INVESTMENT INSIGHTS FOR YOUR ADVANTAGE
Fidelity
MAY 2004
www.fidelity.com
Estate Planning
for Blended Families
Keep the harmony
intact by following
these simple steps
8
February 2008 Fidelity.com
A New
World View
Experts examine the global economy
and its impact on your portfolio
4
Exclusively for Private Access Clients
32577OFC.indd_p1 1
Take It to
the Limit
The ins and outs
of stop-loss and
stop-limit orders
16
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I N V E S T M E N T I N S I G H T F O R YO U R A D VA N TAG E
1/10/08 4:06:24 PM
Fidelity forum
In his 2005 bestseller The World Is Flat, Thomas L. Friedman marvels at how technological, social, and economic
forces have toppled barriers around the globe: “… [W]hat the
flattening of the world means,” he writes, “is that we are now
connecting all knowledge centers on the planet together into
a single global network, which—if politics and terrorism do
not get in the way—could usher in an amazing era of prosperity, innovation, and collaboration…”
This month’s cover feature, “Taking a World View,” is a
virtual roundtable discussion with three experts—Bruce
Johnstone, Wilfred Chilangwa, Jr., and Mark Yockey—who
offer their perspectives on this new global network and how
it is changing the nature of investing and commerce forever.
Getting a little closer to home, our second feature takes a look at estate planning for today’s multifaceted families. In “Blending Family Values Into an Estate
Plan,” you’ll get ideas from experts and investors who have successfully navigated
the challenges of planning a legacy when parents and siblings reconfigure due to
divorce and remarriage.
As always, thanks for spending time with the magazine. Please write to us at
Fidelity+mag@fmr.com with your thoughts on the current issue, articles you’d
like to see in future issues, and whatever else is on your mind. We’re eager to
make Fidelity+ a publication that continues to respond to your investing needs.
Fidelity+ magazine helps Fidelity customers become
more knowledgeable, confident, and successful investors by providing educational articles about investing,
planning, and market trends, plus news on Fidelity
products and services.
Contact Fidelity+: 82 Devonshire Street, R4C,
Boston, MA 02109; Fidelity+mag@fmr.com
PUBLISHER
EDITOR IN CHIEF
MANAGING EDITOR
CREATIVE DIRECTOR
PRODUCTION MANAGER
COPY EDITOR
LEGAL REVIEWER
LIST PROJECT MANAGER
Bill Fox
Polly Walker
Amy Barry
Charles Venancio
Loriann Gough
Joseph Sefter
Shane-Lea Langone
Kim Addison
Editorial services provided by
Bull’s-eye Communications
Custom publishing services provided by
FIDELITY+ EDITORIAL TEAM
MANAGING EDITOR
ART
ACCOUNT SUPERVISOR
Brian Bertoldo
Kevin Miller
George Lee
Jessica Fidgeon
Fidelity+ magazine is mailed to Fidelity customers in
February, May, August, and November.
IMPORTANT INFORMATION ABOUT CONTENT:
© 2008 FMR LLC. All rights reserved. Although carefully verified, data are not guaranteed for accuracy or completeness.
Fidelity Investments disclaims any liability for any direct or
incidental loss incurred by applying any of the information
in this publication. The statements and opinions reflect
those of the individuals noted herein and are not the opinions or recommendations of Fidelity Investments.
Polly Walker
Editor in Chief
P.S. I’m delighted to report that the Fidelity® Magellan® Fund (FMAGX) was
reopened to new investors on January 15. Please visit Fidelity.com/MagellanFund
or call 1.800.FIDELITY to learn more.
YOUR LETTERS
Dear Fidelity+: We have been receiving your
magazine for some time now, and find it very
educational. It would be helpful if you could
create a chart that summarizes tax law requirements and other changes affecting investors,
particularly as they pertain to individual
retirement accounts (IRAs). A few of the items
might include:
• The age at which minimum required distributions (MRDs) from an IRA must begin.
• The maximum annual contribution to an IRA.
• The age at which the money can be withdrawn from an IRA without penalty.
• What time period constitutes short- and
long-term gains.
I know there are many more items that
should be included, such as the “catches” that
Uncle Sam puts on IRAs, investment gains, gift
taxes, etc. If you kept all this information in
one location, this would be an extremely valuable resource for readers.
Keep up the fine work on the magazine!
Gary Rieck, Hampshire, Tenn.
Editor’s reply: Thanks for the feedback, Gary.
Fortunately, we now have an excellent answer to
your request with the recent launch of the new
IRA Center on Fidelity.com, where you can find
the information you are looking for. Please visit
Fidelity.com/IRA or call 1.800.FIDELITY.
Tax information contained herein is not intended or
written to be used, and it should not be used, by taxpayers for the purposes of avoiding penalties. The tax
information and any estate planning information herein
is provided for informational and educational purposes
only, and should not be construed as legal or tax advice.
Fidelity does not provide legal or tax advice. Fidelity cannot guarantee that such information is accurate, complete,
or timely. Laws of a particular state or laws that may be
applicable to a particular situation may have an impact
on the applicability, accuracy, or completeness of such
information. Federal and state laws and regulations are
complex and are subject to change. Changes in such laws
and regulations may have a material impact on pre- and/or
after-tax investment results. Fidelity makes no warranties
with regard to such information or results obtained by its
use. Fidelity disclaims any liability arising out of your use
of, or any position taken in reliance on, such information.
Always consult an attorney or tax professional regarding
your specific legal or tax situation.
The mention of individual securities is for informational purposes only and should not be construed as a recommendation
for any security.
The third-party trademarks and service marks appearing herein
are the property of their respective owners. All other trademarks
and service marks appearing herein are the property of FMR LLC
or its affiliated companies.
Brokerage products and services discussed in this publication are
available through Fidelity Brokerage Services, Member NYSE,
SIPC, 100 Summer St., Boston, MA 02110. Fidelity mutual
funds are distributed by Fidelity Distributors Corporation, 82
Devonshire St., Boston, MA 02109. Fidelity Retirement Reserves
(NRR-96100), Fidelity Income Advantage (FVIA-92100 and
FVIA-99100), and term insurance (FTL-96200 and FTL-99200)
are issued by Fidelity Investments Life Insurance Company. For
New York residents, Retirement Reserves, Income Advantage, and
term insurance are issued by Empire Fidelity Investments Life
Insurance Company, New York, N.Y. Fidelity Brokerage Services
and Fidelity Insurance Agency, Inc., are the distributors.
contents
FEBRUARY 2008
Exclusively for
Pr ivate Access Clients
Departments
SECTOR DYNAMICS
11 Elections and the Markets
Read why presidential election years
typically yield strong results.
16
SELECT PORTFOLIOS UPDATE
12 Industrial-Strength Potential
Why the Industrial sector may offer some of
today’s most vibrant investment opportunities.
WASHINGTON WATCH
15 Late-Breaking Tax Relief
4
A review of the reforms that may benefit
investors in 2007 and beyond.
TRADING STOCKS
8
16 Order Protection
for Your Portfolio
Learn how stop-loss and stop-limit
orders can protect you from losses.
Features
FOCUS ON FUNDS
4 Taking a World View
18 Balancing Act
Fidelity Balanced Fund may help
steady your portfolio when the
markets are shaky.
We asked three experts how globalization is affecting both the
economy and your portfolio.
8 Blending Family Values Into
an Estate Plan
Focus on Fidelity
2
Families with children from previous marriages face unique
challenges when it comes to estate planning. Learn how to
avoid the pitfalls and find possible solutions.
Get the most out of charitable giving; wealthy investor survey results;
and Fidelity debuts a new fee
schedule for bond trading.
P1
Fidelity Online and Fidelity AnywhereSM
ON THE COVER: MASTERFILE
LOG ON TO FIDELITY ANYWHERE* FROM YOUR MOBILE
DEVICE TO ACCESS:
• Market Updates • Quotes & Watch lists
• Accounts & Trade • Order Status & Account History
*For more information please visit Fidelity.com/wireless.
A08-FP1-002 TOC REV.indd 1
UPDATE
FIDELITY MUTUAL
FUND PERFORMANCE
Total return information for Fidelity
mutual funds and 529 college savings
plans, through Dec. 31, 2007.
ADDRESS CHANGES?
Fidelity+ is sent to the address of record on
your account. Changing your address for
Fidelity+ will also change where your account
information is sent. To change your address
online, go to Fidelity.com/goto/move. Or call
1.800.544.5704 to speak with your Private
Access Account Executive. Please allow up to
two issues of the magazine for the change to
take effect.
1/15/08 9:06:49 PM
®
News About Fidelity Products and Services
update
TAX-EFFICIENT GIVING
Maximize Your Charitable Giving in 2008
Americans are known the world
over as a generous people. In
fact, 83% of Americans give
annually to charity,1 with the
vast majority of all charitable
donations given in the form of
cash (74% of all donations).
But, a recent Fidelity Investments® report, Smart Giving:
Maximizing Your Charitable
Dollars Through Donations of
Appreciated Stocks and Mutual
Funds, reveals there is a more taxefficient way of giving that could
help millions of American households sustain—and perhaps
increase—their giving.
Fidelity reports that 10 million
to 20 million American households have the potential to realize
significant additional tax savings
by donating securities with longterm appreciation—such as
stocks, bonds, and mutual
funds—to a public charity or to a
public charity with a donoradvised fund program, instead of
giving cash. These savings are over and above the savings donors receive from lowering their income
taxes as a result of making the donation.
For more information, visit Fidelity.com/charitable.
1. A 2006 online survey of 2,939 U.S. adults conducted by Harris Interactive® from December 4 through December 6, 2006, for The Wall Street Journal Online.
CORBIS
The Fidelity Research Institute (FRI) is a Fidelity Investments organization. Although FRI is affiliated with Fidelity Brokerage Services, FRI is not engaged in the business of banking or acting as
broker-dealer, investment advisor, deposit broker, financial planner, credit counselor, or other advisor to you.
2 FIDELITY+ FEBRUARY 2008
A08-FP1-002 Update2.indd 1
1.800.544.5704
1/5/08 9:29:50 AM
WEALTH MANAGEMENT
Study: HNW Investors
Seek Advice and Service
Fidelity surveyed more than 2,500
wealthy households to find out exactly
what investors are looking for when
seeking the help of an advisor.1
According to the study, one of the
biggest reasons investors turn to an
independent advisor is for objective
recommendations on investments
(68%). Investors also said they look to
advisors for more personalized service
(58%), as well as access to unique
products and services (29%).
Whatever your investing needs
may be, Fidelity can help. By talking
to your Fidelity Representative or calling
your local Fidelity
Investor Center, we
can meet with you to
understand your
needs and help you
find the best solutions
for your portfolio,
including introducing you to an advisor in your area. Our network of
advisors can complement Fidelity’s
services by offering specialized services such as in-depth estate and tax
PRICING CUT
Fidelity Slashes Secondary
Bond Trade Concessions
Fidelity continues its push to simplify and make the bond-buying process
more affordable with the following concession schedule for bond trading:
planning, and specific investment
recommendations.
Advisors in Fidelity’s network are
prescreened for their investment experience, size, stability, and integrity.
What’s more, Fidelity continually
monitors these firms to help
ensure that you receive the high
quality of service you deserve.
For more information,
contact your Private Access
Account Executive at
1.800.544.5704 or visit
Fidelity.com/advice.
1. Fidelity commissioned a survey of U.S.
households with investable assets of at least
$1 million, excluding retirement accounts
and real estate holdings. The research analyzed millionaires’ investment attitudes and
behaviors on a variety of topics, including
financial concerns, use of a financial advisor,
and outlook for the economy. The survey,
which did not identify Fidelity as the sponsor,
was conducted by Burke Inc., an independent
firm that has been conducting research since
1931. The insight in this report is directly
from the analysis of the survey.
CORBIS
For detailed information regarding Fidelity’s new fixed income fee
schedule, visit Fidelity.com/newbondpricing.
Although bonds generally present less short-term risk and volatility than stocks, bonds do entail interest rate risk (as interest rates
rise, bond prices usually fall, and vice versa) and the risk of default, or the risk that an issuer will be unable to make income or
principal payments. Additionally, bonds and short-term investments entail greater inflation risk, or the risk that the return of an
investment will not keep up with increases in the prices of goods and services, than do stocks.
FIDELITY.COM
A08-FP1-002 Update2REV.indd 3
Conducted in December 2006, the survey received
completed responses from 2,507 U.S. households
and has a margin of error of ±2%.
Advice is provided by independent registered
investment advisors. The advisor charges fee-based,
asset based, or flat-rate investment advisory service
fees (which may include hourly fees).
Fidelity Brokerage Services, Member NYSE, SIPC.
FEBRUARY 2008 FIDELITY+ 3
1/9/08 10:38:01 PM
Taking a Wo
BRUCE
JOHNSTONE
WILFRED
CHILANGWA, JR.
MARK
YOCKEY
4 FIDELITY+ FEBRUARY 2008
A08-FP1-002 Feature1.indd 4
1.800.544.5704
1/11/08 1:30:45 AM
World View
Three experts examine globalization’s impact on the economy
and your portfolio. BY RUSSELL WILD
EVAN RICHMAN; JAY WATSON (YOCKEY)
C
hances are good that
the shirt and pants
you are wearing right
now were assembled
on another continent,
as were the chair you’re sitting in
and the television in your living
room. The fruit you nibbled for
breakfast may have come from
another country, and the wine and
cheese you’ll enjoy at the dinner
party Saturday night may have originated in yet another.
While globalization has greatly
affected our consumption habits,
some might argue that it has had a
more profound effect on our investments. Fidelity+ recently asked three
experts for their views on globalization,
its impact on our economy and financial markets, and whether adopting a
more worldwide view might help bolster U.S. investors’ long-term returns.
What follows are the opinions of:
• Bruce Johnstone, CFA,® a
managing director and senior marketing investment strategist for
Fidelity Investments;
• Mark Yockey, portfolio manager
for the Artisan International Fund
and the Artisan International Small
Cap Fund; and
• Wilfred Chilangwa, Jr., CFA,®
an international portfolio manager
for Fidelity Strategic Advisers, Inc.1
FIDELITY.COM
A08-FP1-002 Feature1REV.indd 5
Fidelity+: We hear the term “globalization” a great deal these days––
how the world’s people and economies are becoming increasingly
interconnected. Is there any way to actually measure or quantify the
phenomenon?
Yockey: Absolutely. Statistics gathered by the World Trade Organization
tell us, for example, that from 1993 to 2005, world merchandise exports
grew from about $3.7 trillion to roughly $10.2 trillion. From 1995 to
2005, global capital flow rose from less than $2 trillion to over $6 trillion.
Johnstone: As those figures clearly indicate, international trade is
exploding, as is the flow of capital among nations. But that’s only part
of the globalization picture. We’re also seeing a sharp increase in the outsourcing of labor. And, of course, the Internet has revolutionized global
communications.
Fidelity+: For the U.S.-based portfolio holder, where has globalization
had the biggest impact, and what might increased globalization
mean in the future?
Johnstone: The impact has been huge. Of the collective earnings of the
S&P 500® Index 10 years ago, 30% was derived from activity outside
the United States; that figure is now 40%. Even if you hold nothing but
U.S. stocks, your portfolio returns are very much linked to foreign
economies.
Chilangwa: And largely for that reason, globalization has affected the way
investors must analyze opportunities. For the U.S-based portfolio holder,
the biggest impact of globalization is the fact that the performance of
U.S.-listed companies, as Bruce just pointed out, is increasingly influenced
by what happens overseas. For large U.S. companies in particular, more of
their earnings are derived from business overseas.
Yockey: Regardless of where you are based, globalization is creating a
higher level of competitiveness in many markets. This is fostering longoverdue fiscal reform, labor reform, and corporate consolidation. All of
those may positively impact corporate profitability, earnings growth,
and returns to shareholders. I believe that globalization is good for
investors.
FEBRUARY 2008 FIDELITY+ 5
1/15/08 9:16:58 PM
Even if
you hold
nothing
but U.S.
stocks, your
portfolio
returns are
very much
linked to
foreign
economies.”
— BRUCE
JOHNSTONE
As a result
of lessons
learned from
a decade
ago,
emerging
markets
are in
much
better
fundamental
shape
today.”
Regardless
of where you
are based,
globalization
is creating
a higher
level of
competitiveness in
many
markets.”
— MARK YOCKEY
— WILFRED
CHILANGWA, JR.
Fidelity+: Some investment gurus have argued that
increased globalization is leading to greater correlation
between the U.S. and overseas stock markets, lessening
the power of international diversification to help protect a portfolio. In other words, when U.S. stocks falter,
foreign stocks, thanks to globalization, are likely to falter as well. How justified is this argument?
Yockey: There is some support for that argument, but I
believe there is also significant evidence that the rest of
the world is decoupling from the United States. As wealth
rises in countries around the world and positive reform
continues, foreign economies are becoming more reliant
on domestic demand, versus exports, as a source of
growth. As a result, if consumption in the United States
were to trail off, there may be a greater likelihood that
foreign economies could sustain growth on their own.
Johnstone: I’ll add that correlation can be measured in
different ways. Look at return figures from the past five
years. All the world markets have gone in the same
direction—up, up, up. For example, the U.S. market, as
measured by the S&P 500® Index, returned 121% over
that period (10/9/02 to 10/9/07) in U.S. dollars and total
returns. For the same period, the MSCI EAFE (Europe,
Australasia, Far East) Index returned 165%, and the
MSCI Emerging Markets Index returned 441%. Are they
correlated in the same direction? Yes. But when you look
at the degree of change, there’s plenty of diversification.
Yockey: When the global economy is firing on all cylinders, as it has been, it’s reasonable to expect correlation
among global stock markets. However, when economic
growth diverges—and some economies are growing and
others are not—I would expect there to be lower correlation among markets. Those economies that can generate
a larger portion of their growth from domestic sources
may stay strong while others falter.
6 FIDELITY+ FEBRUARY 2008
A08-FP1-002 Feature1.indd 6
Fidelity+: Are investments in any particular area of
the world seemingly able to maintain their historical
lack of correlation to U.S. markets?
Johnstone: Emerging markets, so far. But the bears say
you don’t want to own them in a down market. Sooner
or later, we will see.
Chilangwa: Rather than focus on identifying the non-U.S.
area that experienced the least correlation to U.S. stocks
over the recent past, it is important for investors to be forward looking and build a well-diversified portfolio of
international funds that complements their U.S. holdings.
International markets are influenced by many moving
parts, such as regions, currencies, styles, and market caps.
A single international fund is unlikely to capture the benefits of being diversified across all these areas.
Fidelity+: Emerging-market stocks, regardless of their
correlation to the U.S. market, have had spectacular
returns in recent years. To what do you attribute this
enormous appreciation, and do you anticipate that it
will continue?
