Fidelity shrugs off equity outflows with improved profits

Fidelity Investments has reported profits of £3.8bn in 2017, even as investors pulled £34bn out of its equity funds.

The investment group said operating income had jumped 54 per cent from 2016 in a year which saw global stock markets reach record highs.
 
Fidelity said improved performance from its fund managers had helped boost results after a “challenging” 2016.
On aggregate, Fidelity’s mutual funds beat 78 per cent of their industry peers in the year with all major divisions beating their benchmarks on an asset-weighted basis – but even that couldn’t stop investors pulling money out of its actively managed funds.
 
Despite that, the group’s assets grew by 15 per cent to almost £1.8trn in the year as investors poured money into low-cost tracker funds.
 
Chief executive Abigail Johnson said it showed investors were “looking for exposure to different types of investment vehicle”.
 
Fidelity’s asset management arm president Charles Morrison says: “After a challenging 2016, this outperformance – as well as the three-and five-year outperformance for equity and other categories – highlighted how investors can be rewarded by taking a long-term view when investing in actively managed strategies.”
Fidelity, which is based in Boston, is privately owned by the Johnson family who founded the firm in 1946.

Recommended

Justice-Fine-Ban-Court-Gavel-Judge-700x450.jpg
26

Waspi women should be given £15,000 each, Lib Dems say

The Liberal Democrats have called on the Government to correct the “injustice” faced by the Women Against State Pension Inequality Campaign by giving them £15,000 each. Stephen Lloyd, the Liberal Democrat spokesman for work and pensions says the Government should do so immediately. Lloyd argues successive administrations have failed to help women who are set […]

Malcolm_Kerr_EY
5

Malcolm Kerr: A history of the salesman

It has been a long time coming but regulation has finally worked to eradicate poor practice In March 1962 a small, prematurely grey, former lieutenant in the US Airforce arrived in London and took offices in the West End. His mission was to establish a “pyramid” direct sales force on behalf of Investors’ Overseas Services, […]

Thumbnail

Case study: administration — managing group life schemes

Our client leads the global market in high-tech electronics manufacturing and digital media. The trustees of the company’s final salary pension scheme insure death-in-service lump sum and dependants’ pension death benefits for active employees, as well as dependants’ pension benefits for deferred members (those who have left service).

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment