Fidelity Investments is starting up a new entity to serve institutional clients and other non-mutual fund business. The company has not yet announced a name or management team for the new business, however.

"These anticipated non-mutual fund investment activities will be held within a separate investment advisor/sub-advisor and managed by individuals separate from Fidelity Management & Research Co. (FMRCo)," said Abigail P. Johnson, president of FMRCo.

Johnson said that Fidelity has already begun the process of creating a self-sufficient unit and will eventually split off. During the transition period, she and Edward C. "Ned" Johnson 3d, chairman and CEO, will manage the unit until the company assembles a management team.

"I believe these actions are in the long-term best interests of our mutual fund shareholders as well as our institutional clients and will ensure that we continue Fidelity's fine tradition of investment performance," Edward Johnson said.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.