Fidelity Convertible Securities Fund FCVSX

This Fidelity Convertible Securities fund (Ticker: FCVSX) is a no load balanced mutual fund. It focuses its investment in convertible securities. The fund review is described in this post.

Fidelity Convertible Securities (FCVSX)

The investment aim of Fidelity Convertible Securities fund is to achieve a high level of total return through a mixture of current income and capital appreciation. It typically invests >80% of assets in convertible securities, which are often lower-quality debt securities. This convertible securities act like a stock when the share price is high and more like a bond when the share price is low. It may invest in common stocks, domestic, and foreign issuers.

Fund Profile

Fidelity Convertible Securities

• Fund Inception Date: January 4, 1987
• Ticker Symbol: FCVSX
• CUSIP: 316145200
• Beta (3yr): 1.54
• Rank in category (YTD): 1%
• Category: Convertibles
• Distribution: 3.22%
• Capital Gains: 0%
• Expense Ratio: 0.61%
• Net Assets: $ 2.06 billion
• Number of Years Up: 19 years
• Number of Years Down: 5 years
• Annual Turnover Rate: 0.61%

updated on 10/9/2012

This Fidelity fund has total net assets of $2.06 billion. It has annual expense ratio of 0.61%. This expense fee figure is lower compared to the average ratio in the Convertibles category (1.23%). The 12-month dividend yield is 3.22%. The dividend distribution schedule was quarterly in April, July, October and December. The capital gains distribution was done in January and December. The latest dividend was distributed in April 3, 2012 ($0.18). This no load mutual fund is currently managed by Thomas T. Soviero. He is the Vice President and manager of Fidelity investments.

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Morningstar has rated this fund with Neutral and 2-stars rating. The YTD return is 9.75% (ranked top 1% in its category). Since its inception, it has recorded 19 years of positive return. The best 1-year total return was achieved in 2009 with 64.11%. The 3-year beta risk is 1.54. The performance of this fund is as below:

• 1-year: -6.87%
• 3-year: 21.41%
• 5-year: 2.50%
• 10-year: 6.41%

Investors can start investing in this fund with minimum initial investment of $2,500 for brokerage account and $500 for retirement account. There is no minimum subsequent investment needed. There are 86 brokerages that provide the sale of this fund, like Vanguard, JP Morgan, T Rowe Price, Td Ameritrade Inc, E Trade Financial, Fidelity Retail Funds Network, Schwab Retail, etc.

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The top 10 holdings as of March 2012 are General Motors, Wells Fargo, MGM Mirage Conv, Ford Motor Conv, Alpha Natural Resources Conv, Citigroup, Western Refining, Peabody Energy CV, Bank America and Nuance Communication Conv. These top ten holdings represent 38.39% of the total net assets. The major market shares are Information Technology (21.49%), Consumer Discretionary (20.88%), Financials (14.64%), Energy (10.86%) and Industrials (10.24%).

According to the fund website, the principal risks are Stock market volatility, interest rate changes, foreign exposure, issuer-specific changes, etc.

Disclosure: No Position