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| Overview | | The Portfolio Analysis tool helps you examine and understand your portfolio's diversification. | | Top | |
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| What does the Portfolio Analysis tool do? | | Fidelity's Portfolio Analysis tool categorizes your investments to give you a better understanding of your portfolio's diversification. The goal is to give you a more transparent view of the securities within your accounts including the underlying holdings in your mutual funds and pooled investments like variable annuities. Please note that annuities in the payout phase are not shown in this analysis. | | Note for Fidelity NetBenefits Customers: | | Since this tool provides a more detailed view of the holdings in your portfolio, you may notice discrepancies in the asset classifications between the information provided here versus what is shown on NetBenefits. The discrepancy is a result of two different methods of categorizing assets. One method is to categorize an investment in its entirety. The other is to use "look through" technology to break down the holdings within each investment and categorize the individual holdings. Additionally, some NetBenefits accounts may hold certain investments for which details are unavailable. In this situation, the investment will be classified as "unknown." | | Additional analysis determines each equity investment's stock sectors, domestic stock style, and foreign vs. domestic stock exposure. This analysis is applied to all accounts that you checked in the control panel. | | Top | |
| What is a well-diversified portfolio? | | A well-diversified portfolio is one that has the potential to give you a good opportunity for returns while minimizing your risks. Asset allocation, industry sector holdings, investment style, and exposure (domestic versus foreign) all measure the diversification of your portfolio. | | Top | |
| For which type of accounts can I use the Portfolio Analysis tool? | | The Portfolio Analysis tool examines Fidelity Personal Investing Accounts, Authorized Accounts, NetBenefit Accounts, and Full View Accounts. Of these accounts, only Authorized Accounts and Full View Accounts are not automatically included in the initial analysis performed by the Portfolio Analysis tool unless you specifically include them. | | An Authorized Account includes those accounts for which you have been provided inquiry authorization. The person who provided authorization to you is either an individual (not a corporation, trust, or other entity) or an owner, trustee, custodian, fiduciary, joint, or beneficial owner of a Fidelity mutual fund or brokerage account accessible through Fidelity.com. | | A Full View account is an account held at another financial institution for which you have authorized Fidelity to import data electronically. If you decide to include a Full View account in a Portfolio Analysis tool analysis, Fidelity representatives will be able to view the information in that account in order to furnish and support the tool. Your use of the tool constitutes your consent for Fidelity representatives to view Full View Account information. | | Top | |
| What kind of data does the Portfolio Analysis Tool use? | | The Portfolio Analysis tool uses holdings data from independent sources to classify financial assets. Compustat provides individual stock data. Morningstar, Inc., an independent third-party vendor, supplies monthly data for publicly available mutual funds, including asset allocation, equity industry sector, and equity style data and forforeign versus domestic classifications. This data is only as current as the information supplied to Morningstar by third parties and may be up to 12 months old. In some cases (e.g. newer funds), the third-party vendor may not have holdings information and therefore such funds are classified as "unknown." In other cases, the third-party vendor may not recognize all of the holdings within a mutual fund. In these cases, the vendor provides analysis only on the recognized portion of the fund. In this case, the unrecognized holdings are classified as "unknown." | | Fidelity affiliates, plan sponsors, or external money managers provide quarterly data for proprietary mutual funds and other pooled investment options unique to certain retirement plans, such as commingled pools or separate accounts. If current quarterly holdings are unavailable, the latest available data is used. In the case of individual securities held within an account, the tool determines the industry sector of the individual security using the same parameters as the third-party vendor providing underlying holdings data for publicly available mutual funds. In the rare instance where such data is unavailable from the third-party vendor, Strategic Advisers, Inc., a registered investment advisor and a Fidelity Investments company, determines the industry sector using publicly available information. If the information is unavailable, the holdings will be classified as "unknown." Data for the underlying holdings in Fidelity mutual funds is provided by Fidelity affiliates. If this data is not available for a fund, the assets will be categorized based on a previously assigned Fidelity asset class. In the event this data is also unavailable, the assets will be classified as "unknown." | | Standard & Poors, Moody's, and Fitch provide credit rating and duration information on individual bonds. Morningstar provides credit rating and duration information on bond funds. Lipper, Inc., provides sector information on bond funds. Investment information provided to Strategic Advisers, Inc. is not based on contemporaneous data. Strategic Advisors, Inc. is not responsible for the accuracy of data provided by third parties. | | Top | |
