Go to the Web site for Fidelity Investments, the large mutual fund family. Look up the following...

Question

Go to the Web site for Fidelity Investments, the large mutual fund family. Look up the following three mutual funds: Fidelity Magellan Fund, Fidelity Blue Chip Growth Fund, and Fidelity Large Cap Stock Fund.

For each fund, identify the top five stocks currently held by Fidelity and the cumulative holdings of Fidelity in these stocks across the three funds. Identify the additional holdings of these same firms’ stock that Fidelity has in its other mutual funds.

With this information in hand, evaluate the overall influence that Fidelity has on top managers of these firms. Contrast this influence to individual shareholders’ influence.

Discuss whether the movement toward institutional holdings is a “good thing” or a “bad thing” for individual shareholders and corporate governance in general. Give reasons for your views.

Write your essay in a 1-page Word document formatted in APA style.

David · Accepted Answer

RUNNING HEAD: INSTITUTIONAL INVESTORS AND CORPORATE GOVERNANCE   1 
 

Institutional Investors and Corporate Governance 
INSTITUTIONAL INVESTORS AND CORPORATE GOVERNANCE                                   2 
 
 
Institutional Investors and Corporate Governance 
Introduction 
Fidelity Investments is the largest mutual fund group in the US and is also one of the 
world’s largest providers of financial services for 20 million individuals and institutions, based 
on mutual fund assets reported by the Investment Company Institute, Fidelity offers mutual 
funds covering the full range of investment categories from equity to bond and money market 
funds. A broad lineup of retail funds are offered directly to investors mostly on a no-load basis, 
while Fidelity's Advisor funds are sold through financial intermediaries such as advisors, banks 
and broker-dealers. Fidelity is the largest provider of 401(k) retirement savings plans and a 
leading provider of 403(b) retirement plans for not-for-profit institutions in the US and Canada. 
Fidelity Investments served more than 20 million investors through individual and institutional 
accounts, with more than 500 different funds, and is the one of the largest US mutual fund 
companies with nearly $3.4 trillion in assets under administration and $1.5 trillion of assets 
under management as of December 31, 2011. According to Strategic Insight Simfund FI, Fidelity 
mutual funds had a market share of 12.1% in US open-ended assets market. The company is 
expected to sustain its leadership in mutual fund industry by continuing to provide variety of 
competitive offerings which are complemented by its large distribution network. 
Fidelity funds are classified into several major categories which include different growth funds, 
growth and income funds, bond funds, international funds etc. The return of the mutual funds is 
highly reflected by the general market conditions.

Go to the Web site for Fidelity Investments, the large mutual fund family. Look up the following three mutual funds: Fidelity Magellan Fund, Fidelity Blue Chip Growth Fund, and Fidelity Large Cap...

Answer To: Go to the Web site for Fidelity Investments, the large mutual fund family. Look up the following...

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