Nov 22 Management fees earned by the famed
Magellan Fund at Fidelity Investments fell 37 percent during a
recent six-month period, leaving the fund's board with room to
seek more action in the coming year to spark a turnaround.
In September, Fidelity replaced Harry Lange as Magellan's
manager after years of poor performance. Fidelity disclosed on
Tuesday that Magellan earned $32.5 million in management fees
for the Boston-based company during the six months that ended
Magellan's management fees would have been higher, but a
negative $22.7 million performance adjustment knocked them
down, Fidelity said in a filing with the U.S. Securities and
Exchange Commission. In the year-ago period, Magellan's
management fees totaled $51.2 million after the impact of a
negative performance adjustment.
Magellan had $15.2 billion in net assets at the end of
September. Fidelity named Jeff Feingold to manage a fund once
run by Edward C. Johnson III, who is chairman of the world's
second-largest mutual fund company.
At the end of September, Magellan's largest three holdings,
in order, were Apple Inc , Google Inc and
Amazon.com Inc .
Magellan has been outperformed by most of its peers over the
past several years, according to Fidelity. If that trend
continues, more actions could be coming.
"The board discussed with (Fidelity) actions that have been
taken by (Fidelity) to improve the fund's disappointing
performance relative to its peer group and benchmark,"
according to the fund's semiannual report to the SEC." ... The
board will continue to closely monitor the performance of the
fund in the coming year and discuss with (Fidelity) other
appropriate actions to address the performance of the fund."