Ford to drop Fidelity Magellan from 401(k)
Company eliminates world's largest actively managed mutual fund from workers' retirement plan to 'simplify options.'

NEW YORK (CNNMoney.com) -- Ford is nixing one of Fidelity Investments' largest and best-known mutual funds from the investment options it offers to employees, the company said Tuesday.

The auto maker sent notices to workers that it would no longer allow employees to invest their retirement funds in Fidelity's Magellan Fund, along with three funds from other companies.

fidelity2.03.gif

"Periodically we work with third-party consultants to review our offerings and try to reduce redundancy," a Ford spokeswoman told CNNMoney.com. "We're trying to simplify the line-up."

Ford won't be adding any funds to replace the four that were dropped.

The other funds eliminated are Domini Social Investments' Social Equity Fund; Morgan Stanley's (Charts) Institutional Fund Inc. Global Value Equity Portfolio; and Vanguard Group's Explorer Fund (Admiral Class).

Ford will now offer 30 mutual funds managed by 11 companies.

The move comes as Magellan has turned in poor performance in recent years, after becoming the largest mutual fund in the world under Peter Lynch. Lynch retired in 1990, and the fund is now helmed by Harry Lange, who joined in 2005 after running Fidelity's successful Capital Appreciation fund.

Ford (Charts) isn't the only one losing faith in Magellan - Microsoft (Charts) dropped the fund from its 401(k) plan in August 2005.


401(k) automatic enrollment: Cleared for takeoff

Retire Rich: 5 families doing it right Top of page

YOUR E-MAIL ALERTS
Follow the news that matters to you. Create your own alert to be notified on topics you're interested in.

Or, visit Popular Alerts for suggestions.
Manage alerts | What is this?

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.