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Fidelity Investments

Fidelity Investments

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FMR LLC or Fidelity Investments is an American multinational
Multinational corporation
A multi national corporation or enterprise , is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation...

 financial services
Financial services
Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are credit unions, banks, credit card companies, insurance companies, consumer finance companies,...

 corporation one of the largest mutual fund
Mutual fund
A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors to buy stocks, bonds, short-term money market instruments, and/or other securities.- Overview :...

 and financial services groups in the world. It was founded in 1946 and serves North American investors. Fidelity Ventures is its venture capital arm. Fidelity International Limited
Fidelity International Limited
Fidelity International is the business name used by FIL Limited, a Bermuda holding company for an international fund management business which operates in Bermuda, throughout Europe and in Asia. Originally founded in 1969 as a subsidiary of Fidelity Management & Research in Boston it was spun out...

 (FIL), was an international affiliate founded in 1969, serving most countries in the rest of the world. In September 2011, FIL was rebranded as 'Fidelity Worldwide Investment'.

Fidelity Investments manages a large family of mutual fund
Mutual fund
A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors to buy stocks, bonds, short-term money market instruments, and/or other securities.- Overview :...

s, provides fund distribution and investment advice services, as well as providing discount brokerage services
Stock broker
A stock broker or stockbroker is a regulated professional broker who buys and sells shares and other securities through market makers or Agency Only Firms on behalf of investors...

, retirement services, wealth management
Wealth management
Wealth management is an investment advisory discipline that incorporates financial planning, investment portfolio management and a number of aggregated financial services...

, securities execution and clearance, life insurance
Life insurance
Life insurance is a contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness may also trigger...

 and a number of other services.

Mutual funds and stock brokerage


Fidelity is a privately held company founded by Edward C. Johnson 2nd in 1946, which is owned by employees and the Johnson family. Fidelity Management & Research Company, the US investment management division of Fidelity Investments, acts as the investment adviser to Fidelity's family of mutual funds. FMR Co has three fund divisions: Equity (headquartered in Boston, Massachusetts), High-Income (Boston) and Fixed-Income (Merrimack, New Hampshire
Merrimack, New Hampshire
Merrimack is a town in Hillsborough County, New Hampshire, United States. The population was 25,494 at the 2010 census, making it the eighth-largest municipality in New Hampshire....

). The company's subsidiaries
Subsidiary
A subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and wholly controlled by another company that owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a...

 serve as distributors and transfer agents to the entire Fidelity fund family.

FMR serves more than 20 million investors through individual and institutional accounts, with more than 500 different funds, and is one of the largest US mutual fund companies with nearly $3.3 trillion in assets under administration and $1.5 trillion of assets under management as of September 30, 2010. Fidelity Investment Managers managed over $230 billion of international assets as of September 30, 2010.

The company's largest equity mutual fund is Contrafund, which has more than $68 billion in assets as of September 30, 2010, making it the largest single-manager fund in the US. The current manager of Contrafund is Will Danoff. Magellan Fund
Magellan Fund
The Fidelity Magellan Fund is a US-domiciled mutual fund from the Fidelity family of funds. It is perhaps the world’s best known actively managed mutual fund...

 is another large equity fund, over $20 billion in assets as of September 30, 2010. Its current manager is Jeffrey S. Feingold, who previously managed, and will continue to manage, the Fidelity Trend Fund. The Magellan Fund
Magellan Fund
The Fidelity Magellan Fund is a US-domiciled mutual fund from the Fidelity family of funds. It is perhaps the world’s best known actively managed mutual fund...

 was for many years the largest in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

. It was run by Ned Johnson (May 2, 1963 to Dec. 31, 1971) and Peter Lynch
Peter Lynch
Peter Lynch is a Wall Street stock investor. He is currently a research consultant at Fidelity Investments. Lynch graduated from Boston College in 1965 and earned a Master of Business Administration from the Wharton School of the University of Pennsylvania in 1968.-Fidelity:Lynch was hired as an...

