Fidelity Institutional Retirement Services Co., Boston, added a formal alliance of mutual funds managed by outside fund families to its 401(k) and 403(b) programs.
The FundsNet program provides record-keeping and full participant services for more than 55 funds from between 10 and 15 outside managers.
Fund families in the alliance are Founders Asset Management, Denver; Franklin/Templeton Group, St. Petersburg, Fla.; INVESCO Funds Group, Denver; Janus Capital Corp, Denver; Neuberger & Berman Management, New York; PIMCO, Newport Beach, Calif.; Strong Capital Management, Menomonee Falls, Wis.; USAA Investment Management, San Antonio, Texas; and Warburg Pincus Counsellors, New York.
More fund families will be added later, said Robert L. Reynolds, president. Fidelity will offer a diversified range of funds from the outside managers, each with a four- or five-star performance rating by Morningstar Inc., Chicago.
Fidelity provides record keeping for about $17 billion in plan assets invested in non-Fidelity funds.
But it does not enhanced participants services such as voice response, daily trading and participant education.
Mr. Reynolds said the FundsNet service will provide seamless record-keeping and support services between Fidelity funds and the outside funds.
