Fidelity has announced that Fidelity
Small Cap Discovery Fund (FSCRX) is being closed to new accounts, effective close
of business on January 31, 2013. After that time, new purchases in that fund
will be restricted to existing shareholders.
There are no ratings changes based on this announcement.
Closing a fund because of positive inflows isn't necessarily a sign of boom
times to come, but it is a sign that this fund earned its assets the Fidelity
way: via outperformance. It's a lot better than closing a fund due to outflow problems. Important to note this was a preemptive rather than reactive
move. Fund flows have been accelerating
and Chuck is intent on keeping Chuck’s process intact for existing
shareholders. (That's Chuck Myers, FSCRX's manager since 2006.)
flows have accelerated recently, the fund did see positive flows during each of
’09, ’10, ’11, and ’12 so even if the market were to cool off, it’s likely
flows would stay positive.