 (May 31, 1977 to May 31, 1990).

Fidelity Investments also operates a major online discount brokerage and has investor centers in over 140 locations throughout the US.

Through its subsidiary, National Financial Services LLC, Fidelity Investments provides a number of services to its correspondent broker-dealers, institutional investment firms and registered investment advisors including brokerage clearing, back office support and a suite of software products for financial services firms. National Financial custodied over $443 billion in assets, in 4.3 million accounts as of September 30, 2010.

In November 2011, Fidelity Investments and Verizon Communications Inc announced a joint project to provide better instant access for subscribers to the Fidelity Market Monitor Application.

Benefits outsourcing


In addition to its mutual fund and brokerage businesses, Fidelity also has a strong presence in the Hydroclinical Ransid and benefits outsourcing business. Fidelity Personal, Workplace and Institutional Services (PWIS) is the largest provider of 401,450.03(k) retirement plan services in one country; PWIS administers $895 billion in total defined contribution assets as of September 30, 2010. Other services provided include pension administration, health & welfare administration, stock plan administration as well as payroll and other record-keeping services as opposed to all other American companies registered with Amrek.

Other businesses


Fidelity Investments also owns many unrelated businesses, including BostonCoach the world's second-largest executive ground transportation network, a luxury hotel, a bus and Veritude, a temporary employment agency
Employment agency
An employment agency is an organization which matches employers to employees. In all developed countries there is a publicly funded employment agency and multiple private businesses which also act as employment agencies.-Public employment agencies:...

. It formerly owned Community Newspaper Company
Community Newspaper Company
Community Newspaper Company, a subsidiary of GateHouse Media, is a newspaper publisher in eastern Massachusetts. It was founded in 1991 as a holding company for several suburban publishers bought by Fidelity Investments; in 2001, Fidelity sold it to the Boston Herald; in 2006, the massive chain—New...

, the largest chain of newspapers in suburban Boston, sold to the Boston Herald
Boston Herald
The Boston Herald is a daily newspaper that serves Boston, Massachusetts, United States, and its surrounding area. It was started in 1846 and is one of the oldest daily newspapers in the United States...

and now owned by GateHouse Media
GateHouse Media
GateHouse Media Inc. is a U.S. newspaper publisher, headquartered in Perinton, New York, that publishes 97 dailies in 20 states and 198 paid weeklies, in addition to free papers, shoppers and specialty and niche publications.- History :Liberty Group Publishing was formed in 1998 when Kenneth L...

. Fidelity has also strategically invested in the telecom/managed services/data center industries, having incubated COLT Telecom Group
COLT Telecom Group
Colt Technology Services is a telecommunications, IT managed services and data centre services company providing services to city-based large enterprise, small and midsize business and wholesale carriers throughout 21 countries in Europe...

 in Europe, MetroRED in South America, and KVH
KVH Co. Ltd.
KVH Co. Ltd., previously known as KVH Telecom, was founded by Fidelity Investments in 1999 as an Asia-Pacific IT/communications service provider. Through its facility-based optical fiber networks, data centers, and cloud services platform, KVH is an information delivery platform providing...

 in Japan. (Since 2008, all MetroRED ownership has been completely divested.)

One sector in which the company has heavily invested is in commercial lumber and building materials.

ProBuild Holdings
ProBuild Holdings
ProBuild Holdings is the largest privately held American supplier of lumber and building materials, focusing efforts on customer satisfaction and safety.ProBuild Holdings is the largest privately held American supplier of lumber and building materials, focusing efforts on customer satisfaction...

 currently operates more than 407 lumber and building product distribution, manufacturing and assembly centers throughout the State America. Pro-BUild has approximately 12,000 employees down from 21,000 employees with 2006 revenues in excess of $6 billion, 2009 revenues down to $3 billion.

In 2007, Fidelity Investments moved to rebrand many of these private equity investments and portfolio holdings under the "Devonshire Investors" entity/brand to avoid potential confusion with its more consumer-oriented financial services and mutual funds business.

