I don't remember if anyone has posted that Fidelity Contrafund and Fidelity Growth and Income Fund were both reopened to new investors in December, 2000.
>>"When we partially closed these two funds in 1998, our goal
was to stabilize cash flows so that the managers could most
effectively direct investment strategies for the benefit of fund
shareholders," said Robert C. Pozen, president of Fidelity
Management & Research Company. "We have the same goal
in mind today. While each of these funds has attracted close
to $20 billion in new cash since we partially closed them in
1998, the closings, together with natural attrition, have
created net outflows that we want to stem by reopening the
funds to new shareholders. I want to stress that our goal is
not to grow assets in either fund, but rather to achieve a
neutral cash flow in both funds. A fund is in a better position
to perform well for its shareholders if it has neither a lot of
cash flowing in, nor a lot of cash flowing out."
About the Fidelity Contrafund
Fidelity Contrafund seeks capital appreciation and invests
primarily in the common stocks of companies whose value
the portfolio manager believes is not fully recognized by the
public. William Danoff has served as the portfolio manager of
the fund since 1990.
"I asked Bob to reopen the fund because I believe it's the right
thing to do right now for shareholders," said Danoff. "With the
recent volatility in the market, I'm finding good investment
ideas. If the fund can achieve more of a balance in its cash
flows going forward, I'll be able to rely on regularly having the
cash on hand to put those investment ideas to work."
Fidelity Growth & Income Portfolio seeks high total return
through current income and capital appreciation. It normally
invests a majority of assets in common stocks with a focus
on those that pay current dividends and show potential for
capital appreciation. Steven Kaye has managed the fund
since 1993.
"When we closed Growth & Income Portfolio to new
shareholders in 1998, it was experiencing rapid inflows of
cash, which created its own set of challenges," said Kaye.
"However, negative cash flows can be every bit as difficult to
work with. My aim in reopening the fund is to achieve more of
a neutrality in cash flow, which will allow me the greatest
possible flexibility when it comes to buying and selling stocks
for the benefit of the fund's shareholders." << |
