Fidelity’s fees for its flagship Magellan fund have fallen significantly due to the bear market, Reuters reports, citing information from the fund’s annual report..

The fund has seen a 38% drop in fees in the year ended March 31. To counter this, Boston-based Fidelity has laid off roughly 5% of its staff last year to counter the rough bear market conditions.

The Magellan fund has underperformed the benchmark S&P 500 over the past three years, with the fund declining 24.6% in value for the year ended March 31.

Robert Stansky, fund manager for Magellan, wrote in his report, "If the economy is on the road to recovery, it’s not evident to me at this point."

But even though Stansky is not voicing optimism about the economy, he appears to be overweighting in financial and media sectors for when the economy turns around, John Bonnanzio, editor of Fidelity Insight, told Reuters.

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The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.

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