Regulatory troubles


U.S. brokerages regulator NASD
Financial Industry Regulatory Authority
In the United States, the Financial Industry Regulatory Authority, Inc., or FINRA, is a private corporation that acts as a self-regulatory organization . FINRA is the successor to the National Association of Securities Dealers, Inc. ...

 fined four FMR-affiliated broker-dealers $3.75 million for alleged registration, supervision and e-mail retention violations in February 2007. The broker-dealers settled without admitting or denying the charges.

Fidelity Brokerage was ordered to pay $2 million to settle charges that employees altered and destroyed documents in 21 of its 88 branch offices from January 2001 to July 2002. Fidelity has internal inspections every year to make sure it is complying with federal regulations. The Securities and Exchange Commission accused that Fidelity management pressured branch employees to have perfect inspections and gave advance notice of the inspections and that at least 62 employees destroyed or altered potentially improper documents maintained at branch offices including new account applications, letters of authorization and variable annuity forms.

In May 2007, NASD fined two Fidelity broker-dealers $400,000 for preparing and distributing misleading sales literature promoting Fidelity's Destiny I and II Systematic Investment Plans, which were sold primarily to U.S. military personnel. As part of the settlement, for the next five years, the two broker-dealers - Fidelity Investments Institutional Services Company, Inc. of Smithfield, RI and Fidelity Distributors Corporation of Boston - are required to notify Destiny Plan holders who want to increase their investments in existing Destiny Plans that additional shares of the underlying fund can be purchased outside the Destiny Plans without paying the additional creation and sales charges of up to 50 percent on the first year's payments.

Ownership and operations



The founding Johnson family owns about half of Fidelity. Edward "Ned" C. Johnson 3rd
Edward Johnson, III
Edward Crosby "Ned" Johnson 3rd is an American investor and businessman who, along with daughter Abigail Johnson, owns and runs Fidelity Investments and Fidelity International...

 is chairman of the group. His daughter, Abigail Johnson, was once the largest single shareholder
Shareholder
A shareholder or stockholder is an individual or institution that legally owns one or more shares of stock in a public or private corporation. Shareholders own the stock, but not the corporation itself ....

 with about 25%, but in October 2005, it was reported that she had sold a "significant" portion of her shares to family trusts, and that there are doubts as to whether she is still in line to succeed her father.

The FMR mutual funds are organized as Massachusetts business trust
Massachusetts business trust
A Massachusetts business trust is a legal trust set up for the purposes of business, but not necessarily one that is operated in The Commonwealth of Massachusetts. They may also be referred to as an unincorporated business organization or UBO. Business trusts may be established under the laws of...

s tied to the lifetime of the Johnsons. Some of Fidelity's best known fund managers also own a share in the company, most notably Peter Lynch
Peter Lynch
Peter Lynch is a Wall Street stock investor. He is currently a research consultant at Fidelity Investments. Lynch graduated from Boston College in 1965 and earned a Master of Business Administration from the Wharton School of the University of Pennsylvania in 1968.-Fidelity:Lynch was hired as an...

.

Revenue in 2003 were US$9.2 billion, followed by US$10.5 billion in 2004. As of 2007, Fidelity had 47,000 employees. As of July 29, 2009, the company employs 38,000 people.

FMR's corporate headquarters are located in Boston, Massachusetts, with the largest U.S. operations located in Marlborough, Massachusetts
Marlborough, Massachusetts
Marlborough is a city in Middlesex County, Massachusetts, United States. The population was 38,499 at the 2010 census. Marlborough became a prosperous industrial town in the 19th century and made the transition to high technology industry in the late 20th century after the construction of the...

; Merrimack, New Hampshire
Merrimack, New Hampshire
Merrimack is a town in Hillsborough County, New Hampshire, United States. The population was 25,494 at the 2010 census, making it the eighth-largest municipality in New Hampshire....

