June 23, 2003 — Fidelity Investments said it eliminated the sales charge on five funds, including its flagship Fidelity Magellan (FMAGX).
In addition to Magellan, the largest actively managed U.S. stock fund, Fidelity dropped the 3% front-end sales commission, or load, on Fidelity Contrafund (FCNTX), Fidelity’s second-largest fund; Fidelity Contrafund II (FCONX); Fidelity Low Priced Stock (FLPSX); and Fidelity New Millennium (FMILX).
As a result of the change, all of Fidelity’s diversified stock funds will be offered without a sales charge, although its 41 sector and industry funds still carry the charge.
In dropping the charges, Fidelity believes it will give investors who might have ruled the funds out as investment options a chance to buy them, said John Brockelman, a company spokesman.
In addition, the move provides consistent pricing across Fidelity’s diversified retail stock funds, Brockelman said, adding that the change also is an “extension” of the company’s long-term strategy of removing sales charges.
Fidelity dropped the front-end loads on nine international stock funds earlier this year. At that time it also temporarily waived the charge on Contrafund.