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[March 26, 1998] The Following is a Notice From Fidelity New purchases of Fidelity Contrafund, Fidelity Low-Priced Stock Fund and Fidelity Growth and Income Portfolio will be limited to participants in plans that offer these funds as of the close of business on April 3, 1998. These changes will enable portfolio managers to continue to pursue opportunities that help achieve excellent performance over the long-term. Since your plan currently offers all three funds mentioned, all of these funds will remain open to current or future participants whether or not they are currently invested in the funds. Following a case-by-case review, Bob Pozen, president of Fidelity Management and Research Company, and the fund managers have decided to limit new purchases in these funds because they believe it is in the best interests of the funds' shareholders. All three of these funds have more than doubled in size since the end of 1995, but they are being partially closed for different reasons. Growth and Income Portfolio—Fund assets have increased more than $26 billion since December 31, 1995, from $14.8 billion at that time to $40.9 billion at the end of February 1998. In addition, it was the top-selling fund at Fidelity last year and that trend has continued this year. By reducing future access to the fund, we believe assets will grow at reasonable levels. The decision will allow the fund's manager, Steve Kaye, to continue to manage the fund in the most effective manner without being as concerned about cash flows. Low-Priced Stock Fund—Fund assets have grown more than $8 billion since December 31,1995, from $3.3 billion at that time to $11.6 billion at the end of February 1998. Given the relatively small size of most of the companies in which this fund is invested, Joel Tillinghast, the fund's manager, and Mr. Pozen believe limiting asset growth will enable Joel to stay more fully invested as he seeks low-priced stocks he believes will appreciate in value. Contrafund—Fund assets also have grown significantly, increasing from $17.4 billion since December 31, 1995, from $14.8 billion at that time, to more than $32.2 billion at the end of February 1998. Historically, Will Danoff, the fund's manager, has focused his efforts on the mid-cap sector of the market. We believe limiting the asset growth of Contrafund will enable Will to continue to manage the fund effectively given his preference for mid-cap stocks. These managers have outstanding long-term records, providing excellent returns for their shareholders in these funds. By limiting new purchases, we believe we have addressed the issues specific to each of these funds and are paving the way for the funds' continued success. Fidelity Investments® and Fidelity® are registered trademarks of FMR Corp. For more complete information about Fidelity mutual funds, including fees and expenses, call 1-800 343-0860 for free prospectuses. Read them carefully before you make your investment choices. |
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