Products May 6, 2007
Fidelity Rolls Out Three New Funds
Fidelity Investments last week announced the offering of three new enhanced index funds.
Reported by Nevin E. Adams
According to a press release, the three funds – Fidelity Large Cap Value Enhanced Index Fund, Fidelity Large Cap Core Enhanced Index Fund and Fidelity Large Cap Growth Enhanced Index Fund – normally will invest in stocks with large market capitalizations, and will have the following benchmarks – the Russell 1000 Value Index (Fidelity Large Cap Value Enhanced Index Fund), the S&P 500 Index (Fidelity Large Cap Core Enhanced Index Fund), and the Russell 1000 Growth Index (Fidelity Large Cap Growth Enhanced Index Fund).
Strategic Advisers, Inc. is the investment advisor to the funds and Geode Capital Management, LLC, a registered investment advisor, will serve as the funds’ sub-advisor. For several years, Geode has served as sub-advisor to Fidelity’s equity index funds.
All of the funds will have the overall objective of seeking capital appreciation. As described in the prospectus, the funds’ principal investment strategies include:
Fidelity Large Cap Value Enhanced Index Fund
- Normally investing at least 80% of assets in common stocks included in the Russell 1000 Value Index, which is a market capitalization-weighted index of companies with large market capitalizations.
- Generally using computer-aided, quantitative analysis of historical valuation, growth, profitability, and other factors to select a broadly diversified group of stocks that may have the potential to provide a higher total return than that of the Russell 1000 Value Index.
- Investing in domestic and foreign issuers.
Fidelity Large Cap Core Enhanced Index Fund
- Normally investing at least 80% of assets in common stocks included in the Standard & Poor’s 500 Index, a market capitalization-weighted index of companies with large market capitalizations.
- Generally using computer-aided, quantitative analysis of historical valuation, growth, profitability, and other factors to select a broadly diversified group of stocks that may have the potential to provide a higher total return than that of the S&P 500.
- Investing in domestic and foreign issuers.
Fidelity Large Cap Growth Enhanced Index Fund
- Normally investing at least 80% of assets in common stocks included in the Russell 1000ª Growth Index, which is a market capitalization-weighted index of companies with large market capitalizations.
- Generally using computer-aided, quantitative analysis of historical valuation, growth, profitability, and other factors to select a broadly diversified group of stocks that may have the potential to provide a higher total return than that of the Russell 1000 Growth Index.
- Investing in domestic and foreign issuers.