the benchmark, was negative for the one-year period ended March 18. As with the Sharpe Ratio, we can’t evaluate a negative information ratio. The information ratio shows the consistency of a fund manager along with measuring the manager’s ability to generate excess returns over a benchmark. The higher the reading, the better the consistency. For 2015, the fund’s information ratio was negative as well, making it one of two funds to have a negative ratio.

A note to investors

The Fidelity Series All-Sector Equity Fund is not directly available to investors, as only certain Fidelity funds can buy its shares. So, its performance does not impact you directly. But you need to be cognizant whether your mutual fund is invested in the FSAEX.

If the exposure is below 5%, then there’s no action required. However, a larger exposure may lead you to reconsider allocation to that fund given FSAEX’s below-average performance.

In the next article, we’ll look at the Janus Fund – Class A (JDGAX).


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