Fidelity Investments' new institutional domestic equity arm was named Pyramis Global Advisors, said spokesman Vin Loporchio. Peter J. Smail, former head of Fidelity Employer Services Co., is president and CEO of Pyramis, which oversees more than $60 billion in domestic and Canadian equity assets for institutional clients. Institutional money in fixed income, high-yield bonds and international equities will continue to be run by portfolio managers under Fidelity Management & Research.
The latest move follows Fidelity's decision, announced in March, to set up a company "distinct from our current money management operation, focused on institutional clients," said Mr. Loporchio. Pyramis, which Mr. Smail will build to an initial team of 50 portfolio managers, analysts and investment support staff, has started operations in Boston but will move by 2008 to Fidelity's regional office in Smithfield, R.I., Mr. Loporchio said.
Also at Pyramis will be Jeffrey B. Saef, who was named executive vice president, director of institutional investment solutions, said Mr. Loporchio. Mr. Saef was a managing director and director of investment strategy and research with Putnam Investments. His duties at Putnam were assumed by other members of the strategy and research team, with a decision on his replacement to be made at a later date, Putnam spokeswoman Laura McNamara said.