is closing its Low-Priced Stock Fund
to new investors in the face of "very heavy investor cash flows." The fund giant added that the fund will reopen in six months after it closes on May 16.
Notable in the release of the news was its source. The release was provided under the name of Abigail Johnson
, the daughter of Fidelity chieg Ned Johnson. The release is another sign that control of the firm is passing to Abigail, a Fidelity President.
In regards to the fund closing, the firm explained that the pause in letting investors into the fund is intended to provide the fund manager time to find his best ideas on where to invest the new cash. The fund now has 19 percent of its assets in invested in cash.
Assets in the Fidelity Low-Priced Stock fund have doubled to $17.2 billion in the past 15 months, according to Fidelity. It has also been the firm's best-selling fund so far in 2002, pulling in more than $2.3 billion in new assets. The fund had previously closed in 1992, 1998 and 1999.
The fund will remain open to existing shareholders and participants in 401(k) plans.
See the list of all the 2002 Most Influential People
Stay ahead of the news ... Sign up for our email alerts now