(PUB) Morningstar FundInvestor
6
Data through June 30, 2014 Fidelity High Income
Ticker Status Yield SEC Yield Total Assets Mstar Category SPHIX Open 5.2% 4.22% $6,454 mil High Yield Bond
Morningstar Analyst Rating 06-17-14
Investment Style Fixed Income Income Rtn %Rank Cat
Historical Profile Return Risk Rating Above Avg Average Above Avg
46
34
53
77
63
60
78
61
51
Œ
Manager Change Partial Manager Change
14.0 18.0 22.0 26.0
Morningstar Pillars Process Performance
Positive Positive Positive Positive Positive
∞ ∞ ∞ ∞ ∞
Growth of $10,000
Investment Values of Fund Investment Values of BC Agg Bnd Performance Quartile (within Category) History
People Parent Price
10.0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 06-14
Morningstar Analyst Rating Morningstar evaluates mutual funds based on five key pillars, which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis. Analyst Rating Spectrum Œ „ ´ˇ ¨
8.94
9.09 9.69 5.35 -1.18 7.87 1.82 0.68 0.00 0.77 7.67 53
8.78 3.45 1.02 0.71 6.91 -3.46 0.61 0.00 0.77 7.07 23
9.06
8.61
6.04
8.46
8.94
8.64 3.43 -4.41 -0.95 6.94 -3.51 0.60 0.00 0.75 7.44 48
9.34
9.37 6.68 8.70 -0.74 5.64 1.04 0.51 0.06 0.72 5.96 48
9.50 4.25 0.32 -1.39 2.64 1.61 0.25 0.02 0.72 5.58 78
NAV
27.35 23.25 -0.80
10.78 6.45 -0.94 7.40 3.38
-23.72 2.32 -28.96 -4.65
51.46 45.53 -6.05
13.73 7.19 -1.46 7.85 5.88
14.87 10.66 -0.72
Total Return % +/-BC Agg Bnd
0.08 7.56
2.67 7.60
+/-BofAML HY Master
9.38
9.79
6.06 8.81 0.51 0.05 0.76 6.79 45
Income Return % Capital Return %
17.97
-31.32 -5.24
41.67
29
32
35
38
30
58
Total Rtn % Rank Cat
Pillar Spectrum Positive ∞
0.69 0.00 0.79 8.82
0.63 0.00 0.76 6.97
0.66 0.00 0.75 7.31
0.63 0.00 0.74 7.36
0.57 0.01 0.77 9.04
0.64 0.00 0.75 8.09
Income $
§ Negative
¶ Neutral
Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil
Performance 06-30-14 1st Qtr 2nd Qtr
3rd Qtr
4th Qtr
Total
81
65
40
39
33
27
65
55
35
44
56
.
2010 2011 2012 2013 2014
4.21 -1.11 3.98 0.30 5.72 1.22 2.88 -2.02
6.64 3.49 13.73
2,902
3,114
3,355
4,509
5,200
4,113
6,942
7,248
4,788
6,494
6,001
6,454
-6.81 6.42
3.43
4.65 2.58 14.87
Portfolio Analysis 04-30-14
Rating and Risk Time Load-Adj
2.25 3.50
6.68
2.41
Date of Maturity
Amount
Value % Net $000 Assets
Morningstar
Morningstar Risk vs Cat
Morningstar Risk-Adj Rating
. . . .
Period Return % Rtn vs Cat
Total Fixed-Income:615
$000
1 Yr 3 Yr 5 Yr
10.33
Trailing
Total
+/- BC +/- BofAML %Rank Growth of
Trinseo Matls Oper Sca / 02-01-19 56,420 60,087 0.92 Laureate Educ 144A 9.25% 09-01-19 53,814 56,774 0.87 Chs / Cmnty Health Sys 8 11-15-19 50,985 55,765 0.86 Chs / Cmnty Health Sys 1 02-01-22 53,230 55,160 0.85 Tenet Healthcare 8.125% 04-01-22 48,910 54,290 0.83 Rite Aid 6.75% 06-15-21 43,080 46,850 0.72 Tronox Worldwide 6.375% 08-15-20 43,875 44,753 0.69 Serta Simmons Hldgs 144A 10-01-20 37,328 40,967 0.63 Sprint Cap 6.9% 05-01-19 36,939 40,541 0.62 First Data Corp Term Ext 03-24-18 38,040 37,850 0.58 Claires Stores 144A 9% 03-15-19 35,000 36,400 0.56 Intelsat Luxembourg S A 06-01-21 34,085 35,534 0.54 Intl Lease Fin 8.75% 03-15-17 30,306 35,306 0.54 Jmc Steel Grp 144A 8.25% 03-15-18 34,740 35,087 0.54 Dunkin Brands Term B-4 2 02-07-21 33,705 33,410 0.51 Ardagh Packaging 144A 6. 01-31-21 31,530 32,870 0.50 Upcb Fin Iii 144A 6.625% 07-01-20 29,492 31,483 0.48 Gardner Denver Term B 07 07-30-20 30,225 30,188 0.46 Sprint Nextel 6% 11-15-22 29,940 30,165 0.46 Cdw Term B 04/29/2020 04-29-20 30,458 30,115 0.46 Current Investment Style Sector Breakdown % of assets
Return% Agg Bnd HY Master
Cat
$10,000
8.21
Avg Avg
Avg
3 Mo 6 Mo 1 Yr
1.80 -0.24 4.25 0.32 10.33 5.96 8.21 4.55 12.58 7.73 8.26 3.33 5.91 0.31
-0.77 -1.39 -1.51 -1.06 -1.36 -0.65 -1.61
75 10,180 78 10,425 62 11,033 53 12,671 53 18,084 24 22,115 75 23,662
12.58
+Avg
10 Yr Incept
8.26 9.39
+Avg
Avg
3 Yr Avg 5 Yr Avg 10 Yr Avg 15 Yr Avg
Other Measures
Standard Index Best Fit Index BC Agg Bnd Credit Suisse HY USD
Alpha
6.9
-2.4 1.15
Beta
0.32
R-Squared
2
99
