Fidelity reported Tuesday that assets under management fell 22% in 2008 to $1.25 trillion. 

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 people’s month by a number of institutions.”


As a fund family, Fidelity’s offerings beat 56% of competitors, down from 73% in 2007. Among Fidelity’s 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.


Fidelity’s portfolio managers had exposure to financial services companies that failed in 2008, explained Asset Management Chief Michael Wilens.

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