The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Fidelity Fund Eyes Benchmark Switch Not Rated 2.0 Email Routing List Email & Route  Print Print
Tuesday, March 21, 2006

Fidelity Fund Eyes Benchmark Switch

by: Armie Margaret Lee

Fidelity's Blue Chip Growth Fund is seeking to tie itself to the Russell 1000 Growth Index, according to The Wall Street Journal. The fund, currently benchmarked to the Standard & Poor's 500-stock index, will seek the blessing of shareholders for the switch in May.

If approved, the migration to the Russell 1000 Growth Index could spell changes in the management fees for the fund, which has $22 billion in assets. The plan to change benchmarks has already been greenlighted by the fund's board of trustees.

Sophie Launay, a spokesperson for Fidelity Investments, told the paper that the use of the Russell 1000 Growth Index as the fund's main performance benchmark will "help communicate to investors more clearly the fund's large-cap growth focus."

If the proposed change pushes through, there won't be a reallocation of investments, but it is unclear whether the shift will result in higher management fees, Launay said. Among the fund's top-five holdings are Microsoft, General Electric and Johnson & Johnson, all of which are closely aligned with the composition of the Russell 1000 Growth Index.

The fund has trailed the S&P 500 over the last few years, noted Morningstar analyst Dan Lefkovitz. The fund's trailing return, he said, was 1.3 percent, compared with the S&P 500's 4.33 percent gain. The Russell 1000 Growth Index, meanwhile, returned 1.49 percent.


Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2023: Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2023
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use