Fidelity Investments Chief Executive Officer Edward “Ned” Johnson has told the firm’s adviser services division to reduce its profit margin targets so that the company can use the money to improve its custody platform to boost its market share among advisers, Investment News reports.

Johnson made the decision since the company is not public and does not have to answer to shareholders about sacrificing profits to reinvest back in the business, said Jack W. Callahan, president of Fidelity Registered Investment Advisor Group.

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.