Fidelity Investments assets under management fell 22% in 2008 to $1.25 trillion, the company reported today in its annual shareholder update.
Operating income for its retail, institutional and high-net-worth businesses and related services came to $2.4 billion, down 18% from the year before.
While conceding the results were painful, the company noted it had come through the worst year for equity markets since its founding in 1946 in far better shape than most.
It was a rough year for the equity funds for which Fidelity is best known: only 36% of Fidelitys equity funds outperformed their peers in 2008, down from 72% the year before, the shareholder update said. Among the most widely used funds, Magellan had a particularly challenging year, outperforming only 5% of its peers. For the year, equity funds experienced net outflows of $53.7 billion in 2008, according to the update.
Those outflows were more than offset by net inflows of $87.9 billion for Fidelitys money market funds and nearly $2 billion for the companys bond funds.
Fidelity said its institutional arm, Pyramis Global Advisors, continued to enjoy strong sales in 2008, despite only 13 of its 54 key investment strategies outperforming their benchmarks on a one-year basis. However, Fidelity reported that Pyramis had $120 billion in assets under management as of Dec. 31, down 27% from the previous year, because of general market declines.