Line of Credit Seeks capital appreciation.
Investing primarily in companies engaged in merchandising finished goods and services primarily to individual consumers. Normally investing at least 80% of assets in securities of companies principally engaged in these activities. Normally investing primarily in common stocks.
The value of the fund's domestic and foreign investments will vary from day to day in response to many factors. Stock values fluctuate in response to issuer, political, regulatory, market, or economic developments. You may have a gain or loss when you sell your shares. Investments in foreign securities, especially those in emerging markets, involve risks in addition to those of U.S. investments, including increased political and economic risk, as well as exposure to currency fluctuations. Because FMR concentrates the fund's investments in a particular industry, the fund's performance could depend heavily on the performance of that industry and could be more volatile than the performance of less concentrated funds and the market as a whole. The fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund; thus changes in the market value of a single investment could cause greater fluctuations in share price than would occur in a more diversified fund. The retail industry can be significantly affected by consumer confidence and spending, intense competition, and changing consumer tastes.
This description is only intended to provide a brief overview of the mutual fund. Read the fund's prospectus for more detailed information about the fund.
| Return Type | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs | Life |
|---|---|---|---|---|---|
FUND Fidelity® Select Retailing Portfolio | 12.77% | 8.98% | 15.37% | 13.99% | 13.83% |
PRIMARY BENCHMARK | 18.41% | 12.55% | 16.85% | 12.98% | 11.30% |
SECONDARY BENCHMARK | 14.16% | 9.79% | 17.37% | 14.89% | -- |
MORNINGSTAR CATEGORY AVERAGE | 11.25% | 6.47% | 13.18% | 9.67% | -- |
Rank in Morningstar Category | 49% | 23% | 31% | 4% | -- |
# of Funds in Morningstar Category | 52 | 48 | 44 | 37 | -- |
Insufficient Data. Either the fund is too new, or return data of current frequency is not available.
| Return Type | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
FUND Fidelity® Select Retailing Portfolio | 1.17% | 23.41% | 26.85% | -29.44% | 18.16% | 44.33% | 26.32% | 4.62% | 25.82% | 4.43% | 18.41% |
PRIMARY BENCHMARK | 1.44% | 25.02% | 26.29% | -18.11% | 28.71% | 18.40% | 31.49% | -4.38% | 21.83% | 11.96% | 1.38% |
SECONDARY BENCHMARK | 0.85% | 23.82% | 27.28% | -28.64% | 28.16% | 43.10% | 24.95% | 4.88% | 25.87% | 5.30% | 18.81% |
MORNINGSTAR CATEGORY AVERAGE Consumer Cyclical | 1.21% | 15.65% | 30.07% | -30.43% | 17.66% | 40.47% | 26.45% | -7.78% | 21.49% | 4.47% | 1.38% |
+/- S&P 500 | -0.27% | -1.61% | 0.56% | -11.33% | -10.55% | 25.93% | -5.17% | 9.00% | 3.99% | -7.53% | 17.03% |
+/- MSCI U.S IMI MSR 25/50 | 0.32% | -0.41% | -0.43% | -0.80% | -10.00% | 1.23% | 1.37% | -0.26% | -0.05% | -0.87% | -0.40% |
+/- Consumer Cyclical | -0.04% | 7.76% | -3.22% | 0.99% | 0.50% | 3.86% | -0.13% | 12.40% | 4.33% | -0.04% | 17.03% |
| Return Type | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs | Life |
|---|---|---|---|---|---|
FUND Fidelity® Select Retailing Portfolio | 23.41% | 3.37% | 13.50% | 14.50% | 13.86% |
PRIMARY BENCHMARK | 25.02% | 8.94% | 14.53% | 13.10% | 11.31% |
SECONDARY BENCHMARK | 23.82% | 3.99% | 15.58% | 15.59% | -- |
MORNINGSTAR CATEGORY AVERAGE | 15.65% | 2.24% | 11.47% | 10.27% | -- |
Fidelity® Select Retailing Portfolio | 19.70% | 1.56% | 11.07% | 13.02% | -- |
| 14.86% | 1.75% | 10.77% | 9.46% | -- | |
Fidelity® Select Retailing Portfolio | 15.89% | 2.37% | 10.43% | 11.94% | -- |
| 9.36% | 1.59% | 8.94% | 8.17% | -- |
| Return Type | YTD (Daily)* | YTD (Monthly) | 1 Month | 3 Months | 6 Months |
|---|---|---|---|---|---|
FUND Fidelity® Select Retailing Portfolio | -10.26% | 1.17% | -4.74% | -0.02% | 11.18% |
PRIMARY BENCHMARK | -- | 1.44% | -1.30% | -0.97% | 6.11% |
SECONDARY BENCHMARK | -- | 0.85% | -4.44% | -1.03% | 10.09% |
MORNINGSTAR CATEGORY AVERAGE | -- | 1.21% | -3.53% | -1.88% | 9.66% |
Returns
– top 10% - High
– next 22.5% - Above Average
– middle 35% - Average
– next 22.5% - Below Average
– bottom 10% - Low
Therefore, the Morningstar Return is most helpful when used in conjunction with the Morningstar Risk Score. For example, an investor could use these two scores when comparing between funds that have the same Morningstar Star Rating and similar Morningstar Risk Adjusted Returns but different levels of risk.
