Skip to Content
Fund Times

7 Funds Reopening Amid Equity Meltdown

Past bear markets have shown that there likely will be more reopening announcements on the way.

Mentioned: , , , , , ,
Editor's note: Read the latest on how the coronavirus is rattling the markets and what investors can do to navigate it.

We've received the first flourish of fund reopening announcements, and I'm sure there will be more. Some firms will reopen funds because stocks appear cheap, while others will reopen in order to stem the tide of outflows. So far, outflows from equity funds have been much milder than in bond funds, but past bear markets have shown that eventually investors begin to redeem many of their equity funds.

On Friday March 27, 2020, Wasatch announced it was immediately reopening three funds. "The reopening of the strategies reflects Wasatch's view that current market volatility and dislocations present attractive opportunities for long-term investors," the firm said in a press release. "The firm remains committed to thoughtfully managing capacity and will continue to close strategies to protect performance for existing shareholders."

Wasatch reopened Small Cap Growth (WAAEX), Core Growth (WGROX), and International Growth (WAIGX). Wasatch Small Cap Growth, which has a Morningstar Analyst Rating of Gold, had been closed since 2011. International Growth had been closed since 2014, and Gold-rated Core Growth had been closed since 2018.

Artisan International Value (ARTKX) reopened to new investors on March 18, after having been closed since 2011. The fund is rated Silver.

Artisan Small Cap (ARTSX) is also reopening. The Silver-rated fund had $1.9 billion under management at the end of February. The fund's managers say they see compelling valuations for high-growth companies. The fund has had steady outflows since closing to most new investors since 2013.

On March 26, Fidelity announced that Fidelity Small Cap Growth (FCPGX) and Fidelity Small Cap Discovery (FSCRX) will reopen on April 1 to new investors. Fidelity Small Cap Growth had $3.8 billion of assets under management after closing in February 2018 at $4.2 billion. The fund is rated Bronze.

Fidelity Small Cap Discovery had closed in January 2013. It had $2.4 billion at the end of February and is rated Silver.

 

 

Russel Kinnel does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.