BOSTON, March 24 (Reuters) - Fidelity Investments said on Tuesday it would let newcomers put money into its Diversified International Fund and Small Cap Stock Fund for the first time in years to gain fresh cash at a time retirees are taking their savings out of these portfolios.
The Diversified International Fund, which was launched in 1991 and is managed by William Bower, has $21.5 billion in assets and closed to new investors in October 2006.
The $1.8 billion Small Cap Stock fund, run by Andrew Sassine, closed to new investors in June 2006.
Fidelity, which is privately held and invests roughly $1.2 trillion, has seen its assets under management decline sharply as investors pulled money out and as market losses hurt the company in the last months.
The Boston-based company will reopen these two portfolios after 4:00 p.m. EDT on March 30, 2009.
'The vast majority of the assets invested in both funds -- 93 percent for Diversified International Fund and 86 percent for Small Cap Stock Fund -- are earmarked for retirement,' Walter Donovan, president of Fidelity's money management arm's Equity Division said in a statement.
When funds are marked for retirement, investment managers are often forced to sell out of positions they like in order to have enough cash on hand to meet investors' demands.
Fidelity reopened its flagship Magellan stock fund to new investors in 2008.
(Reporting by Svea Herbst-Bayliss; Editing by Toni Reinhold) Keywords: FUNDS/FIDELITY (Svea.Herbst@Reuters.com; +1 617 856 4331; Reuters Messaging: svea.herbst.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The Diversified International Fund, which was launched in 1991 and is managed by William Bower, has $21.5 billion in assets and closed to new investors in October 2006.
The $1.8 billion Small Cap Stock fund, run by Andrew Sassine, closed to new investors in June 2006.
Fidelity, which is privately held and invests roughly $1.2 trillion, has seen its assets under management decline sharply as investors pulled money out and as market losses hurt the company in the last months.
The Boston-based company will reopen these two portfolios after 4:00 p.m. EDT on March 30, 2009.
'The vast majority of the assets invested in both funds -- 93 percent for Diversified International Fund and 86 percent for Small Cap Stock Fund -- are earmarked for retirement,' Walter Donovan, president of Fidelity's money management arm's Equity Division said in a statement.
When funds are marked for retirement, investment managers are often forced to sell out of positions they like in order to have enough cash on hand to meet investors' demands.
Fidelity reopened its flagship Magellan stock fund to new investors in 2008.
(Reporting by Svea Herbst-Bayliss; Editing by Toni Reinhold) Keywords: FUNDS/FIDELITY (Svea.Herbst@Reuters.com; +1 617 856 4331; Reuters Messaging: svea.herbst.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.