This week Fidelity Investments scrapped the 3 per
cent front-end sales charge — commonly referred to as a sales load — on certain US mutual funds, including Contrafund, Contrafund II, Low-Priced Stock, Magellan, and New Millennium.
As a result of the load removals, the firm’s entire retail diversified equity fund product line will now be available on a no-load basis. Fidelity’s 41 sector and industry funds – known as Select Portfolios – will continue to carry a 3 per cent sales charge.
“These funds have excellent long-term track records and, over the years, have helped millions of Americans build wealth and reach their financial goals,” says David L. Giunta, senior vice president. “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.”
Earlier this year, Fidelity announced that it was waiving the 3 per cent load on Fidelity Contrafund through June 30, 2003. As a result of today’s announcement, the fund’s sales charge will not be reinstated.
In addition, Giunta emphasized that Fidelity has no current plans to re-open New Millennium Fund and Magellan Fund, which have been closed to new investors since 1996 and 1997, respectively. “The load removals on those two funds mean that existing shareholders will be able to make future fund purchases without paying a sales charge,” said Giunta. “The other three funds — Contrafund, Contrafund II, and Low-Priced Stock Fund — remain open to new shareholders.”
After removing the loads on the five equity funds, Fidelity currently offers investors 130 no-load mutual funds. At May 31, 2003, Fidelity had total mutual fund assets under management of $760.3 billion invested in 334 funds for more than 18 million shareholders.