Ford Motor sent notices to employees last month telling them it will drop Fidelity’s Magellan fund and three other funds from two other companies from its 401(k) lineup, The Wall Street Journal reports.
The funds will be closed to new investments on Nov. 6 and employees will have until the beginning of next year to redirect their holdings. Should they fail to do so, Ford will move their assets to a stable-value fund.
The other funds being eliminated are the Domini Social Equity Fund, the Morgan Stanley Global Value Equity Portfolio and Vanguard Explorer Fund.
The last time when Ford altered its 401(k) plan was in 2002 when it reduced the number of offerings from 61 to 36.
The company issued a statement saying it “routinely reviews the investment-option lineup to ensure it continues to meet the diverse investment needs of participants, eliminating funds that may be redundant with the view of continuing to simplify the lineup.”
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.