Risk
Risk of this Type of Fund
The value of the fund's domestic and foreign investments will vary from day to day in response to many factors. Stock values fluctuate in response to issuer, political, regulatory, market, or economic developments. You may have a gain or loss when you sell your shares. Investments in foreign securities, especially those in emerging markets, involve risks in addition to those of U.S. investments, including increased political and economic risk, as well as exposure to currency fluctuations. Because FMR concentrates the fund's investments in a particular industry, the fund's performance could depend heavily on the performance of that industry and could be more volatile than the performance of less concentrated funds and the market as a whole. The fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund; thus changes in the market value of a single investment could cause greater fluctuations in share price than would occur in a more diversified fund. The retail industry can be significantly affected by consumer confidence and spending, intense competition, and changing consumer tastes.
Year | Total Returns | Capital Gains | ||
|---|---|---|---|---|
| 2025 | 1.17% | -- | -- | $3,004.36 |
| 2024 | 23.41% | $2.514 | $0.027 | $3,025.87 |
| 2023 | 26.85% | $1.325 | $0.064 | $2,872.78 |
| 2022 | -29.44% | $0.405 | $0.056 | $2,666.08 |
| 2021 | 18.16% | $3.672 | -- | $4,451.11 |
| 2020 | 44.33% | $1.552 | -- | $3,934.52 |
| 2019 | 26.32% | $0.312 | $0.047 | $3,117.39 |
| 2018 | 4.62% | $1.32 | $0.024 | $2,773.81 |
| 2017 | 25.82% | $4.494 | $0.305 | $2,019.65 |
| 2016 | 4.43% | -- | $0.153 | $1,946.36 |
Information on 2023 GICS Changes
As of March 17, 2023, S&P implemented changes to the Global Industry Classification Standard (GICS) classification framework. Included in the changes was moving the Data Processing & Outsourced Services sub-industry out of the Information Technology sector and into the Industrials sector. MSCI benchmarks will reflect the changes effective June 1, 2023. To learn more about what Fidelity funds are impacted by these changes, please Click here.
LG | Current and Historical | Historical | ||
MD | ||||
SM | ||||
See prospectus for more information on Fees, Expenses & Loads.
Date | Per Share Amount | Reinvestment Price |
|---|---|---|
| 12/26/2024 | $0.027 | $21.08 |
| 12/21/2023 | $0.064 | $18.79 |
| 12/16/2022 | $0.056 | $16.08 |
| 12/20/2019 | $0.047 | $16.74 |
Date | Per Share Amount | Reinvestment Price |
|---|---|---|
| 12/26/2024 | $1.21 | $21.08 |
| 04/12/2024 | $1.304 | $19.09 |
| 12/21/2023 | $1.272 | $18.79 |
| 04/14/2023 | $0.053 | $16.87 |
| Month | Close | Low | High |
|---|---|---|---|
| February 2025 | $20.71 | $20.43 | $21.97 |
| January | $21.74 | $20.48 | $22.01 |
| December | $20.47 | $20.47 | $22.80 |
| November | $21.93 | $20.35 | $21.93 |
| October | $20.07 | $20.07 | $20.75 |
| September | $20.61 | $19.01 | $20.70 |
| August | $19.72 | $18.13 | $19.86 |
| July | $19.58 | $19.01 | $20.05 |
| June | $19.54 | $19.32 | $19.86 |
| May | $19.30 | $18.66 | $19.45 |
| April | $18.65 | $18.60 | $21.10 |
| March | $21.28 | $20.61 | $21.38 |
- For the semiannual reporting period ending August 31, 2024, the fund gained 1.43%, trailing the 3.70% advance of the MSCI U.S. IMI Multi-Sector Retailing 25/50 Linked Index and the 11.59% increase in the broad-based S&P 500® index.
