In a bid to drive sales, Fidelity will introduce a family of team-managed funds overseen by former Magellan manager Robert Stansky, The Wall Street Journal reports. Each member of the eight-member team will specialize in a sector, and they are expected to be the cream of Fidelity’s crop. While Magellan didn’t fare well under Stansky’s helm, he is well regarded as a good manager of other people.
This is a new approach for Fidelity, which heretofore had used a “star” system. It’s possible the firm decided to emulate the team approach at American Funds, which has had very strong flows in recent years and is second in net sales so far this year.