Fidelity Investments plans to reopen two closed mutual funds
The company's Contrafund and Low-Priced Stock fund will let in new investors in an effort to rebuild assets after withdrawals and market losses in the last year.
Fidelity Investments plans to reopen two of its most popular mutual funds to new investors in an effort to rebuild assets after withdrawals and market losses in the last year.
Contrafund, Fidelity's largest fund, and its Low-Priced Stock fund will start taking cash from new investors Dec. 16, the Boston-based company said Tuesday.
Contrafund, which was closed in April 2006, has seen client assets fall 36% this year to $51.5 billion on Oct. 31. Low-Priced Stock fund, which was closed in 2003, has $19.9 billion in assets, down 43% this year
The company said letting new investors in would allow the funds to invest more at today's attractive stock prices.
"This is arguably a long-term positive for the funds, but I don't think anything in the current environment will attract a lot of new investors," said John Bonnanzio, group editor of Fidelity Insight, an independent newsletter in Wellesley, Mass.
In January, Fidelity reopened its Magellan fund to new investors for the first time in a decade.
