The following letter regarding purchases of Fidelity Magellan Fund was recently received in the Human Resource Office and has been reproduced for your information:
Fidelity Investments
Tax-Exempt Serivces Company
September 2, 1997
Dear Frank:
You may have read about Fidelity's decision to limit new purchases of Fidelity Magellan Fund effective as of the close of business on September 30, 1997. We have taken this action because we believe that it is in the best interest of our shareholders, and should be very positive news to our retirement plan clients. The purpose of this letter is to explain what this means to you and your participants, specifically in the context of Rollins College's plan.
Your 403(b) plans currently offers Magellan Fund as an investment option. Magellan will therefore remain available as an investment option for all participants in this plan. All participants - current Magellan shareholders, those not currently invested in the fund, and future participants - can continue to invest in the fund.
Limiting new purchases of Magellan was the decision of Bob Stansky, portfolio manager of Magellan Fund, and Bob Pozen, president and chief executive office of Fidelity Management & Research Company, Over the past 14 months, since Mr. Stansky assumed management of the fund, Magellan's performance has improved significantly. History has shown that it is fairly typical to experience heavier inflows following a period of strong performance.
Mr. Stansky believes that taking the proactive step of limiting new purchases can lead to a more stable asset base. He also believes that it will allow him to keep the fund fully invested in the stock market, and focus all of his energies on picking great stocks. His goal for Magellan remains in place: to beat the returns of the broad stock market and his peers over the long term, and he believes he can do just that.
Please be aware that in plans where Magellan is currently available, we will be notifying Fidelity participants of their continued ability to purchase shares of the fund. Participants may find additional information about the fund on Fidelity's website at www.fidelity.com/non-profits.
We appreciate the confidence you have placed in Fidelity to service your plan.
Sincerely,
/s/
Cindy DeNaples
Client Manager
Fidelity Investments Tax-Exempt Services Company