Fidelity Investments' announced
Wednesday that it is in the process of creating a separate, non-mutual fund operation to focus exclusively on large corporate plan and institutional business.
The business will eventually have a separate investment management capabilities, according to the release.
The new institutional investment management team could include as many as 100 investment professionals, said Fidelity spokeswoman Anne Crowley.
"With the growth of our institutional businesses and the opportunities they present, it makes sense to have a division focused on managing these assets, particularly for Trust, Large 401(k) and Institutional Services Sub-Advisor customers," stated Edward C. Johnson, Fidelity chairman and chief executive officer.
No management has been named as of yet, but in the interim, Ned and Abigail Johnson will lead the development of the operation. Fidelity has already begun looking for executives both inside and outside the firm, said Crowley.
The management team should be up and running in 12 to 24 months, said Crowley. While Abigail Johnson will help with development of the company, she will remain head of FMRCo, said Crowley.
Although the company will be separate from Fidelity Management and Research (FMRCo), the two entities will share resources through "agreed-upon service arrangements makes sense."
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