- Retailing stocks generated mixed performance the past six months, according to Portfolio Manager Boris Shepov, as the industry and consumers alike grappled with elevated inflation the past three years, despite some signs of improvement late in the period.
- Against this backdrop, he maintained his focus on high-quality franchises with durable growth, as well as underappreciated structural or cyclical improvement in earnings and cash flow.
- Security selection in the apparel, accessories & luxury goods and automotive retail groups notably detracted from the fund's performance versus the MSCI industry index, as did modest, non-index exposure to personal care products stocks and positioning in consumer staples merchandise retail.
- An outsized stake in specialty discount store Five Below (-62%) was the foremost individual relative detractor, followed by a sizable underweight in price-club giant Costco Wholesale (+20%) and an untimely overweight in premium apparel retailer lululemon athletica (-46%).
- In contrast, favorable stock picks in the other specialty retail, household appliances and apparel retail groups aided the portfolio's relative result.
- Larger-than-index exposure to Dick's Sporting Goods (+35%) was the top individual contributor, while a non-index stake in Canadian clothing retailer Aritzia (+29%) also helped.
- As of August 31, Boris believes that potential interest rate cuts by the U.S. Federal Reserve should create investment opportunities among retailers poised to benefit from an uptick in discretionary spending. He has started to incrementally reposition the fund based on this view.
An interview with Portfolio Manager Boris Shepov
- Boris, how did the fund perform for the six months ending August 31, 2024?
The fund gained 1.43%, trailing the 3.70% advance of the MSCI U.S. IMI Multi-Sector Retailing 25/50 Linked Index and the 11.59% increase in the broad-based S&P 500® index. The portfolio slightly outperformed the consumer cyclical peer group average.
Looking slightly longer term, the fund rose 20.99% for the trailing 12 months, underperforming both the MSCI retailing index and the S&P 500® but topping the peer group average.
- Could you please describe the backdrop for retailing stocks the past six months?
The period yielded mixed results for the industry. Even though inflation has shown signs of easing, it remained quite high on a trailing three-year basis and is still top of mind for consumers, particularly in terms of core consumables and groceries. This has resulted in lower discretionary spending, pressuring many retailers. Signs of improvement in these spending trends emerged toward the end of this reporting period, however. Elevated inflation has been especially difficult on low-income consumers, as evidenced by broadly weak financial results among dollar stores.
Within this environment, consumer staples merchandise retail stocks (+15%) fared best among the largest segments of the MSCI retailing index. In contrast, broadline retail (+3%) and home improvement retail (+0.1%) firms were unable to keep pace. Turning to smaller categories, notable standouts included apparel retail (+12%) and automotive retail (+14%) on the positive side, whereas apparel, accessories & luxury goods (-17%), other specialty retail (-16%) and footwear (-8%) companies were more challenged this period.
Within this environment, I maintained my focus on high-quality franchises with durable growth, as well as underappreciated structural or cyclical improvements in earnings and cash flow.
- What detracted most from the fund's result versus the MSCI industry index?
Subpar security selection in apparel, accessories & luxury goods and automotive retail notably weighed on relative performance the past six months. Modest, non-index exposure to personal care products stocks and positioning in consumer staples merchandise retail hurt as well. An outsized stake in specialty discount store Five Below (-62%) was the foremost relative detractor this period. This has been an attractive growth story for several years now, stemming from the company's ability to execute well on its merchandising strategy. Furthermore, the business's value proposition targeting teens and young adults has enabled Five Below to increase its market share. Recently, however, the firm got a bit complacent in terms of extreme value items, as Dollar Tree, Walmart, Target and other competitors took notice and began offering similar items at low prices. This resulted in decline in same-store sales growth, causing investors to become concerned about the company's long-term prospects. To make matters worse, management issued a profit warning this period, which caused a meaningful sell-off in the stock, along with the CEO's resignation in July. In addition to these structural headwinds, I'm concerned about Five Below's market share and ability to generate long-term earnings growth, so I am continuing to monitor the situation quite closely.