Yockey: I attribute most of the growth in emerging-market
stocks to the incredible progress made by these nations. For
example, over the last 10 years, U.S. gross domestic product
growth has averaged somewhere between 2% to 3% a year.
Over the same period, China’s economic growth has averaged 8% to 9%. Although it is hard to predict the future
pace of growth in emerging markets, I feel comfortable
with the assumption that it may continue to be greater than
that of the United States.
Johnstone: I certainly agree that the returns on emerging-market stocks have much to do with economic growth,
but it is important to remember that the valuations on
these stocks five years ago––when this incredible growth
began––were very low. Now, in some countries, such as
1.800.544.5704
1/11/08 1:31:36 AM
China and India, that is no longer true. Indeed, valuations
on them may be higher than those on countries in the
developed world. Still, I expect that overall emerging-market returns, even in China and India, will be handsome in
the long run.
Chilangwa: The growth should continue, although investors are likely to experience bumps along the way.
Fidelity+: Bumps indeed. Just how much risk is
involved in investing in these countries?
Chilangwa: A decade ago, emerging markets experienced
a severe crisis. This was caused by over-leverage financed
by external borrowing, overinvestment that led to a
decline in profitability, and overvalued currencies supported by fixed exchange rates. As a result of lessons
learned from a decade ago, emerging markets are in
much better fundamental shape today. They are net providers of capital to the rest of the world, inflation is low,
their finances are in great shape, their currencies are
strong and operate in floating-exchange-rate regimes,
and profitability is high. However, these markets are still
in a state of transition, and that brings unpredictability.
They are also extremely vulnerable to short-term speculation, panic, and knee-jerk reactions.
Yockey: The risks of investing in an emerging market
can vary widely by country. Political risk is a factor, as
are a number of other macroeconomic risks, such as
exchange-rate fluctuation, high levels of inflation, and
even ongoing economic reforms.
Johnstone: Risk is greater in the short term, but in the
long term emerging markets are less risky than they used
to be, compared to the U.S. market. The United States is
the one with institutions that have leveraged up and
invested in bad debt. We’re the ones with the poor national balance sheets, with the Federal Reserve constantly
jumping in to shore up the stock market!
Fidelity+: To what degree does the recent outperformance of foreign markets reflect the drop in the U.S.
dollar vis-à-vis other currencies? What expectation do
you have for future exchange rates?
Johnstone: Will that drop continue? Well, if you look at
purchasing-power parity, U.S. goods and services are
starting to look cheap, so you’d think the dollar would
have to bottom out soon. On the other hand, to the
extent that we are running both a federal deficit and a
trade deficit, that would argue for continued dollar weakness. On balance, I wouldn’t be surprised if the U.S.
dollar continues to weaken slowly in the coming years,
not so much against the euro and yen, but more so
against the currencies of emerging-market nations.
FIDELITY.COM
A08-FP1-002 Feature1.indd 7
Fidelity+: For the typical U.S. investor––if there
is such an individual––how might his or her stock
portfolio be reasonably divided between U.S. and
foreign investments? And of that foreign component, what might be a reasonable allocation to
emerging-market stocks?
Chilangwa: With more than half the world’s market
capitalization and more than two-thirds of listed
securities domiciled in non-U.S. markets that are
generally cheaper and offer superior growth potential,
investors’ portfolios should have a much larger allocation to international stocks than is typically the case.
Exactly how much depends on each individual investor’s
risk-and-return requirements.
Johnstone: I look at the world from a 21st-century point
of view. The United States accounts for only 42% of the
world stock market. If you were going to simply index—
which makes perfect sense—you’d have 58% of your
portfolio in non-U.S. holdings.2 And for a very long-term
portfolio—25 years or so—you’d have half of that in
emerging-market stocks. For shorter-term periods, you
need to consider volatility and adjust to a level at which
you can feel comfortable. •
Before investing, consider the funds’ investment objectives,
risks, charges, and expenses. Contact Fidelity for a prospectus
containing this information. Read it carefully.
Unless otherwise noted, the opinions of the authors provided are not necessarily those of Fidelity
Investments. Views and opinions are subject to change at any time based on market and other
conditions.
1. Strategic Advisers, Inc., is a registered investment adviser and a Fidelity Investments company.
2. Fidelity Management & Research Company
S&P 500 is a registered service mark of the McGraw-Hill Companies, Inc., and has been licensed
for use by Fidelity Distributors Corporation and its affiliates. It is an unmanaged market-capitalization weighted index of 500 common stocks chosen for market size, liquidity, and industry group
representation to represent U.S. equity performance.
The Morgan Stanley Capital International Emerging Markets Index is an unmanaged, market capitalization–weighted index of equity securities of companies domiciled in various countries. The
index is designed to represent the performance of emerging stock markets throughout the world.
The Morgan Stanley Capital International Europe, Australasia, Far East Index is an unmanaged
market-capitalization weighted index that is designed to represent the performance of developed stock markets outside the United States and Canada.
Foreign investments involve greater risk than U.S. investments, including political, economic,
currency fluctuation risk, all of which may be magnified in emerging markets.
Diversification does not ensure a profit or guarantee against loss.
Stock values fluctuate in response to the activities of individual companies and general market
and economic conditions.
LEARN MORE
To learn more about international investing
with Fidelity, visit Fidelity.com/international
or call your Private Access Account Executive
at 1.800.544.5704.
FEBRUARY 2008 FIDELITY+ 7
1/11/08 1:31:49 AM
MORE THAN 26 YEARS
AGO, GEORGE AND LINDA
STEVENSON, of Evanston,
Illinois, created a new life
together, each marrying for the
second time and each bringing
two daughters from a previous
marriage to their newly
formed family. While George
and Linda’s immediate plan
was to create a happy and harmonious new household, as
their life together grew both in
terms of family (they now have
nine grandchildren) and financial assets, they focused on
creating an estate plan that was
fair and equitable to both sets
of children.
“Remarriage can be difficult
for everyone, and Linda and I
worked hard to ensure that
our daughters understood that
we were committed to building a life together,” says George
Linda and George
Stevenson, 65 and
68, respectively,
were able to create
a blended family
built on harmony,
respect, trust, and
fairness.
Blending Family Values
Into an Estate Plan
The blended family—created when remarriages form a new family
with children from both partners—has unique estate planning needs
and challenges. BY GRACE W. WEINSTEIN
8 FIDELITY+ FEBRUARY 2008
A08-FP1-002 Feature2REV3.indd 8
1.800.544.5704
1/16/08 9:36:57 PM
Stevenson. “That meant everyone
would be treated equally. All these
years later, we have truly built a blended
family that’s based on harmony,
respect, trust, and fairness. My daughters’ children now play with Linda’s
daughters’ children. We vacation
together and spend many holidays
together. The estate planning just seems
states each partner’s financial plans in
the event of death or divorce. “A prenuptial agreement can minimize
dissension,” says Steven J. Fromm, an
estate planning attorney in Philadelphia, Pennsylvania.
If it’s too late for a “prenup,” you
might consider a postnuptial agreement. These arrangements seek to
Trusting in Trusts
ne of the most common estate
planning vehicles for blended
families—a qualified terminable
interest property trust (known as a
“QTIP”)—protects both the surviving spouse and the children of the
first marriage.
With a QTIP, the surviving spouse
O
We vacation together and spend many holidays together. The estate
planning just seems a natural extension of this positive family environment we have created.” — GEORGE STEVENSON
ANDY GOODWIN
a natural extension of this positive
family environment we have created.”
While most blended families may
share similar goals, achieving them
can be another story. As estate planning attorney Martin Shenkman, of
Paramus, New Jersey, puts it, “The
Brady Bunch is not a reality show.
There are always issues, even if they
are hidden below the surface. When
one spouse dies, that’s when there’s a
possibility all the problems will come
crawling out.”
The Stevensons are not alone in
facing these challenges. The Stepfamily Foundation, a private company
that specializes in counseling stepfamilies, estimates that more than
half of U.S. families are remarried or
“re-coupled.” If you and your spouse
want to help ensure harmony among
your blended family members after
you are gone, you need to take the
appropriate estate planning steps
now. These generally include a
prenuptial or postnuptial agreement,
properly drawn trusts, life insurance,
and durable powers of attorney.
Till Death Do Us Part
efore saying “I do,” people who
are on their second or third marriages may first want to draft a
prenuptial agreement that clearly
B
FIDELITY.COM
A08-FP1-002 Feature2REV2.indd 9
accomplish similar goals by spelling
out how assets brought to the marriage and assets accumulated during
the marriage will be treated. There are,
however, some limitations. In most
states, a surviving spouse has a statutory right to a portion of the estate.
When entering into either a
prenuptial or a postnuptial agreement, each partner should have an
independent attorney, Fromm says.
Each should be completely open and
disclose both financial and family
details. “The attorney needs to know
if there were three kids from a first
marriage,” Fromm notes.
Like many remarried couples, the
Stevensons kept the property that
each spouse brought to the marriage
in their own names. George’s property
is held in a trust, to go to his children
upon his death. Everything accumulated during the marriage will go to
the surviving spouse and then, at the
survivor’s death, assets will be divided
equally among the four children.
Linda initially brought a larger
income to the marriage but fewer
assets. If Linda, who is 65, finds that
she needs more money—she hails
from a long-lived family, with a
grandfather who lived to 103—she
can sell the family vacation home
and invest the proceeds.
receives the income generated by the
trust assets during life, but has no say
in who gets the remaining balance at
death. That decision is made by the
trust’s grantor, who typically leaves
the balance to his or her own children from an earlier marriage.
Classic QTIPs, however, contain an
inherent conflict: In the interests of
the surviving spouse, trust assets are
Avoid These
Common Pitfalls
for Blended Families
X Skipping a prenuptial or postnuptial agreement, or failing to use
separate attorneys when drafting
agreements
X Neglecting to execute a durable
power of attorney that names a
trusted agent
X Failing to change beneficiary designations on retirement accounts
and insurance policies, so that
an ex-spouse is the unintended
recipient of proceeds
X Avoiding full disclosure of assets
and family issues to each other
and to estate planning attorneys
X Assuming that everyone will be
ethical and will get along, with
no hard feelings
FEBRUARY 2008 FIDELITY+ 9
1/12/08 7:26:33 AM
The Power of a Power of Attorney
WHETHER YOU’RE MARRIED OR SINGLE, you should consider executing a durable power of attorney that names someone to act on your behalf should you
become incapacitated and unable to manage your own financial affairs. “Most
people,” Shenkman says, “focus on wills, trusts, and divvying up assets and
forget this basic legal document, wreaking havoc on the best plans.”
For blended families, the critical issue revolves around who is named as
each partner’s agent. Naming a new spouse assumes that he or she will do
what’s right for the children. However, an unrestricted power of attorney can
be dangerous. Consider what could happen when the proceeds of an insurance policy are meant for one spouse’s children, while the other spouse gets
the house. If the second spouse holds a power of attorney, he or she could
change the beneficiary designation on the insurance policy. Similarly, if you
name an adult child from a first marriage as agent, he or she would be in a
position to take advantage of the second spouse. To resolve this dilemma,
consider either limiting the agent’s powers or choosing an independent party
as agent, such as a trusted friend or associate.
usually invested to produce income.
This may be at odds with the longterm interests of the children, who
may be looking to invest for growth,
according to Shenkman.
Shenkman’s solution to this conflict is a “unitrust,” which allows
assets to be invested for total return,
with a percentage of the total trust
assets paid out each year to the surviving spouse. Because the payout
rises as the value of the assets in the
trust increases, “the survivor will have
an inflation hedge on income and the
kids will get a meaningful sum of
money at the end,” Shenkman says.
Structuring it this way “takes the
judgment out of who gets what,” and
is fair to both the surviving spouse
and the children. Drawn properly, the
unitrust can also qualify as a QTIP.
When a Spouse Is
Significantly Younger
n some blended families, a large
age gap can exist between the partners. In some instances, a second
spouse may be decades younger than
the first one—not much older, if at
all, than the adult children from the
first marriage. This age gap poses
I
10 FIDELITY+ FEBRUARY 2008
A08-FP1-002 Feature2REV.indd 10
potential issues when it comes to
estate planning.
“It sets up a terrible dynamic in
families when the children of the
first marriage are waiting for the
stepparent to die to get any benefit,”
says Mary H. Schmidt, an estate and
family law attorney with Packenham,
Schmidt & Federico in Boston.
Life insurance may provide a solution, Schmidt says. The older spouse
can buy life insurance for the children
and leave other assets to the new
spouse. This strategy can be particularly effective in resolving problems
involving ownership of real estate. For
example, consider a couple that purchases a house together during a
second marriage. Dividing that property and putting it into a trust might
be impractical, especially when the surviving spouse wants to continue living
in the home. One solution is to leave
the house to the surviving spouse and
an equivalent amount to the children
in the form of life insurance. The policy can be owned outright by the
children or by an irrevocable life insurance trust. This enables the surviving
spouse and the children to inherit
roughly the same amount of assets.
Clarity Is Key
ne way to reduce potential
estate planning problems for
blended families is to be clear about
your intentions. Schmidt suggests
making a videotape in which you
speak to members of your blended
family, telling them that you tried to
balance everyone’s interests, and
how you went about doing so. A
signed letter of explanation can
serve the same purpose.
George and Linda Stevenson, who
will celebrate 30 years of marriage in
a few years, want their children to
know that they have done their best
to treat all of them as fairly as possible. They have tried to be transparent
by sharing information with their
daughters. When they helped one
daughter with a down payment on a
house last year, they told the others
that a similar amount would be
available to them if they needed it.
“If it isn’t evened out during our
lives, we would rely on the kids to
even it out in our estate,” says George,
who is 68. “There’s a lot of trust and
faith in all of this.” While “trust and
faith” are essential, attorneys also suggest that a carefully crafted estate plan
is necessary to meet your objectives
and keep family harmony. •
O
The estate planning information contained herein is
general in nature, is provided for informational purposes only, and should not be construed as legal or tax
advice. Fidelity does not provide legal or tax advice.
Fidelity cannot guarantee that such information is
accurate, complete, or timely. Laws of a particular
state or laws which may be applicable to a particular
situation may have an impact on the applicability,
accuracy, or completeness of such information.
Federal and state laws and regulations are complex
and are subject to change.
Always consult an attorney or tax professional regarding your specific legal or tax situation.
LEARN MORE
For more information, visit
the Stepfamily Foundation
at Stepfamily.org.
1.800.544.5704
1/9/08 10:39:41 PM
FIDELITY® MAGELLAN® FUND
Quarterly Market and
Fund Performance Update
has reopened to new investors. Visit
Fidelity.com/MagellanFund to learn more.
For the quarter ending December 31, 2007
MARKET RECAP: FOURTH QUARTER 2007
Subprime Mortgage Problems Weigh on Stocks
Average Annual Total Return %
(as of 12/31/07)
By William Ebsworth, Chief Investment Officer, Strategic Advisers, Inc.
12.8%
S
tocks gave back some of their gains from earlier in 2007 during an
extremely volatile fourth quarter, as both U.S. and international stock
markets declined. The financial sector absorbed the brunt of the sell
off, with securities tied to subprime mortgages suffering significant declines.
Furthermore, declining home prices and concerns about the potential
for a slowdown in consumer spending reduced 2008 growth expectations
To help ease the credit crunch, the Federal
Open Market Committee cut the target for
the federal funds rate 25 basis points on two
occasions, reducing it to 4.25%. Other central
banks across the world followed suit by lowering their benchmark interest rates.
U.S. Equity
U.S. equity markets generally registered negative returns for the fourth quarter, as the S&P
500® Index declined 3.3%. Financial stocks,
particularly banks and real estate companies,
suffered steep losses. Small-cap value stocks,
as measured by the Russell 2000® Value Index,
were the worst performers, falling 7.3% during the period. Large-cap growth stocks, as
measured by the Russell 1000® Growth Index,
were the best performers, declining only 0.8%.
International Equities
While international stocks declined 1.7%,
as measured by MSCI EAFE® Index, they
again managed to outperform U.S. stocks.
European markets, which account for almost
70% of the MSCI EAFE Index, fell just 0.4%
(MSCI Europe Index) amid slowing earnings
growth and uncertainty regarding consumer
spending. The Japanese market (MSCI Japan)
lagged other regions, dropping nearly 6.1%,
as the economy there continued to languish
amid a poorly performing banking sector.
On a more positive note, emerging markets,
FIDELITY.COM
A08-FI1-002 MrktRecap3REV.indd P1
8.6%
–3.3%
3 mos.
1 yr.
r
3 yr.
r
5 yr.
r
10 yr.
r
S&P 500®
as measured by the MSCI Emerging Markets
Index, managed to gain 3.7% for the quarter,
driven by exceptionally strong performance in
India and Russia.
Fixed Income
Investment-grade bonds easily outperformed
riskier high-yield bonds, as subprime and
credit concerns persisted. The Lehman
Brothers U.S. Aggregate Bond Index gained
3.0%, outpacing the Merrill Lynch U.S. High
Yield Master II Constrained Index, which
declined nearly 1.0%. Similar to the third
quarter, many investors continued to gravitate
toward high-grade investments with greater
liquidity, such as U.S. Treasuries, while eschewing higher-yielding bonds that carry more risk.
5.9%
5.5%
22.1%
17.3%
11.6%
9.0%
–1.7%
3 mos.
1 yr.
r
3 yr.
r
5 yr.
r
10 yr.
r
MSCI EAFE® (G)
7.0%
3.0%
3 mos.
1 yr.
r
4.6%
4.4%
3 yr.
r
5 yr.
r
6.0%
10 yr.
r
Lehman Brothers
Aggregate Bond Index
10.6%
Outlook
The ongoing fallout from the subprime mortgage mess has clouded the outlook for the
U.S. and global economies in 2008. As always,
it is difficult to predict in which direction the
markets will move over the short term. This
underscores the importance of taking a longterm approach by maintaining a diversified
portfolio that suits your risk tolerance.
5.6%
5.3%
–1.0%
2.5%
3 mos.
1 yr.
r
3 yr.
r
5 yr.
r
10 yr.
r
Merrill LLynch U.S. High Yield
Master II Constrained Index
16.2%
7.1%
6.8%
Strategic Advisers, Inc., is a registered investment adviser and a Fidelity
Investments company.
See footnote 2 on page P12 for all index definitions. You cannot invest
directly in an index.
The performance data represent past performance, which does not
guarantee future results.
–4.6% –1.6%
3 mos.
