BOSTON Reuters – Fidelity Investments will let newcomers put money into its flagship Magellan stock portfolio for the first time in more than a decade to pull in fresh cash at a time when retirees are taking savings out, the company said on Monday.
Once ranked as America’s largest stock mutual fund with more than $100 billion in assets, Magellan grew so popular that Fidelity executives limited access to it in September 1997 in order to ensure a stable cash flow for its manager.
Now the mutual fund giant, which invests roughly $1.6 trillion in assets, is reversing course because Magellan has shriveled in size to $44.5 billion as investors who need their retirements savings withdraw cash.
