Fidelity Investments

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Fidelity Investments
FidelityInvestments.gif
Founded 1930
Headquarters Boston, MA
Key People Abigail Johnson, Chairman and CEO; Chairman Emeritus Edward Crosby ("Ned") Johnson III
Products Retail investment products and services
Website https://www.fidelity.com/

Fidelity Investments is the second largest mutual-fund provider in the U.S., after Vanguard Group. It has also expanded beyond this base by offering investors a broad array of investment products. Its most famous fund manager was the legendary Peter Lynch of the Magellan Fund.

The firm has about $11.7 trillion of assets under administration as of August 28, 2023.[1]

History[edit]

The Fidelity Fund was founded in 1930 and acquired by Edward C. ("Mister") Johnson II in 1943. Three years later Johnson launched the Fidelity Management & Research Co. (FMR) as an investment adviser to the fund.[2] 1957 his son, Edward C. Johnson III, joined Fidelity as a research analyst and succeeded his father at the helm in 1972. The firm has grown since then to reach $1 trillion in assets under management. Edward Johnson III's daughter, Abigail Johnson, took over as CEO of the company in 2014. By 2019, the firm had $2.8 trillion in assets under management.

The company became a bitcoin pioneer in 2014, mining the token when it was trading at around $400. Fidelity also encouraged employees to experiment with blockchain technology and develop new products. That led to the launch of its crypto business unit four years later. Fidelity CEO Abby Johnson championed its early crypto initiatives.[3]

Products and Services[edit]

Fidelity Investments manages stock funds, index funds, asset-allocation funds and bond funds that are rated four-star or five-star by ratings agency Morningstar.[4] Those funds fall into the following categories:

  • Domestic equity
  • International equity
  • Specialty/sector equity
  • Real estate equity
  • Stock index
  • Bond index
  • Asset allocation
  • Life-cycle
  • Hybrid
  • Taxable bond
  • High yield bond
  • International bond
  • National municipal bond
  • State municipal bond

Cryptocurrency Services[edit]

Fidelity’s crypto initiative began by trading and storing bitcoin for big investors such as hedge funds. Over the following years, it made crypto more accessible for small investors as well. It allows companies to include bitcoin in the Fidelity retirement plans they offer their employees, and Fidelity gives the majority of its 43 million customers the option to trade bitcoin and ether.[5]

Fidelity Investments fully launched its cryptocurrency trading and custody service in October 2019. This institutional-grade custody service is aimed at large financial firms and other participants in the cryptocurrency space.[6]

One Up On Wall Street[edit]

The former manager of Fidelity's high-growth Magellan Fund from 1977-1990, Peter Lynch, became one of the world's best-known fund managers thanks to the phenomenal success of his stock-market investing guidebook "One Up On Wall Street."[7] In 2008, Lynch and Fidelity made news of a different sort when it was revealed that he and other personnel received perks like tickets to Boston Red Sox games and U2 concerts from brokers apparently looking to build transaction commissions.[8]

Key People[edit]

Abigail Johnson is the CEO of the company. She succeeded her father, Edward Crosby Johnson III, as chairman in addition in December of 2016. Edward "Ned" Johnson retired and became chairman emeritus.[9]

References[edit]