March 5, 2018 / 12:53 PM / 4 months ago

FACTBOX-Market sell-off shows increased risk in Fidelity funds

    Feb 27 (Reuters) - Fidelity's target-date fund franchise, the Freedom Funds,
have performed better than most rivals since a strategy overhaul in 2014 ramped
up risk to improve performance.
    But the increased volatility for retirement investors was on display during
a recent market sell-off, between Jan. 26 and Feb. 8, that sent stock prices
down. During that period, Freedom Funds for older savers - those nearest to
retirement - substantially underperformed their target-date peers.
    Fidelity funds for younger savers generally did better, relative to
competitors.
     
 Fund              Volatility        Percentile    3-year return    Percentile
                   Crash Return       (1=Best)                    
                                                                  
                                                  (annualized)    
 Freedom 2020        -5.96%           81          6.39%               1
 Freedom 2025        -6.56%           69          6.79%               3
 Freedom 2030        -7.64%           82          7.83%               3
 Freedom 2035        -8.66%           95          8.62%               3
 Freedom 2040        -8.91%           87          8.71%               4
 Freedom 2045        -8.79%           50          8.68%               6
 Freedom 2050        -8.82%           38          8.70%               6
 Freedom 2055        -8.84%           36          8.67%               7
 Freedom 2060        -8.86%           40          8.64%              15
 Freedom Income      -2.87%           20          3.55%              36
 
 (Reporting by Tim McLaughlin
Editing by Brian Thevenot)
  
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