Fidelity Inc. Investment , commonly referred to as Fidelity , is a multinational financial services company based in Boston, Massachusetts.
It is the fourth largest asset manager with $ 2.4 trillion in assets managed in December 2017. Fidelity Investments operates a brokerage firm, manages a large family mutual fund, provides fund distribution and investment advice, pension services, wealth management, securities execution and permits, and life insurance.
Video Fidelity Investments
History
The company was founded as Fidelity Management & amp; Research (FMR) by Edward C. Johnson II in 1946. In 1969, the company formed Fidelity International Limited (FIL) to serve non-US markets. It spun in 1980. In 2010, it was renamed 'Fidelity Worldwide Investment'. In 1982, the company began offering 401 (k) products. In 1984, the company offered computerized stock trading.
In 1997, Robert Pozen was appointed CEO. In 2010, Fidelity Ventures, venture capital arm, was closed, and many employees created Volition Capital. In 2011, Fidelity renamed its international division from Fidelity International to Fidelity Worldwide Investment and a new logo was introduced. In 2012, the company moved its headquarters in Boston to 245 Summer Street.
Maps Fidelity Investments
Current operation
Mutual funds
FMR has three funding divisions: Equity (headquartered in Boston, Massachusetts), High Income (headquartered in Boston) and Fixed Income (based in Merrimack, New Hampshire). The company's largest mutual fund is Fidelity Contrafund, which has $ 107.4 billion in assets, making it the largest non-index fund in the US. The current Contrafund manager is William Danoff.
Fidelity Magellan is another large equity fund, with $ 15.5 billion in assets. The current manager is Jeffrey Feingold, who also manages Dana Trend Fidelity. Previously managed by Ned Johnson from May 2, 1963 to December 31, 1971, Peter Lynch from 31 May 1977 to 31 May 1990 and Harry W. Lange from 2005 to 2012.
Broker
Fidelity Investments operates a major brokerage firm and has an investor center in over 140 locations across the US. Through its subsidiary, National Financial Services LLC, Fidelity Investments provides services to corresponding brokers, institutional investment firms and registered investment advisors including clearing brokers and back office support as well as a suite of software products for financial services firms. National Finance is a custodian for more than $ 443 billion in assets, in 4.3 million accounts as of September 30, 2010.
Benefits of outsourcing
Fidelity Personal, Workplace and Institutional Services (PWIS) is the largest provider of 401 (k) retirement plan services with $ 1.4 trillion under administration and $ 32 billion total defined contribution assets, by 2015. Other services provided include pension administration, health & amp; welfare administration, stock plan administration as well as payment of salaries and other listing services.
Investors Devonshire
The Devonshire Investor's arm is a division that gives the company owners the ability to make other investments beyond their funds.
Assets include Veritude, the employment agency for jobs in Fidelity. The company has become a major real estate investor, owns Seaport Center and 2.5 million square meters of office space in Boston. It was previously owned by the Newspaper Community Company, the largest newspaper network in the suburbs of Boston, Massachusetts, sold to Boston Herald in 2000 and now owned by GateHouse Media. Fidelity also strategically invests in the telecommunications industry/service industry/data center, including COLT Telecom Group in Europe, MetroRED in South America, and KVH Co. Ltd. In Japan. Since 2008, all ownership of MetroRED has been completely divested.
It was previously invested heavily in commercial timber and building materials. In 2013, they sell Boston Coach, a limousine and black car service, founded in 1985 by Ned Johnson after waiting too long for a taxi, to Harrison Global. It formed ProBuild Holdings in 2006 and sold it to FirstSource Builders in 2015.
​​â € <â €
Fidelity manages donor funded funds, Fidelity Charitable, in 1991, becoming the first commercial DAF provider. In 2017, Fidelity Charitable is currently the largest charity with donations from the public, more than the United Way. Tax contributions to DAF can be registered in the year of donation, when beneficiaries may be selected. In a 2015 survey by Fidelity Charitable, 90% of donors who answered expressed this benefit as the main reason for starting donations using DAF. Donors also mention that this allows them to give more for charity. Investment in interest list of DAF until distribution is given to the recipient. Fidelity Amal produces "Women and Giving" reports that examine the differences in providing cross-generational attitudes, strategies and priorities and gender.
In 2016, Fidelity Charitable raised nearly $ 7 million in bitcoin. As of June 2017, the organization's annual report says that nearly $ 2 billion has been committed by all funding methods, with nearly $ 9 million in bitcoin.
Controversy
Insider private investment that competes with its customers
A private venture capital firm, F-Prime Capital Partners, managed on behalf of the owner and other Fidelity Investments major leaders, has been described as directly competing with Fidelity Investments public funds. The Reuters investigation in 2016 identifies cases where F-Prime Capital Partners is able to invest at a fraction of the Fidelity Investment price. Due to SEC regulations, investments by F-Prime Capital Partners prevent Fidelity from making the same initial investment. The investigation explained that this competition forced Fidelity to delay investment until later and at a much higher price than F-Prime Capital Partners, resulting in lower returns for Fidelity fund shareholders.
