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  • jerry February 2017
  • msf February 2017
  • Ted February 2017
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Despite Struggling Stock Funds, Fidelity Reports Record Revenue, Profit

FYI: Fidelity Investments reported record revenue of $15.9 billion in 2016, as well as a record operating profit, despite struggles at its flagship stock funds and a continuing industrywide exodus by investors to lower-cost index funds.

In its annual report Thursday, the Boston-based financial services giant said expense cuts, along with 3.4 percent revenue growth, helped drive a 19.5 percent jump in operating income, to $3.5 billion.
Regards,
Ted
https://www.bostonglobe.com/business/2017/02/16/fidelity-reports-record-revenue-and-profits-even-its-stock-funds-struggled/gO47KIy60FmpIg8liahklK/story.html

Comments

  • An expert quoted in the article wrote"In particular, only four of Fidelity’s US stock funds that use the S&P 500 as a benchmark beat the index last year, he said.


    Anybody know the four funds? AS we mostly know its not contrafund
  • TedTed
    edited February 2017
    @jerry:
    1. FGRTX 13.03%
    2. FGRIX 16.06%
    3. FLCSX 16.70%
    4. FEQIX 17.38%
    S&P 500 (TR) 11.96%
    Source M*
    Regards,
    Ted
  • Also:
    FDETX 16.51%
    FDESX 17.08%
    FALIX 16.92%
    FZALX 13.84%
    FMALX 15.84%
    FXAIX 11.97% (note S&P index fund beating benchmark)
    FMILX 14.92%
    FGLGX 15.96%

    FEQIX does not use the S&P 500 as a benchmark. Its benchmark is the R3K Value. The fourth fund should be FMILX.

    I suspect the writer was oblivious to the fact that Fidelity sells load funds (the first five I listed). It is a bit more understandable that a Fidelity Series fund (FGLGX) was ignored, as these funds are only used internally, so don't (directly) affect asset flow.

    The last fund (FXAIX) might have been ignored because it was an institutional fund (though such funds also affect asset flow), or because as an index fund it isn't germane to a discussion about how (un)attractive actively managed funds are. Or possibly because the writer couldn't conceive of an index fund outperforming its benchmark.

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