Fidelity Investments' efforts since May to improve, attract more assets and once again become the No. 1 fund company in the nation, seem to be working, Reuters reports. 

Analysts believe the cuts it has made to its index funds, a new advertising campaign showcasing Paul McCartney and its decision to unbundle trading commissions, will improve its image and appeal to Baby Boomers. Fidelity's image has been hurt by an embarrassing probe into lavish gifts bestowed on its traders, while lackluster performance in a number of its funds have prompted many investors to pull assets.

Another feasible reason for Fidelity's efforts to improve its image could be the results of research by Financial Research Corp., which places Fidelity as the third most popular fund trailing Vanguard and American Funds.

"[Fidelity] is trying awfully hard to get back in the game and regain market share, and for an organization of Fidelity's size, they have to use multi-programmed approach," commented John Bonnanzio, editor of Fidelity Insight. "One or two things wouldn't get the job done, but taken together, all of these initiatives could do it. Ned Johnson clearly wants to be No.1 and as long as his interests are aligned with shareholder interests, this may benefit everyone."

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