Strategic Advisors Registers Five New Funds

May 7, 2003 ( - Strategic Advisors, an affiliate of Fidelity Management & Research, has registered five new mutual funds to be offered this summer.

According to a Dow Jones report, quoting a Fidelity filing with the US Securities and Exchange Commission (SEC), the new funds will be part of the Fidelity Aberdeen Street Trust series. The proposed funds include:

  • Fidelity Advisor Freedom Income Fund
  • Fidelity Advisor Freedom 2010 Fund
  • Fidelity Advisor Freedom 2020 Fund
  • Fidelity Advisor Freedom 2030 Fund
  • Fidelity Advisor Freedom 2040 Fund.

The Advisor Freedom Income Fund will seek high total return with a secondary objective of principal preservation, according to Fidelity. Strategic Advisers will invest in a combination of Fidelity equity, fixed-income, and money market/short-term funds using a moderate asset allocation strategy designed for investors already in retirement .

Each of the other funds will seek high total return and will invest in a combination of Fidelity equity, fixed-income, and money market/short-term funds. Strategic Advisers allocates the assets of each Advisor Freedom Fund with a target retirement date among underlying Fidelity funds according to an asset allocation strategy that becomes increasingly conservative over time. Each fund’s name refers to the approximate retirement year of the investors for whom the fund’s asset allocation strategy is designed, Fidelity said.

About five to 10 years after each fund reaches its target date, the funds expect about 20% of their assets will be allocated to domestic equity funds, 40% to investment-grade fixed-income funds and 40% in money market/short-term funds.

Class A shares will carry a 5.75% front-end sales fee; the fee for Class T shares is 3.5%. Class B shares have a 5% deferred sales fee, while Class C shares have a 1% fee. The management fee is 0.1%. Class A shares also have a 0.25% distribution fee. The fee for Class T shares is 0.5% and 1% for Class B and C shares.

The Boston-based Strategic Advisors had about $32.6 billion in assets under management as of March 31.