In a move that analysts say shows a loss of faith in the mutual fund industry by its biggest player, Fidelity Investments slashed its holdings from several large fund companies, including ones recently named in the growing scandal, Reuters reports.

Fidelity sold a whopping 72% of its shares in Marsh & McLennan, the parent company of Putnam Investments, Securities and Exchange Commission documents show. It also sold some of its Prudential, T. Rowe Price and Franklin shares.

For the largest company in a $7 trillion industry that houses the savings of 95 million Americans, analysts see this sell off of its competitors’ shares as a bold statement.

John Bonnanzio, editor of the independent Fidelity Insight newsletter, said: "This is certainly a commentary on how Fidelity recognizes that the fund industry is in for a tough period and that fund companies stand to lose a lot in assets."

Beside the Putnam fire sale, half of Fidelity’s shares of both Prudential and T. Rowe Price were sold off, though company paperwork did not indicate specifically which funds the positions were taken from.

A Fidelity spokesperson, when reached for comment, said company policy is to not discuss its buying and selling in funds.

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