Understanding Fund Risk, Rating, and Performance Tables

Pages 4, 5, 6, and 7 of each issue of Fidelity Watch contain a summary of performance data and other useful information for each Fidelity fund. Following is an explanation of this information and its relevance to funds you already own or are considering buying.

Fund Name, Code, and Trading Symbol
The first two columns in the table list each fund by name, Fidelity fund code, and trading symbol. The funds are arranged by investment objective (Growth, Growth & Income, Asset Allocation, International, Select, Municipal Bond, Taxable Bond, Money Market, and Tax Free Money Market). The market indexes (Dow Jones Industrial Average, S&P 500 Index, Russell 2000, and NASDAQ Composite) are also listed for reference.

Ratings
The rating category indicates an action recommendation for each fund. The B, S, or H rating is a Buy (B), Sell (S), or Hold (H) recommendation based on the fund objective, performance, manager, and the current economic and market environment. A “B” rating indicates we consider the fund attractive. A “B+” rating indicates we consider the fund very attractive (a strong buy). A “B-” rating indicates we consider the fund slightly attractive (a weak buy). A “H” rating means we are currently neutral on the fund. A “S” rating indicates a fund is unattractive and should be avoided. A “S” rating may also indicate a fund previously rated “B” or “H” should be sold because it has had tremendous growth and may be poised for a fall based on current market and economic conditions. Ratings are updated in each issue of Fidelity Watch.

Risk
The measure used for risk is relative volatility. A fund’s relative volatility is a ratio that compares the fund’s volatility to a benchmark index. Using the S&P 500 as a benchmark of 1.00, this figure shows how much more a fund has fluctuated versus the S&P 500 in the previous three years. For example, a fund with relative volatility (or risk rating) of 1.30 is 30% more volatile than the S&P 500, while a fund with relative volatility of 0.80 is 20% less volatile than the S&P 500. Relative volatility based on historical returns has proven to be a good indicator of a fund’s current risk level.

Size
The number listed is the size of the fund’s assets in millions of dollars. The size of a small stock fund or aggressive growth fund can be important. A smaller fund can allow a manager to be more “nimble.” Although not always, performance of a stock fund can suffer as its size grows significantly.

Fee
This is the fee Fidelity charges when you sell a fund. The letter shown in parenthesis refers to any redemption fees for the fund as described in the table’s legend.

Total Returns
These returns are expressed as a percent and reflect change in net asset value of the fund with all dividends and capital gains distributions reinvested over the time horizon stated.

Yield
Yield is income from an investment in the form of interest or dividends. Yield does not include the change in the fund’s share price. Yield shown here is 30-day yield for bond funds and 7-day yield for money market funds as reported by Fidelity. It is based on yield to maturity of the fund’s investments.

Estimated Tax-Equivalent Yield
In order to compare yields of tax-free funds with taxable funds, every issue of Fidelity Watch calculates taxable fund - equivalent yields for municipal bond funds and tax-free money market funds. Tax-equivalent yields assume the top state tax level for the federal tax bracket shown.