$68 million is said to arrive at Magellan in 10 days Inflow follows Fidelity's decision to close flagship fund

Mutual funds

September 12, 1997|By BLOOMBERG NEWS

BOSTON -- Fidelity Investments' flagship Magellan Fund has attracted almost $70 million in the first 10 days of September following the company's decision to close its flagship fund, according to a research report.

An estimated $68 million has flowed into the $60 billion Magellan Fund this month, as of yesterday, according to Alpha Equity Research Inc.

"That's not much relative to the size of the fund, but it's a huge improvement from earlier this year," said David O'Leary, president of Alpha Equity Research Inc., a research group that tracks Fidelity.

"About $4 billion flowed out of Magellan in the first eight months of the year."

The inflows come amid improving performance for the fund and follow Fidelity's announcement that Magellan will close to new investors at the end of this month, O'Leary said.

Magellan, the world's biggest mutual fund, rose 34.66 percent in the 12-month period ended Wednesday, ranking No. 291 of 637 "growth" stock funds.

Magellan will remain open after Sept. 30 to investors who already own shares and to participants in most group retirement plans where the fund is an existing investment option.

Magellan increased its stake in computer-related stocks in July and reduced its cash position, according to a report issued by the No. 1 U.S. fund group yesterday.

The fund, managed by Robert Stansky, had 16.7 percent of its assets in technology stocks at the end of July, up from 14.4 percent in the previous month, Fidelity said.

Magellan's cash position was shaved to 3.9 percent on July 31 from 6 percent on June 30, according to Fidelity. The fund's cash allocation was just 1.4 percent in July 1996.

The average U.S. equity fund had 5.6 percent of its assets in cash at the end of July, according to the Investment Company Institute.

ZTC Stansky's decision to boost Magellan's stake in tech stocks is consistent with what Fidelity was doing in the second quarter, according to Technimetrics Inc., a New York-based research group that tracks reports filed with the Securities and Exchange Commission.

Pub Date: 9/12/97

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