Ford Motor Plans to Drop Magellan From 401(k)
October 23, 2006
Ford Motor reportedly 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 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 the Vanguard Explorer Fund. The last time 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."
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