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.