The company itself will also pay lower administration fees, although it was not clear by how much. A filing with the
"Being such a sizable plan, our management and finance people are always looking for ways to make improvements," said AEP spokesman Pat Hemlepp. "We decided that it would be best if we changed providers."
While the 401(k) plan that Fidelity managed for American Electric offered retail mutual funds, JPMorgan will custom tailor funds for the company in its plan. JPMorgan will manage some of the funds, along with a number of outside managers, including
AEP had relied on Fidelity to manage its plan since 1995.
Fidelity spokesman Vincent Loporchio declined to comment on the loss of AEP's business but pointed out that Fidelity administers 22% of the nation's defined contribution assets, gaining an additional 1,900 plans last year for a total of 15,255 at the end of last year.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.