Corporate governance experts argue that the practice is not illegal, but it creates a clear conflict of corporate interest. Fidelity spokesman has stated that they follow all laws and regulations.
Appearance of an insider sustaining private investment
The same Reuters investigation documented six cases (out of 10) in which Fidelity Investments became one of the largest investors of F-Prime Capital companies after start-up companies became publicly traded. Legal and academic experts say that large investments by Fidelity mutual funds - with their market buying power - can be seen as sustaining F-Prime Capital's investment values, for Fidelity's insiders.
Fidelity declined to comment on this aspect of the investigation.
Legal issues
Fine retention document
In February 2007, the NASD, a division of the Financial Industry Regulatory Authority, fined 4 intermediary traders affiliated with FMR $ 3.75 million for alleged registration, monitoring and breach of e-mail retention. The broker-dealers decide without acknowledging or rejecting the allegations.
In 2004, Fidelity Brokerage paid $ 2 million to settle costs by the US Securities and Exchange Commission that employees changed and destroyed documents in 21 of its 88 branches between January 2001 and July 2002. Fidelity has an internal inspection every year to ensure compliance with federal regulations. The management is accused of pressuring branch employees for perfect inspection and giving notice of inspections and that at least 62 employees destroy or alter potentially inappropriate documents maintained at the branch office including new account applications, authorization letters and variable annuity forms.
Incorrect representation
In May 2007, the NASD fined two Fidelity merchants $ 400,000 to prepare and distribute misleading sales literature promoting the FDI and II Fidelity Investment Plans, which were sold primarily to US military personnel. As part of the settlement, FMR affiliates are required to notify the holders of the Destiny Plan who wish to increase their investment in the existing Destiny Plan that additional shares of the underlying fund may be purchased outside the Fate Plan without paying any additional sales fees.
Ownership and management
Johnson Family
The Johnson family who founded, individually and through various faiths, had a share of 49% of the votes in the FMR, and had signed an agreement promising to select all of their shares as a bloc. Edward Johnson III was group leader, but was replaced by his daughter, Abigail Johnson. Abigail was once the largest single shareholder with about 25% ownership, but in October 2005, it was reported that he had sold a "significant" share of his shares to family trust, and that there were doubts as to whether he was still in line to replace his father.
Employee and former employee
Most of the remaining 51% of the company is held by various employees and former employees of Fidelity, including fund managers and former managers, such as Peter Lynch.
Office
FMR's corporate headquarters are located in Boston, Massachusetts, with the largest US operations located in Merrimack, New Hampshire; Smithfield, Rhode Island; Westlake, Texas; Covington, Kentucky; Durham, North Carolina; Albuquerque, New Mexico; Cincinnati, Ohio; Salt Lake City, Utah; Jacksonville, Florida; Greenwood Village, Colorado; and American Fork, Utah. It also has offices in Canada in Toronto, Montreal, Calgary and Vancouver. Fidelity Management and Research in 2009 opened offices in Hong Kong and Tokyo, Japan to add capabilities in its small hat research.
In 2004, Fidelity established its first presence in India by opening an office in Mumbai. However, their offices in India mostly serve back-office functions and do not make investment-related decisions. The company has more than 4,000 employees in India. The second largest software development facility (after the United States) is in Bangalore and Chennai.
The Fidelity Investment Ireland was founded in 1996 as the offshore European development center for Fidelity Investments and now employs over 1,000 people with offices in Dublin and Galway. Fidelity also has offices in France, Germany, Belgium, Italy, Spain and Switzerland and London for HR HR Business Solutions.
Marketing
Paul McCartney's marketing campaign
Fidelity has been experimenting with marketing techniques directed to baby boomers demography, releasing Never Stop Doing What You Love, compilation of songs by Paul McCartney. McCartney became the company's spokesperson in 2005 in a campaign titled "This Is Paul." On the day of the disc release, company employees were treated to a special message recorded by Paul himself who told them that "Fidelity and [he] have a lot in common" and encourage them to "never stop doing what you love."
See also
- Comparison of online brokers in the United States
- A list of US mutual funds based on managed assets
- Mutual funds:
- Contrafund Fidelity
- Fidelity Price Low Price
- Fidelity Magellan
- Fidelity Business
- Fidelity International
- List of mutual fund families
- The Wealth Lab
- Asset management in Singapore
- Merrill Lynch, Pierce, Fenner & amp; Smith Inc. v. Manning , a case of the Supreme Court of 2016 involving a naked short sale claim against National Financial, a subsidiary of Fidelity, and Merrill Lynch, and others.
References
External links
- Official website
- Fidelity International (FIL)
- Current Investment
Source of the article : Wikipedia
0 Comments