It doesn’t always work correctly. Here is a case where it doesn’t (from another thread here.)
This is on Fritzing 1.0.5
the schematic svg is very broken
connector0terminal exists (as a group which is invalid, but it exists) so I don’t know why the alignment is correct to the end of the pin. Connector1terminal doesn’t exist but the connection is to the middle of the pin (and should be to the end I would expect.)
Peter