| What is asset allocation? | | Asset Allocation is the diversification of investments across categories of assets (asset classes), such as short-term investments, stocks and bonds, real estate, precious metals, and collectibles. Different asset classes tend to offer different return and risk tradeoffs. Generally the greater the stock allocation, the greater the potential for long-term returns and the greater the risk of volatility and losses, especially over the short term. Conversely, short-term assets such as CDs or money markets carry less risk but generally yield lower return. | | Top | |
| What does the Asset Allocation chart show? | | The Asset Allocation chart shows you how your assets are distributed among several major asset classes: "domestic stocks," "foreign stocks," "bonds," "short-term securities," (cash equivalents, CDs, money market funds, etc.) "other," and "unknown." The "other" category includes non-asset class holdings (e.g. derivative securities, options, warrants, precious metals, REITs) in some of your investments as well as 529 plan college investment trust holdings. The "unknown" category represents investments you may have whose details are unknown or unavailable to Fidelity. In order to manage risk, your portfolio should contain a mix of investments consistent with your financial situation, your investment objectives, your risk tolerance and other factors, such as how soon you'll need access to cash. You should also take into consideration any unique circ*mstances that might apply to your situation when deciding upon an appropriate asset allocation. Understanding where you stand on these factors will help you develop an appropriate investment strategy. | | This chart shows you how much of your investments that are classified as equity stock investments are in the U.S. stock market and how much are overseas in foreign markets. Your foreign exposure is the proportion of your portfolio comprised of equity securities issued outside the US. | | In general, portfolios holding more assets overseas face greater risk due to uncertain political and economic conditions abroad. Diversified portfolios may typically hold up to 15 to 20 percent of their assets in foreign markets. | | Top | |
| What is the Equity Style Profile? | | This Equity Style Profile chart and table show you the overall "style" of the assets classified as domestic stock investments in your portfolio using two common measures: size and valuation. Size, shown on the vertical axis, refers to the market capitalization of companies whose stocks you own in your portfolio: Large-cap ($5 billion and over), Mid-cap ($1 billion to $5 billion) and Small-cap (less than $1 billion). Valuation style, shown on the horizontal axis, measures the price of the stock against the value of the company and the value other investors have placed on the company's future earnings. Valuation is determined by adding the stock's price/earnings ratio (stock price divided by the company's earnings per share) and the stock's price/book ratio (stock price divided by the company's book value, which refers to the company's assets minus its liabilities). The sum of these two ratios determines whether a stock is a growth, value or blend stock. | | In addition to showing you the valuation style of the investments in your portfolio, the chart also compares your portfolio's style to that of the broad domestic equity market. The chart uses the Wilshire 5000 Equity Index (generally characterized by a size of large and a valuation of blend) as a proxy representation for the broad domestic stock market. The closer your portfolio is to the blue square on the chart, the closer your portfolio is to the style of the U.S. broad market. In general, a well-diversified portfolio tends to mirror the style of the broad market. | | Stocks whose size and valuation are unavailable are excluded from this chart. The top of the graph tells you the percentage of your domestic stock holdings included in this chart. | | Top | |
| How are relative Price/Earnings (P/E) and Price/Book (P/B) values determined? | | Relative Price/Earnings (P/E) and Price/Book (P/B) are determined by calculating the Price/Earnings (P/E) ratio for the domestic stock portion of the portfolio as compared to the S&P 500® Index. This figure is then added to the Price/Book P/B) ratio for the domestic stock portion of the portfolio compared to the S&P 500 Index. The result, the sum of the relative (P/E) and relative (P/B) ratio, determines whether a stock is classified as growth, value, or blend. | | Top | |
| What are growth stocks? | | Growth stocks are stocks of companies whose earnings per share are expected to grow significantly faster than the market average. These stocks tend to trade at higher than average P/E ratios, because investors are willing to pay more for these stocks in the belief that company earnings will grow faster than the market average. (Relative (P/E) + Relative (P/B) greater than 2.25) | | Top | |
| What are value stocks? | | Value stocks are stocks that are priced lower in relation to the company's earning potential. These stocks often trade at below-average P/E ratios. In general, stocks are considered "value" stocks when their potential growth has yet to be recognized by the market. (Relative (P/E) + Relative (P/B) less than 1.75). | | Top | |
| What are blend stocks? | | Blend stocks have valuations close to that of the S&P 500 Index. (Relative (P/E) + Relative (P/B) less than or equal to 2.25, but greater than or equal to 1.75) | | Top | |
