Fidelity Investments is setting up a new business focusing exclusively on managing institutional client money, said Anne Crowley, spokeswoman. Fidelity today announced the "new investment operation" will eventually become independent of Fidelity Management & Research, which now handles Fidelity's mutual funds and institutional assets. The new company will serve corporate and public employee pension funds and endowments and foundations, Abigail Johnson, Fidelity Management president, said in a news release. Fidelity Management now handles "well over $100 billion" in institutional assets, according to Bob Reynolds, vice chairman and chief operating officer of Fidelity Investments.
Mr. Reynolds said the new business would run independently in 12 to 24 months.
Fidelity Management now has portfolio managers who handle both mutual funds and institutional money, as well as some who manage only institutional money, Ms. Crowley said. The latter mostly likely will move to the new institutional management unit, which will also be looking to hire new people, she said.
"Assets in that area have grown considerably," and Fidelity expects the move to boost the firm's capacity and flexibility for managing institutional money, she said.
