FASGX
Fidelity Asset Manager 70
Strategic Asset Allocation for Long-Term Growth
Fidelity Asset Manager 70 (FASGX) stands out with its strategic focus on maximizing total return over the long term. This fund employs a balanced aggressive approach, allocating assets among stocks, bonds, short-term debt instruments, and other investments. What sets FASGX apart is its commitment to investing in both domestic and foreign issuers, where the current security price relative to the estimated long-term value is deemed attractive. This global perspective allows the fund to tap into diverse growth opportunities, enhancing its potential for long-term capital appreciation. Managed by Fidelity Investments, a well-respected name in the industry, FASGX leverages fundamental analysis to identify promising investment opportunities, ensuring a robust and dynamic portfolio. This strategic focus on asset allocation and fundamental analysis makes FASGX a compelling choice for investors seeking a balanced yet aggressive investment strategy.
At A Glance
Executive Summary
Fidelity Asset Manager 70 (FASGX) offers a balanced aggressive approach with a focus on long-term total return. It features a diverse asset allocation and a competitive expense ratio.
– Balanced aggressive strategy suitable for growth-focused investors – Diversified asset allocation across stocks, bonds, and other investments – Managed by Fidelity Investments, a reputable fund family – Competitive expense ratio compared to similar funds
– Negative alpha and Sharpe ratio indicate underperformance relative to risk – High correlation with benchmark may limit diversification benefits – Recent max drawdown suggests potential volatility
Navigating Performance Across Market Cycles
The performance of Fidelity Asset Manager 70 (FASGX) has been a mixed bag, reflecting its balanced aggressive strategy. Over the past year, the fund delivered a notable 23.69% return, showcasing its ability to capture upside potential in favorable market conditions. However, when compared to its benchmark, the S&P 500 Total Return Index, which posted a 38.80% return over the same period, FASGX underperformed. This discrepancy highlights the fund’s focus on a diversified asset allocation, which may not always align with the benchmark’s performance. Over a ten-year horizon, FASGX achieved an annualized return of 7.77%, indicating consistent long-term growth. The fund’s performance is further characterized by its ability to navigate various market cycles, leveraging its diversified holdings to mitigate downside risks while capturing growth opportunities. This performance profile underscores FASGX’s potential as a long-term investment vehicle for those seeking balanced exposure to equities and fixed income.
Balancing Risk with Strategic Diversification
Fidelity Asset Manager 70 (FASGX) presents a nuanced risk profile, characterized by a beta of 0.71, indicating lower volatility compared to the broader market. However, the fund’s negative alpha of -15.15% and Sharpe ratio of -1.65 suggest that it has struggled to generate returns commensurate with its risk level. Despite these challenges, FASGX maintains a high correlation of 95.68% with its benchmark, the S&P 500 Total Return Index, reflecting its alignment with broader market movements. The fund’s standard deviation of 2.65% and downside risk of 1.41 further illustrate its moderate risk exposure. FASGX’s strategic diversification across asset classes and geographies helps manage risk, providing a buffer against market volatility. This approach aligns with investor expectations for a balanced aggressive fund, offering potential for growth while maintaining a focus on risk management.
Diverse Holdings Reflecting Strategic Intent
The portfolio composition of Fidelity Asset Manager 70 (FASGX) is a testament to its strategic intent, with a significant allocation to technology (24.21%), financials (15.91%), and healthcare (12.01%) sectors. This sector allocation reflects the fund’s focus on growth-oriented industries, positioning it to capitalize on technological advancements and financial market dynamics. Notable holdings include tech giants like Microsoft Corp (3.04%) and Apple Inc (2.26%), underscoring the fund’s commitment to high-growth potential stocks. Additionally, the inclusion of the 10 Year Treasury Note Future (1.93%) and a substantial allocation to government bonds (44.76%) highlight the fund’s balanced approach, blending equity exposure with fixed income to manage risk. This diverse portfolio composition signals FASGX’s strategy of seeking growth while maintaining a degree of stability through fixed income investments, making it an attractive option for investors seeking a balanced aggressive fund.
