Large Price Drops of Some Fidelity Select Funds are Due to Capital Gains Distributions

Several Fidelity sector funds experienced large drops in their net asset values (NAVs) on Friday. The explanation is that Friday was the ex-dividend date for these funds.

For investors who chose to reinvest the distributions automatically, the value of their holdings will be readjusted on Monday. For investors who chose not to reinvest, their investment account will be credited with the distribution amount.

Here are a few examples of sector funds experiencing large price drops:

fsavx-040917

fshox-040917

fshcx-040917

The simplest way to double check recent distributions is by going to the Fidelity.com website directly. For example, here are the most recent capital gains distributions for the Fidelity Select Automotive Fund (FSAVX):

FSAVX_Fees_and_Distributions_-_Fidelity_®_Select_Automotive_Portfolio___Fidelity_Investments

Link: https://fundresearch.fidelity.com/mutual-funds/fees-and-prices/316390699

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One thought on “Large Price Drops of Some Fidelity Select Funds are Due to Capital Gains Distributions

  1. Thanks Gabe, where did you find the distributions? They did not show on the list (below) that I usually check every weekend.

    I had noticed the big red bars on the Funds that you mentioned, but none of them were among my holdings. However, the distributions are shown up-to-date on the individual Fund reports. The Bank Fund that I sold had a small distribution but was not enough to change my reason for selling.

    Bob

    Fidelity Fund Distributions (as reported on 4-8,9-17)

    As required by law, funds that have net gains from the sale of securities or earn dividends and interest from securities they hold must pass the largest possible portion of those earnings on to its shareholders or those gains will be subject to corporate income taxes and excise taxes. These taxes would, in effect, reduce your total return.

    Below are the most recently reported distributions for Fidelity funds. When reviewing, please note that this listing does not include monthly dividends paid by bond and money market funds.

    Important note: Investors will not experience a loss from a distribution. The per-share amount of a distribution is deducted from a fund’s net asset value (NAV). Fund prices will reflect a NAV reduction when a distribution is paid. Unless set by the customer to pay into a core account, distributions are reinvested and the number of shares in the account will increase. This leaves the total value of the account unaffected by the distribution.

    Fund name

    Ex date

    Pay date

    Income

    Short-term cap gain

    Long-term cap gain

    Total per share

    Fidelity Income Replacement 2022 Fund

    03/30/2017

    03/31/2017

    0.06000

    0.00000

    0.00000

    0.06000

    Fidelity Income Replacement 2024 Fund

    03/30/2017

    03/31/2017

    0.05800

    0.00000

    0.00000

    0.05800

    Fidelity Income Replacement 2026 Fund

    03/30/2017

    03/31/2017

    0.05600

    0.00000

    0.00000

    0.05600

    Fidelity Income Replacement 2028 Fund

    03/30/2017

    03/31/2017

    0.05600

    0.00000

    0.00000

    0.05600

    Fidelity Income Replacement 2030 Fund

    03/30/2017

    03/31/2017

    0.05200

    0.00000

    0.00000

    0.05200

    Fidelity Income Replacement 2032 Fund

    03/30/2017

    03/31/2017

    0.04700

    0.00000

    0.00000

    0.04700

    Fidelity Income Replacement 2034 Fund

    03/30/2017

    03/31/2017

    0.05300

    0.00000

    0.00000

    0.05300

    Fidelity Income Replacement 2036 Fund

    03/30/2017

    03/31/2017

    0.04700

    0.00000

    0.00000

    0.04700

    Fidelity Income Replacement 2038 Fund

    03/30/2017

    03/31/2017

    0.04500

    0.00000

    0.00000

    0.04500

    Fidelity Income Replacement 2040 Fund

    03/30/2017

    03/31/2017

    0.04600

    0.00000

    0.00000

    0.04600

    Fidelity Income Replacement 2042 Fund

    03/30/2017

    03/31/2017

    0.04500

    0.00000

    0.00000

    0.04500

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