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Post by yogibearbull on Apr 2, 2023 13:26:37 GMT
A Fido email came on trades when I didn't do any. On a/c login, I found that Ultra-ST FCONX (formerly, Investor class) was auto-converted into FCNVX (formerly, Institutional class). Fido website doesn't even recognize FCONX ticker now, while other sites still do. Fido FCNVX info isn't updated either as it still shows $1M minimum - that of course isn't true anymore as my current balance is UNDER $100.00. I was surprised by this sudden change for which there was no prior notification. FCONX was among the rare Fido funds to which frequent-trading didn't apply. I checked that remains valid for FCNVX. Another good change was that the new ER for FCNVX is just 25 bps. fundresearch.fidelity.com/mutual-funds/summary/316146521
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Post by fred495 on May 3, 2024 18:46:19 GMT
A Fido email came on trades when I didn't do any. On a/c login, I found that Ultra-ST FCONX (formerly, Investor class) was auto-converted into FCNVX (formerly, Institutional class). Fido website doesn't even recognize FCONX ticker now, while other sites still do. Fido FCNVX info isn't updated either as it still shows $1M minimum - that of course isn't true anymore as my current balance is UNDER $100.00. I was surprised by this sudden change for which there was no prior notification. FCONX was among the rare Fido funds to which frequent-trading didn't apply. I checked that remains valid for FCNVX. Another good change was that the new ER for FCNVX is just 25 bps. fundresearch.fidelity.com/mutual-funds/summary/316146521FYI, just spoke to a Fidelity representative who informed me that frequent trading rules do apply to FCNVX if the amount is over $1,000.
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Post by yogibearbull on May 3, 2024 19:32:21 GMT
Strange, as the FCNVX Prospectus dated 10/30/23 still has this (and there are no supplements/updates):
The fund generally invests in liquid money market and short-duration debt securities and the Adviser anticipates that shareholders may purchase and sell shares of the fund frequently. Accordingly, the Board of Trustees has not adopted policies and procedures designed to discourage excessive trading of fund shares and the fund accommodates frequent trading.
May be a change is coming.
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Post by fred495 on May 3, 2024 21:18:50 GMT
Thanks for the information, yogi.
However, I just spoke to another Fidelity representative, and he quoted from the fund's prospectus the following two paragraphs, which are below the one you quoted:
"The fund has no limit on purchase or exchange transactions but may in its discretion restrict, reject, or cancel any purchases that, in the Adviser's opinion, may be disruptive to the management of the fund or otherwise not be in the fund's interests.
The fund reserves the right at any time to restrict purchases or exchanges or impose conditions that are more restrictive on excessive trading than those stated in this prospectus."
It seems Fidelity wants to have it both ways with FCNVX, and the representative, with 14 years of experience, wouldn't give me a clear cut answer, either.
Unless, of course, the above two paragraphs are just boiler plate language and your quoted paragraph actually applies in practice.
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Post by anitya on May 4, 2024 0:46:20 GMT
Strange, as the FCNVX Prospectus dated 10/30/23 still has this (and there are no supplements/updates): The fund generally invests in liquid money market and short-duration debt securities and the Adviser anticipates that shareholders may purchase and sell shares of the fund frequently. Accordingly, the Board of Trustees has not adopted policies and procedures designed to discourage excessive trading of fund shares and the fund accommodates frequent trading. May be a change is coming. Does Schwab have frequent trading restriction policies, except through the Schwab short term redemption fees?
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