Fidelity Investments has closed off one of its funds to new investors.
The investment giant announced in a press release today that Fidelity Small Cap Discovery Fund will no longer take new accounts as of close of business on Jan. 31.
Existing shareholders will be able to continue to add to their accounts. In addition, employer-sponsored retirement plans and certain discretionary programs offered by registered investment advisors may be able to open additional accounts for investors if the fund was established as an option as of January 31, 2013.
Brian Hogan, president of Fidelity's equity group, explained in the press statement that assets in the fund have "nearly doubled" over the past year to $3.9 billion. Closing the fund will allow portfolio manager Chuck Myers to manage investor inflows into the fund, he said. Myers has managed the fund since March 2006.
"We believe that closing Small Cap Discovery Fund at this time is in the interests of the fund's shareholders, and stabilizing cash flows will help Chuck in seeking to maintain the fund's consistent performance track records," Hogan said.
Fidelity Small Cap Discovery Fund seeks long-term growth of capital by investing at least 80% of its assets in securities of companies with small market capitalizations, or market capitalizations similar to companies in the Russell 2000 Index or the S&P Small Cap 600 Index.
Fidelity manages more than $1.7 trillion in assets as of Nov. 30, 2012.