1 yr.
r
3 yr.
r
5 yr.
r
10 yr.
r
Russell 2000®
FIDELITY MUTUAL FUND PERFORMANCE THROUGH 12/31/2007 P1
1/18/08 5:52:36 PM
Quarterly Market and Fund Performance Update
For the quarter ending December 31, 2007
Approaches to Diversification:
Six Asset Allocation Strategies
How you invest in different asset classes should be based on an investment strategy
in line with your current circumstances and your short- and long-term goals. The six
target asset mixes shown below are for illustrative purposes only and should not be
considered investment advice. You should choose your own target asset mix based on
your particular time horizon, risk tolerance, and financial situation. Remember, you
may change how your account is invested. Be sure to review your portfolio periodically to make sure your investments are still consistent with your goals.
ASSET ALLOCATION DEFINITIONS
Short-Term: Seeks to preserve your capital and can accept
the lowest returns in exchange for price stability.
Conservative: Seeks to minimize fluctuation in market
values by taking an income-oriented approach with some
potential for capital appreciation.
Balanced: Seeks the potential for capital appreciation and some
income and can withstand moderate fluctuation in market value.
Growth: Has a preference for growth and can withstand
significant fluctuation in market value.
Aggressive Growth: Seeks aggressive growth and can tolerate
wide fluctuation in market values, especially over the short term.
Most Aggressive: Seeks very aggressive growth and can
tolerate very wide fluctuation in market values, especially over
the short term.
HIGH
Most Aggressive
Aggressive Growth
Growth
5%
Balanced
RETURN POTENTIAL
Conservative
30%
20%
80%
70%
60%
45%
40%
15%
25%
10%
20%
15%
10%
5%
Short-Term
50%
100%
KEY
LOW
Domestic Stocks
Foreign Stocks
Bonds
Cash
HIGH
RISK
R A N G E O F A N N UA L R E T U R N S F O R E AC H A S S E T M I X OV E R T H E P E R I O D O F 1 9 2 6 – 2 0 0 6
Highest
one-year return
Lowest
one-year return
Highest
five-year return
Lowest
five-year return
Average return
Short-Term
Conservative
Balanced
Growth
Aggressive Growth
Most Aggressive
15.20%
31.06%
76.57%
109.55%
136.07%
162.89%
–0.04%
–17.67%
–40.64%
–52.92%
–60.78%
–67.56%
11.13%
16.79%
22.06%
27.23%
31.91%
36.12%
0.06%
–0.37%
–6.18%
–10.43%
–13.78%
–17.36%
3.72%
6.14%
8.18%
9.25%
9.98%
10.54%
Generally, among asset classes, stocks may present more short-term risk and volatility than bonds or short-term instruments but may provide greater potential return over the long term. Although bonds generally present less short-term risk and volatility than stocks, bonds do entail interest rate risk (as interest rates rise, bond prices usually fall, and vice versa) and the risk of default, or the risk that an issuer will
be unable to make income or principal payments. Additionally, bonds and short-term investments entail greater inflation risk, or the risk that the return of an investment will not keep up with increases in the
prices of goods and services, than stocks. Finally, foreign investments, especially those in emerging markets, involve greater risk and may offer greater potential return than U.S. investments.
Data source: Ibbotson Associates, 2007 (1926–2006). Past performance is no guarantee of future results. Returns include the reinvestment of dividends and other earnings. Charts are for illustrative
purposes only and do not represent actual or implied performance of any investment option.
Stocks are represented by the Standard & Poor’s 500 Index (S&P 500® Index). The S&P 500® Index is a registered service mark of The McGraw-Hill Companies, Inc., and is a widely recognized, unmanaged index of 500 U.S. common stocks. Bonds are represented by the U.S. Intermediate-Term Government Bond Index, which is an unmanaged index that includes the reinvestment of interest income.
Short-term instruments are represented by U.S. 30-Day Treasury bills, which are backed by the full faith and credit of the U.S. government. It is not possible to invest directly in an index. Stock prices are
more volatile than those of other securities. Government bonds and corporate bonds have more moderate short-term price fluctuation than stocks but provide lower potential long-term returns. U.S. 30Day Treasury bills maintain a stable value (if held to maturity), but returns are generally only slightly above the inflation rate. Foreign stocks are represented by the Morgan Stanley Capital International
Europe, Australasia, Far East Index for the period from 1970 to the last calendar year. Foreign stocks prior to 1970 are represented by the S&P 500® Index. The purpose of the target asset mixes is to show
how target asset mixes may be created with different risk and return characteristics to help meet an investor’s goals. You should choose your own investments based on your particular objectives and
situation. Remember that you may change how your account is invested. Be sure to review your decisions periodically to make sure they are still consistent with your goals. These target asset mixes were
developed by Strategic Advisers, Inc., a registered investment adviser and Fidelity Investments company.
P2 FIDELITY MUTUAL FUND PERFORMANCE THROUGH 12/31/2007
A08-FI1-002 MrktRecapP2.indd 2
1.800.FIDELITY
1/17/08 8:37:19 PM
RetailPerfPages_4Q07
1/16/08
9:04 PM
Page 3
FIDELITY MUTUAL FUND PERFORMANCE
Quarter ending December 31, 2007
▲
Get Mutual Fund Performance Online
Looking to get mutual fund performance and the Market Recap closer to the quarter end?
Visit Fidelity.com/fidelityfundperformance.
This performance data represents past performance, which is no guarantee of future results. Investment return and principal value
of an investment or 529 plan will fluctuate; therefore, you may have a gain or loss when you sell your shares or units. Current
performance may be higher or lower than the performance data quoted. Please visit Fidelity.com/performance, Fidelity.com/college,
or call Fidelity for most recent month-end performance figures.
Domestic Stock Funds
Fund Name
Cumulative
Average Annual Total Return %
Total Return %
(as of 12/31/07)
(YTD as of 12/31/07) 1 Year
5 Year
10 Year/Life
Trading
Symbol
Fund
No.
Date of
Inception
FBCVX
FEQIX
FEQTX
FSLVX
FLVEX
01271
00023
00319
00708
01828
06/17/03
05/16/66
08/21/90
11/15/01
04/19/07
4.36
1.40
4.47
3.74
-4.20
4.36
1.40
4.47
3.74
——
——
13.19
12.61
14.91
——
FBMAX
FDEQX
FDGFX
FOHIX
FFIDX
FGRIX
FLCEX
FGRTX
FSMKX
FSMAX
FSTMX
FSTVX
FDSSX
FTXMX
FTRNX
01956
00315
00330
01846
00003
00027
01827
00361
00317
01519
00397
01520
00320
00343
00005
08/21/07
12/28/88
04/27/93
03/29/07
04/30/30
12/30/85
04/19/07
12/28/98
03/06/90
10/14/05
11/05/97
10/14/05
09/28/90
11/02/98
06/16/58
4.40
10.84
1.11
7.10
16.81
0.74
2.15
11.05
5.43
5.46
5.57
5.60
11.79
14.18
18.87
——
10.84
1.11
——
16.81
0.74
——
11.05
5.43
5.46
5.57
5.60
11.79
14.18
18.87
FBGRX
FDCAX
FCNTX
FEXPX
FFTYX
FNCMX
FTQGX
FDGRX
FDSVX
FDFFX
FSLGX
FLGEX
FLCSX
FMAGX
FOCPX
00312
00307
00022
00332
00500
01282
00333
00025
00339
00073
00763
01829
00338
00021
00093
12/31/87
11/26/86
05/17/67
10/04/94
09/17/93
09/25/03
11/12/96
01/17/83
03/31/98
03/25/83
11/15/01
04/19/07
06/22/95
05/02/63
12/31/84
11.83
6.86
19.78
15.29
12.63
10.50
17.03
19.89
26.84
29.54
2.06
3.40
13.09
18.83
26.14
FSMVX
FDVLX
00762 11/15/01
00039 12/01/78
2.66
2.21
Notes:
Expense
Ratio %13
Expense
Cap %
Turnover
Rate %8
Redemption
Fee (%/days)
12.339
6.70
6.97
9.119
-4.209
0.87
0.68
0.67
0.90
0.45
1.00ß
——
——
——
——
92
19
44
157
88
——
——
——
——
——
——
14.82
9.39
——
14.40
8.41
——
11.89
12.72
12.74
13.85
13.87
14.04
15.60
15.33
4.409
7.21
7.13
7.109
6.96
4.44
2.159
3.699
5.78
5.79
6.26
6.27
5.76
5.649
6.63
1.00
0.91
0.61
0.20
0.57
0.68
0.45
0.81
0.10
0.07
0.10
0.07
0.87
0.84
0.81
1.00ß
——
——
——
——
——
——
0.90ß
——
——
——
——
——
1.00ß
——
4
152
36
1
50
52
42
94
7
7
3
3
91
131
255
——
——
——
——
——
——
——
——
——
——
0.50/90
0.50/90
——
1.00/2 y
——
11.83
6.86
19.78
15.29
12.63
10.50
17.03
19.89
26.84
29.54
2.06
——
13.09
18.83
26.14
10.24
16.77
17.99
16.77
12.44
——
15.65
18.77
14.38
17.29
11.93
——
12.82
12.71
17.17
4.28
8.24
10.72
12.10
9.77
9.659
4.95
9.65
8.249
10.70
3.729
3.409
5.80
6.31
8.59
0.60
0.83
0.90
0.82
0.84
0.58
1.20
0.97
0.81
0.87
1.10
0.45
0.82
0.54
0.96
——
——
——
——
——
0.35Δ
1.00ß
——
——
——
1.00ß
——
——
——
——
87
135
67
47
236
17
343
46
199
187
481
47
117
42
121
——
——
——
0.75/30
——
0.75/90
——
——
——
——
——
——
——
——
——
2.66
2.21
16.80
16.98
11.919
10.12
0.84
0.70
——
——
199
44
0.75/30
——
Large Cap Value
.
.
.
.
.
.
.
.
.
.
.
.
Large Cap Blend
▼
CLOSED
▼
CLOSED
Blue Chip Value10
Equity-Income
Equity-Income II
Large Cap Value10
Large Cap Value Enhanced Index
Broad Market Opportunities
Disciplined Equity
Dividend Growth
Fidelity 100 Index Fund
Fidelity® Fund
Growth & Income Portfolio
Large Cap Core Enhanced Index
Mega Cap Stock
Spartan® 500 Index
Spartan® 500 Index21
Spartan® Total Market Index
Spartan® Total Market Index21
Stock Selector
Tax Managed Stock‡
Trend 32
(Formerly Growth & Income II Portfolio)
(Investor Class)
(Fidelity Advantage Class)
(Investor Class)
(Fidelity Advantage Class)
.
.
.
.
.
.
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.
.
.
.
.
.
.
.
.
.
.
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.
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.
.
.
.
▼
CLOSED
▼
CLOSED
Large Cap Growth
Blue Chip Growth
Capital Appreciation
Contrafund®
Export and Multinational1
Fidelity Fifty®
Fidelity® Nasdaq Composite® Index
Focused Stock27
Growth Company
Growth Discovery32
Independence
Large Cap Growth
Large Cap Growth Enhanced Index
Large Cap Stock
Magellan®
OTC Portfolio11
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Mid Cap Value
Mid Cap Value10,14
Value10
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.
.
‡ Return after taxes on distribution: 1 yr. 12.97%, 3 yr. 13.28%, 5 yr. 15.53%, 10 yr./Life of Fund 5.56%; Return after taxes on distributions and sale of fund
shares: 1 yr. 8.59%, 3 yr. 11.54%, 5 yr. 13.74%, 10 yr./Life of Fund 4.90%. Returns after taxes are calculated using the historical maximum federal individual marginal
income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and are not relevant if you hold shares through
tax-deferred arrangements such as IRAs or 401(k) plans. Return after taxes on distributions and sale of fund shares may exceed before-tax return as a result of an imputed
benefit received upon realization of tax losses. Tax-sensitive investing may not provide as high a return as other types of investing before consideration of federal income tax
consequences. Tax-sensitive investing can result in realized capital gains. You may have a gain or loss when you sell your shares.
FIDELITY.COM
FIDELITY MUTUAL FUND PERFORMANCE THROUGH 12/31/2007 P3
RetailPerfPages_4Q07
1/16/08
9:04 PM
Page 4
FIDELITY MUTUAL FUND PERFORMANCE
Quarter ending December 31, 2007
Domestic Stock Funds (continued from previous page)
Fund Name
Trading
Symbol
Fund
No.
Date of
Inception
FLVCX
FLPSX
FSEMX
FSEVX
FVDFX
FSLSX
00122
00316
00398
01521
00832
00014
12/19/00
12/27/89
11/05/97
10/14/05
12/10/02
12/31/83
FDEGX
FMEIX
FSMGX
FMCSX
FMILX
00324
02012
00793
00337
00300
FESCX
FSOPX
FSCRX
FSLCX
FCPVX
02011
01799
00384
00340
01389
FCPGX
FDSCX
Notes:
Cumulative
Average Annual Total Return %
Total Return %
(as of 12/31/07)
(YTD as of 12/31/07) 1 Year
5 Year
10 Year/Life
Expense
Ratio %13
Expense
Cap %
Turnover
Rate %8
Redemption
Fee (%/days)
▼
CLOSED
Mid Cap Blend
Leveraged Company Stock15
Low-Priced Stock11
Spartan® Extended Market Index
Spartan® Extended Market Index21
Value Discovery10
Value Strategies10,24,31
17.90
3.16
5.38
5.41
9.71
5.61
17.90
3.16
5.38
5.41
9.71
5.61
31.81
17.84
17.62
17.64
17.45
18.43
22.059
12.99
7.48
7.49
16.949
10.17
0.83
0.97
0.10
0.07
0.87
0.93
——
——
——
——
——
1.00ß
20
11
14
14
146
195
1.50/90
1.50/90
0.75/90
0.75/90
——
——
12/28/90
12/20/07
11/15/01
03/29/94
12/28/92
18.78
——
2.44
8.20
16.48
18.78
——
2.44
8.20
16.48
15.53
——
15.46
15.94
15.83
3.07
——
6.919
10.90
13.10
0.77
0.60
1.02
0.83
0.93
——
——
1.00ß
——
——
154
——
248
46
97
1.50/90
0.75/30
0.75/30
0.75/30
——
12/20/07
03/22/07
09/26/00
03/12/98
11/03/04
——
-6.95
-2.65
7.70
1.10
——
——
-2.65
7.70
1.10
——
——
12.46
16.80
——
——
-6.959
9.229
10.989
14.539
0.67
1.05
1.04
0.96
1.11
——
1.15ß
1.05ß
——
——
——
176
103
115
67
1.50/90
1.50/90
1.50/90
2.00/90
1.50/90
01388 11/03/04
00336 06/28/93
16.81
7.30
16.81
7.30
——
16.18
18.829
7.13
1.10
1.01
——
——
91
84
1.50/90
1.50/90
(Investor Class)
(Fidelity Advantage Class)
.
.
.
.
.
.
.
Mid Cap Growth
▼
CLOSED
NEW
Aggressive Growth11
Mid Cap Enhanced Index
Mid Cap Growth14
Mid-Cap Stock14
New Millennium Fund®
.
.
.
.
.
.
.
.
.
.
Small Cap Blend
▼
CLOSED
▼
NEW
Small Cap Enhanced Index
Small Cap Opportunities11
Small Cap Retirement11
Small Cap Stock11
Small Cap Value10, 11
.
.
.
.
.
.
.
.
.
.
.
Small Cap Growth
Small Cap Growth11
Small Cap Independence11
.
.
.
Foreign Stock Funds
Foreign investments involve greater risks and may offer greater potential returns than U.S. investments. These risks include
political and economic uncertainties of foreign countries, as well as the risk of currency fluctuations.
Fund Name
Trading
Symbol
Fund
No.
Date of
Inception
FIVFX
FDIVX
FGBLX
FIGRX
FIEFX
FIGFX
FISMX
FSCOX
FIVLX
FOSFX
FSIIX
FSIVX
FTIEX
FWWFX
00335
00325
00334
00305
02010
01979
00818
01504
01597
00094
00399
01522
01978
00318
11/01/94
12/27/91
02/01/93
12/31/86
12/20/07
11/01/07
09/18/02
08/02/05
05/18/06
12/04/84
11/05/97
10/14/05
11/01/07
05/30/90
00309
00352
00301
00341
00350
00360
00342
00302
11/17/87
11/01/95
10/01/86
12/21/93
09/15/92
11/01/95
11/01/95
10/01/86
Notes:
Cumulative
Average Annual Total Return %
Total Return %
(as of 12/31/07)
(YTD as of 12/31/07) 1 Year
5 Year
10 Year/Life
Expense
Ratio %13
Expense
Cap %
Turnover
Rate %8
Redemption
Fee (%/days)
▼
CLOSED
Broadly Diversified
NEW
CLOSED
▼
NEW
NEW
Aggressive International26
Diversified International
Global Balanced
International Discovery28
International Enhanced Index
International Growth
International Small Cap11
International Small Cap Opportunities11
International Value10
Overseas
Spartan® International Index
Spartan® International Index21
Total International Equity
Worldwide
5.20
16.03
13.77
18.98
——
-4.35
13.21
2.95
9.50
21.82
10.72
10.75
-5.45
18.49
5.20
16.03
13.77
18.98
——
——
13.21
2.95
9.50
21.82
10.72
10.75
——
18.49
16.83
23.21
15.80
24.49
——
——
31.32
——
——
23.46
21.37
21.39
——
19.67
8.02
13.39
9.35
12.45
——
-4.359
30.759
22.319
13.509
9.27
8.69
8.70
-5.459
9.20
0.85
0.93
1.14
1.04
0.62
1.17
1.19
1.30
1.03
0.95
0.20
0.17
1.12
1.04
——
——
1.25ß
——
——
1.25ß
——
——
1.25ß
——
0.10ß
0.07ß
1.25ß
——
138
51
169
56
——
——
70
107
59
87
3
3
——
128
1.00/30
1.00/30
1.00/30
1.00/30
1.00/30
1.00/30
2.00/90
2.00/90
1.00/30
1.00/30
1.00/90
1.00/90
1.00/30
1.00/30
35.02
46.26
16.41
14.76
-2.68
-12.35
23.22
25.23
35.02
46.26
16.41
14.76
-2.68
-12.35
23.22
25.23
30.18
28.64
26.68
23.54
14.92
13.85
29.75
24.99
15.82
14.47
10.28
11.67
8.07
13.02
15.15
13.22
0.96
1.08
1.06
1.05
1.08
1.02
1.06
1.19
——
——
——
——
——
——
1.25ß
——
42
173
100
161
158
76
62
91
1.50/90
1.50/90
1.00/30
1.00/30
1.50/90
1.50/90
1.50/90
1.50/90
.
