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Fidelity ® Strategic Dividend & IncomeSM Fund To Invest in Common and Preferred Stocks, REITs and Convertible Securities
BOSTON, January 6, 2003 -- Fidelity Investments today announced the launch of Fidelity Strategic Dividend & Income Fund, an income-oriented equity fund that will invest in four equity sub-classes: common stocks, preferred stocks, real estate investment trusts (REITs) and other real estate related investments and convertible securities. This investment mix is designed to provide the fund with the potential for a higher expected yield combined with a lower expected risk profile in comparison to many other Fidelity growth and income mutual funds that focus on common stocks alone. The fund also will consider the potential for capital appreciation.
In addition to being available directly to investors at no load, the fund will also be offered in five additional share classes -- Fidelity Advisor Strategic Dividend & Income Fund (Classes A, T, B, C, and Institutional)1 -- through investment professionals at a variety of financial institutions, including banks, insurance companies, and broker/dealers. With the addition of this fund, Fidelity now offers 66 Advisor Funds.
The fund will be comprised of four sub-portfolios, with a neutral mix as follows: value-oriented common stocks (50 percent), preferred stocks (20 percent), convertible securities (15 percent) and REITs and other real estate related investments (15 percent). William Eigen will manage the asset allocation among the sub-portfolios, and will seek to strategically adjust the mix of assets to capitalize on market opportunities.
"Income-producing investments have always been an important component of a well diversified portfolio, and we believe this fund is a unique product to help investors reach their financial goals," said Sanjiv Mirchandani, executive vice president of Fidelity Personal Investments. "With a team of talented investment professionals actively managing both the asset allocation strategy as well as the sub-portfolios, this fund can be a viable choice - in concert with fixed-income funds and other products - for investors seeking income-oriented funds."
"Advisors working with income-seeking clients will now have access to an actively managed asset-allocation equity fund comprised of specialized asset classes," said Marty Willis, executive vice president of Fidelity Investments Institutional Services Company. "By mixing these asset classes, the fund has the potential added benefit of reduced volatility while seeking income."
Similar to Fidelity's other asset-allocation funds - Fidelity Asset Manager Funds, Fidelity Advisor Asset Allocation Fund, Fidelity Strategic Income Fund and Fidelity Advisor Strategic Income Fund - this fund is designed to deliver performance in two possible ways: through the portfolio manager's ability to shift its asset allocation to take advantage of market opportunities, and through superior security selection in its subportfolios. Past performance is no guarantee of future results. Asset allocation does not ensure a profit or guarantee against a loss.
Mr. Eigen joined Fidelity in 1994 as a director in the Fixed-Income and Asset Allocation Fund Analysis group. In this role, he served as a liaison for fixed-income and asset allocation managers, also conveying performance information to key clients and management. In 1997, Mr. Eigen became a director and strategist for Fidelity's Asset Allocation Fund Group, including the Fidelity Asset Manager funds, and Fidelity Canada's Global and Canadian asset allocation funds. He became a portfolio manager responsible for the Fidelity Strategic Income Fund and Fidelity Advisor Strategic Income Fund in June 2001. He began managing Fidelity Four-In-One Index Fund in October 2002.
About Fidelity Investments Institutional Services Company
Fidelity Investments Institutional Services Company provides investment management services through investment professionals at financial institutions nationwide, including wirehouses, regional and independent broker/dealers, banks, trust companies and insurance companies. The company offers Fidelity Advisor Funds®, Variable Insurance Product (VIP) Portfolios, systematic investment plans, institutional money market funds and a comprehensive line of retirement products and services. Fidelity Investments Institutional Services Company total assets under management were $182.0 billion as of November 30, 2003.
About Fidelity Investments
Fidelity Investments is one of the world's largest providers of financial services, with custodied assets of $1.7 trillion, including managed assets of $954.3 billion as of November 30, 2003. Fidelity offers investment management, retirement planning, brokerage, human resources and benefits outsourcing services to 18 million individuals and institutions as well as through 5,500 financial intermediaries. The firm is the largest mutual fund company in the United States, the No. 1 provider of workplace retirement savings plans, one of the largest mutual fund supermarkets and a leading online brokerage firm. For more information about Fidelity Investments, visit www.Fidelity.com.
1 Fidelity Advisor Strategic Dividend & Income Fund (Classes A, T, B, C, and Institutional) are classes of shares of Fidelity Strategic Dividend & Income Fund. Other fees and expenses applicable to continued investment are described in the fund's current prospectus.
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Changes in real estate values or economic conditions can have a positive or negative effect on issuers in the real estate industry, which may affect the fund.
Non-diversified funds tend to be more volatile than diversified funds and the market as a whole.
Past performance is no guarantee of future performance.
Fidelity Investments, Fidelity and Fidelity Advisor Funds are registered trademarks of FMR Corp. Strategic Dividend & Income is a service mark of FMR Corp.
For more complete information about Fidelity funds and Fidelity Advisor Funds, including charges and expenses, call 1-800-FIDELITY for a free prospectus or please call your investment professional for a free Fidelity Advisor prospectus. Read it carefully before you invest or send money.
Fidelity Distributors Corporation
82 Devonshire Street, Boston, MA 02109
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