Products January 16, 2013

Fidelity Closing Small Cap Discovery Fund

Fidelity Investments is closing Fidelity Small Cap Discovery Fund (FSCRX) to new accounts.
Reported by

As of the close of business on January 31, 2013, new purchases in the fund will be limited to existing shareholders.   

Employer-sponsored retirement plans and certain discretionary programs offered by registered investment advisers (RIAs) may be able to open additional accounts for investors if the fund was established as an option by January 31.   

For more stories like this, sign up for the PLANADVISERdash daily newsletter.

For investors considering a small-cap fund, Fidelity offers several additional options, including Fidelity Stock Selector Small Cap Fund; Fidelity Small Cap Value; Fidelity Small Cap Stock Fund; Fidelity Advisor Small Cap Fund; Fidelity Small Cap Growth Fund; and Fidelity Small Cap Enhanced Index Fund.   

“We believe that closing Small Cap Discovery Fund at this time is in the interests of the fund’s shareholders, and stabilizing cash flows will help Chuck [Myers, the fund’s manager,] in seeking to maintain the fund’s consistent performance track records,” said Brian B. Hogan, president of Fidelity’s Equity Group.

Data & Research January 16, 2013

Employee Stock-Owned Companies Had Fewer Layoffs

An analysis suggests employee stock-owned companies laid off fewer workers during the recession.
Reported by

 

Using data from the 2010 General Social Survey (GSS), the National Center for Employee Ownership (NCEO), in partnership with the Employee Ownership Foundation, found that during the recession of 2010, employees of these companies were laid off at a rate more than four times less than employees of conventionally-owned companies. The 2010 GSS shows that employee stock-owned companies laid off employees at a rate of 2.6% in 2010, whereas the rate for conventionally-owned companies was 12.1%.  

Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.

The Employee Ownership Foundation says this indicates these companies saved the federal government more than $37 billion in 2010. “When a person has a job, she or he pays federal income taxes, Social Security taxes, Medicare taxes, and does not collect unemployment compensation,” said Employee Ownership Foundation President, J. Michael Keeling. “So, the fact that employee owners were more than likely to pay taxes—and not collect unemployment compensation — means Uncle Sam’s fiscal house would be so much better off if there was more employee ownership,” he contended. 

The NCEO analysis calculates that 18 million Americans worked for employee stock-owned companies in 2010, with 11 million working in companies with employee stock ownership plans (ESOPs). Savings from the low layoff rate of ESOP participants was $14.5 billion in 2010, or seven times more than the estimated $2 billion-per-year tax expenditure attributed to the special laws promoting ESOP creation and operation.  

A link to the full analysis can be found at www.esopassociation.org under “news.”


 

 

«