Six-pack of Income Funds

10/29/2014 9:00 am EST

Focus: FUNDS

Jim Lowell

Senior Partner & Chief Investment Strategist, Adviser Investments

We should all care about well-managed companies and well managed funds. Those investing at Fidelity can be thankful for the fact that the fund family has both, explains Jim Lowell, editor of Fidelity Investor.

Capital & Income (FAGIX)

Manager Mark Notkin invests in both high quality and leveraged company stocks and high yield bonds that range from higher quality liquid names to lower quality debt.

It began trading in November 1977 and has a market value of close to $11 billion. Foreign investments make up 15.4% of the holdings.

Convertible Securities (FCVSX)

Manager Thomas Soviero invests in convertible securities, which are generally categorized as lower quality debt and perform like a stock when the underlying share price is high and like a bond when the share price is low.

It began trading in January 1987 and has a market value of over $2 billion. Foreign investments make up less than 1% of the holdings. The top three sectors are consumer discretionary (16.5%), information technology (15.9%), and financials (14.9%).

Focused High Income (FHIFX)

Manager Matt Conti invests in income-producing investments, preferred stocks, and convertible securities. The fund invests mostly in securities rated BB by Standard & Poor’s or those considered to have a similar quality rating by FMR.

It began trading in September 2004 and has a market value of $630 million. Foreign investments make up 26.5% of the holdings.

High Income (SPHIX)

Manager Fred Hoff invests in stocks, convertible securities, and lower-quality bonds. The fund seeks a similar credit quality distribution to the Merrill Lynch US High Yield Index.

It began trading in August 1990 and has a market value of $6 billion. Foreign investments make up 19.8% of the holdings.

Leveraged Company Stock (FLVCX)

Manager Thomas Soviero invests in leveraged companies, which are companies that issue lower quality debt and companies with leveraged capital structures. It began trading in December 2000 and has a market value of close to $4.5 billion.

Foreign investments make up 14.5% of the holdings. The top three sectors are consumer discretionary (24.5%), materials (14.6%), and financials (11.7%). The top holdings include LyondellBasell, RockTenn, and AES.

Telecom & Utilities (FIUIX)

Manager Douglas Simmons invests in companies involved in the utility industry such as electric, gas, water, cable, radio telecommunications services, or sanitary services companies.

It began trading in November 1987 and has a market value of over $1 billion. Foreign investments make up 4% of the holdings.

The top three sectors are utilities (44.4%), telecom services (33.3%), and energy (13.4%). The top holdings include Verizon, Nextera Energy, and Williams Companies.

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