; Smithfield, Rhode Island
Smithfield, Rhode Island
Smithfield is a town in Providence County, Rhode Island, United States. It includes the historic villages of Esmond, Georgiaville, Mountaindale, Hanton City, Stillwater and Greenville...

; Westlake, Texas
Westlake, Texas
Westlake is a town in Denton and Tarrant Counties in the U.S. state of Texas. The population is 702 as of the 2010 United States Census.The area known as Westlake was originally settled in 1847 by Charles and Matilda Medlin with about 20 other families. In the mid-twentieth century, now-Westlake...

; Covington, Kentucky
Covington, Kentucky
-Demographics:As of the census of 2000, there were 43,370 people, 18,257 households, and 10,132 families residing in the city. The population density was 3,301.3 people per square mile . There were 20,448 housing units at an average density of 1,556.5 per square mile...

; Durham, North Carolina
Durham, North Carolina
Durham is a city in the U.S. state of North Carolina. It is the county seat of Durham County and also extends into Wake County. It is the fifth-largest city in the state, and the 85th-largest in the United States by population, with 228,330 residents as of the 2010 United States census...

; Albuquerque, New Mexico
Albuquerque, New Mexico
Albuquerque is the largest city in the state of New Mexico, United States. It is the county seat of Bernalillo County and is situated in the central part of the state, straddling the Rio Grande. The city population was 545,852 as of the 2010 Census and ranks as the 32nd-largest city in the U.S. As...

; Cincinnati, Ohio
Cincinnati, Ohio
Cincinnati is a city in the U.S. state of Ohio. Cincinnati is the county seat of Hamilton County. Settled in 1788, the city is located to north of the Ohio River at the Ohio-Kentucky border, near Indiana. The population within city limits is 296,943 according to the 2010 census, making it Ohio's...

; Salt Lake City, Utah
Salt Lake City, Utah
Salt Lake City is the capital and the most populous city of the U.S. state of Utah. The name of the city is often shortened to Salt Lake or SLC. With a population of 186,440 as of the 2010 Census, the city lies in the Salt Lake City metropolitan area, which has a total population of 1,124,197...

; Jacksonville, Florida
Jacksonville, Florida
Jacksonville is the largest city in the U.S. state of Florida in terms of both population and land area, and the largest city by area in the contiguous United States. It is the county seat of Duval County, with which the city government consolidated in 1968...

;
and American Fork, Utah
American Fork, Utah
American Fork is a city in Utah County, Utah, United States, at the foot of Mount Timpanogos in the Wasatch Range, north of Utah Lake. It is part of the Provo–Orem, Utah Metropolitan Statistical Area. The population was 26,263 at the 2010 census, nearly a 20% growth since the 2000 census...

. It also has offices in Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...

 in Toronto
Toronto
Toronto is the provincial capital of Ontario and the largest city in Canada. It is located in Southern Ontario on the northwestern shore of Lake Ontario. A relatively modern city, Toronto's history dates back to the late-18th century, when its land was first purchased by the British monarchy from...

, Montreal
Montreal
Montreal is a city in Canada. It is the largest city in the province of Quebec, the second-largest city in Canada and the seventh largest in North America...

, Calgary
Calgary
Calgary is a city in the Province of Alberta, Canada. It is located in the south of the province, in an area of foothills and prairie, approximately east of the front ranges of the Canadian Rockies...

 and Vancouver
Vancouver
Vancouver is a coastal seaport city on the mainland of British Columbia, Canada. It is the hub of Greater Vancouver, which, with over 2.3 million residents, is the third most populous metropolitan area in the country,...

.
Fidelity Management and Research in 2009 opened offices in both Hong Kong and Tokyo, Japan to add great capabilities to its small cap research.

