Separately, diversification should be a strategy worth considering. However, security selection should be crucial in 2015 for active managers to generate alpha if bond sector return dispersion continues to be at historic lows. The report states: “The yield curve remains historically steep, particularly in short- to intermediate-duration bonds where the potential to earn additional roll return can help to provide a cushion from a potential Fed rate hike”. Higher-quality bonds outperformed the lower-quality bonds and bonds generated profits owing to lower rates. equity returns remain in a multi-year down trend, which is positive for active management, and there may be further opportunities for active management in 2015 if economic and policy divergences continue,” noted Fidelity. Cyclical price gains should continue despite valuations staying above historical averages. A slump in oil prices, lower bond yields and exchange-rate fluctuation with US dollar gaining strength were results of dismal growth, and easy policies in major economies on the backdrop of “waning stimulus in the US”.įor the stock markets, returns may be muted and volatility may edge up in 2015. Watch out for our Mutual Fund Commentary section in the coming days, where we will be reporting on performances and the best picks from fund families and varied categories.įidelity's Asset Allocation Research Team (AART) notes that the increasingly varying global economic and policy divergences had provoked the volatility in fourth quarter, which may spill into 2015 as well. The number of mutual funds managed by Fidelity stood at 573 as of Sep 30, 2014. At Fidelity, a large group of investment professionals carry out extensive and in-depth research to provide potential investment avenues worldwide for their investors. The company provides investment advice, discount brokerage services, retirement services, wealth management services, securities execution and clearance and life insurance products to its clients. It has a wide variety of mutual funds spanning across a varied spectrum of sectors. The top Fidelity fund performers include healthcare, Japan and Diversified Pacific/Asia funds in the top 10 list.įidelity Investments is one of the largest mutual fund companies in the world having over $1,740.6 billion of mutual fund assets under management (as of Sep 30, 2014). However, there were several funds from Fidelity Investments that boasted year-to-date returns much higher than these category average returns. Next in line were Diversified Pacific/Asia, India Equity and Small Growth funds. Healthcare funds followed closely with a 10.7% return. The Nasdaq advanced 3.5%, also extending its winning streak to nine quarters, its longest stretch of quarterly gains ever.įor mutual funds, it was the Japan mutual funds that beat all in the first quarter with a return of 10.9%. This is its longest stretch of quarterly gains since 1998. However, the S&P 500 gained 0.4% and extended its quarterly winning streak to nine quarters. Investors were grappled with concerns related to lower global growth projections, a slump in oil prices, a strengthening dollar and apprehensions about the timing of the Fed interest rate hike. Markets had a choppy first quarter of 2015, wherein the Dow ended a three-quarter winning streak.