Fidelity Closes 3 Funds, Opens 5 More
Changes at ING and Janus, and more.
Fidelity announced plans to close three funds to new investors in October, as it mulls the possibility of merging or liquidating them. Fidelity Fifty (FFTYX), the largest of the three, is one of two concentrated funds managed by Steve DuFour. Fidelity is considering merging the fund into another offering, pointing out that it is not well differentiated from the rest of the company's lineup. That fund lost almost half its value in the 2008 financial crisis thanks to outsized sector bets. Although it has rebounded since DuFour took over in March 2011, it continues to struggle with outflows. The other two funds to close, Fidelity Tax Managed Stock (FTXMX) and Fidelity 130/30 Large Cap (FOTTX), have likewise struggled with recent outflows. Fidelity is considering merging the former into an existing fund and merging or liquidating the latter.
Meanwhile, the company is adding five new actively managed strategies to its Series group of funds, a lineup designed specifically for use in the company's Freedom Funds target-date series. The additions could significantly alter the complexion of the Fidelity Freedom target-date lineup, which has traditionally relied on indexlike funds.
Morningstar Fund Analysts does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.