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FCONX to FCNVX Auto-Conversion

yogibearbullyogibearbull
in Fund Discussions
A Fido email came on trades when I didn't do any.

On a/c login, I found that Ultra-ST FCONX (formerly, Investor class) was auto-converted into FCNVX (formerly, Institutional class). Fido website doesn't even recognize FCONX ticker now, while other sites still do. Fido FCNVX info isn't updated either as it still shows $1M minimum - that of course isn't true anymore as my current balance is UNDER $100.00.

I was surprised by this sudden change for which there was no prior notification.

FCONX was among the rare Fido funds to which frequent-trading didn't apply. I checked that remains valid for FCNVX.

Another good change was that the new ER for FCNVX is just 25 bps.

https://fundresearch.fidelity.com/mutual-funds/summary/316146521

Comments

  • msf
    That would correspond with the two emails I got from Fidelity 11:45PM Friday evening:
    (1) FCONX has closed to new investors
    (2) FCRDX has closed to new investors

    FCRDX shares were likely moved to FMNDX.

    Fidelity's web page(s) may be a little slow in making changes, but the filings have been updated (and are available on the website).
    Fidelity® Conservative Income Bond Fund/FCNVX

    In this summary prospectus, the term “shares” (as it relates to the fund) means the class of shares offered through this summary prospectus.
    Fidelity® Conservative Income Bond Fund, a class of shares of the fund, was formerly known as Institutional Class.

    Summary Prospectus
    October 29, 2022
    As Revised April 1, 2023
    ...
    There is no purchase minimum for shares of the fund offered in this prospectus.
    Summary Prospectus

    With a pretty flat short term yield curve and rates still rising, I haven't paid much attention to this fund (SEC 30 day yield 4.60% after waivers), preferring MMFs like FZDXX (SEC 7 day yield4.66% after waivers). Given that you have under $100 in the fund, it looks like you concur.
  • yogibearbullyogibearbull
    @msf, in the past, I have gotten those Fido emails on fund closings & openings on Fridays. But not this time; I just checked my Spam too, nothing there. I will check my Fido Settings to see if some have changed.

    So, when got the trade alert on Saturday, I was concerned. On login, it took me a few minutes to figure out WHAT happened and WHY it happened. On SEC/Edgar (under "Fidelity Salem Street"), I just saw the new prospectus but no clear statement/summary of the change.

    But I am glad to know that you got "routine" alert on it on Friday.
  • yogibearbullyogibearbull
    Ignoring past history (as the rate environment was different), I am thinking of using ultra-ST bonds as an alternative for manual- or auto- rolls of T-Bills.

    Fido OEF: FCNVX ER 0.25% (no trading restrictions at Fido)

    ETFs with lower ERs:GSY, ICSH, JPST, ULST, VUSB (my preference is ICSH but I searched for others)

    Fido m-mkt funds may be fine too, but core/settlement SPAXX is so-so, and many attractive ones have high/institutional minimums. Vanguard VMFXX is OK.

    Note that this ultra-ST bond category post-GFC is investment-grade, unlike the pre-GFC disasters that used ST-HY or FR/BL. In fact, for a short while after the GFC, the ultra-ST bond category disappeared temporarily.
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