Up Front News
October 21, 2002
MFS Eliminates 110 Jobs
MFS will eliminate 110 positions, or approximately 4% of its base of 2,700 employees, the company has announced. Like most other fund companies that have cut jobs, those affected are in the service, administration and back-office area. No investment management personnel will be affected.
"MFS has been fortunate to avoid layoffs since the market decline began in 2000, as net flows to the firm have remained positive by over $40 billion," the firm said in a statement.
Fidelity Brokerage Chief Steps Down Temporarily
Fidelity Investments has named Ellyn McColgan president of its brokerage division, replacing Kevin Kelly, who has taken an indefinite leave of absence from the company to deal with a serious illness in his immediate family. Kelly had been the president of Fidelity Brokerage Co. since March 2001 and has been with Fidelity since 1995. McColgan previously led Fidelity's intermediary services division.
Value Funds Disappoint
Since the beginning of the year, small, medium, and large-cap value funds have lost 20.39%, 23.55% and 27.86%, respectively, according to Morningstar. Still, that's about 15 percentage points better than small-cap growth, 10 percentage points better than mid-cap growth and four percentage points better than large-cap growth funds. But, the gap is narrowing.