After 10 years in isolation, the Fidelity Magellan Fund has reopened to new investors, effective today.
I strongly believe that reopening the fund is the right step for Magellans shareholders at this time, said Harry Lange, who has managed the Magellan Fund since October 2005.
Magellans shareholder base has matured and, in the normal course of investing, many shareholders have continued to redeem assets as theyve met their financial goals, said Walter Donovan, president of the Equity Division for Fidelity Management & Research Company.
In fact, he added, 85% of the funds assets are earmarked for retirement, and the Baby Boomer generation has now begun to retire and tap those dollars.
Reopening the fund will generate new sales and offset future redemptions, helping to stabilize cash flows, Donovan said.