A meaningful underweight in price-club giant Costco Wholesale (+20%) was another negative. I am a big proponent of its business model and consider it one of the most durable companies in the index. Management has been executing really well, same-store sales growth has been strong, pricing has gotten sharper compared with pre-pandemic levels, and the firm has an extremely loyal customer base. Not surprisingly, this was recognized by the broader market, causing Costco's valuation to run up to extreme levels. So as much as I like the stock, I favored other high-quality retailers trading at much more reasonable prices, including Amazon.com and BJ's Wholesale Club Holdings, the portfolio's top and 10th-biggest holdings as of August 31, respectively.
An untimely overweight in lululemon athletica (-46%), a multinational retailer of premium athletic apparel, further pressured the fund's relative result. Early in the period, some short-term product difficulties I had observed turned out to be larger issues with newness that led to a reduction in the company's financial guidance. Furthermore, growth slowed significantly in the U.S. and moderated in China. Part of the reason for this is that even though the firm started out quite small, its popularity exploded, making it the biggest player in the athleisure market, alongside Nike, making future growth a tall order. As a result, I parted ways with the holding prior to period end based on the belief that estimates could still come down more. Having said that, I'm keeping a close eye on lululemon's fundamentals, and certainly wouldn't rule out owning the stock again.
- What notably helped?
Favorable stock picks in the other specialty retail, household appliances and apparel retail groups aided the portfolio's relative result the past six months. Leading the way was an overweight in Dick's Sporting Goods (+35%). The firm has solidified its position as the company to beat in this category because of its superior ability to source top products, resulting in some of the best relationships with major brands in the industry. This extends to both those that are well-established, including Nike, as well as others that are smaller but growing fast, such as HOKA and On. These top offerings have drawn more customers through Dick's doors, while also creating a treasure-hunt type of shopping experience. The business continued to increase its market share among outdoor/sporting goods retailers, driven by solid financial results, headlined by strong sales and profit margin improvement. I pared the position this period to lock in some profit, but the stock remained a sizable holding and overweight at the end of August.
I'll also highlight the portfolio's non-index stake in Canadian clothing retailer Aritzia (+29%) as another driver of the fund's relative outcome this period. This is a company that aligns well with my investment philosophy because of its attractive valuation, good balance sheet and best-in-class competitive position, all of which have been underestimated by investors, in my view. Moreover, the firm has strong customer engagement, good inventory management, superior product development, and a proven ability to lean into trending styles that are selling well, in a timely manner. Like many retailers, the business struggled with excess inventory coming out of the pandemic but was able to gradually work through that challenge in late 2023. Subsequently, Aritzia has been able to realign inventory with sales, flow new product to market at full selling prices and drive traffic into stores. These efforts resonated well with customers and the stock has rerated higher accordingly, making it the fund's No. 11 holding at period end, even though I reduced exposure to it somewhat these past six months.
- Any final thoughts for shareholders as of August 31, Boris?
Throughout the reporting period, I positioned the portfolio in a fairly balanced manner, maybe even a touch defensively. With the U.S. Federal Reserve now appearing to be leaning toward rate cuts as part of its strategy of engineering a soft landing for the economy, I've started to incrementally tilt the fund away from high-quality, core retailing businesses in favor of discretionary categories. It's worth pointing out that many companies in this latter segment have actually been in recession the past few years. I'll describe some more detailed drivers and implications of this shift in the callout portion of this review. ■
Boris Shepov's cyclical play on home improvement and furnishing stocks:
"As consumers stand to benefit from potential easing by the U.S. Federal Reserve, I expect to see a big lift among home improvement and furnishing stocks. As a result, it's becoming one of the biggest thematic plays within the fund.
"Because interest rates and, by extension, home mortgage rates have risen so sharply the past two and a half years, existing home sales have suffered. In practical terms, this essentially froze the housing market because the switching costs associated with both selling and buying a home were simply too high, discouraging prospective buyers and sellers and causing them to remain on the sidelines. Consequently, existing home sales, on a population-adjusted basis, reached a 40-year low this period.
