Does anyone know what happened to certain Fidelity Mutual Funds on 9/5/2006 ?

Question

I owned both FGRIX (Fidelity Growth and Income) and FLPSX (Fidelity Low Priced Stock) and both were absolutely massacred on 9/5/2006, but especially FGRIX. The losses were huge... far, far more than any market index. How can a large diversified mutual fund lose 20% of its value in a couple of days when the market only loses... maybe 1% in the same time ? I am baffled. Please provide any relevant info sources, because this seems really, really weird to me.

Thanks for the answer House Mouse, that is encouraging. however, on my online statements and all my research i cannot verify this anywhere. I know of a couple other people who are in the same boat and are wondering the same thing. Can you provide your source ?

Answer 1

From Morningstar:

http://quicktake.morningstar.com/AlertNewsWire/ticker.asp?ticker=FGRIX&alert=A0422

Answer 2

Don't worry you did not lose any money. The funds paid out a dividend. I went to Fidelity's site and looked up some information and the ex-dividend dates are right around that time.

This is very common with stock funds, especially growth and income ones that tend to hold larger, dividend paying companies. The decrease in the NAV (net asset value) of the funds will be offset by the cash you receive or new shares of the fund if you are automatically reinvesting any distributions.

Answer 3

Both of your funds had capital gains distributions of which you will get in the form of additional shares - you don't have the loss that you are concerned about. Below is some information about the distribution.

FLPSX
09-08-06 01:00 PM
Fund Capital Gains Distribution

This fund has declared a capital gains distribution of $3.44000, effective on 09/08/2006. The fund will trade without this distribution as of that date.

FGRIX
09-06-06 01:00 PM
Fund Capital Gains Distribution

This fund has declared a capital gains distribution of $5.80000, effective on 09/06/2006. The fund will trade without this distribution as of that date.

Answer 4

I would definitely call Fidelity to verify. It sounds to me like a reporting mistake. I've seen this happen before...A mutual fund reports the wrong numbers.
Fidelity: 800-343-3548
Good luck.