Why is the small cap insurance mutual fund offered by Fidelity Investments entering liquidation?
Friday, September 11, 2009 Fidelity to liquidate small-cap insurance fund Business Courier of Cincinnati – by Craig M. Douglas Courier Contributor Fidelity Investments said it plans to liquidate a small insurance-dedicated fund that drew little interest after being launched two years ago. The Fidelity Strategic Advisers Small Cap Portfolio Fund will be the subject of a liquidation vote Oct. 13, according to regulatory filings. Since its 2007 inception, the fund “failed to garner sufficient assets to reach an economical scale,” Fidelity said. At the end of June, the fund had about $24 million in assets, but about $12.6 million of that amount was the value of initial seed money contributed by the fund and its affiliates, Fidelity said. “Management does not anticipate that the fund will be able to attract sufficient additional assets in the foreseeable future to maintain the viability of the fund, nor does management anticipate offering the Fund through new insurance products,” Fidelity s
Fidelity Investments said it plans to liquidate a small insurance-dedicated fund that drew little interest after being launched two years ago. The Fidelity Strategic Advisers Small Cap Portfolio Fund will be the subject of a liquidation vote Oct. 13, according to regulatory filings. Since its 2007 inception, the fund “failed to garner sufficient assets to reach an economical scale,” Fidelity said. At the end of June, the fund had about $24 million in assets, but about $12.6 million of that amount was the value of initial seed money contributed by the fund and its affiliates, Fidelity said. “Management does not anticipate that the fund will be able to attract sufficient additional assets in the foreseeable future to maintain the viability of the fund, nor does management anticipate offering the Fund through new insurance products,” Fidelity said in the filing. Boston-based Fidelity employs about 4,000 at its Covington campus. Sources:
Fidelity Investments said it plans to liquidate a small insurance-dedicated fund that drew little interest after being launched two years ago. The Fidelity Strategic Advisers Small Cap Portfolio Fund will be the subject of a liquidation vote Oct. 13, according to regulatory filings. Since its 2007 inception, the fund “failed to garner sufficient assets to reach an economical scale,” Fidelity said. At the end of June, the fund had about $24 million in assets, but about $12.6 million of that amount was the value of initial seed money contributed by the fund and its affiliates, Fidelity said. Sources: http://cincinnati.bizjournals.com/cincinnati/stories/2009/09/07/daily52.
