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Strategies & Market Trends : Fidelity Select Sector funds -- Ignore unavailable to you. Want to Upgrade?

To: Angler who wrote (301)	11/1/1997 1:20:00 AM
From: Curtis Cerenzie	Read Replies (2) \| Respond to of 4916

Fund Values for International Funds on 10/28/97-- On Tuesday, October 28th, most international funds fell approximately 4%. Fidelity's funds, namely the Overseas and Diversified International only fell .35% and the other rose .1%. How can this be when the Hong Kong market was down 13% and Japan 5%? How can this be when the Europe markets were all down 3% and more? Because Fidelity waited to value the funds until after the normal time and determined a fair market value for the funds. This served to mean that everyone who had the savvy to trade into these funds on Tuesday lost about 4% of the gain on their money. Is this legal? I do not know, however this was the explanation given to me during a recorded conversation with a Fidelity representative. If one considers what this means, Fidelity can and is, during certain conditions, determining what they think the funds should sell for versus what the market thinks it should sell for. If you were affected by this please contact me, as my attorney may be interested in speaking with you. For those of you wondering what the big deal is, consider this. You decide to buy IBM at market on Tuesday morning right after their announcement because you think it will go up. The price at that time was around $92. Now, your broker says, well yes that is the market price, but I think fair market is really $99 dollars, so he executes your order at $99. Do you think this is fair? Do you think this is how a market should work? Fidelity is a big company but I don't think they'll be making any press releases about this practice anytime soon... Regards Curtis