Press Release
Fidelity Investments Expands Lifecycle Fund Options
BOSTON, MA, November 13, 2003 -- Fidelity Investments today announced the addition of eight new portfolios to its two popular lines of Freedom Funds. Four new funds - Freedom 2005, Freedom 2015, Freedom 2025 and Freedom 2035 - are now available for purchase by investors directly from Fidelity as well as through qualified group retirement plans. Four additional new funds - Advisor Freedom 2005, Advisor Freedom 2015, Advisor Freedom 2025 and Advisor Freedom 2035 - are available for purchase through a variety of financial institutions, including banks, insurance companies, broker/dealers, financial planners and pension fund administrators.
The Fidelity Freedom FundsŪ and Advisor Freedom Fundssm are fund-of-funds, investing in Fidelity's retail and Advisor lines of funds, respectively. The funds are designed to become more conservative as they approach their target dates, utilizing an actively managed, proprietary risk control strategy. Within several years after reaching their target date, each fund will close and merge into Freedom Income Fund or Advisor Freedom Income Fund.
In addition to being a popular choice for investors saving for retirement, Freedom Funds can be a flexible option for investors building a retirement income plan. As they progress up to and through their target dates, the Freedom Funds become increasingly well positioned for income generation, while maintaining a level of exposure to the equity markets, which can be important for retirees.
"Freedom Funds have been increasingly popular with individuals who are searching for an effective one-stop solution to investing for retirement," said William C. Carey, president of Fidelity Institutional Retirement Services Company (FIRSCo). "Now that the target dates of our Freedom Funds fall in five-year increments, individuals will have a better opportunity to invest in a portfolio that most closely aligns their changing asset-allocation needs with expected retirement dates."
"Over the past few years, many individual investors have recognized what advisors have long recognized - the benefits of maintaining a well diversified portfolio," said Joseph P. LoRusso, president of Fidelity Investments Institutional Services Company (FIIS). "Now that the Advisor Freedom Funds also are offered at five-year increments, both advisors and their clients can more confidently design a strategy that best reflects their clients' long-term financial goals."
Strategic Advisers has more than 10 years of experience managing time targeted-asset allocation funds, including the Fidelity Freedom Funds, which were introduced in 1996. In July 2003, Fidelity launched its Advisor Freedom Fund lineup, sold exclusively through investment professionals. Combined, the two product lines have $20 billion in assets and are available in more than 7,900 qualified retirement plans as of October 31, 2003.
Ren Cheng, who has managed the Freedom Funds since their inception, will manage the new Freedom Fund portfolios, and will co-manage the new Advisor Freedom Fund portfolios with Jonathan Shelon. A nine-year Fidelity veteran, Cheng is portfolio manager of structured investments for the Structured Investment Group within Strategic Advisers, a subsidiary of Fidelity Investments. In his role, Cheng is responsible for managing over $23.5 billion in asset-allocation portfolios as well as new product development for defined- benefit and defined-contribution clients. He was named co-manager of the Fidelity Freedom Funds in 1996, and became primary fund manager in 2001. He also is manager of the IRS Code 529 tax advantaged college savings plans for the states of New Hampshire, Massachusetts and Delaware.
Shelon is an assistant portfolio manager for the Structured Investment Group within Strategic Advisers. His responsibilities include constructing and managing risk-controlled portfolios for Fidelity's institutional clients. Shelon is also the assistant portfolio manager of the IRS Code 529 tax advantaged college savings plans for the states of New Hampshire, Massachusetts and Delaware.
About Fidelity Investments
Fidelity Investments is one of the world's largest providers of financial services, with custodied assets of $1.6 trillion, including managed assets of $905.6 billion as of September 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.
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