FSMD - Fidelity Strategic Dividend & Income Fund Q2 2024 Review
2024-07-31 04:05:00 ET
Summary
- Fidelity Contrafund is a large-cap growth biased equity strategy focused on companies with durable multiyear earnings growth potential.
- Fidelity Strategic Dividend & Income Fund is a multi-asset-class strategy that seeks to provide reasonable income, and potentially also capital appreciation, by investing in a diversified mix of dividend-oriented equity and hybrid securities.
- The fund's roughly neutral positioning among large-cap, dividend-paying stocks had little impact on its relative result in Q2.
- The fund employs a lead portfolio-manager/subportfolio-manager structure.
Investment Approach
- Fidelity® Strategic Dividend & Income® Fund is a multi-asset-class strategy that seeks to provide reasonable income, and potentially also capital appreciation, by investing in a diversified mix of dividend-oriented equity and hybrid securities.
- The fund's assets are allocated among high dividend-yielding stocks, preferred stocks, real estate investment trusts (REITs) and convertible securities, using a target weighting of 50%, 20%, 15% and 15%, respectively. This strategic allocation attempts to take advantage of the low correlation among these equity/hybrid classes with a goal of optimizing total returns while containing volatility over time.
- Specialized subportfolio managers are responsible for security selection in their respective areas of expertise and represent the primary source of alpha (risk-adjusted excess return), while the lead portfolio managers have the flexibility to make tactical allocation shifts around the target mix to help manage risk and capitalize on relative-value opportunities.
