Fidelity Small Cap Value Closed to New Accounts

Fidelity Small Cap Value Fund seeks capital appreciation by normally investing at least 80% of its assets in securities of companies with small market capitalizations (those with market capitalizations similar to companies in the Russell 2000 Index or the S&P Small Cap 600 Index) and using fundamental analysis to identify companies that management believes are undervalued in the marketplace.

The fund, co-managed by Chuck Myers and Derek Janssen, had $3.5 billion in assets under management as of January 31. New purchases in the fund will be limited to existing shareholders as of the close of business on March 1.

Employer-sponsored retirement plans and some discretionary programs offered by registered investment advisers may be able to open additional accounts for investors if the fund was established as an option as of March 1. However, after that date, Fidelity will no longer accept new investors into the fund, and retirement plan sponsors and advisers who have not established the fund as an investment option by March 1 will no longer be able to do so.

The fund has experienced a steadily growing asset base and, more recently, strengthening investor cash flows, according to Brian B. Hogan, president of Fidelity’s equity group. Hogan said that the firm’s analysis of the situation led it to believe that it is in the best interests of shareholders to close the fund to new investors.

“We believe closing the fund will give Chuck and Derek an opportunity to build upon the fund’s long-term performance track record,” Hogan said.   

For investors interested in a small cap fund, Fidelity offers several other options, including: Fidelity Stock Selector Small Cap Fund (retail and adviser share classes); Fidelity Small Cap Stock Fund; Fidelity Advisor Small Cap Fund; Fidelity Small Cap Growth Fund (retail and adviser share classes); and Fidelity Small Cap Enhanced Index Fund.