Fidelity Boss Highlights System to Prevent Predato

Nov. 14, 2003 — Fidelity Investments said it has in-house policies to prevent predatory activities in its funds, such as market-timing and forward-pricing, in a response to the scandals that have engulfed the mutual fund industry.

In a letter to shareholders dated November 14, Edward C. Johnson III, the company’s chairman and chief executive officer, wrote “Fidelity does not have agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not to say that someone could not deceive the company through fraudulent acts. But I underscore that we have no so-called “agreements” which would permit this illegal practice.”