Revenue fell only 3.8% to $12.9 billion, but operating income tumbled 18% to $2.36 billion.
Although we ended 2008 better than a number of financial firms, Fidelity Chairman and CEO Edward C. Johnson III told shareholders in a letter, it was a year of painful experience for the financial services industry, a period laced with toxic investment waste and the casual use of other peoples month by a number of institutions.
As a fund family, Fidelitys offerings beat 56% of competitors, down from 73% in 2007. Among Fidelitys money market funds, those funds beat 87% of peer funds last year, steady with the 84% that beat peer funds in 2007. Investment-grade bond funds also did well in 2008, with 62% beating their peers, up from 46% the year before.
Only 36% of Fidelity equity funds beat their rivals in 2008, down from 72% in 2007.
Fidelitys portfolio managers had exposure to financial services companies that failed in 2008, explained Asset Management Chief Michael Wilens.