| What is the Equity Industry Sector chart? | | The Equity Industry Sector chart classifies your domestic stock investments into ten major industry sectors: Consumer Durables, Consumer Non-Durables (staples), Energy, Financials, Health, Industrial Cyclicals, Retail, Services, Technology, Utilities and Unknown. You can see how your domestic stock investments in different industries compare against the Wilshire 5000 Equity Index, a proxy representation of the broad domestic market. In simplest terms, the broad domestic market is the U.S. stock market as a whole. | | By seeing how your investments in different industries compare against the distribution of capital in the broad market, you can see whether your portfolio is overweighted or underweighted in a particular industry relative to the broader domestic equity market. In general, a well-diversified portfolio tends to mirror the distribution of capital in the broad market. | | Top | |
| Why does the Portfolio Analysis tool use the Wilshire 5000 Equity Index? | | The Portfolio Analysis tool uses the Wilshire 5000 Equity Index as a proxy representation of the broad domestic market. Unlike the S&P 500 Index, which includes only 500 major U.S. stocks, the Wilshire 5000 Equity Index includes over 7,000 securities of publicly traded U.S. companies, encompassing a broader swath of the U.S. stock market. | | Top | |
| What is the Bond Style Profile? | | The Bond Style Profile chart shows you the overall "style" of the assets classified as domestic bond investments in your portfolio using two common measures: credit quality and duration. Credit Quality, shown on the vertical axis, refers to the average credit rating of bonds in your portfolio. Credit Quality is divided into Investment Grade (BBB or higher rated bonds, including Government bonds) and Non-Investment Grade (bonds rated below BBB). Government bonds are not rated by any rating agencies. They are backed by the full faith and credit of the U.S. Government, and therefore, their credit quality is the highest among all bonds. | | Duration, shown on the horizontal axis, is a composite measure of the bond's maturity and coupon payments. Duration measures the average time it takes you to fully recover the principal and interest payments. Duration allows bonds of different maturities and coupon rates to be compared directly. Duration is measured in years. It is also a measure of the bond's interest rate risk. The greater the duration, the more interest rate risk the bond has. The bonds in your portfolio will fall into the following three groups: Short (durations of less than 2.7 years), Intermediate (durations between 2.7 and 7.1 years), and Long (durations over 7.1 years). | | In addition to showing you the style of the bonds in your portfolio, the chart also compares your portfolio's style to that of the broad domestic bond market. The chart uses the Lehman Brothers Universal Bond Index as a proxy representation for the broad domestic bond market. The closer your portfolio is to the blue square on the chart, the closer your portfolio is to the style of the U.S. bond market. In general, a well-diversified portfolio tends to mirror the style of the bond market. | | Under the "Bonds" tab, the "Unknown" category includes bonds held by you individually or through a mutual fund for which investment details are not known or available. The "Other Munis" category includes municipal bonds that are neither Revenue nor General Obligation bonds. Bonds whose credit quality and duration are unavailable are excluded from this chart. | | Top | |
| What is the Bond Ratings Profile? | | The Bond Ratings Profile is a detailed breakdown by credit rating of the bonds in your portfolio. Credit ratings are designations used by investors' services to give relative indications of a bond's credit quality. The chart shows the percentage of the bonds in your portfolio that have a Government & Agency, AAA, AA, A, BBB, BB, B, Below B, or Other rating. Government bonds are not rated by any rating agencies. They are backed by the full faith and credit of the U.S. Government, and therefore, their credit quality is the highest among all bonds. | | Portfolio Analysis uses Standard & Poors, Moody's, and Fitch to provide credit ratings. The credit ratings shown for the individual bonds analyzed are an average of the ratings from these agencies. The credit rating for Bond funds are provided by Morningstar. For purposes of comparison, you can use the Lehman Brothers Universal Bond Index (see below for descriptions of indices) as a "benchmark." You will see a detailed breakdown by credit rating of the holdings in that bond index. | | Top | |
| What is the Taxable Bond Sector chart? | | The Taxable Bond Sector chart classifies your taxable bond investments into the following sectors: Government and Agency, Mortgage and Asset-Backed, Investment Grade Credit, Non-Investment Grade Credit, and Others. You can see how your taxable bond investments in different sectors compare against the Lehman Brothers Universal Bond Index. This index is a proxy for the broad market for taxable bonds. The Lehman Brothers Universal Bond Index includes over 10,400 taxable bonds. By seeing how your bond investments in different bond sectors compare against the distribution of capital in the broad market, you can see whether your portfolio is overweighted or underweighted in a particular bond sector relative to the broader domestic bond market. | | Top | |
| What is the Municipal Bond Sector chart? | | The Municipal Bond Sectorchart classifies your municipal bond investments ("Munis") into General Obligation Munis, Revenue Munis, and Other Munis. You can see how your municipal bond investments in different sectors compare against the Lehman Brothers Municipal Bond Index. This index is a proxy for the broad market for municipal bonds. The Lehman Brothers Municipal Bond Index includes over 43,000 individual municipal bonds. By seeing how your bond investments in different bond sectors compare against the distribution of capital in the broad market, you can see whether your portfolio is overweighted or underweighted in a particular bond sector relative to the broader domestic bond market. | | Top | |
