has cut the costs to investors seeking to buy some of its most recognizable funds. After today, the Boston Behemoth will no longer charge up-front loads on its Contrafund
, Contrafund II
, Low-Priced Stock Fund
, Magellan Fund
, and New Millennium Fund
. The change in load structure will be permanent, said John Brockelman, spokesperson for Fidelity.
Fidelity had waived the three percent load the Contrafund and another nine equity funds last Febraury. At that time the sales was set to end on June 30, 2003. However, Fidelity officials said that as a result of today's announcement, the fund's sales charge would not be reinstated. Two of the funds -- Magellan and New Millennium -- are closed to new investors. Those funds will not reopen, but existing shareholders will be able to buy shares in the funds without a load.
Fidelity officials explained that they hope the change will cause investors who may have purchased the funds in the past, but decided not to because of the sales load, to come back and revisit that decision.
"These funds have excellent long-term track records and, over the years, have helped millions of Americans build wealth and reach their financial goals," said David L. Giunta
, senior vice president at Fidelity. "By removing the loads, we're providing our customers with an opportunity to purchase these high-quality, brand-name equity funds without an upfront sales charge."
Brockelman added that the changes were also made to create consistency across Fidelity's full-line of diversified equity funds. After today, no diversified equity fund offered by Fidelity will carry a sales load. However, the firm's 41 Select Portfolio sector funds will continue to carry a three percent sales charge.
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