(Investor Class)
(Fidelity Advantage Class)
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
▼
CLOSED
Regional/Country Specific
Canada
China Region25
Europe
Europe Capital Appreciation
Japan
Japan Smaller Companies11
Nordic
Pacific Basin
FICDX
FHKCX
FIEUX
FECAX
FJPNX
FJSCX
FNORX
FPBFX
P4 FIDELITY MUTUAL FUND PERFORMANCE THROUGH 12/31/2007
.
.
.
.
.
.
.
1.800.FIDELITY
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9:06 PM
Page 5
FIDELITY MUTUAL FUND PERFORMANCE
Quarter ending December 31, 2007
Foreign Stock Funds
Foreign investments involve greater risks and may offer greater potential returns than U.S. investments. These risks include
political and economic uncertainties of foreign countries, as well as the risk of currency fluctuations.
Fund Name
Trading
Symbol
Fund
No.
Date of
Inception
FEMKX
FLATX
FSEAX
00322 11/01/90
00349 04/19/93
00351 04/19/93
Cumulative
Average Annual Total Return %
Total Return %
(as of 12/31/07)
(YTD as of 12/31/07) 1 Year
5 Year
10 Year/Life
Notes:
Expense
Ratio %13
Expense
Cap %
Turnover
Rate %8
Redemption
Fee (%/days)
Emerging Markets
Emerging Markets
Latin America
Southeast Asia
45.06
43.71
55.39
45.06
43.71
55.39
38.56
49.74
37.57
14.56
16.00
18.11
1.05
1.00
1.09
——
——
——
.
.
.
52
52
72
1.50/90
1.50/90
1.50/90
Specialty/Select Portfolios®
Because of their narrow focus, sector funds may be more volatile than funds that diversify across many sectors.
Date of
Inception
30-Day
Current Yield %
Ended 12/31/07/Notes
Cumulative
Average Annual Total Return %
Total Return %
(as of 12/31/07)
(YTD as of 12/31/07) 1 Year
5 Year
10 Year/Life
Trading
Symbol
Fund
No.
FCVSX
FIUIX
00308 01/05/87
00311 11/27/87
1.60
16.24
10.83
16.24
10.83
14.93
18.41
12.04
6.50
0.83
0.85
——
——
37
61
——
——
International Real Estate1,17
FIREX
Real Estate Income17
FRIFX
Real Estate Investment Portfolio17 FRESX
01368 09/15/04
00833 02/04/03
00303 11/17/86
1.77
6.43
2.64
-8.25
-6.45
-21.34
-8.25
-6.45
-21.34
——
——
16.59
19.169
7.819
10.20
1.07
0.88
0.83
——
——
——
144
45
47
1.50/90
0.75/90
0.75/90
-1.92
0.01
-21.18
2.65
-0.15
28.42
9.78
22.44
-13.87
-8.31
21.49
17.81
4.67
45.53
55.21
12.44
-13.59
24.93
12.45
-37.96
23.18
17.70
-4.35
11.54
4.19
29.21
16.86
17.87
-9.28
40.91
50.08
0.40
0.76
13.40
-1.92
0.01
-21.18
2.65
-0.15
28.42
9.78
22.44
-13.87
-8.31
21.49
17.81
4.67
45.53
55.21
12.44
-13.59
24.93
12.45
-37.96
23.18
17.70
-4.35
11.54
4.19
29.21
16.86
17.87
-9.28
40.91
50.08
0.40
0.76
13.40
17.82
11.35
5.64
11.48
19.38
22.17
17.87
17.01
13.32
7.60
15.35
22.57
13.50
32.52
30.42
13.49
9.38
21.28
11.69
0.04
19.83
20.87
11.74
14.42
16.00
24.56
22.94
15.60
10.49
31.29
33.08
10.73
5.82
11.72
11.03
5.17
3.79
8.93
12.42
11.05
7.27
8.63
9.16
3.97
8.53
13.73
7.42
16.99
14.44
1.69
6.50
15.89
8.54
0.78
9.10
11.04
10.49
10.709
9.00
12.34
10.33
15.289
7.89
17.83
17.30
-17.439
5.31
3.689
1.00
1.42
0.93
0.93
0.90
0.99
0.94
0.95
0.95
1.14
1.01
0.92
0.91
0.89
0.88
1.11
0.93
0.90
0.88
0.93
0.99
1.03
0.98
1.19
0.96
1.01
0.95
0.93
1.04
0.90
0.93
1.00
1.16
1.02
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
32
360
71
137
39
88
36
261
73
132
108
35
100
50
32
80
51
71
114
24
120
107
74
181
74
68
106
162
66
78
36
32
277
114
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
Fund Name
Expense
Ratio %13
Expense
Cap %
Turnover
Rate %8
Redemption
Fee (%/days)
Specialty
Convertible Securities
Utilities
.
.
.
.
Real Estate
.
.
.
.
.
Fidelity Select Portfolios®
Air Transportation22
FSAIX
Automotive23
FSAVX
Banking23
FSRBX
Biotechnology23
FBIOX
Brokerage and Investment Mgmt23 FSLBX
Chemicals23
FSCHX
Communications Equipment22 FSDCX
Computers23
FDCPX
Construction and Housing23
FSHOX
Consumer Discretionary22
FSCPX
Consumer Staples22
FDFAX
Defense and Aerospace23
FSDAX
Electronics23
FSELX
Energy23
FSENX
Energy Service23
FSESX
Environmental23
FSLEX
Financial Services23
FIDSX
Gold23
FSAGX
Health Care23
FSPHX
Home Finance23
FSVLX
Industrial Equipment23
FSCGX
Industrials22
FCYIX
Insurance23
FSPCX
IT Services22
FBSOX
Leisure23
FDLSX
Materials22
FSDPX
Medical Delivery23
FSHCX
Medical Equipment and Systems23 FSMEX
Multimedia23
FBMPX
Natural Gas23
FSNGX
Natural Resources
FNARX
Networking and Infrastructure23 FNINX
Paper and Forest Products23
FSPFX
Pharmaceuticals23
FPHAX
FIDELITY.COM
00034
00502
00507
00042
00068
00069
00518
00007
00511
00517
00009
00067
00008
00060
00043
00516
00066
00041
00063
00098
00510
00515
00045
00353
00062
00509
00505
00354
00503
00513
00514
00912
00506
00580
12/16/85
06/30/86
06/30/86
12/16/85
07/29/85
07/29/85
06/29/90
07/29/85
09/29/86
06/29/90
07/29/85
05/08/84
07/29/85
07/14/81
12/16/85
06/29/89
12/10/81
12/16/85
07/14/81
12/16/85
09/29/86
03/03/97
12/16/85
02/04/98
05/08/84
09/29/86
06/30/86
04/28/98
06/30/86
04/21/93
03/03/97
09/21/00
06/30/86
06/18/01
FIDELITY MUTUAL FUND PERFORMANCE THROUGH 12/31/2007 P5
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1/16/08
9:06 PM
Page 6
FIDELITY MUTUAL FUND PERFORMANCE
Quarter ending December 31, 2007
Specialty/Select Portfolios®
Because of their narrow focus, sector funds may be more volatile than funds that diversify across many sectors.
Fund Name
Trading
Symbol
Fund
No.
Date of
Inception
00046
00028
00064
00096
00512
00065
00963
12/16/85
07/29/85
07/14/81
07/29/85
09/29/86
12/10/81
09/21/00
30-Day
Current Yield %
Ended 12/31/07/Notes
Cumulative
Average Annual Total Return %
Total Return %
(as of 12/31/07)
(YTD as of 12/31/07) 1 Year
5 Year
10 Year/Life
Expense
Ratio %13
Expense
Cap %
Turnover
Rate %8
Redemption
Fee (%/days)
196
25
175
97
53
171
76
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
0.75/30
Fidelity Select Portfolios®
Retailing23
FSRPX
Software and Computer Services23 FSCSX
Technology23
FSPTX
Telecommunications23
FSTCX
Transportation23
FSRFX
Utilities Growth22
FSUTX
Wireless23
FWRLX
-7.97
23.88
19.78
8.20
-0.59
18.13
27.46
-7.97
23.88
19.78
8.20
-0.59
18.13
27.46
11.55
17.61
16.68
16.30
16.40
21.42
31.28
6.40
13.67
9.64
4.77
10.56
8.38
-0.729
1.06
0.92
0.95
0.99
1.03
0.93
0.97
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
1.15ß
Bond Funds: Seek current income from bonds.
Fund Name
30-Day
Taxable
Cumulative
Average Annual Total Return %
Current Yield % Equivalent Total Return %
(as of 12/31/07)
7
Ended 12/31/07 Yield % /Notes (YTD as of 12/31/07) 1 Year
5 Year
10 Year/Life
Trading
Symbol
Fund
No.
Date of
Inception
FGMNX
FGOVX
FINPX
FTHRX
FSTGX
FBNDX
FMSFX
FSHBX
FIBAX
FIBIX
FLBAX
FLBIX
FSBAX
FSBIX
FTBFX
FBIDX
FUSFX
00015
00054
00794
00032
00452
00026
00040
00450
01564
01561
01565
01562
01563
01560
00820
00651
00812
11/08/85
04/04/79
06/26/02
05/23/75
05/02/88
08/06/71
12/31/84
09/15/86
12/20/05
12/20/05
12/20/05
12/20/05
12/20/05
12/20/05
10/15/02
03/08/90
08/29/02
4.93
4.23
1.91
4.82
4.09
5.14
5.40
4.84
3.94
3.84
4.44
4.34
3.14
3.05
5.06
4.84
5.62
FLTMX
FHIGX
FSTFX
FTABX
00036
00037
00404
00090
04/15/77
12/01/77
12/24/86
04/10/01
3.51
3.80
3.01
3.88
5.24
5.69
4.49
5.79
FSAZX
FCTFX
FCSTX
FICNX
SMDMX
FDMMX
FMHTX
FIMIX
FNJHX
FTFMX
FOHFX
FPXTX
00434
00091
01534
00407
00429
00070
00081
00082
00416
00071
00088
00402
10/11/94
07/07/84
10/25/05
10/29/87
04/22/93
11/10/83
11/12/85
11/21/85
01/01/88
07/10/84
11/15/85
08/06/86
3.67
3.77
3.09
3.41
3.55
3.65
3.46
3.51
3.51
3.63
3.49
3.44
5.75
6.20
5.08
5.37
5.77
5.77
5.39
5.69
5.60
6.07
5.57
5.30
00038 11/01/77
00814 09/19/02
01366 09/15/04
6.94
7.12
6.88
Expense
Ratio %13
Expense
Cap %
Turnover
Rate %8
Redemption
Fee (%/days)
Taxable Bond
Ginnie Mae18
Government IncomeΩ
Inflation-Protected Bond 19
Intermediate Bond
Intermediate Govt IncomeΩ
Investment Grade Bond
Mortgage Securities18,30
Short-Term Bond
Spartan® Intermediate Treasury Bond IndexΩ
Spartan® Intermediate Treasury Bond IndexΩ
Spartan® Long-Term Treasury Bond IndexΩ
Spartan® Long-Term Treasury Bond IndexΩ
Spartan® Short-Term Treasury Bond IndexΩ
Spartan® Short-Term Treasury Bond IndexΩ
Total Bond
U.S. Bond Index
Ultra-Short Bond
6.76
7.91
9.07
3.96
7.91
2.59
-0.39
1.65
(Fidelity Advantage Class) 10.20
(Investor Class)
10.09
(Fidelity Advantage Class) 9.65
(Investor Class)
9.54
(Fidelity Advantage Class) 8.10
(Investor Class)
7.89
4.16
5.40
-5.09
6.76
7.91
9.07
3.96
7.91
2.59
-0.39
1.65
10.20
10.09
9.65
9.54
8.10
7.89
4.16
5.40
-5.09
3.98
3.92
5.43
3.62
3.44
3.87
2.97
2.76
——
——
——
——
——
——
4.61
4.25
1.13
5.38
5.54
6.379
5.37
5.33
5.45
5.01
4.52
6.579
6.469
6.199
6.099
5.879
5.719
5.099
5.83
1.249
0.45
0.45
0.45
0.45
0.45
0.45
0.45
0.45
0.10
0.20
0.10
0.20
0.10
0.20
0.45
0.50
0.45
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
0.32∂
——
165
164
13
94
121
181
409
82
86
86
86
86
124
124
116
174
29
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
0.25/60
3.97
3.13
4.43
3.22
3.97
3.13
4.43
3.22
3.91
4.41
2.65
4.56
4.77
5.27
3.78
5.569
0.43
0.47
0.49
0.50
——
——
——
0.25ß
20
27
26
16
0.50/30
0.50/30
0.50/30
0.50/30
2.57
2.90
4.28
3.78
3.04
3.29
3.73
3.19
3.66
3.32
3.59
3.94
2.57
2.90
4.28
3.78
3.04
3.29
3.73
3.19
3.66
3.32
3.59
3.94
3.73
4.19
——
3.68
3.76
4.29
4.11
3.83
4.19
4.18
4.22
4.01
4.73
4.98
4.009
4.75
4.64
5.03
4.88
4.55
5.01
5.13
4.95
4.82
0.55
0.47
0.57
0.48
0.55
0.47
0.49
0.50
0.48
0.48
0.49
0.50
——
0.55ß
0.35ß
0.55ß
——
0.55ß
0.55ß
0.55ß
0.55ß
0.55ß
0.55ß
0.55ß
15
38
25
2
18
21
18
12
6
18
25
21
0.50/30
0.50/30
0.50/30
0.50/30
0.50/30
0.50/30
0.50/30
0.50/30
0.50/30
0.50/30
0.50/30
0.50/30
3.82
2.67
3.09
3.82
2.67
3.09
14.06
4.83
——
7.02
4.429
5.539
0.76
0.71
1.00
——
——
0.85ß
45
69
79
1.00/90
1.00/60
1.00/90
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Federal Municipal
Intermediate Muni Inc5
Muni Income5
Short-Inter Muni Inc5
Tax-Free Bond5
.
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.
State Municipal
Arizona Muni Income5
California Muni Income5
California Short-Intermediate Tax-Free5
Connecticut Muni Income5
Maryland Muni Income5
Massachusetts Muni Income5
Michigan Muni Income5
Minnesota Muni Income5
New Jersey Muni Income5
New York Muni Income5
Ohio Muni Income5
Pennsylvania Muni Income5
.
.
.
High Yield/Multisector
Capital & Income4
FAGIX
Floating Rate High Income4,16,29 FFRHX
Focused High Income4
FHIFX
.
.
.
Ω
It is important to note that neither the fund nor its yield is guaranteed by the U.S. government.
P6 FIDELITY MUTUAL FUND PERFORMANCE THROUGH 12/31/2007
1.800.FIDELITY
RetailPerfPages_4Q07
1/16/08
9:07 PM
Page 7
FIDELITY MUTUAL FUND PERFORMANCE
Quarter ending December 31, 2007
Bond Funds: Seek current income from bonds.
Trading
Symbol
Fund Name
Fund
No.
Date of
Inception
30-Day
Taxable
Cumulative
Average Annual Total Return %
Current Yield % Equivalent Total Return %
(as of 12/31/07)
Ended 12/31/07 Yield %7/Notes (YTD as of 12/31/07) 1 Year
5 Year
10 Year/Life
Expense
Ratio %13
Expense
Cap %
Turnover
Rate %8
Redemption
Fee (%/days)
High Yield/Multisector (continued from previous page)
High Income4
Strategic Income1,4
Strategic Real Return
SPHIX
FSICX
FSRRX
00455 08/29/90
00368 05/01/98
01505 09/07/05
7.93
5.88
4.26
2.36
5.44
3.76
2.36
5.44
3.76
10.40
8.83
——
4.35
7.279
4.309
0.75
0.75
0.74
——
——
——
37
81
19
1.00/90
——
0.75/60
FNMIX
00331 05/04/93
5.88
5.71
5.71
14.15
10.95
0.91
——
47
1.00/90
Trading
Symbol
Fund
No.
Date of
Inception
30-Day
Current Yield %
Ended 12/31/07
FBALX
FDYSX
FFNOX
FPURX
FSDIX
00304
01960
00355
00004
01329
11/06/86
10/31/07
06/29/99
04/16/47
12/23/03
FIRJX
FIRKX
FIRLX
FIRMX
FIRNX
FIROX
FIRPX
FIRQX
FIRRX
FIRSX
FIRUX
FIRVX
FIRWX
FIXRX
01884
01885
01886
01887
01888
01889
01890
01891
01892
01893
01894
01995
02009
01996
08/30/07
08/30/07
08/30/07
08/30/07
08/30/07
08/30/07
08/30/07
08/30/07
08/30/07
08/30/07
08/30/07
12/31/07
12/31/07
12/31/07
FASIX
FTANX
FFANX
FASMX
FSANX
FASGX
FAMRX
00328
01957
01958
00314
01959
00321
00347
10/01/92
10/09/07
10/09/07
12/28/88
10/09/07
12/30/91
09/24/99
FFFAX
FFFBX
FFFVX
FFFCX
FFVFX
FFFDX
FFTWX
FFFEX
FFTHX
FFFFX
FFFGX
FFFHX
00369
00370
01312
00371
01313
00372
01314
00373
01315
00718
01617
01618
10/17/96
10/17/96
11/06/03
10/17/96
11/06/03
10/17/96
11/06/03
10/17/96
11/06/03
09/06/00
06/01/06
06/01/06
.
.
.
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.
International Bond
New Markets Income1,4
.
