FSMD - Fidelity Puritan Fund Q2 2024 Review
2024-07-29 22:00:00 ET
Summary
- Fidelity Contrafund is a large-cap growth biased equity strategy focused on companies with durable multiyear earnings growth potential.
- Fidelity Puritan Fund seeks income and capital growth consistent with reasonable risk and has a neutral allocation of 60% equities and 40% bonds.
- For the quarter, the fund's Retail Class shares gained 2.70%, versus 2.60% for the Fidelity Puritan Composite Index SM.
- As of midyear, markets enjoy favorable momentum and easier financial conditions, even though the pace and magnitude of global monetary easing is uncertain.
Investment Approach
- Fidelity® Puritan® Fund seeks income and capital growth consistent with reasonable risk, and has a neutral allocation of 60% equities and 40% bonds.
- The fundamental outlook and relative valuation of asset classes will generally be the main drivers of any deviation from the 60/40 neutral allocation.
- For the equity sleeve, our investment approach targets companies with a rate and/or sustainability of growth that we believe has been mispriced by the market. We think investors have a tendency to overextrapolate recent trends, which can cause equity prices to disconnect from their underlying fair values, creating investment opportunities. We rely extensively on both fundamental and quantitative analysis in constructing the portfolio.
- The investment-grade bond strategy seeks strong risk-adjusted performance through sector and security selection and yield-curve positioning. The fund also has a dedicated high-yield bond portfolio, considered out of benchmark.
