Fidelity reopens two retirement-oriented funds

To offset numerous redemptions this year, Fidelity Investments announced yesterday it will be reopening two of its mutual funds to new investors and accounts, starting Dec. 16.
DEC 03, 2008
To offset numerous redemptions this year, Fidelity Investments announced yesterday it will be reopening two of its mutual funds to new investors and accounts, starting Dec. 16. The two funds are its $47.7 billion Contrafund and its $17.8 billion Low-Priced Stock Fund, which have been closed to new accounts since April 2006 and December 2003, respectively. Both funds have seen redemptions this year because the majority of both is geared toward retirement distributions, including 88% for Contrafund and 85% for the Low-Priced Stock Fund, according to Walter C. Donovan, president of the equity division at Fidelity Management & Research Co. “Shareholders are redeeming assets as they meet their retirement goals, but the closed funds haven't been able to generate enough new sales to offset current and future redemptions,” Mr. Donovan said in a statement. “We believe reopening the funds will help bring some equilibrium to cash flows in order to ensure that their portfolio managers can most effectively direct their investment strategies.” Boston-based Fidelity managed $1.2 trillion in assets on Oct. 31.

Latest News

Voya expands advisor managed accounts to add private market assets
Voya expands advisor managed accounts to add private market assets

Voya Financial adds private equity, credit and real estate options to its AMA program, building on support for looser federal investment rules in retirement accounts.

With executives leaving, Osaic’s Reid now in the spotlight
With executives leaving, Osaic’s Reid now in the spotlight

Shannon Reid, president of Osaic and the network’s number two executive, has plenty of challenges, industry executives said.

Investors sue crypto fund and platform, alleging $1.5 million never returned
Investors sue crypto fund and platform, alleging $1.5 million never returned

Auditors flagged the commingling. The COO allegedly knew. Investors kept getting the pitch

Wells Fargo nabs $1.7B RBC advisor team, loses two teams to LPL
Wells Fargo nabs $1.7B RBC advisor team, loses two teams to LPL

The advisors on the move include two brothers leading a family practice in Connecticut, and a husband-and-wife tandem working with business owners in the West Coast.

Most potential business successors think there's a plan – but owners say otherwise
Most potential business successors think there's a plan – but owners say otherwise

Business owners and their heirs may be making assumptions instead of having conversations, creating challenges for succession planning, according to new research.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.