Asset Allocation
Fund Name
Cumulative
Average Annual Total Return %
Total Return %
(as of 12/31/07)
(YTD as of 12/31/07) 1 Year
5 Year
10 Year/Life
Expense
Ratio %13
Expense
Cap %
Turnover
Rate %8
Redemption
Fee (%/days)
Hybrid
NEW
Balanced
Dynamic Strategies
Four-in-One Index1
Puritan®
Strategic Dividend & Income®
2.12
2.83
1.98
8.99
-2.81
6.16
6.17
3.14
8.99
——
6.16
6.17
3.14
13.89
——
13.46
11.24
——
9.47
-2.819
4.609
7.21
10.519
0.61
1.12
0.23
0.60
0.80
——
——
0.08ß
——
——
89
——
7
70
88
——
——
——
——
——
2.66
2.81
2.83
2.93
3.21
3.06
3.14
3.20
3.28
3.38
3.51
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
2.669
2.819
2.839
2.939
3.219
3.069
3.149
3.209
3.289
3.389
3.519
——
——
——
0.54
0.56
0.57
0.58
0.59
0.60
0.61
0.62
0.63
0.64
0.65
0.66
0.66
0.67
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
4.77
-1.39
-2.13
6.33
-3.55
7.20
7.94
4.77
——
——
6.33
——
7.20
7.94
7.77
——
——
8.32
——
9.68
16.54
5.88
-1.399
-2.139
5.93
-3.559
5.09
6.119
0.57
0.96
1.36
0.71
1.65
0.80
0.90
——
0.85ß
0.85ß
——
1.00ß
——
——
6
——
——
12
——
14
31
——
——
——
——
——
——
——
4.83
5.32
7.27
7.43
7.82
8.54
8.64
9.27
9.27
9.31
9.50
9.77
4.83
5.32
7.27
7.43
7.82
8.54
8.64
9.27
9.27
9.31
9.50
9.77
5.23
5.95
——
9.36
——
12.30
——
13.75
——
14.59
——
——
5.23
5.82
7.769
7.14
9.049
7.56
10.419
7.55
11.379
2.639
11.819
11.999
0.55
0.57
0.68
0.68
0.72
0.76
0.78
0.80
0.81
0.82
0.83
0.84
——
——
——
——
——
——
——
——
——
——
——
——
30
35
28
30
24
33
26
36
30
36
16
13
——
——
——
——
——
——
——
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——
——
——
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Income Replacement
NEW
NEW
NEW
Income Replacement 201633
Income Replacement 201833
Income Replacement 202033
Income Replacement 202233
Income Replacement 202433
Income Replacement 202633
Income Replacement 202833
Income Replacement 203033
Income Replacement 203233
Income Replacement 203433
Income Replacement 203633
Income Replacement 203833
Income Replacement 204033
Income Replacement 204233
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Target Risk
NEW
NEW
NEW
Asset Manager
Asset Manager
Asset Manager
Asset Manager
Asset Manager
Asset Manager
Asset Manager
SM
SM
SM
SM
SM
SM
SM
20%
30%
40%
50%
60%
70%
85%
4.17
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Target Date
Freedom Income33
Freedom 200033
Freedom 200533
Freedom 201033
Freedom 201533
Freedom 202033
Freedom 202533
Freedom 203033
Freedom 203533
Freedom 204033
Freedom 204533
Freedom 205033
FIDELITY.COM
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FIDELITY MUTUAL FUND PERFORMANCE THROUGH 12/31/2007 P7
RetailPerfPages_4Q07
1/19/08
9:06 AM
Page 8
FIDELITY MUTUAL FUND PERFORMANCE
Quarter ending December 31, 2007
Money Market Funds
Municipal:
12
Seek current income exempt from federal (and, in some cases, state and local) taxes, and preservation of capital.
Fund Name
Trading
Symbol
7 days ended 12/31/07
Cumulative
7-Day Compound Taxable
Total
Average Annual Total Return %
Current Effective Equivalent
Return %
(as of 12/31/07)
Yield % Yield %
Yield %7 (YTD as of 12/31/07) 1 Year
5 Year 10 Year/Life
Fund
No.
Date of
Inception
00055
00057
00059
02013
00690
02014
00695
00680
00458
00454
00415
00050
00085
05/10/79
07/25/85
07/05/85
12/12/07
11/03/89
12/12/07
02/02/87
10/03/90
02/05/90
01/23/89
01/05/88
11/03/81
08/30/85
4.75
4.48
5.01
5.04
4.95
5.01
3.52
3.40
4.31
4.76
3.26
4.41
4.81
4.86
4.58
5.13
5.17
5.08
5.14
3.59
3.46
4.40
4.88
3.31
4.51
4.93
01/14/91
07/25/85
01/02/80
06/19/01
3.11
3.25
3.04
3.00
3.16
3.30
3.08
3.04
10/11/94
11/27/89
04/18/07
07/07/84
08/29/89
03/04/91
04/18/07
11/11/83
01/12/90
05/01/90
04/18/07
03/17/88
02/03/90
04/18/07
07/06/84
08/29/89
08/06/86
2.99
3.10
3.19
2.91
2.96
3.09
3.18
2.91
2.91
3.12
3.21
2.91
3.12
3.21
2.93
2.94
2.96
3.04
3.15
3.24
2.95
3.01
3.14
3.23
2.95
2.95
3.17
3.26
2.96
3.17
3.26
2.98
2.99
3.00
Expense
Ratio %13
NonRetirement
Expense
Investment
Cap % Minimum $
Taxable Money Market
NEW
NEW
Cash Reserves
FDRXX
FIMM: Government Portfolio FIGXX
FIMM: Money Mkt Portfolio-CL I FMPXX
FIMM: Money Mkt Portfolio-Inst CL FNSXX
FIMM: Prime Money Mkt Portfolio-CL I FIDXX
FIMM: Prime Money Mkt Portfolio-Inst CL FIPXX
FIMM: Treasury Portfolio
FISXX
FIMM: Treasury Only Portfolio FSIXX
Fidelity Government Money Mkt6 SPAXX
Fidelity Money Mkt6
SPRXX
Fidelity U.S. Treasury Money Mkt6 FDLXX
Fidelity U.S. Government Reserves FGRXX
Select Money Mkt Portfolio
FSLXX
5.06
5.13
5.32
——
5.28
——
4.85
4.59
4.90
5.09
4.38
4.97
5.14
5.06
5.13
5.32
——
5.28
——
4.85
4.59
4.90
5.09
4.38
4.97
5.14
2.92
3.07
3.15
——
3.14
——
2.97
2.82
2.85
2.94
2.61
2.92
2.97
3.67
3.80
3.89
——
3.87
——
3.69
3.57
3.60
3.68
3.34
3.65
3.66
0.45
0.22
0.21
0.18
0.21
0.18
0.21
0.22
0.42
0.42
0.49
0.38
0.39
——
2,500
0.20ß 1,000,000
0.18ß 1,000,000
0.14ß 10,000,000
0.20ß 1,000,000
0.14ß 10,000,000
0.20ß 1,000,000
0.20ß 1,000,000
——
25,000
——
25,000
——
25,000
——
2,500
1.25ß
2,500
4.64
4.85
4.54
4.48
3.43
3.53
3.34
3.30
3.43
3.53
3.34
3.30
2.12
2.23
2.01
1.99
2.47
2.59
2.36
1.859
0.43
0.22
0.43
0.48
0.33ß
0.20ß
——
0.45ß
25,000
1,000,000
5,000
5,000
4.67
5.10
5.25
4.79
4.66
4.86
5.02
4.59
4.52
4.98
5.13
4.66
5.20
5.35
4.89
4.70
4.56
3.26
3.39
3.47
3.20
3.25
3.39
3.46
3.20
3.21
3.41
3.48
3.23
3.39
3.46
3.22
3.22
3.25
3.26
3.39
3.47
3.20
3.25
3.39
3.46
3.20
3.21
3.41
3.48
3.23
3.39
3.46
3.22
3.22
3.25
1.95
2.07
2.08
1.90
1.92
2.03
2.04
1.90
1.90
2.07
2.08
1.90
2.03
2.05
1.91
1.92
1.95
2.32
2.28
2.28
2.14
2.19
2.31
2.32
2.21
2.24
2.34
2.35
2.20
2.33
2.33
2.22
2.29
2.32
0.50
0.30
0.25
0.52
0.50
0.30
0.25
0.51
0.56
0.30
0.25
0.52
0.30
0.25
0.51
0.54
0.50
——
——
0.20∂
0.53ß
0.48ß
——
0.20∂
0.53ß
0.55ß
——
0.20∂
0.55ß
——
0.20∂
0.54ß
0.55ß
——
5,000
25,000
1,000,000
5,000
5,000
25,000
1,000,000
5,000
5,000
25,000
1,000,000
5,000
25,000
1,000,000
5,000
5,000
5,000
.
.
.
.
.
.
.
.
Federal Municipal Money Market
AMT Tax-Free Money Fund5
FIMM: Tax Exempt Portfolio
Muni Money Mkt5
Tax-Free Money Mkt5
FIMXX
FTCXX
FTEXX
FMOXX
00460
00056
00010
00275
State Municipal Money Market
Arizona Muni Money Mkt5
FSAXX
CA AMT Tax-Free MM-Rtl Cl5 FSPXX
CA AMT Tax-Free MM-Inst Cl5 FSBXX
California Muni Money Mkt5 FCFXX
Connecticut Muni Money Mkt5
FCMXX
MA AMT Tax-Free MM-Rtl Cl5 FMSXX
MA AMT Tax-Free MM-Inst Cl5 FMAXX
Massachusetts Muni Money Mkt5 FDMXX
Michigan Muni Money Mkt5 FMIXX
NJ AMT Tax-Free MM-Rtl Cl5 FSJXX
NJ AMT Tax-Free MM-Inst Cl5 FSKXX
New Jersey Muni Money Mkt5 FNJXX
NY AMT Tax-Free MM-Rtl Cl5 FSNXX
NY AMT Tax-Free MM-Inst Cl5 FNKXX
New York Muni Money Mkt5 FNYXX
Ohio Muni Money Mkt5
FOMXX
Pennsylvania Muni Money Mkt5 FPTXX
00433
00457
01868
00097
00418
00426
01871
00074
00420
00423
01870
00417
00422
01869
00092
00419
00401
Retirement account investment minimums are lower for certain Fidelity funds.
Note: The funds’ yields reflect that a portion of the funds’ income was subject to state taxes. Compound Effective Yield assumes reinvested income.
For current annuity fund performance, please visit www.Fidelity.com/annuityperformance, or review the printed performance report included with your
quarterly statement(s). To request a printed report, or to discuss the investment options in your deferred variable or variable income annuity, please
contact an Annuity Service Representative at 1-800-634-9361, or your advisor.
P8 FIDELITY MUTUAL FUND PERFORMANCE THROUGH 12/31/2007
1.800.FIDELITY
RetailPerfPages_4Q07
1/16/08
9:08 PM
Page 9
FIDELITY 529 COLLEGE SAVINGS PLAN PERFORMANCE
Quarter ending December 31, 2007
529 College Savings Plans:
20
Each Portfolio (except Social Choice) invests in underlying Fidelity mutual funds. “Age-Based Portfolios” are
tailored toward age of beneficiary. “Static Portfolios” are designed without regard to age. “Individual Fund Portfolios” are designed without regard to age and follow
the same investment objective of the underlying mutual fund in which it invests.
Portfolio Name
Date of
Inception
Notes:
Cumulative
Total Return % Average Annual Total Return %
YTD
(as of 12/31/07)
(as of 12/31/07) 1 Year
5 Year
10 Year/Life
Portfolio
Expense
Ratio %13
Portfolio
Expense
Cap %
34
ScholarShare® College Savings Plan (California)
NEW
NEW
Age-Based and Static Portfolios (Actively Managed Funds)
CA College Portfolio
11/11/06
4.26
CA Portfolio 2009
11/11/06
5.53
CA Portfolio 2012
11/11/06
6.49
CA Portfolio 2015
11/11/06
7.64
CA Portfolio 2018
11/11/06
8.49
CA Portfolio 2021
11/11/06
9.14
CA Portfolio 2024
11/11/06
9.41
CA Portfolio 2027
12/14/07
——
CA 100% Equity Portfolio
11/11/06
10.66
CA 70% Equity Portfolio
11/11/06
8.28
CA Conservative Portfolio
11/11/06
3.18
Age-Based and Static Portfolios (Index Funds)
CA College Portfolio
11/11/06
7.15
CA Portfolio 2009
11/11/06
7.62
CA Portfolio 2012
11/11/06
7.81
CA Portfolio 2015
11/11/06
7.77
CA Portfolio 2018
11/11/06
7.44
CA Portfolio 2021
11/11/06
7.02
CA Portfolio 2024
11/11/06
6.63
CA Portfolio 2027
12/14/07
——
CA 100% Equity Portfolio
11/11/06
5.92
CA 70% Equity Portfolio
11/11/06
7.24
CA Conservative Portfolio
11/11/06
7.09
Individual and Social Choice Portfolios
CA Spartan® 500 Index Portfolio
11/11/06
5.06
CA Total Market Index Portfolio
11/11/06
5.05
CA International Index Portfolio
11/11/06
10.30
CA Intermediate Treasury Bond Index Portfolio 11/11/06
9.93
CA Money Market Portfolio◊, 35
11/11/06
4.77
7-Day Yield (%) for 12/31/07 is 4.44
CA Social Choice Portfolio
11/11/06
0.59
For more information about the ScholarShare® College Savings Plan (California), please visit ScholarShare.com.
4.26
5.53
6.49
7.64
8.49
9.14
9.41
——
10.66
8.28
3.18
——
——
——
——
——
——
——
——
——
——
——
4.559
6.039
7.249
8.639
9.769
10.719
11.149
——
12.359
9.679
3.339
0.79
0.83
0.88
0.93
0.99
1.04
1.07
1.09
1.08
1.03
0.72
——
——
——
——
——
——
——
——
——
——
——
7.15
7.62
7.81
7.77
7.44
7.02
6.63
——
5.92
7.24
7.09
——
——
——
——
——
——
——
——
——
——
——
6.909
7.599
7.949
8.379
8.469
8.469
8.209
——
7.949
8.379
6.389
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
5.06
5.05
10.30
9.93
4.77
——
——
——
——
——
6.989
7.079
13.659
8.379
4.729
0.50
0.50
0.50
0.50
0.75
0.50
0.50
0.50
0.50
——
0.59
——
2.639
0.80
——
4.92
6.11
6.96
8.07
8.76
9.23
9.20
——
10.26
8.39
3.77
4.92
6.11
6.96
8.07
8.76
9.23
9.20
——
10.26
8.39
3.77
5.06
8.75
10.25
12.28
12.97
13.71
——
——
14.35
12.08
2.99
4.639
4.839
4.979
4.959
5.199
7.529
10.249
——
5.289
5.729
3.629
0.79
0.83
0.88
0.93
0.99
1.03
1.06
1.09
1.08
1.02
0.72
——
——
——
——
——
——
——
——
——
——
——
6.93
7.68
7.84
7.69
7.56
7.03
6.63
——
6.02
7.38
7.12
6.93
7.68
7.84
7.69
7.56
7.03
6.63
——
6.02
7.38
7.12
——
——
——
——
——
——
——
——
——
——
——
6.859
8.049
8.559
9.069
9.409
9.489
9.319
——
9.319
9.069
7.109
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
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34
Delaware College Investment Plan
NEW
NEW
Age-Based and Static Portfolios (Actively Managed Funds)
DE College Portfolio
07/13/98
DE Portfolio 2009
07/13/98
DE Portfolio 2012
07/13/98
DE Portfolio 2015
07/13/98
DE Portfolio 2018
01/04/99
DE Portfolio 2021
12/13/01
DE Portfolio 2024
12/27/04
DE Portfolio 2027
12/14/07
DE 100% Equity Portfolio
05/07/01
DE 70% Equity Portfolio
05/10/01
DE Conservative Portfolio
12/13/01
Age-Based and Static Portfolios (Index Funds)
DE College Portfolio
11/02/06
DE Portfolio 2009
11/02/06
DE Portfolio 2012
11/02/06
DE Portfolio 2015
11/02/06
DE Portfolio 2018
11/02/06
DE Portfolio 2021
11/02/06
DE Portfolio 2024
11/02/06
DE Portfolio 2027
12/14/07
DE 100% Equity Portfolio
11/02/06
DE 70% Equity Portfolio
11/02/06
DE Conservative Portfolio
11/02/06
FIDELITY.COM
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FIDELITY MUTUAL FUND PERFORMANCE THROUGH 12/31/2007 P9
RetailPerfPages_4Q07
1/16/08
9:08 PM
Page 10
FIDELITY 529 COLLEGE SAVINGS PLAN PERFORMANCE
Quarter ending December 31, 2007
529 College Savings Plans:
20
Each Portfolio (except Social Choice) invests in underlying Fidelity mutual funds. “Age-Based Portfolios” are
tailored toward age of beneficiary. “Static Portfolios” are designed without regard to age. “Individual Fund Portfolios” are designed without regard to age and follow
the same investment objective of the underlying mutual fund in which it invests.
Portfolio Name
Date of
Inception
Notes:
Cumulative
Total Return % Average Annual Total Return %
YTD
(as of 12/31/07)
(as of 12/31/07) 1 Year
5 Year
10 Year/Life
Portfolio
Expense
Ratio %13
Portfolio
Expense
Cap %
34
Delaware College Investment Plan (continued from previous page)
Individual Portfolios
DE Spartan® 500 Index Portfolio
11/02/06
4.81
DE Total Market Index Portfolio
11/02/06
5.08
DE International Index Portfolio
11/02/06
10.18
DE Intermediate Treasury Bond Index Portfolio 11/02/06
9.71
DE Money Market Portfolio◊, 35
11/02/06
4.77
7-Day Yield (%) for 12/31/07 is 4.44
For more information about the Delaware College Investment Plan, please visit Fidelity.com/delaware.
4.81
5.08
10.18
9.71
4.77
——
——
——
——
——
7.709
8.219
14.389
8.219
4.729
0.50
0.50
0.50
0.50
0.75
0.50
0.50
0.50
0.50
——
——
——
——
——
——
——
——
——
——
——
——
5.13
6.719
8.019
9.469
10.719
11.819
12.209
——
13.189
10.519
3.449
0.79
0.83
0.88
0.93
0.99
1.04
1.07
1.09
1.08
1.03
0.72
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
——
7.439
8.689
9.019
9.349
9.429
9.849
9.679
——
8.599
9.509
6.949
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
——
——
——
——
——
7.859
7.779
15.029
9.599
4.779
0.50
0.50
0.50
0.50
0.75
0.50
0.50
0.50
0.50
——
5.05
8.94
10.35
12.07
12.72
13.50
——
——
14.26
11.96
2.99
4.779
5.039
5.199
5.169
5.179
7.499
10.079
——
5.289
5.639
3.629
0.79
0.83
0.88
0.93
0.99
1.03
1.06
1.09
1.08
1.02
0.72
——
——
——
——
——
——
——
——
——
——
——
.
.
.
.
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.