"I believe we may be approaching an inflection point, however. On the corporate front, we've been hearing from firms like Home Depot and Lowe's that fundamentals related to the housing market are no longer deteriorating, but rather showing signs of stabilization. In terms of the fund, the past six months I aimed to capitalize on this change by adding to positions in related companies that I feel should be beneficiaries, including Lowe's, RH (previously Restoration Hardware), Etsy and PVH. I also have established a position in Tapestry. Each of these were fund holdings on August 31.
"High-end furniture retailer RH is particularly interesting to me because the firm has a strong brand, superior pricing power, a really good product cycle – including several new collections soon coming to market – and a unique shopping experience, all of which makes it well-positioned competitively, in my view.
"Both Home Depot and Lowe's continued to grow by taking share from local home improvement retailers, in addition to increasing their foothold among professional customers such as builders and contractors.
"Looking ahead, I believe we are approaching the early stages of a multiyear cyclical tailwind that should be supportive of both home improvement and furnishing stocks."
MARKET RECAP
U.S. equities gained 11.59% for the six months ending August 31, 2024, according to the S&P 500® index, driven by a resilient economy, a frenzy over generative artificial intelligence and the Federal Reserve's likely pivot to cutting interest rates later this year. Amid this favorable backdrop for higher-risk assets, the S&P 500® shook off a rough April and reached its all-time closing high in mid-July. Growth stocks led the charge, with the information technology sector up 15%, driven by semiconductor-related (+26%) stocks. Utilities (+25%), a beneficiary of the AI boom, also stood out, as did financials (+14%), consumer staples and real estate (+13% each). Gains were shallower elsewhere, with consumer discretionary (+1%) lagging most. Soon after this period began, risk assets were aided on March 20 when the central bank affirmed its projection to cut rates in 2024. Stocks then slipped in April (-4.08%), as inflation remained stickier than expected, but rebounded in May (+4.96%) and June (+3.59%), despite a reduced outlook for rate cuts from the Fed. The uptrend continued throughout July (+1.22%), with the top-heavy index hitting its all-time high mid-month before a sharp three-week reversal as investors rotated into small-cap, value and cyclical shares due to concern about a recession for the U.S. economy. Volatility spiked, but the index rallied in the final three weeks of August (+2.43%) to end the period just shy of its mid-July high.
| Cumulative | Annualized | |||||
| 6 Month | YTD | 1 Year | 3 Year | 5 Year | 10 Year/ LOF1 | |
| Select Retailing Portfolio Gross Expense Ratio: 0.66%2 | 1.43% | 12.30% | 20.99% | 0.56% | 12.50% | 14.51% |
| S&P 500 Index | 11.59% | 19.53% | 27.14% | 9.38% | 15.92% | 12.98% |
| MSCI U.S. IMI Multi-Sector Retailing 25/50 Linked Index | 3.70% | 13.44% | 23.82% | 1.66% | 15.06% | 15.50% |
| Morningstar Fund Consumer Cyclical | 1.05% | 6.36% | 15.05% | -0.28% | 11.47% | 9.98% |
| % Rank in Morningstar Category (1% = Best) | -- | -- | 18% | 55% | 44% | 12% |
| # of Funds in Morningstar Category | -- | -- | 52 | 48 | 43 | 37 |
- 1 Life of Fund (LOF) if performance is less than 10 years. Fund inception date: 12/16/1985.
- 2 This expense ratio is from the prospectus in effect as of the date shown above and generally is based on amounts incurred during that fiscal year, or estimated amounts for the current fiscal year in the case of a newly launched fund. It does not include any fee waivers or reimbursements, which would be reflected in the fund's net expense ratio.
Boris Shepov is a research analyst and portfolio manager in the Equity division at Fidelity Investments. Fidelity Investments is a leading provider of investment management, retirement planning, portfolio guidance, brokerage, benefits outsourcing, and other financial products and services to institutions, financial intermediaries, and individuals.In this role, Mr. Shepov is responsible for managing Fidelity Retailing Portfolio, researching companies in the retail industry, and for presenting ideas to portfolio managers. Prior to assuming his current responsibilities, Mr. Shepov was responsible for researching companies in the machinery sector. He also managed Select Industrial Equipment Fund. Before joining Fidelity in 2008, Mr. Shepov worked as a summer associate at Barclays Capital and as an associate at Withum Smith & Brown, PC. Previously, he was an analyst at Ingis & Company, PA. He has been in the financial industry since 2008.Mr. Shepov earned his bachelor of science and master of science degrees in finance from Kiev University of Trade and Economics, and his master of business administration degree in finance from the Johnson Graduate School of Management at Cornell University. He is also a Certified Public Accountant (CPA).