| What is the Historical Asset Allocation tool? | | Analysts use historical data to determine the potential risk and returns of various asset classes, industry sectors and investment styles. This Historical Asset Allocation tool analyzes how a hypothetical portfolio with an asset mix (of stocks, bonds, and short term) similar to your portfolio might have performed in a hypothetical portfolio during previous market rallies and downturns to show you how a hypothetical portfolio such as yours may have performed in real bear and bull markets of the past. Once you've viewed the historical information, you can decide if you're comfortable with the range of best and worst case scenarios presented to better understand your risk exposure and your risk tolerance. | | Note: Historical performance figures do not represent the actual or hypothetical performance of your actual holdings. They are based only on the mix of asset classes in your current accounts. Assets classified as "unknown" or "other" are included in the stock, bond, or short-term categories based on your current asset allocation percentages. | | A hypothetical asset allocation scenario is presented below. | | Stocks 40% | | Bonds 20% | | Short-Term 15% | | Other 10% | | Unknown 15% | | Fidelity Portfolio Analysis combines the percentages of Other and Unknown to calculate historical market performance figures. It then takes the percentage of each known classification (stock, bond, short term) and divides it by the total percentage of (stock, bond, and short term). This calculation results in a normalized mix percentage adding up to 100%. | | Other + Unknown = 25% | | Stock + Bond + Short Term = 75% { or 100% - total for other and unknown (25%)} | | Stock % (40%) / 75%= 53% | | Bond % (20%) / 75% = 27% | | Short Term (15%) / 75% = 20% | | The historical returns reflect average annual returns of that hypothetical asset mix for the period indicated within the 1926 to 2001 window for the combination of stocks, bonds and short-term holdings represented in the asset mix. Historical returns for the various asset classes are based on performance numbers provided by Ibbotson Associates in the Stocks, Bonds, and Inflation (SBBI) 2001 Yearbook (annual update work by Roger G. Ibbotson and Rex A. Singquefield). Stocks are represented by the S&P 500; bonds are represented by the 20-year U.S. Government Bond; and short-term assets are based on the 30-day U.S. Treasury Bill. Average annual returns are hypothetical, and, if achieved annually, would have produced the same cumulative total return if performance had been constant over the entire period. Average annual total returns simply smooth out variation in performance; they are not the same as actual year-by-year results. | | There is historical risk associated with market declines. As of December 31, 2001, the period from 1929 to 1932 has been the worst decline since 1926. Following World War II, 1972 to 1974 has been the worst decline. The most recent three market declines reported represented at least a 20 percent decrease in the stock market as measured by the daily change in the S&P 500. Keep in mind that your current portfolio may still indicate a positive return for any of the market declines reported here if it would have outperformed the stock market during the period reported. | | The market decline scenario table shows the hypothetical returns of the asset mix (stocks, bond, and short-term) for five selected stock market declines from 1926 through 2001. | | Top | |
| What additional information should I keep in mind about the Portfolio Analysis tool? | | Retirement investors should note that the information provided in this tool should not be considered as investment advice under the Employee Retirement Income Security Act of 1974 (ERISA), or serve as the primary basis for any investment decision. Instead, it should be considered together with all other information that investors deem important in making their investment choices. This is an educational tool. A decision to invest in a particular investment option may be based on a number of factors including an investor's needs, savings through work and outside a workplace savings plan, goals and comfort with risk. | | Full View information is provided by Fidelity and Yodlee (Yodlee is not affiliated with Fidelity). Neither Fidelity nor Yodlee is responsible for the validity, legality, copyright compliance, or decency of content gathered by the Full View service. Fidelity and Yodlee cannot always foresee or anticipate technical or other difficulties that may result in a loss of data, or other service interruptions. Fidelity and Yodlee do not assume responsibility for the timeliness, accuracy, deletion, or mis-delivery or failure to store any user data. You are solely responsible for the validity of the information you enter about your Full View accounts. | | Balances of Full View accounts represent the most recent update and may not be accurate if an update was not successfully completed or the information obtained during the refresh from the institution is otherwise not accurate or current. The "Refresh" date may not be the same as the "As Of" date, which is available directly through the financial institutions. Data and information is provided for informational purposes only, and is not intended for trading or transactional purposes. Neither Fidelity nor Yodlee shall be liable for any errors or lack of timeliness in the content, or for any actions taken in reliance thereon. | | Top | |
