Fidelity® Diversified International Fund

Scorecard
4 / 5 Stars
Lipper
3 4 2 5 2
Zacks Investment Research
3 (Hold)
Standard & Poor's
5 / 5 Stars
TheStreet.com
D (Sell)

#18 in Foreign Large Blend

U.S. News evaluated 209 Foreign Large Blend Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.

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Performance

The fund’s one-year return is 18.93 percent. It has returned 7.41 percent over the past three years, 15.94 percent over the past five years, and 6.58 percent over the past decade.

Trailing Returns Updated 03.31.2014
Year to date -0.8%
1 Year 18.9%
3 Years (Annualized) 7.4%
5 Years (Annualized) 15.9%
10 Years (Annualized) 6.6%

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Summary

Fidelity Diversified International does what its name suggests—it invests in a wide-ranging mix of stocks from countries throughout the world. The fund, which reopened to new investors in 2009, offers a stable, global alternative to funds that invest solely in U.S. companies.

As of April 22, 2014, the fund has assets totaling $26.95 billion. Its portfolio consists primarily of large-cap stocks of companies based outside the United States, mainly in Britain, Western Europe, and Japan.

With a portfolio of more than 300 stocks, it’s hard to pinpoint exactly where this fund is centrally invested. It maintains fairly large holdings in financial companies throughout the world, including banking companies in Britain and Switzerland, and it also holds sizable investments in energy companies like Shell. A bet on Japanese banks instead of their Western counterparts caused the fund's returns to lag its peers in 2009. The fund has returned 18.93 percent over the past year and 7.41 percent over the past three years.

The fund provides exposure to a wide range of countries. At times, it has resembled Fidelity Spartan International Index, but management works to outperform the index by investing in shares of firms with high earnings growth and reasonable stock prices. A small mix of investments in emerging markets and a few smaller-cap companies distinguish this fund from its benchmark, the MSCI EAFE International Index. The fund has returned 15.94 percent over the past five years and 6.58 percent over the past decade.

Investment Strategy

According to the fund’s prospectus, it invests primarily outside of the United States.

Role in Portfolio

Morningstar classifies the fund as a “core” holding and says, “True to its name, this offering is widely diversified across sectors and regions. It’s as close to a complete foreign fund as you’ll get.”

Management

Bill Bower became manager of the fund in 2001.

Fees

Fidelity® Diversified International Fund has an expense ratio of 0.92 percent.

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Risk

The fund’s investments in emerging markets stocks and smaller-cap companies outside of the U.S. are generally more volatile than larger, more established companies.

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Fund Opinions

The fund's Value Line Overall Rank, a measure of risk-adjusted performance and relative growth in fund returns, is 4 on a scale of 1 to 5, with 1 being the best and 5 the worst.

Value Line 2014-04-10

The fund's Value Line Growth Persistence rank, which awards funds that consistently outperform their broad universes, is 3 for one year, 4 for five years, and 4 for 10 years. Scores are on a 1 to 5 scale, with 1 being the best and 5 the worst.

Value Line 2014-04-10

The fund's Value Line Risk Rank, a measure of volatility, is 4 on a scale of 1 to 5, with 1 being the least volatile and 5 the most.

Value Line 2014-04-10

In the annual Lipper/Barron’s Fund Families Survey for 2010, Fidelity Funds ranks 33rd out of 57 fund families surveyed.

Lipper

Morningstar gives this fund a stewardship rating of C on a scale of A to F. “This fund has some good things going for it on the stewardship front, including low fees and a generally attractive culture,” Morningstar says. “However, other factors, including an insufficiently independent board, keep its overall grade from being higher.”

Morningstar 2011-04-13

In the annual Lipper/Barron’s Fund Families Survey for 2010, Fidelity Funds ranks 33rd out of 57 fund families surveyed.

Lipper

Morningstar gives this fund a stewardship rating of C on a scale of A to F. “This fund has some good things going for it on the stewardship front, including low fees and a generally attractive culture,” Morningstar says. “However, other factors, including an insufficiently independent board, keep its overall grade from being higher.”

Morningstar 2011-04-13