Privately held Fidelity Investments 2009 annual report indicated a 5% increase in operating profit to $2.51 billion, up from $2.39 billion in 2008, excluding interest expenses and taxes.

Fidelity CEO and Chairman Edward “Ned” Johnson III issued a letter to shareholders attributing the growth to distribution operations and performance. Fidelity’s mutual funds outperformed 74% of their peers, the company said, up from 56% the year before.

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