34
Fidelity Arizona College Savings Plan
NEW
NEW
Age-Based and Static Portfolios (Actively Managed Funds)
AZ College Portfolio
06/14/05
4.89
4.89
AZ Portfolio 2009
06/14/05
6.02
6.02
AZ Portfolio 2012
06/14/05
7.04
7.04
AZ Portfolio 2015
06/14/05
7.98
7.98
AZ Portfolio 2018
06/14/05
8.82
8.82
AZ Portfolio 2021
06/14/05
9.38
9.38
AZ Portfolio 2024
06/14/05
9.47
9.47
AZ Portfolio 2027
12/14/07
——
——
AZ 100% Equity Portfolio
06/14/05
10.48
10.48
AZ 70% Equity Portfolio
06/14/05
8.49
8.49
AZ Conservative Portfolio
06/14/05
3.81
3.81
Age-Based and Static Portfolios (Index Funds)
AZ College Portfolio
10/23/06
7.19
7.19
AZ Portfolio 2009
10/23/06
8.02
8.02
AZ Portfolio 2012
10/23/06
8.10
8.10
AZ Portfolio 2015
10/23/06
7.96
7.96
AZ Portfolio 2018
10/23/06
7.64
7.64
AZ Portfolio 2021
10/23/06
7.92
7.92
AZ Portfolio 2024
10/23/06
6.59
6.59
AZ Portfolio 2027
12/14/07
——
——
AZ 100% Equity Portfolio
10/23/06
5.96
5.96
AZ 70% Equity Portfolio
10/23/06
7.84
7.84
AZ Conservative Portfolio
10/23/06
7.12
7.12
Individual Portfolios
AZ Spartan® 500 Index Portfolio
10/23/06
5.60
5.60
AZ Total Market Index Portfolio
10/23/06
5.20
5.20
AZ International Index Portfolio
10/23/06
10.27
10.27
AZ Intermediate Treasury Bond Index Portfolio 10/23/06
9.85
9.85
AZ Money Market Portfolio◊, 35
10/23/06
4.76
4.76
7-Day Yield (%) for 12/31/07 is 4.44
For more information about the Fidelity Arizona College Savings Plan, please visit Fidelity.com/arizona.
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34
UNIQUE College Investing Plan (NH)
NEW
Age-Based and Static Portfolios (Actively Managed Funds)
NH College Portfolio
07/01/98
NH Portfolio 2009
07/01/98
NH Portfolio 2012
07/01/98
NH Portfolio 2015
07/01/98
NH Portfolio 2018
01/04/99
NH Portfolio 2021
12/31/01
NH Portfolio 2024
12/27/04
NH Portfolio 2027
12/14/07
NH 100% Equity Portfolio
05/07/01
NH 70% Equity Portfolio
05/10/01
NH Conservative Portfolio
12/13/01
P10 FIDELITY MUTUAL FUND PERFORMANCE THROUGH 12/31/2007
4.99
6.13
7.15
8.03
8.70
9.17
9.25
——
10.17
8.36
3.77
.
4.99
6.13
7.15
8.03
8.70
9.17
9.25
——
10.17
8.36
3.77
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1.800.FIDELITY
RetailPerfPages_4Q07
1/16/08
9:08 PM
Page 11
FIDELITY 529 COLLEGE SAVINGS PLAN PERFORMANCE
Quarter ending December 31, 2007
529 College Savings Plans:
20
Each Portfolio (except Social Choice) invests in underlying Fidelity mutual funds. “Age-Based Portfolios” are
tailored toward age of beneficiary. “Static Portfolios” are designed without regard to age. “Individual Fund Portfolios” are designed without regard to age and follow
the same investment objective of the underlying mutual fund in which it invests.
Portfolio Name
Date of
Inception
34
UNIQUE College Investing Plan (NH)
NEW
Age-Based and Static Portfolios (Index Funds)
NH College Portfolio
NH Portfolio 2009
NH Portfolio 2012
NH Portfolio 2015
NH Portfolio 2018
NH Portfolio 2021
NH Portfolio 2024
NH Portfolio 2027
NH 100% Equity Portfolio
NH 70% Equity Portfolio
NH Conservative Portfolio
Individual Portfolios
NH Spartan® 500 Index Portfolio
NH Total Market Index Portfolio
NH International Index Portfolio
NH Intermediate Treasury Bond Index Portfolio
NH Money Market Portfolio◊, 35
7-Day Yield (%) for 12/31/07 is 4.42
Notes:
Cumulative
Total Return % Average Annual Total Return %
YTD
(as of 12/31/07)
(as of 12/31/07) 1 Year
5 Year
10 Year/Life
Portfolio
Expense
Ratio %13
Portfolio
Expense
Cap %
(continued from previous page)
11/06/06
11/06/06
11/06/06
11/06/06
11/06/06
11/06/06
11/06/06
12/14/07
11/06/06
11/06/06
11/06/06
7.11
7.58
7.85
7.83
7.40
7.00
6.57
——
5.89
7.41
7.05
7.11
7.58
7.85
7.83
7.40
7.00
6.57
——
5.89
7.41
7.05
——
——
——
——
——
——
——
——
——
——
——
7.269
8.039
8.559
8.809
8.899
8.729
8.899
——
8.299
8.809
6.749
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
11/06/06
11/06/06
11/06/06
11/06/06
11/06/06
5.04
5.04
10.27
9.84
4.77
5.04
5.04
10.27
9.84
4.77
——
——
——
——
——
7.269
7.269
13.769
9.069
4.769
0.50
0.50
0.50
0.50
0.72
0.50
0.50
0.50
0.50
——
4.95
6.18
7.16
8.07
8.74
9.28
9.48
——
10.28
8.67
3.77
4.91
8.71
10.03
11.81
12.54
13.18
——
——
14.52
12.30
2.99
4.399
4.099
4.179
4.259
4.329
7.439
9.889
——
5.379
5.799
3.629
0.79
0.83
0.88
0.93
0.99
1.03
1.06
1.09
1.08
1.02
0.72
——
——
——
——
——
——
——
——
——
——
——
7.41
7.59
7.84
7.71
7.39
7.08
6.58
——
5.88
7.29
7.14
——
——
——
——
——
——
——
——
——
——
——
7.399
7.819
8.579
8.749
8.919
8.829
8.579
——
8.329
8.829
6.809
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
4.94
5.13
10.04
9.73
4.76
——
——
——
——
——
7.059
7.319
14.619
8.919
4.779
0.50
0.50
0.50
0.50
0.75
0.50
0.50
0.50
0.50
——
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For more information about the UNIQUE College Investing Plan, please visit Fidelity.com/unique.
34
U.Fund College Investing Plan (MA)
NEW
NEW
Age-Based and Static Portfolios (Actively Managed Funds)
MA College Portfolio
02/19/99
4.95
MA Portfolio 2009
02/19/99
6.18
MA Portfolio 2012
02/19/99
7.16
MA Portfolio 2015
02/19/99
8.07
MA Portfolio 2018
02/19/99
8.74
MA Portfolio 2021
12/13/01
9.28
MA Portfolio 2024
12/27/04
9.48
MA Portfolio 2027
12/14/07
——
MA 100% Equity Portfolio
05/07/01
10.28
MA 70% Equity Portfolio
05/07/01
8.67
MA Conservative Portfolio
12/13/01
3.77
Age-Based and Static Portfolios (Index Funds)
MA College Portfolio
10/30/06
7.41
MA Portfolio 2009
10/30/06
7.59
MA Portfolio 2012
10/30/06
7.84
MA Portfolio 2015
10/30/06
7.71
MA Portfolio 2018
10/30/06
7.39
MA Portfolio 2021
10/30/06
7.08
MA Portfolio 2024
10/30/06
6.58
MA Portfolio 2027
12/14/07
——
MA 100% Equity Portfolio
10/30/06
5.88
MA 70% Equity Portfolio
10/30/06
7.29
MA Conservative Portfolio
10/30/06
7.14
Individual Portfolios
MA Spartan® 500 Index Portfolio
10/30/06
4.94
MA Total Market Index Portfolio
10/30/06
5.13
MA International Index Portfolio
10/30/06
10.04
MA Intermediate Treasury Bond Index Portfolio 10/30/06
9.73
MA Money Market Portfolio◊, 35
10/30/06
4.76
7-Day Yield (%) for 12/31/07 is 4.42
For more information about the U.Fund College Investing Plan, please visit Fidelity.com/ufund.
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FIDELITY.COM
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FIDELITY MUTUAL FUND PERFORMANCE THROUGH 12/31/2007 P11
RetailPerfPages_4Q07
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9:09 PM
Page 12
FIDELITY MUTUAL FUND PERFORMANCE
Quarter ending December 31, 2007
Footnotes:
ß
∂
Δ
1
2
3
4
Total returns are historical and include changes in share price
and reinvestment of dividends and capital gains. All fund share
prices (except for money market funds), investment returns,
and yields vary, so you may have a gain or loss when you sell
your shares.
Expense Cap is a limit that Fidelity has placed on the level of
the expenses borne by the fund. The cap is voluntary and
indicates the maximum level of expenses (with certain
exceptions) that the fund would be paying at that time. The
Expense Cap may be terminated or revised at any time, which
may lower the fund’s yield and return.
Expense Cap is a limit that Fidelity has placed on the level of
the expenses borne by the fund. The cap is contractual and
indicates the maximum level of expenses (with certain
exceptions) that the fund would be paying at that time. Subject
to board approval, the Expense Cap may be terminated or
revised, which may lower the fund’s yield and return.
Expense Cap is a limit that Fidelity has placed on the level of
the expenses borne by the fund until 1/31/2009 and indicates
the maximum level of expenses (with certain exceptions) that
the fund would be paying until that time. After the expiration
date, the Expense Cap may be terminated or revised, which
may lower the fund's yield and return.
Foreign investments involve greater risks and may offer greater
potential returns than U.S. investments. These risks include
political and economic uncertainties of foreign countries, as
well as the risk of currency fluctuations.
All indexes include reinvestment of dividends and interest
income unless otherwise noted. It is not possible to invest
directly in an index. All indexes are unmanaged.
S&P 500® is a market capitalization-weighted index of
common stocks and has been licensed for use by Fidelity
Distributors Corporation. Morgan Stanley Capital International
EAFE is a widely recognized index of over 1,000 stock prices
from companies in Europe, Australasia, and the Far East.
Lehman Brothers Aggregate Bond Index is a market-valueweighted index of investment-grade fixed-rate debt issues,
including government, corporate asset-backed, and mortgagebacked securities, with maturities of at least one year. Merrill
Lynch U.S. High Yield Master II Constrained Index is a market
value-weighted index of all domestic and Yankee high-yield
bonds, including deferred interest bonds and payment-in-kind
securities. Issues included in the index have maturities of one
year or more and have a credit rating lower than BBB-/Baa3,
but are not in default.The Merrill Lynch U.S. High Yield Master
II Constrained Index limits any individual issuer to a maximum
of 2% benchmark exposure. Russell 2000 Index is a market
capitalization-weighted index of the stocks of the 2,000
smallest companies included in the Russell 3000 Index. The
Russell 3000 Index comprises the 3,000 largest U.S. domiciled
companies.Russell 2000 Value Index is a market capitalizationweighted index of the stocks of the 2,000 smallest companies
included in the Russell 3000 Index. The Russell 3,000 Index
comprises the 3,000 largest U.S. domiciled companies that
exhibit value-oriented characteristics. Russell 1000 Growth
Index is a market capitalization-weighted index of the 1,000
largest U.S. domiciled companies that exhibit growth oriented
characteristics. Morgan Stanley Capital International Europe
Index (MSCI Europe) is a market capitalization-weighted index
of equity securities of companies domiciled in various
European countries. The index is designed to represent the
performance of developed stock markets in Europe and
excludes certain market segments unavailable to U.S. based
investors. Morgan Stanley Capital International Japan Index
(MSCI Japan) is a market capitalization-weighted index of
equity securities of companies domiciled in Japan. The index is
designed to represent the performance of stock markets in
Japan and excludes certain market segments unavailable to
U.S. based investors. Morgan Stanley Capital International
Emerging Markets Index (MSCI EMF) is a market
capitalization-weighted index of equity securities of companies
domiciled in various countries. The index is designed to
represent the performance of emerging stock markets
throughout the world and excludes certain market segments
unavailable to U.S. based investors.
Because of their narrow focus, sector funds may be more
volatile than funds that diversify across many sectors.
The fund may invest in lower-quality securities, which generally
offer higher yields, but also carry more risk.
460111.4.0
5 A portion of these funds’ income may be subject to state taxes.
New York municipal funds may also be subject to local taxes. A
portion of these funds’ income may be subject to the federal
alternative minimum tax or capital gain taxes.
6 Shareholders pay for transactions they make, which will
decrease their yields depending on the number they choose to
make. Transaction fees will be waived for accounts that
maintain a minimum balance of $50,000.
7 Taxable equivalent yield is calculated using the 33% federal
ordinary income tax rate. For 2006, this rate is based on the
$188,451 to $336,550 (joint) taxable income range. State
funds’ taxable equivalent yields are based on combined federal
and highest applicable state tax rates; taxable equivalent yields
for Maryland and New York include county and city taxes.
8 Turnover Rates calculated as of the funds’/portfolios’ most
recent annual/ semi-annual period.
9 Return figure is for the life of fund/portfolio since its inception
date.
10 Value stocks can perform differently from the market as a
whole. They can remain undervalued by the market for long
periods of time.
11 The securities of smaller, less-known companies may be more
volatile than those of larger companies.
12 An investment in a money market fund is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency. Although the fund seeks to preserve
the value of your investment at $1.00 per share, it is possible to
lose money by investing in the fund. The current yield more
closely reflects the current earnings of the fund, while the total
return refers to a specific past holding period.
13 Expense Ratio is the total annual fund/portfolio operating
expense ratio from the fund’s/portfolio’s most recent
prospectus/fact kit. The total annual operating expense ratio
for the 529 college savings plan portfolios (“529 portfolios”)
includes a 0.30% program administration fee. This ratio for the
529 portfolios may be higher or lower depending on the
allocation of the portfolio's assets among the underlying
Fidelity funds and the actual expenses of the underlying
Fidelity funds.
14 Investments in mid-sized companies may involve greater risks
than those in larger, more well-known companies, but may be
less volatile than investments in smaller companies.
15 Leverage can magnify the impact of adverse issuer, political,
regulatory, market or economic developments on a company.
Non-diversified funds tend to be more volatile than diversified
funds.
16 Floating rate loans are often lower-quality debt securities and
generally are subject to restrictions on resale. Lower-quality
debt securities, including floating rate loans, involve greater
risk of price changes and greater risk of default on interest and
principal payments. A floating rate loan may not be fully
collateralized, which may cause the floating rate loan to
decline significantly in value.
17 Changes in real estate values or economic downturns can have
a significant negative effect on issuers in the real estate
industry. Non-diversified funds that focus on a relatively small
number of stocks tend to be more volatile than diversified
funds and the market as a whole.
18 The fund’s investments in mortgage securities are subject to
prepayment risk, which can limit the potential for gain in a
declining interest rate environment and increase the potential
for loss in a rising interest rate environment.
19 The yield quoted for Inflation-Protected Bond Fund is before
adjustment due to the rate of inflation. The actual yield will be
a combination of this yield and an inflation adjustment.
20 The ScholarShare® College Savings Plan, U.Fund College
Investing Plan, the UNIQUE College Investing Plan, the
Delaware College Investment Plan, and the Fidelity
Arizona College Savings Plan are offered by the
ScholarShare Investment Board, Massachusetts
Educational Financing Authority, the state of New
Hampshire, the state of Delaware, and the Arizona
Commission for Postsecondary Education, respectively,
and managed by Fidelity Investments. If you or the
designated beneficiary are not a California,
Massachusetts, New Hampshire, Delaware, or Arizona
resident, you may want to consider, before investing,
whether your or the designated beneficiary’s home state
offers its residents a plan with alternate state tax
Fidelity Distributors Corporation
P12 FIDELITY MUTUAL FUND PERFORMANCE THROUGH 12/31/2007
advantages or other benefits. Units of the portfolios are
municipal securities and may be subject to market
volatility and fluctuation.
21 Initial offering of the Fidelity Advantage Share Class took place
on October 17, 2005. Returns prior to that date are those of
the Investor Class and reflect the Investor Class expense ratio.
Had the Fidelity Advantage Class expense ratio been reflected,
total returns would have been higher.
22 Prior to October 1, 2006, this fund operated under certain
different investment policies, and compared its performance to
a different benchmark. The fund‘s historical performance may
not represent its current investment policies.
23 On October 1, 2006, the fund began comparing its
performance to a different benchmark and adjusted its
investments.
24 Prior to July 1, 1999, Value Strategies operated under certain
different investment policies. Accordingly, the fund‘s historical
performance may not represent its current investment policies.
25 Prior to September 1, 2000, China Region operated under
certain different investment policies. Accordingly, the fund‘s
historical performance may not represent its current
investment policies.
26 Prior to February 11, 2000, Aggressive International operated
under certain different investment policies. Accordingly, the
fund‘s historical performance may not represent its current
investment policies.
27 Prior to December 29, 2001, Focused Stock operated under
certain different investment policies. Accordingly, the fund‘s
historical performance may not represent its current
investment policies.
28 Prior to October 1, 2004, International Discovery operated
under certain different investment policies. Accordingly, the
fund‘s historical performance may not represent its current
investment policies.
29 Fidelity Floating Rate High Income Fund is a class of Fidelity®
Advisor Floating Rate High Income Fund.
30 Fidelity Mortgage Securities Fund is a class of Fidelity® Advisor
Mortgage Securities Fund.
31 Fidelity Value Strategies Fund is a class of Fidelity® Advisor
Value Strategies Fund.
32 Prior to February 1, 2007, the fund operated under certain
different investment policies, and compared its performance to
a different benchmark. The fund’s historical performance may
not represent its current investment policies.
33 Performance depends on that of the underlying Fidelity funds.
These funds are subject to the volatility of the financial markets
in the U.S. and abroad and may be subject to the additional
risks associated with investing in high yield, small cap and
foreign securities.
◊ The current yield more closely reflects the current earnings of
the portfolio, while total return refers to a specific past holding
period. 7-day annualized yields are stated for month end.
Annualized yields are based on net investment income for the
stated periods. Annualized yields are historical, will fluctuate,
and are based on the portfolio's total net investment income
during the period. If certain expenses had not been voluntarily
reimbursed by the portfolio's investment advisor during these
periods, annualized yields would have been lower.
34 Units of the Portfolios are municipal securities and may
be subject to market volatility and fluctuation.
35 An investment in the Money Market Portfolio is not
insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. It is
possible to lose money by investing in the Portfolio.
Before investing, consider the fund‘s, annuity’s and its
investment options’, or 529 plan’s investment objectives,
risks, charges, and expenses.
Contact Fidelity for a prospectus/Fact Kit containing this
information. Read it carefully.
This publication does not constitute an offer to sell
shares of funds that may not be available in your state.
Fidelity Distributors Corporation is not a bank, and fund
shares are not backed or guaranteed by any bank or
insured by the FDIC.