Dear Shareholder:
U.S. equities gained 38.02% for the 12 months ending October 31, 2024, according to the S&P 500® index, driven by a resilient economy, the promise of artificial intelligence and the Federal Reserve's long-anticipated pivot to cutting interest rates. Amid this favorable backdrop for higher-risk assets, the index continued its late-2023 momentum and ended October just shy of its all-time high.
The shift toward global monetary easing gained steam when the Fed lowered its benchmark federal funds rate after a historic hiking cycle that began in March 2022 to combat persistently high inflation. On September 18, the central bank cut rates by 0.50 percentage points, opting for a bolder start in making its first rate reduction since March 2020. Growth stocks led the charge for the 12 months, with two sectors heralding transformative change via AI development – information technology (+51%) and communication services (+48%). Semiconductor-related stocks (+119%) were a particular standout.
AI's influence also was reflected in the roughly 39% advance for the comparatively small utilities sector, which is sensitive to interest rates and benefited from its key role in providing the electricity needed to power massive data centers. Financials (+46%) received a boost from the anticipation of Fed rate cuts, with banks up about 66%. Gains were shallower elsewhere, with energy (+8%) lagging most amid a dip in oil prices and worries about the outlook for global demand.
International stocks also fared quite well, advancing 24.55% for the trailing year, according to the MSCI ACWI (All Country World Index) ex USA Index. Each of six regions in the index advanced, led by Canada (+32%), Asia Pacific ex Japan (+27%) and emerging markets (+26%). In contrast, the U.K, Japan (+23% each) and Europe ex U.K. (+24%) modestly trailed. Among sectors, information technology (+39%) and financials (+36%) led the way, followed closely by industrials (+33%), while consumer staples (+5%) and energy (+7%) held up the rear.
Against this backdrop, our actively managed sector and industry portfolios performed solidly versus benchmarks and peers on an aggregate, asset-weighted basis. Funds focused on the financials, health care, utilities, communication services, industrials and information technology sectors all showed relative strength overall. Conversely, results were largely unfavorable for our energy, real estate, materials and consumer strategies over the 12-month review period.
As of October 31, Fidelity's Asset Allocation Research Team – composed of portfolio managers and other analysts within our Global Asset Allocation division – says that major global economies are demonstrating persistent expansion amid improved financial conditions, despite some softening in manufacturing. In the U.S., the labor market has exhibited signs of cooling this year, with rising unemployment and fewer job postings, but the ratio of job openings per unemployed worker has remained historically high, suggesting labor markets have normalized but not shifted into recessionary territory. Meanwhile, the U.S. consumer remains supported by positive real wage gains and strong balance sheets.
Although we pay attention to shorter-term results, our focus is on the long term, and our long-term relative performance remains competitive. For now, we continue to leverage our unparalleled market knowledge and research expertise to closely monitor economic conditions, gain insight into market dynamics and choose securities we think have the potential to outperform over time. Thank you for your confidence in Fidelity's investment-management capabilities. For more information on current market developments, please visit us online.
Chairman of the Board of Trustees
Fidelity Equity and High Income Funds
Chairman of the Board of Trustees
Fidelity Equity and High Income Funds
- Fidelity® Select Retailing Portfolio is an industry-based, equity-focused strategy that seeks to outperform its benchmark through active management.
- We believe that earnings power and cash flows drive stock prices over the long term.
- We take a long-term view to identify companies with underappreciated structural or cyclical improvements in earnings power and cash-flow generation, especially those attractively valued relative to their peers/own history and the market. We prefer firms that are well-positioned competitively and run by skilled management teams focused on creating shareholder value.
- Structural shifts in retail are well underway, driven by technology and changes in consumer spending trends. We prioritize franchises that will remain relevant across one or more of the key tenets of retail – value, convenience, selection and service.
- Our bottom-up focus leverages Fidelity's deep and experienced global consumer research team in pursuit of attractive consumer stocks (both inside and outside of the industry benchmark) with the potential for favorable risk-adjusted returns.
- Sector and industry strategies could be used by investors as alternatives to individual stocks for either tactical- or strategic-allocation purposes.