Yield Strategy for Income and Growth
Fidelity Asset Manager 70 (FASGX) offers a yield of 1.52%, which, while modest, aligns with its balanced aggressive strategy. This yield is competitive when compared to similar funds, such as the Schwab Balanced (SWOBX) with a yield of 1.87% and the BNY Mellon Asset Allocation-M (MPBLX) at 1.54%. FASGX’s income strategy is designed to complement its growth objectives, providing a steady income stream while pursuing capital appreciation. This approach may appeal to investors who prioritize a combination of income and growth, offering a balanced return profile. The fund’s yield strategy is supported by its diversified asset allocation, which includes both high-growth equities and income-generating bonds, ensuring a well-rounded investment approach. For income-focused investors, FASGX provides a reliable yield, while growth-focused investors can benefit from its potential for capital gains.
Cost-Effective Investment with Competitive Fees
Fidelity Asset Manager 70 (FASGX) boasts an expense ratio of 0.65%, positioning it as a cost-effective option within the balanced aggressive category. This expense ratio is competitive when compared to similar funds, such as Columbia Capital Alloc Mod Aggress-Inst (NBGPX) with an expense ratio of 0.76% and JPMorgan Diversified-L (JPDVX) at 0.63%. The fund’s cost structure ensures that investors retain a larger portion of their returns, enhancing the overall investment experience. By maintaining a competitive expense ratio, FASGX underscores its commitment to providing value to investors, balancing cost with performance potential. This cost-effectiveness is particularly appealing to long-term investors who seek to minimize fees while maximizing returns. For those considering FASGX, the fund’s competitive expense ratio is a key factor that enhances its attractiveness as a balanced aggressive investment option.
Standing Out in a Competitive Landscape
In the competitive landscape of balanced aggressive funds, Fidelity Asset Manager 70 (FASGX) distinguishes itself through its strategic asset allocation and cost-effective structure. Compared to peers like Schwab Balanced (SWOBX) and Columbia Capital Alloc Mod Aggress-Inst (NBGPX), FASGX offers a unique blend of domestic and international investments, providing a broader scope for growth opportunities. While its one-year return of 23.69% is slightly lower than some peers, its diversified approach and competitive expense ratio of 0.65% make it an attractive option for investors seeking a balanced aggressive strategy. FASGX’s focus on high-growth sectors, such as technology and financials, further differentiates it from competitors, positioning it to capitalize on emerging market trends. This unique combination of strategic allocation and cost-effectiveness makes FASGX a compelling choice for investors looking to balance growth potential with risk management.
Future Outlook
The Fidelity Asset Manager 70 (FASGX) is poised for potential growth, especially in bullish market conditions where its diversified asset allocation can capitalize on rising equity markets. Its balanced aggressive strategy may appeal to investors seeking long-term growth with moderate risk exposure.
Ideal for Growth-Oriented, Risk-Tolerant Investors
Fidelity Asset Manager 70 (FASGX) is well-suited for investors who are growth-oriented and have a moderate risk tolerance. Its balanced aggressive strategy, characterized by a diversified asset allocation across equities and fixed income, offers the potential for long-term capital appreciation. This fund is ideal for investors seeking exposure to high-growth sectors, such as technology and financials, while maintaining a degree of stability through fixed income investments. FASGX’s competitive expense ratio and strategic focus on both domestic and international markets make it an attractive option for those looking to diversify their portfolios. Long-term investors who prioritize growth and are comfortable with moderate risk levels will find FASGX to be a suitable addition to their investment strategy, offering a balanced approach to achieving their financial goals.
Current Market Context: Navigating Economic Uncertainty
In the current market environment, characterized by economic uncertainty and fluctuating interest rates, Fidelity Asset Manager 70 (FASGX) offers a strategic approach to navigating these challenges. The fund’s diversified asset allocation, with significant exposure to technology and financial sectors, positions it to capitalize on growth opportunities in a recovering economy. However, rising interest rates may impact bond yields, necessitating careful management of fixed income investments. Additionally, the fund’s global exposure provides a hedge against domestic market volatility, offering potential benefits in a diversified portfolio. Investors should consider the tax implications of international holdings and the potential impact of currency fluctuations on returns. Overall, FASGX’s balanced aggressive strategy is well-suited to adapt to the evolving market landscape, providing a blend of growth potential and risk management.
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