MF-FLYER-1207
1.718789.137
1.800.FIDELITY
Content provided by
STANDARD
& POOR’S
Sector Dynamics
INDUSTRY WATCH
+ Positive 0 Neutral – Negative
Consumer Discretionary
Automobile Manufacturers
Department Stores
Homebuilding
Sell
–
–
–
Consumer Staples
Packaged Foods and Meats
Household Products
Soft Drinks
Buy
–
+
+
Energy
Buy
Integrated Oil and Gas
+
Oil and Gas Equipment and Services +
Oil and Gas Refining and Marketing
0
Financial Services
Sell
Investment Banking and Brokerage
–
Property and Casualty Insurance
–
Thrifts and Mortgage Finance
–
Health Care
Biotechnology
Health Care Equipment
Pharmaceuticals
Hold
0
0
0
Industrials
Aerospace and Defense
Airlines
Industrial Conglomerates
Hold
+
–
0
Materials
Diversified Chemicals
Diversified Metals and Mining
Forest Products
Hold
0
0
0
Technology
Computer Hardware
Semiconductors
Systems Software
Buy
+
0
+
Telecom Services
Integrated Telecommunication
Services
Wireless Telecommunication
Services
Hold
Utilities
Electric Utilities
Gas Utilities
Hold
+
0
Copyright 2007, The McGraw-Hill Companies, Inc.
FIDELITY.COM
A08-FP1-002 SectorREV.indd 11
+
0
How Presidential Elections Have
Historically Affected the Markets
When it comes to Presidential election years, the S&P 500® has performed well, rising an average of 8.6%
since 1945. During the same period,
the stock market has risen 80% of the
time. Of course, past performance is
no guarantee of future results.
With the 2008 presidential election looming less than nine months
from now, the S&P 500 Investment
Policy Committee believes the S&P
500 will rise in 2008 from its 2007
year-end target.
S&P sees three potential major
presidential election campaign issues:
1) Iraq/defense spending, 2) health
care, and 3) energy. S&P believes the
2008 election could be significant for
defense contractors, particularly if
there are Democratic majorities in
both houses of Congress and a
Democratic-elect president. Following such a victory, S&P would likely
become neutral on the defense sector, versus its current positive stance,
due to a projected reduction in
defense spending.
When it comes to health care, one
of the most talked about topics to
date has been the possible implementation of an all-inclusive health
insurance program that would cover
the country’s uninsured population.
Such a program may include direct
pricing negotiations between the
federal government and drug manufacturers and may adversely affect
pharmaceutical firms. The big winners, in S&P’s view, would be
hospitals, since they have been negatively impacted by rising levels of
bad debt and the use of emergency
rooms by uninsured individuals.
YEAR OF
PRESIDENTIAL
CYCLE
AVERAGE S&P 500 % CHG.
(WITHOUT DIVIDENDS 1945–Q3 ‘07)
Q1
Q2
Q3
Q4
Year 1
(0.3)
1.8
0.0
3.2
5.2
Year 2
1.0
(2.0)
(1.0)
6.8
4.3
Year 3
7.1
5.3
1.9
2.8
18.0
Year 4
1.2
3.0
0.7
3.5
8.6
All Years
2.3
2.0
0.3
4.1
9.025
Year
Source: Standard & Poor’s Equity Research
Finally, S&P believes a Democratic
government might make it easier
to pass certain energy legislation, as
the perceived favoritism of Republicans toward ‘Big Oil’ may disappear.
Thus, there may be renewed interest
in opening up domestic areas for
drilling, which could drive up demand
for drilling rigs.
– Sam Stovall, Chief Investment
Strategist, Standard & Poor’s
Investing in an individual sector may be more volatile than diversifying across many industries.
Past performance is no guarantee of future results.
All sector and industry investment outlooks are prepared by Standard & Poor’s and represent appreciation potential
for the coming 12 months. A “buy” outlook indicates the potential to outperform the S&P 500® Index. A “hold” outlook
indicates the potential to keep pace with the S&P 500. A “sell” outlook indicates the potential to underperform the
S&P 500. Standard & Poor’s is a division of The McGraw-Hill Companies, Inc., 55 Water Street, New York, N.Y. 10041.
The opinions and recommendations expressed in Sector Dynamics are solely those of Standard & Poor’s and in no
way represent the advice, opinions, or recommendations of Fidelity Distributors Corporation, its affiliates, or related
companies. Because of the possibility of human or mechanical error by Standard & Poor’s sources, Standard & Poor’s,
or others, Standard & Poor’s cannot guarantee the accuracy, adequacy, or completeness of any information and is not
responsible for any errors or omissions or for the results obtained from the use of such information.
The content of Sector Dynamics is provided by Standard & Poor’s Investment Advisory Services Group. This group operates independently of, and has no access to, information obtained by S&P’s Ratings Group, which may, in its regular
operations, obtain information of a confidential nature. Nothing contained herein should be construed as a solicitation
to buy or sell any securities.
FEBRUARY 2008 FIDELITY+ 11
1/16/08 9:39:14 PM
Select Portfolios Update
®
Seeking Industrial-Strength Potential
No longer a dirty word, “industrials” are cleaner, leaner, and on the rise.
BY PAUL KONSTADT
T
he term “industrials” may conjure images of crumbling
smokestacks and waning fortunes,
but the industrial sector could
potentially hold some of today’s
most vibrant investment opportunities. Companies within this sector
are building the infrastructure to
help power growth in the world’s
emerging markets.* These companies are seeking to develop energy
supplies and reduce greenhouse
gases, and are addressing the security needs of the United States.
“This is an exciting period,” says
Tobias Welo, manager of Fidelity
Select Industrials Portfolio (FCYIX).
“In my opinion, there are strong
global markets for energy exploration, power generation, construction,
transportation, and aerospace and
defense—precisely the industries
that form the core of the industrials
sector portfolio.”
12 FIDELITY+ FEBRUARY 2008
A08-FP1-002 SPU REV.indd 12
economies of Brazil, China, India,
and Russia surging, so are Mexico,
South Africa, Taiwan, and a host of
other countries. In fact, overall
emerging-market growth handily
outpaces the developed markets at or
near double-digit rates.1
Nowhere is this more visible than
in construction. China is now the
third-largest construction market in
the world, with the world’s fastest
major-country GDP growth rate for
EVAN RICHMAN
Emerging Markets: Building
the Infrastructure
Emerging-market economies
accounted for 48% of the 2006 world
gross domestic product (GDP) and
69% of 2006 world GDP growth––
trends that continued through 2007.1
Not only are the largest emerging
Tobias Welo, manager
of Fidelity Select
Industrials Portfolio,
sees exciting times
ahead for this sector.
1.800.544.5704
1/17/08 8:03:47 PM
the past five years—12.7% annually.
India ranks eleventh in total size,
with a five-year growth rate of
12.5%. The largest country in total
construction effort is, of course, the
United States, but its recent growth
rate is one of the smallest, at 4.4%.2
With all this activity, emerging
markets are driving demand for new
hospitals, roads, airports, powergenerating projects, and other forms
of infrastructure. Global companies
based in the United States are some
of the world’s most sought-after providers of the products and services
needed to meet this demand.
“Companies such as General
Electric have had strong market
presences and global reputations as
leaders,” Welo says. “This has made
them attractive partners to the governments that are financing and
managing many of these projects.
I’ve met with officials and executives in more than a half-dozen
markets over the past year—in
China, in Eastern Europe, and in
the Middle East.”
Defense May Be a
Long-Term Commitment
The past several years have been a
boon to the U.S. defense industry.
SELECT INDUSTRIALS
PORTFOLIO (FCYIX)
TOP 10 HOLDINGS1
(35.2% OF FUND)
1
2
3
4
5
6
7
8
9
10
GENERAL ELECTRIC CO.
UNITED TECHNOLOGIES CORP.
HONEYWELL INTL INC.
LOCKHEED MARTIN CORP.
DANAHER CORP.
SIEMENS AG SPON ADR
BRINKS CO.
RAYTHEON CO.
EMERSON ELEC CO.
CUMMINS INC.
1. As of December 31, 2007, the top 10 holdings are presented to illustrate examples of
the securities that the funds have bought, and
might not be representative of the funds’ current or future investments.
The figures presented are as of the date shown, do
not include the funds’ entire investment portfolio,
and may change at any time.
As of December 31, 2007, the top 10 holdings
accounted for 35.2% of the fund’s investments.
25.1% annually over the same period, more than twice its long-term
average of 10.6%.3
Of course, much of this was
because of rising equipment needs
of military operations in Iraq and
Afghanistan. But even if those conflicts wind down, the need for
While recent spending growth has been
driven by the wars in Afghanistan and Iraq,
the need to modernize our forces’ equipment remains a large, multiyear effort.”
— TOBIAS WELO, MANAGER OF FIDELITY SELECT INDUSTRIALS PORTFOLIO
Major companies in the group
recorded compound annual sales
growth of 9.8% for the three years
through 2006, significantly above
their long-term average of 6.2%.
Net income rose an average of
FIDELITY.COM
A08-FP1-002 UC SPU REV2.indd 13
additional spending may not diminish,
Welo says. Steep procurement cuts
made in the 1990s have left the United
States with aging fleets of aircraft,
ships, submarines, tanks, and transport vehicles that must be replaced.
China’s officially reported defense
budget rose 18% in 2007 to $44.9
billion after growing 15% in 2006.
Its actual budget is likely two to three
times the reported figure, as China
builds its own aircraft carriers and
fighter aircraft. Russia recently indicated it would spend $190 billion by
2015 to update its army’s equipment
and weapons systems.3
“I believe that the strong cycle in
defense should continue in the years
ahead,” Welo says. “While recent
spending growth has been driven by
the wars in Afghanistan and Iraq,
the need to modernize our forces’
equipment remains a large, multiyear effort. That is why I’ve
positioned the fund with holdings
such as Lockheed Martin, which I’ve
believed could benefit from the
development of next-generation aircraft such as the Joint Strike Fighter
and the F-22.”
Strong Energy Tailwind
Speeds Railroads
Coal is the principal fuel for power
generation in the United States. It
accounts for more than 43% of tonnage shipped on the nation’s
railroads and 20% of their revenues.4
Much of this business is governed by
long-term contracts, allowing railroads to implement steady rate
increases for capturing increased
costs. Moreover, as railroad capacity
has tightened, some railroads have
even been able to abandon some of
their most heavily discounted contract arrangements.
As a result of these trends, rail rate
increases accelerated sharply and
profits rose. Net profits from continuing operations for the major
North American railroads rose an
estimated 8% in 2007 following
jumps of 32% in 2006 and 46% in
2005. The prognosis for 2008 suggests continued profitability.4
(Continued on next page)
FEBRUARY 2008 FIDELITY+ 13
1/18/08 6:18:45 PM
Select Portfolios Update
®
Q& A
Home Finance—Are
Storm Clouds Clearing?
The housing finance sector triggered a great deal of market turmoil in 2007. While
it may not yet be possible to announce that the sector has turned a corner, Dick
Manuel, manager of Fidelity Select Home Finance Portfolio (FSVLX), says there are
good reasons to believe that the sector will stage a turnaround—eventually.
How would you characterize the current state of the housing finance industry?
MANUEL: We are seeing the aftermath of the perfect storm that roiled the real
estate and mortgage markets, as higher interest rates, sliding home values, and
growing mortgage defaults came together to create the subprime lending crisis.
Values of bonds issued to finance home-buying became uncertain, which made it
difficult to sell those bonds to investors. As a result, the companies that relied on
bond sales faced tremendous financial pressure. Some withdrew from the field,
and others were shut down.
What signs will tell you that the market storm has passed?
MANUEL: I think the essential indicator will be stability in home prices. So far,
actual real estate transaction prices have been volatile, and murky market conditions have made values difficult to appraise. As a result, potential buyers held
back fearing they might pay too much. Lenders have been reluctant as well, worrying that they might be assuming too much risk.
What kind of investment opportunity might this imply?
MANUEL: History has taught us that every period of financial indigestion has been
followed by new periods of normalcy and growth. I look for the survivors of the
current turmoil to emerge as stronger and more efficient providers—chastened,
perhaps, but more profitable. They may also find a better competitive environment
with fewer players dividing larger shares of the overall home financing market.
What is the longer-term outlook for the industry?
MANUEL: I believe that owning a home will always be a good investment for
many individuals. Companies that can add value for home buyers should have
solid business potential. What’s more, the fastest-growing segments of the
American population—Hispanics, African Americans, and immigrants—also
currently have the lowest rates of home ownership. As these demographic
groups move up the economic ladder, they are expected to create significant
new demand for housing, a circumstance that could drive the growth potential
of the housing finance sector strongly in the years ahead.
To learn more about Fidelity Select Home Finance Portfolio, visit Fidelity.com/home.
Because of their narrow focus, sector funds tend to be more volatile than funds that diversify across many sectors and companies.
The value of the fund’s domestic and foreign investments will vary from day to day in response to many factors. Stock values
fluctuate in response to issuer, political, regulatory, market, or economic developments. The home finance industry can be
significantly affected by regulatory changes, interest rate movements, home mortgage demand, refinancing activity, and
residential delinquency trends.
Examining the Risks
A U.S. or global recession would put
pressure on both stock prices and earnings in the industrial sector. “As we are
now late in the cycle, I will maintain a
disciplined approach to valuation and
trim or sell positions where strong
fundamentals look to weaken or are
already fully discounted,” Welo says. “I
would cite commercial aerospace and
agricultural equipment as two sectors
where valuations appear to be ahead
of themselves.”
Balancing Core Strength and
Peripheral Opportunity
Firms such as General Electric,
Union Pacific, and Lockheed Martin
have offered investors a solid breadand-butter view of the Industrials
sector with strong management,
powerful fundamentals, and large,
attractive market opportunities. But
there are many factors that have the
potential to augment performance,
and each of these may play a role in
the Select Industrials Portfolio. •
Views expressed are as of December 31, 2007, and may
change based on market and other conditions. Opinions
expressed are those of Tobias Welo.
*Foreign investments involve greater risks than U.S. investments, including political and economic risks and the risk of
currency fluctuations, all of which may be magnified in emerging markets.
Because of their narrow focus, sector securities tend to be
more volatile than securities that diversify across many sectors
and companies.
1. Source: Emerging Markets: Weathering the Storm,
September 5, 2007, Standard and Poor’s Equity
Research.
2. Source: Standard & Poor’s Global Construction
Industry Survey (Asia), May 2007.
3. Source: Standard & Poor’s Aerospace and Defense
Industry Survey, May 2007.
4. Source: Standard & Poor’s Commercial Transportation Industry Survey, June 2007.
LEARN MORE
To learn more about Fidelity
Select Industrials Portfolio,
visit Fidelity.com/industrials.
Before investing, consider the fund’s investment objectives, risks, charges, and expenses. Contact Fidelity for a
prospectus containing this information. Read it carefully.
14 FIDELITY+ FEBRUARY 2008
A08-FP1-002 SPU REV3.indd 14
1.800.544.5704
1/22/08 3:53:24 PM
BY DOUGLAS B. FISHER
washington watch
Lawmakers Deliver Tax Relief
Amid its partisan struggles, Congress provides tax relief to middle-income investors.
During 2007, the new Congress didn’t pass many promised
reforms. However, in late December they did manage to put their
partisan issues aside for a day and pass alternative minimum tax
relief (AMT) for millions of middle-income Americans. Here’s
an update on that important accomplishment and other recently
enacted reforms that can benefit investors.
AMT Relief on Its Way: The most
MICHAEL PIAZZA
significant change effective for the
2007 tax year comes from a oneyear, $50 billion AMT relief bill.
Originally enacted in 1969 to prevent 155 high-income taxpayers
from escaping the income tax, the
AMT increasingly saddles more and
more middle-income investors with
higher tax bills because the income
thresholds are not indexed for
inflation. The changes will provide
tax relief for 2007. Expect Congress
to again struggle to provide relief
for 2008.
Capital Gains Considerations: For
2008-2010, the tax on dividends and
qualifying capital gains is eliminated
for taxpayers in the 15% and 10%
tax brackets. Opportunities may exist
for taxpayers entering retirement in
2008 to lower their income and
qualify for the lower rates. Not surprisingly the rules are complex, so
it’s important you seek expert advice
regarding this opportunity.
Expanded Eligibility for Roth IRA
Conversions in 2010 and Beyond:
Congress recently passed a provision,
FIDELITY.COM
A08-FP1-002 Washington.indd 15
effective in 2010, that will allow
investors regardless of income to
convert Traditional IRAs and certain
pre-tax retirement plan distributions
to Roth IRAs. Also, if the conversion
takes place in 2010, the investor can
choose to spread the resulting federal
tax over 2011 and 2012. (Remember:
Investors must budget to pay the
taxes due on conversion but enjoy
tax-free withdrawals of earnings
during retirement with Roth IRAs,
assuming that certain IRS requirements are met.)
Direct Conversions from Plan
Accounts Starting in 2008: Starting
in 2008, a separate change in the law
permits qualifying pre-tax retirement plan assets to be directly
converted to a Roth IRA without the
need to first roll to a Traditional
IRA. Note that current AGI limits
for conversions will still apply in
2008 and 2009.
What’s Next? This year, Washington lawmakers will begin to set the
stage for the agenda facing the next
president. Already, the Senate and
House committees are evaluating
potential changes to our tax system,
and we expect they will begin examining the budget and structural
implications of our private health
care and public entitlement programs
before year-end.
Driving the debate regarding taxes
are key choices facing lawmakers as
2011 approaches. They must decide
whether to: a) extend lower tax rates
for marginal tax rates, the estate tax,
and lower rates on dividends and
capital gains (all of which expire in
2010); b) allow rates to increase back
to pre-2001 levels; or c) consider
some type of broader tax reform.
At the same time, presidential
candidates’ interest in universal
health care coverage will motivate
Congress to begin examining the
structure and fiscal implications of
our private and public health care
systems, including Medicare. As lawmakers seek funding for troubled
Medicare and Social Security, and
evaluate the best methods for health
care delivery, we can expect Congress to begin discussing these topics
and help shape the debate for the
next president. •
Single taxpayers with earnings up to $99,000, or joint filers with
incomes up to $156,000, are eligible to establish Roth IRAs.
Doug Fisher is senior vice president of public
policy at Fidelity Investments. Before joining
the firm in 1997, he drafted the Roth IRA
provisions as Counsel to the Senate Committee on Finance in Washington.
FEBRUARY 2008 FIDELITY+ 15
1/11/08 1:52:56 AM
trading stocks
BY MICHAEL SINCERE
Order Protection for Your Portfolio
Stop-loss and stop-limit orders can help you lock in gains on your stocks while
potentially protecting against painful losses.
I
The Sell Stop-Loss
A stop-loss order to sell may protect
your gains by preventing a catastrophic loss. To take advantage of
this technique, you enter an order to
sell a stock you own at a price below
its current level.
Consider a hypothetical investor,
Susan, who buys 100 shares of ABC
stock for $50 a share. The stock
quickly rises to $60 and Susan wants
to lock in a portion of her gains.
She enters a stop-loss to sell 100
shares of ABC stock at $55. If ABC
stock continues to move higher,
nothing happens. However, if the
stock falls to $55, a market order to
sell 100 shares of ABC stock will be
activated and Susan’s shares will be
sold at the next available price.
