Fidelity Investments consolidated a number of its divisions to create a new business for consultants and institutional investors, said spokesman Jeff Cathie.
The new business, Fidelity Institutional Asset Management, combines the distribution and client service teams from Pyramis Global Advisors and Fidelity Financial Advisor Solutions as well as the consultant relations team from Fidelity’s professional services group, to form a single, integrated business.
Going forward, the new business will go to the marketplace with the Fidelity Institutional Asset Management name as part of the Fidelity Investments brand.
The newly combined entity will have more than $540 billion in assets under administration.
Jeffrey Lagarce, former president of Pyramis Global Advisors, was named president of Fidelity Institutional Asset Management. He will report to Gerard McGraw, president, Fidelity Institutional, the division that includes all of the company’s institutionally focused distribution business, including Fidelity Clearing & Custody, Fidelity Capital Markets and now Fidelity Institutional Asset Management.
Meanwhile, Scott Couto, former president of Fidelity Financial Advisor Solutions —which offers investment strategies such as mutual and institutional money market funds and systematic investment plans — was named head of distribution. He will report to Mr. Lagarce. As head of distribution, Mr. Couto will lead Fidelity Institutional Asset Management’s sales, relationship management and consultant relations teams.
The Pyramis distribution team will move to Fidelity Institutional Asset Management, while the Pyramis equity team will remain within Fidelity’s asset management organization and will be called FIAM equity.
Pam Holding will continue as chief investment officer of FIAM, reporting to Derek Young, vice chairman of Fidelity Institutional Asset Management and president of the global asset allocation division within Fidelity’s asset management organization.
No changes are expected to be made to the FIAM equity investment team, its products, processes, products or risk oversight. The team will remain a stand-alone entity dedicated to meeting the investment needs of institutional clients.