August 13, 1996 in Nation/World

Magellan Fund Has Record Decline

From Staff And Wire Reports
 

The assets of Fidelity Investments’ flagship Magellan Fund fell 6.4 percent, or $3.5 billion, in July, a record monthly mutual fund decline, said research group Lipper Analytical Services Inc.

“It’s the biggest dollar loss in a month in our memory,” said Lipper Analytical president Michael Lipper, who started following the fund business in 1968.

Magellan’s assets fell to $50.97 billion on July 31 from $54.47 billion on June 30, according to a report published by Fidelity Investments.

The fund’s assets were as high as $55.5 billion in February. Since then, it’s been hurt by poor performance and shareholder redemptions. Fidelity said investors withdrew money from Magellan last month.

Investors have pulled a net $1.84 billion from Magellan in recent months, according to an estimate by Eric Kobren, executive editor of Fidelity Insight, an independent publication that tracks the fund company.

“Cash flows have stabilized in more recent weeks,” Kobren said.

, DataTimes


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