In 2004, Fidelity established its first presence in India by opening an office in Mumbai. It has a very strong presence in India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...

 with over 4,000 employees there. Its second largest software development facility (after the United States) is in Bangalore
Bangalore
Bengaluru , formerly called Bengaluru is the capital of the Indian state of Karnataka. Bangalore is nicknamed the Garden City and was once called a pensioner's paradise. Located on the Deccan Plateau in the south-eastern part of Karnataka, Bangalore is India's third most populous city and...

 and Chennai
Chennai
Chennai , formerly known as Madras or Madarasapatinam , is the capital city of the Indian state of Tamil Nadu, located on the Coromandel Coast off the Bay of Bengal. Chennai is the fourth most populous metropolitan area and the sixth most populous city in India...

.

Fidelity Investments Ireland was established in 1996 as the European offshore development centre for Fidelity Investments and now employs over 300 people with offices in Dublin and Galway. Fidelity has a program for new IT graduates located in the Galway office in Ireland.

Fidelity also has a presence in Europe with offices in France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...

 in Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...

 & Marseilles and countries like Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...

, Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...

, Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...

, Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...

 and Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....

  and London, UK for its HR Solution business HR Access.

FIL's offices include asset management companies in 10 locations: London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...

, Luxembourg
Luxembourg
Luxembourg , officially the Grand Duchy of Luxembourg , is a landlocked country in western Europe, bordered by Belgium, France, and Germany. It has two principal regions: the Oesling in the North as part of the Ardennes massif, and the Gutland in the south...

, Frankfurt
Frankfurt
Frankfurt am Main , commonly known simply as Frankfurt, is the largest city in the German state of Hesse and the fifth-largest city in Germany, with a 2010 population of 688,249. The urban area had an estimated population of 2,300,000 in 2010...

, Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...

, Tokyo
Tokyo
, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...

, Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...

, Mumbai
Mumbai
Mumbai , formerly known as Bombay in English, is the capital of the Indian state of Maharashtra. It is the most populous city in India, and the fourth most populous city in the world, with a total metropolitan area population of approximately 20.5 million...

, Seoul
Seoul
Seoul , officially the Seoul Special City, is the capital and largest metropolis of South Korea. A megacity with a population of over 10 million, it is the largest city proper in the OECD developed world...

, Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...

 and Sydney
Sydney
Sydney is the most populous city in Australia and the state capital of New South Wales. Sydney is located on Australia's south-east coast of the Tasman Sea. As of June 2010, the greater metropolitan area had an approximate population of 4.6 million people...

, and an extensive network of offices in 23 countries, employing more than 4,000 people.

Marketing


Fidelity has experimented with marketing techniques directed to the aging baby boomers, recently releasing Never Stop Doing What You Love
Never Stop Doing What You Love
Never Stop Doing What You Love is a not-for-resale compilation of various Paul McCartney and Wings songs created for the employees and clients of Fidelity Investments, a company in the financial services industry. The ex-Beatle became the mutual fund giant's new spokesman in 2005 in a campaign...

, a not-for-resale compilation of songs by Paul McCartney
Paul McCartney
Sir James Paul McCartney, MBE, Hon RAM, FRCM is an English musician, singer-songwriter and composer. Formerly of The Beatles and Wings , McCartney is listed in Guinness World Records as the "most successful musician and composer in popular music history", with 60 gold discs and sales of 100...

, created for Fidelity's employees and clients. The ex-Beatle became the firm's new spokesman
Spokesman
A spokesperson or spokesman or spokeswoman is someone engaged or elected to speak on behalf of others.In the present media-sensitive world, many organizations are increasingly likely to employ professionals who have received formal training in journalism, communications, public relations and...

 in 2005 in a campaign entitled "This Is Paul." On the day of the disc's release, company employees were treated to a special recorded message by Paul himself informing them that "Fidelity and [he] have a lot in common" and urging them to "never stop doing what you love". During September 2011, Fidelity completed a successful re-brand within the Non-US market. The official name was changed from Fidelity International to Fidelity Worldwide Investment, and a new brand logo was introduced. The new Fidelity branding was based around the fact that two parallel lines are frequently used on Global Currencies, including the US Dollar, Great British Pound, Euro and Yen.

External links