What's the meaning of a mutual fund: Suspended?

mickael28

Hello,

I was going to open my 1st mutual fund and the coincidence is that when I went to Fidelity it's appearing as Suspended, so it doesn't appear later on the list of available funds.

Do you know what's the meaning of this suspension? is it a temporary suspension or it won't allow new investors in the future?

And maybe more importantly, why is a mutual fund suspended or by whom?

Many thanks!!

redbuzzard

Which fund is it?

It might be being restructured in some way - e.g. a unit trust becoming an OEIC; or there may be other changes in train affecting the disclosures.

It isn't necessarily sinister.

mickael28

I saw a few yesterday, one of them for example was First State China, where the fund status in Fidelity appears as Suspended :S

Shaolin_Monkey

That fund is closed to new business - see here - http://www.trustnet.com/News/326693/an-alternative-to-first-state-greater-china-growth/

mickael28

Thanks Shaolin.

I read in tha article:

Martin Lau at the helm, it was of little surprise that IFAs were disappointed when the First State Greater China Growth portfolio was soft-closed back in January 2012.

so this link is interesting about what soft-closed means

I think I'll need to look for an alternative then, as Fidelity doesn't offer all the possibilities