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

To: Curtis Cerenzie who wrote (303)	11/1/1997 9:34:00 AM
From: Angler	Read Replies (1) \| Respond to of 4916

Curtis: If you were trying to price Fidelity Funds on Tues-day, it would have been an impossible task for the provider since the international group was taking their big hit following our big hit the day before. If one goes back and observes many fund groups inc. Fidelity on Wed. the 29th when the financial journals reported written prior day closes, he would find many "no quotes" covering all fund types. The market was in a state of disarray with a billion total shares being traded. I was trying to trade stocks online and couldn't fix a price on anything so went with limit orders. On Thursday everything had settled down so that funds were quoted as normally. Why would one want "to buy" or sell "at market" when prices are falling rapidly? Regular funds are quoted at days end. If the rep gave you some mixed up explanation of values during that period (hearsay), he was probably having a hard time explaining such situations to a myriad of questioners. Some of the initial people one reaches on the phone w/o a doubt are trainees because they always have to turn one over to a trader or researcher for the the real biz. I would never approach attorneys to sue looking for dimes and quarters thought to be lost when the market is churning. It recovered quite a bit by Thursday. There's an old joke about the farmer who complained "he lost $10,000 in the market because pigs "went down" and he didn't have any" This stock market is not a state of the art made in heaven. We are still dealing with many unknowns not all givens. You got the wrong guy. Angler

To: Curtis Cerenzie who wrote (303)	11/1/1997 12:13:00 PM
From: Julius Wong	Read Replies (1) \| Respond to of 4916

Curtis, see Fidelity explanation below. Julius ***************************************************************** The Wall Street Journal Interactive Edition][Image] [The Wall Street Journal Interactive Edition] [Image] [refine your search] [Image] Dow Jones Newswires -- October 29, 1997 [Image] Fidelity Defends Estimate Of Hong Kong Fund's Price Resources: By THOMAS D. LAURICELLA Help AP-Dow Jones News Service Search NEW YORK -- Fidelity Investments is defending Tuesday's Briefing closing price of its $268 million Hong Kong and China Books Fund while, at the same time, trying to explain why so Quotes many of its funds had incorrect prices or no information Journal at all in the morning newspapers. Links Special Fidelity says it followed appropriate procedures in calculating a two-cent rise in the the net asset value of Reports its Hong Kong and China Fund Tuesday, a day when the Hong New Kong stock market collapsed nearly 14% and many other Far Features East funds posted sizeable losses. Glossary In estimating the fund's price, Fidelity was acting Your within rules that allow it to prevent traders from taking Account advantage of a temporary drop in the fund's NAV. Contact Us Advertisers 'We had a lot of money coming into these funds (Tuesday afternoon) from arbitrageurs looking to take advantage of E-Mart this,' says Jerry Lieberman, chief financial officer at Fidelity. 'And that's not fair to the existing Table of shareholders.' Contents At the heart of the issue is the fact that a fund's NAV is set when the markets close in New York at 4 p.m., long after markets like Hong Kong have finished trading for the day. On Tuesday, U.S. markets rallied sharply after Hong Kong stocks collapsed, making it likely that the battered Far East market would rebound significantly. That left open a chance for fast-on-the-trigger investors to take advantage of the fact that the Hong Kong fund would be priced at low levels when U.S. markets closed on Tuesday, but would likely be heading higher in Hong Kong trading overnight. In such circumstances, Securities and Exchange Commission guidelines allow fund companies to estimate the updated values of certain securities, thereby closing the window for opportunistic traders. 'Under certain cirumstances the funds have the authority to estimate fair market value,' says Robert Plaze, associate director in the division of Investment Management at the SEC. 'A number of funds may have done this Tuesday.' ---------------------------------------------------------- Current quote for: X.FIN Return to top of page Copyright c 1997 Dow Jones & Company, Inc. All Rights Reserved.