Tax Analysis Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat 3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated) 5.61 40 2.40 43 9.85 39 2.42 33 5.53 18 2.52 40 Potential Capital Gain Exposure: 5% of assets Morningstar’s Take by Sarah Bush 06-17-14 Fidelity High Income deserves a closer look. Judged on its recent record, this fund doesn’t really stand out. Its 13.1% five-year annualized gain through May 2014 is just average relative to its high-yield peers. And it has fared a bit worse for 2014 to date; thanks in part to struggles at NRG Energy NRG and modest exposure to some of the market’s strongest-performing junior debt names, it lags roughly 80% of its peers. However, there are reasons to look beyond this only middling recent performance. For starters, although manager Fred Hoff has been a bit more bullish on CCC bonds recently (16% as of April 2014), he typically favors the B rated (46%) tiers of the junk bond market, which, he argues, offer the best opportunities to pick out firms likely to enjoy improving fundamentals. Unlike some more-adventurous peers, he generally steers clear of common stock. That’s left the fund largely in the middle as the high-yield market has swung between CCC led rallies and credit sell-offs during which BB bonds have significantly
Standard Deviation
6.80 8.21 1.19
Mean
Sharpe Ratio
outperformed. Meanwhile, the default rate has remained low, offering few opportunities for this fund, which generally avoids macro bets and focuses on avoiding blowups, to distinguish itself. Fortunately, this fund has more going for it. For starters, Hoff has distinguished himself over the long haul, faring particularly well through the 2008 credit crisis and its aftermath; during that period, his ability to avoid some of the hardest-hit areas served the fund well. Indeed, since the beginning of 2002 (which excludes roughly 18 months after Hoff took over, during which he remade this formerly aggressive portfolio), the fund s 8.9% annualized gain tops about 85% of its peers . Hoff s long tenure at this fund, and his significant prior experience as an analyst, also count in its favor, as does the sizable credit staff supporting him. This fund’s strengths, which include an attractive price tag, contribute to its Morningstar Analyst Rating of Gold. But, with absolute yields low and valuations tight, investors should temper their expectations.
Government
0
Duration Ltd Mod Ext
Corporate Bond
75 12
Quality High Med Low
Bank Loan Convertible
1 2
Preferred
figure provided by fund
1
Agency MBS 0 Non-Agency Residential MBS 0 Commercial MBS 0 Asset-Backed 0 Covered Bond 0 Municipal 0 Cash & Equivalents 10 Other 0
1 Avg Eff Duration Avg Eff Maturity Avg Credit Quality Avg Wtd Coupon Avg Wtd Price Coupon Range
. .
B
6.82%
104.94% of par
% of Bonds Rel Cat
0% PIK 0% to 8% 8% to 11% 11% to 14%
0.8 1.2 73.6 1.2 24.7 0.7 0.9 0.2 0.0 0.0
Composition - Net Cash 10.3
Bonds 87.5
More than 14%
Stocks 0.3
Other
2.0
Address:
Fidelity Summer Street Trust Boston, MA 02109 800-544-6666
Minimum Purchase: Min Auto Inv Plan:
$2500 $2500
Add: $0 IRA: $500
1.00=Category Average
Add: $200
Credit Analysis
Special Securities Restricted/Illiquid Secs Exotic Mortgage-Backed Emerging-Markets Secs Options/Futures/Warrants
% bonds 04-30-14
Sales Fees:
No-load, 1.00%R
BB
27
AAA
8 0 0 1
36
Web Address: Inception: Advisor: Subadvisor: NTF Plans:
www.fidelity.com
Management Fee:
0.56%
B 46 Below B 16 NR/NA 2
AA
0 2
08-29-90
Actual Fees:
Mgt:0.56% Dist: .
Fidelity Management & Research Company
Expense Projections: Income Distribution:
3Yr:$230 Monthly
5Yr:$401 10Yr:$894
A
FMR Co., Inc. (FMRC)
No
BBB
Fidelity Retail-NTF, CommonWealth NTF
Mutual Funds ß ®
© 2014Morningstar, Inc.All rights reserved.The informationherein is not represented orwarranted tobeaccurate, correct, completeor timely. Pastperformance is no guarantee of future results.Access updated reportsat Toorder reprints, call312-696-6100. mfb.morningstar.com.
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