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. 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.