Fidelity Investments is opening Magellan
Fund to new investors for the first time in more than a decade as it seeks to
capitalize on a turnaround by manager Harry Lange.Lange, who took over Magellan in October
2005, beat 82 percent of rivals in 2007 as the $44.8 billion fund posted its
highest returns in 14 years. Once Fidelity’s largest fund until the Internet
boom went bust, Magellan will take new deposits starting tomorrow, the
world-biggest mutual-fund manager said today in a statement.
“Fidelity is re-opening the flagship fund
because it finally has performance that it can crow about,” said James Lowell,
chief strategist at Adviser Investment Management Inc. in Watertown, whose
clients buy Fidelity funds.Magellan’s assets have dropped 30 percent
under Lange as market appreciation was offset by more than $12 billion in
customer withdrawals. The outflows were from clients nearing retirement, Walter
Donovan, president of Fidelity’s equity division, said on the call. About 85
percent of the fund’s assets are held in retirement accounts such as 401(k)
plans, he said.
Fidelity Investments to Open Magellan After 10 Years – Bloomberg
Tags: Fidelity
