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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)