“One of the advantages of a stop16 FIDELITY+ FEBRUARY 2008
A08-FP1-002 Stocks4.indd 1
loss order is that it automates the
selling process and takes your emotions out of the equation,” says Steve
Deroian, a director of Active Trader
Services at Fidelity Investments. That
said, Deroian notes, there is also a
potential downside: In fast-moving
markets, a stop-loss order can be
executed well below the price you
set. “If you have a stop-loss at $55 a
share and the stock suddenly drops
to $50, instead of getting out at $55
like you hoped, your order might
execute at $50,” says Deroian. This
type of scenario can play out when a
company announces bad news, such
JAMES STEINBERG/THEISPOT.COM
n stock trading, as in football, a
stingy defense can be as effective as
a prolific offense. With stock market
volatility on the rise in recent months,
many investors are looking for ways
to defend hard-earned gains accrued
during a four-year bull market.
Both buy-and-hold investors and
active traders often turn to stop-loss
orders to lock in gains and protect
against extreme losses. While no
panacea, stop-loss orders, when used
effectively, can help you become
more disciplined and less emotional
in your trading habits.
1.800.544.5704
1/5/08 9:36:27 AM
as an earnings shortfall, after the
market closes. The next morning,
your stock could trade at a price well
below your stop-loss order.
The Stop-Limit
If the idea of having your order
filled at a price below your “stop”
does not sit well with you, you may
want to consider a stop-limit order.
With a stop-limit order, you specify
the exact price you want to receive if
your stop-loss order is activated. If
your order executes, you are guaranteed to receive the stop price or
better. But that is a big “if,” because
unlike a stop-loss order, a stop-limit
order does not guarantee that you
will sell your stock.
To illustrate this point, our
hypothetical trader Susan enters a
orders are looking to get out of a
position.” A stop-limit order could
be useful to traders who use technical analysis to determine whether it’s
likely that a stock will hit a specific
price target.
The Trailing Stop-Loss
One of the challenges associated with
stop-loss and stop-limit orders is that
they require you to constantly monitor your stock positions. However, by
entering a trailing stop-loss or a trailing stop-limit order, you can let your
winning positions ride and potentially
lock in higher gains without being
glued to your computer screen.
“For people who can’t sit in front
of the computer all day or who
don’t have the discipline to adjust
their stop orders, the trailing stop
maximize profits. Conversely, your
trigger price will never decline
below your original level ($55).
You can also enter trailing
stop-loss or stop-limit orders in
percentage terms ranging from 1%
to 30%. However, you may want to
exercise caution when trading highly
volatile stocks. If you enter a trailing
stop-loss order within a narrow
range, you may end up selling volatile
stocks sooner than you had planned.
Conditional Orders
While you cannot place two stoploss or stop-limit orders on the same
stock, a one-cancels-the-other conditional order, known as an OCO,
allows you to place two orders at the
same time. For example, if ABC
stock is trading at $55, you can place
For people who can’t sit in front of a computer all day or who don’t
have the discipline to adjust their stop orders, the trailing stop does
it for you.” — MARK ALLEN, FIDELITY INVESTMENTS
stop-limit order on ABC stock at
$55. After closing at $56, the company
announces disappointing earnings
after market hours. The next day,
ABC stock opens at $50. In this situation, Susan’s stop-limit order has
been activated but not executed.
Because the stock, in the trader’s lexicon, “gapped down” to $50, Susan
was unable to sell her stock at $55.
Instead, she now has an open sell
limit order at $55. The only way this
order will execute is if ABC stock
eventually rises to $55 or higher.
Although a stop-limit order is
ideal if you want to exit at a specific
price, it’s not for everyone. “The
stop-limit order is not typically what
most people are looking for,” says
Mark Allen, a regional brokerage
consultant at Fidelity Investments.
“Usually, people who use stop-loss
FIDELITY.COM
A08-FP1-002 Stocks4REV.indd 17
does it for you,” Allen says. In a perfect scenario, a trailing stop order
will follow your rising stock, minimizing your downside risk while
protecting gains.
Trailing stop orders automatically
adjust in price with favorable movements in your stock position. You
can enter trailing stop-loss and
stop-limit orders in dollar amounts
or in percentages. For example,
assume that ABC stock is trading at
$60 and you entered a trailing stoploss order at $55, a trigger price that
is $5 less than the current price. If
ABC stock were to rise to $70, your
stop order would follow suit, moving (“trailing”) to $65. If ABC stock
later fell to $64, your stop-loss
would have been activated at $65.
Your trigger price never falls below
its highest advance, which helps to
a stop-loss order to sell at $45 while
simultaneously placing a limit order
to sell at $60. If one order executes,
the other is automatically canceled.
This strategy allows you to simultaneously seek higher profits while
limiting your losses. •
Stock values fluctuate in response to the activities of individual
companies and to general market and economic conditions.
LEARN MORE
To view an online demonstration of stop-loss and
trailing stop strategies,
visit the Trading Knowledge
Center at Fidelity.com/TKC
and click the “Launch the
Knowledge Center” button.
Click the “Manage Risk”
button and the “Trade Types
for Managing Risk” tab.
FEBRUARY 2008 FIDELITY+ 17
1/9/08 10:40:44 PM
focus on funds
BY NEIL RHEIN
Balancing Act
With its combination of stocks and bonds, Fidelity Balanced Fund may help your
portfolio maintain its equilibrium when the markets get shaky.
Balancing Risk and Reward
Fidelity Balanced Fund seeks capital
growth and income by investing
18 FIDELITY+ FEBRUARY 2008
A08-FP1-002 FcsFnds3.indd 18
approximately 60% of its assets in
stocks and at least 25% in fixed income.
Rakers can veer a bit from these levels
if he feels one asset class has a more
positive outlook than the other.
While he looks to deliver solid
long-term returns, Rakers is also
“relative value” approach to stocks.
While absolute value managers have a
laser-like focus on metrics, such as
price-to-earnings ratios and intrinsic
value (the value of a company’s assets
minus its liabilities), Rakers, with his
relative value approach, is more flexible.
Larry Rakers, manager of
Fidelity Balanced Fund,
follows what he calls a
“relative value” approach
to stock-picking.
keenly focused on risk management.
“The whole premise of this fund is
that you get balance,” says Rakers.
“When the equity market is performing poorly, our strategy allows for the
fund’s bond holdings to help preserve
some of your capital. For me, that
means I have to be conscious of risk,
but at the same time, I have to take
enough risk to help generate returns.”
Rakers follows what he calls a
To help minimize risk in the
fund’s equity portfolio, Rakers pays
close attention to each stock’s valuation and establishes target prices at
which he intends to buy or sell. He
also limits exposing the fund to
individual sectors and stocks. This
approach, he says, is designed to
steady the fund during periods of
short-term volatility and over the
long haul.
EVAN RICHMAN
O
ne thing you can always
count on in the world of
investing is change. Around
this time one year ago, market commentators were taking note of the
stock market’s unusual lack of volatility. Today, those placid days are a
distant memory, as the subprime
mortgage meltdown, a weakening
U.S. dollar, and record-high oil prices
have conspired to take the market on
a roller-coaster ride in recent months.
If this topsy-turvy environment
has you feeling whipsawed, you may
want to consider a balanced fund.
These funds look to smooth out the
stock market’s rough edges by investing in a mix of income-producing
stocks and bonds.
Larry Rakers, manager of Fidelity
Balanced Fund (FBALX), came to
Fidelity as an intern in 1993. His
manager was immediately impressed
by his stock-picking acumen and
hired him as a full-time analyst.
After managing several different
Fidelity sector funds, Rakers became
lead manager of Fidelity Balanced
Fund in February 2002. He manages
the fund’s equity portfolio and
decides the allocation to stocks and
bonds. George Fischer, an 18-year
Fidelity veteran, manages the fund’s
fixed-income assets.
1.800.544.5704
1/11/08 1:55:26 AM
Casting a Wide Net
Rakers relies on a vast global network of analysts, who support
Fidelity equity funds, to seek out
investment ideas. In fact, he makes a
point of investing in at least one
stock recommendation from each
Fidelity equity analyst as often as he
can. He monitors a spreadsheet
with target buy and sell prices for
the more than 1,800 stocks on his
radar screen.
Rakers also has the flexibility to
buy international stocks. That said,
he is cognizant of the increased risk
that comes with international stocks.
“When someone invests in Fidelity
Balanced Fund, they don’t think they
are buying an international fund, so
I try to keep the fund’s international
exposure within reasonable bounds,”
he explains.
However, relative to the fund’s
benchmark index, the S&P 500®
Index,1 Rakers has actually been
underweight in the financial sector
for some time. “It’s the biggest sector
underweight I have,” he says. “Fidelity
analysts did a good job of determining that financial stocks might have
some credit issues.” Given Rakers’
interest in “buying good stocks
cheap,” he says that recently he has
been searching for bargains within
this beaten-down sector.
With demand for gasoline rising
around the globe, oil-refining
capacity has been in short supply,
which has enabled refiners to raise
prices. According to Rakers, the
cost of building a refinery depends
on its size and complexity. He says
that it is about 30% to 40% cheaper
to buy a refinery on Wall Street
than it is to build a new one. “I
believe that some refiners may have
upside potential because I think
how Wall Street values a refinery
and the actual value of building a
new refinery will eventually have to
merge,” Rakers explains.
FIDELITY.COM
A08-FP1-002 UC FcsFnds3REV.indd 19
Fidelity Balanced Fund (FBALX)
Average Annual Total Returns through December 31, 2007.
1 YEAR
5 YEAR
10 YEAR
Balanced
8.99%
13.89%
9.47%
S&P 500
5.49
12.83
5.91
EXPENSE RATIO*
0.61%
(as of 11/30/2007)
* Expense Ratio is the total annual fund operating expense ratio from the fund’s most recent prospectus.
Inception date is November 6,1986.
The performance data shown represents past performance and is no guarantee of future results.
Investment return and principal value will fluctuate, so you may have a gain or loss when shares are sold.
Current performance may be higher or lower than that quoted. Visit Fidelity.com/performance for most recent
month-end performance.
Average annual total returns include changes in share price and reinvestment of dividends and capital gains.
Quarter-end returns include the effect of any applicable recurring and non-recurring fees (including short-term
trading fees or redemption fees).
Get Your Fix of Fixed Income
Fischer invests the majority of Fidelity
Balanced Fund’s fixed-income assets
in highly rated corporate bonds and
U.S. Treasury bonds. When the credit
markets started to swoon this past
summer, some of the fund’s holdings
also declined in value. Investmentgrade bonds, especially those backed
by subprime mortgages, also suffered
during the flight to quality.
When viewed as a percentage of
the fund’s total assets, however, exposure to the subprime sector was
limited. Moreover, most of the Fidelity
Balanced Fund’s subprime bonds
were rated AAA or AA, the top two
tiers of credit quality. The fund’s
underweight in the financial sector
also helped its performance on a relative basis. Although the short-term
history of fixed income may be volatile, it is important to remember that
Fidelity Balanced Fund’s bond exposure has helped its returns during
times of turbulent stock performance,
including the bear market years from
2000 to 2002, Fischer notes.
So, if you have difficulty keeping
your composure when the markets
get shaky, Fidelity Balanced Fund’s
mix of income-producing stocks and
bonds might help you maintain your
equilibrium. Or, as Rakers puts it,
“Fidelity Balanced Fund may be a
good choice for someone who is risk
averse but still needs to generate
decent capital appreciation over a
period of three years or more.” •
Before investing, consider the fund’s
investment objectives, risks, charges,
and expenses. Contact Fidelity for a
prospectus containing this information.
Read it carefully.
1. The S&P 500® Index is a registered service mark
of The McGraw-Hill Companies, Inc., and has been
licensed for use by Fidelity Distributors Corporation and
its affiliates. It is an unmanaged index of the common
stock prices of 500 widely held U.S. stocks that includes
the reinvestment of dividends.
Foreign markets can be more volatile than the U.S. market
due to increased risk of adverse issuer, political, regulatory, market, or economic developments, and can perform differently
from the U.S. market.
Interest rate increases can cause the price of a debt security to
decrease.
Diversification does not ensure a profit or guarantee against
loss in a declining market.
Because of their narrow focus, sector funds tend to be more volatile than funds that diversify across many sectors and companies.
In general, the bond market is volatile; bond prices rise when
interest rates fall and vice versa. This effect is usually more
pronounced for longer-term securities.
Any fixed-income security sold or redeemed prior to maturity
may be subject to a substantial gain or loss.
LEARN MORE
To learn more about Fidelity
Balanced Fund, visit
Fidelity.com/balanced.
FEBRUARY 2008 FIDELITY+ 19
1/15/08 9:18:32 PM
President’s Note
perspective
Make the Season Less Taxing
Ready or not, tax season is officially upon us: it’s time to put your financial
house in order. As much as that may sound like eating your broccoli, just a little
careful planning each year can make a big difference to the health of your present
and future portfolio.
If your investments reside in a variety of taxable
and non-taxable vehicles, tax planning can be a
considerably complex task. That’s why Fidelity
makes available to our Private Access customers a
wide range of specialized services, including access
to a dedicated representative. Your Private Access
representative will work with you (and your tax
professional or financial advisor, as needed) to be
sure you are maximizing your potential deductions and credits.
Off the top, though, several issues are worth
noting. If you are contributing to your child’s or
grandchild’s current or future education, make
sure you are taking all available deductions. (There
are several possible ones, including the deduction
for 529 college savings plan contributions that is
available in most states.) Learn more about tax credits for hybrid vehicles and energyefficient purchases. And by all means, be generous with your charitable giving. It will
bring you great personal satisfaction while saving tax dollars.
Call us at 1.800.544.5704, and let your Private Access representative help make the
season less taxing for you.
FAYFOTO
Steven P. Akin
President, Fidelity Brokerage Services
A08-FP1-002 PrsNt.indd 20
1/16/08 9:41:06 PM
on the web
contacting Fidelity
Fidelity has made it easy and convenient to manage your investments.
Speak to a Fidelity Representative
1.800.FIDELITY
Fidelity Investor Centers
1.800.544.9797
Fidelity Rollover Express®
1.800.544.5650
Portfolio Advisory ServicesSM
1.800.544.3455
How Fidelity.com Helps
Make Our Life Easier
“As I prepare our taxes, I have
the same tax-related questions
every year.”
Stock Plan Services
1.800.544.3929
Fidelity-Managed 529 College
Savings Plans
Thankfully, Fidelity.com/taxquestions provides links to much
of the information I need, including the questions below.
1.800.544.1914
Charitable Gift FundSM
1.800.682.4438
Q: Can I find 1099 Forms and Statements online?
Annuities
Yes, you can find your forms online beginning in late January 2008.
Most forms will be mailed by January 31, 2008.
1.800.544.2442
Term Life Insurance
1.888.343.8376
TDD (for deaf and hearing-impaired)††
Q: When can I import my tax information into TurboTax®?
1.800.544.0118
You can import your tax information from Fidelity into TurboTax
beginning February 1, 2008.
To make deposits, mail checks to:
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Please include account number and
deposit slip. To download a deposit
slip, go to Fidelity.com/depositslip.
Q: When can I view our 2007 year-end distribution information for
Fidelity funds on the Web?
The 2007 year-end distribution information is available in December 2007.
Or use Fidelity Electronic Funds
Transfer (EFT) at
Fidelity.com/eft.
Q: What is the IRA contribution limit and deadline for making
contributions?
†† 24-hour service not available.
Your regular contribution limit to a Traditional or Roth IRA (if eligible)
is $4,000. If you are age 50 or older (as of December 31, 2007), you
can make an additional catch-up contribution of $1,000, for a total
contribution of $5,000.
access Fidelity
LOG ON TO FIDELITY.COM
TO ACCESS:
• Accounts & Trade
• Research
• Retirement & Guidance
• Investment Products
• Your Profile
• Customer Service
ON YOUR WEB-ENABLED
WIRELESS HANDSET
Open the browser and bookmark
Fidelity.com to access:
• Real-time quotes
• Market updates
• Accounts and trades
CALL 1.800.544.5555 TO
ACCESS 24-HOUR▲ AUTOMATED
PHONE SERVICE
• Place trades and review account
balances.
• Get quotes and review orders.
• Connect to employee retirement
services.
▲
System availability and response time may
be delayed by market and other conditions.
32577IBC.indd
C3
2007 Contribution Deadlines¹
• (Online) 11:59 p.m. Eastern time, Tuesday, April 15, 2008
• (By mail) Must be postmarked by Tuesday, April 15, 2008
Q: How do I remove excess contributions I’ve made to an IRA?
Before completing the form, you are encouraged to consult your tax
advisor for more information about removing excess contributions and
your personal situation.
Q: Can I find and update my cost basis information online?
Yes, cost basis information is available online. You can edit the cost basis
when it is unknown and not provided by Fidelity.
1. Cutoff time for making a prior-year IRA contribution will vary, and you may not be able to
make an online prior-year contribution. Call 1-800-FIDELITY for details.
TurboTax is a registered trademark of Intuit Inc., and is used with permission. Intuit is not affiliated with
Fidelity Brokerage Services LLC.
Log on to
Fidelity.com
today.
The tax information contained herein is general in nature, is provided for informational purposes only, and should not be construed
as legal or tax advice. Fidelity does not provide legal or tax advice.
1/8/08
3:53:30 PM
A new way to capture international growth.
The world
is your oyster.
Introducing Fidelity Total International Equity Fund
Over the past five years, the international
market delivered more than double the
returns of the domestic market.1 But what
kind of approach to international investing
should you consider? Growth or value?
Large-cap or small-cap? Emerging markets
or developed economies?
Our answer: the new Fidelity Total
International Equity Fund (FTIEX). It’s
the most broadly diversified international
fund we’ve created yet. If you want to add
international opportunity to your portfolio,
consider the fund that brings you more of it.
With Fidelity you get:
• 900 investment professionals around the world
• More than 350 research analysts and associates
• 24-hour-a-day international coverage
• Portfolio managers and analysts from 25 countries,
speaking 31 languages
Foreign investments, particularly those in emerging
markets, involve greater risk than U.S. investments.
Call 800.544.5704 or
visit Fidelity.com/total
1 As of 9/30/07, domestic performance as measured by the S&P 500® Index was 105.13%, as compared to international performance,
which was 218.45% as measured by the MSCI AC World Ex-US Index.
Past performance is no guarantee of future results. It is not possible to invest directly in an index. Index performance is not intended to
represent the performance of any Fidelity Fund.
Before investing, consider the fund’s investment objectives, risks, charges, and expenses. Contact Fidelity
for a prospectus containing this information. Read it carefully.
Fidelity Brokerage Services, Member NYSE, SIPC
1.776687.122
478743.2
FIDPA-MAG-0208
478606
C75301
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1/7/08 9:22:32 PM