Fidelity Investments

The Fidelity Fund incorporated in Massachusetts on May 1, 1930, with Edward C. Johnson II serving as president.{{cite book | url=https://books.google.com/books?id=8D8cAQAAMAAJ |editor-last1=Porter |editor-first1=John Sherman | date=1944 |title=Moody's Manual of Investments: American and Foreign | location=New York |publisher=Moody's Investor Service |page=754 |isbn=}} The corporate structure changed in 1946 and became known as Fidelity Management & Research (FMR).

In 1969, the company formed Fidelity International Limited (FIL) to serve non-U.S. markets and subsequently spun it off in 1980 into an independent entity owned by its employees.{{cite news | url=https://www.irmagazine.com/articles/buy-side/20222/fidelity-worldwide-investment-going-its-own-way-america/ | title=Fidelity Worldwide Investment is going its own way in America | first=Gill | last=Newton | work=IR Magazine | date=February 16, 2017}}

In 1982, the company began offering 401(k) products. In 1984, it offered computerized stock trading.

In 1991, Fidelity launched the first commercial donor-advised fund.{{Cite news | url=https://theconversation.com/donor-advised-funds-us-regulators-are-scrambling-to-catch-up-with-the-boom-in-these-charitable-giving-accounts-225344 | title=Donor-advised funds: US regulators are scrambling to catch up with the boom in these charitable giving accounts | first=Brian | last=Mittendorf | work=The Conversation | date=March 19, 2024}}

In 1995, Fidelity became the first mutual fund company to offer a webpage.{{Cite news | url=https://www.nytimes.com/1995/02/15/business/company-news-fidelity-to-offer-services-on-world-wide-web.html | title=COMPANY NEWS; FIDELITY TO OFFER SERVICES ON WORLD WIDE WEB | agency=Associated Press | work=The New York Times | date=February 15, 1995 | url-access=limited}}

In 1997, Robert Pozen was named CEO.{{cite news | url=https://www.nytimes.com/1997/04/22/business/2-executives-get-new-posts-at-fidelity.html | title=2 Executives Get New Posts At Fidelity | first=KENNETH N. | last=GILPIN | work=The New York Times | date=April 22, 1997}}

In 2001, Geode Capital Management was established to run and incubate investment strategies for FMR. In 2003, it was spun off as an independent company.{{cite news | url=https://retirementincomejournal.com/article/the-story-of-geode-fidelitys-low-profile-indexing-jewel/ | title=The story of Geode—Fidelity's low-profile indexing jewel | work=Retirement Income Journal | date=February 11, 2021}}

In September 2003, the company launched its first exchange-traded fund, the Fidelity Nasdaq Composite Index Tracking Stock Fund (ONEQ).{{Cite news | url=https://ir.nasdaq.com/news-releases/news-release-details/nasdaq-and-fidelity-unveil-financial-products-based-nasdaq | title=NASDAQ AND Fidelity Unveil Financial Products Based on the NASDAQ Composite Index | publisher=Nasdaq | date=October 1, 2003}}

In 2007, the company changed its legal structure to a limited liability company; FMR LLC became the owning entity.{{Cite news | url=https://www.reuters.com/article/markets/us/fidelitys-parent-changes-corporate-structure-idUSN02302936/ | title=Fidelity's parent changes corporate structure | first=Muralikumar | last=Anantharaman | work=Reuters | date=November 2, 2007}}

In 2010, Fidelity Ventures, its venture capital arm, was shut down, and many of the employees created Volition Capital.{{cite news | url=https://www.bizjournals.com/boston/stories/2010/01/11/daily11.html | title=Fidelity's venture capital arm breaks off | first=Galen | last=Moore | work=American City Business Journals | date=January 11, 2010 | url-access=subscription}}

In 2011, Fidelity changed the name of its international division from Fidelity International to Fidelity Worldwide Investment and a new logo was introduced.{{cite news | url=https://www.fnlondon.com/articles/operating-chief-chris-rimmer-leaves-fidelity-worldwide-investment-20150602 | title=Fidelity Worldwide Investment COO exits | first=Andrew | last=Pearce | work=Financial News London | date=June 2, 2015}}

In 2012, the company moved its Boston headquarters to 245 Summer Street.{{cite news | url=https://www.bostonglobe.com/business/2012/11/16/fidelity-plans-move-headquarters-summer-boston-after-decades-devonshire/IV8ggV3lV7tQh39VWogUuI/story.html | title=Fidelity plans to move Boston headquarters | first=Beth | last=Healy | work=Boston Globe | date=November 16, 2012 | url-access=subscription}}

In 2014, Abigail Johnson became president and CEO of Fidelity Investments (FMR) and chairman of Fidelity International (FIL).{{Cite news | url=https://www.forbes.com/sites/carlodonnell/2014/10/13/abigail-johnson-replaces-father-edward-as-ceo-of-fidelity/ | title=Abigail Johnson Replaces Father Edward As CEO Of Fidelity | last=O'Donnell | first=Carl | work=Forbes | date=October 13, 2014 | url-access=limited}} She reduced dependence on open-ended mutual funds, instead having the company focus on financial advice, brokerage services, and venture capital.{{Cite news | url=https://www.bostonmagazine.com/news/2018/08/07/abby-johnson-fidelity/ | title=Who's Afraid of Abby Johnson? | first=Kris | last=Frieswick | work=Boston | date=August 7, 2018}}

In October 2018, Fidelity launched Fidelity Digital Asset Services, a separate entity dedicated to institutional cryptoasset custody and cryptocurrency trading.{{Cite news |url=https://www.cnbc.com/2018/10/15/fidelity-launches-trade-execution-and-custody-for-cryptocurrencies.html | title=Fidelity just made it easier for hedge funds and other pros to invest in cryptocurrencies | first=Kate | last=Rooney | work=CNBC | date=October 15, 2018}}{{Cite news |last=Leising | first=Matthew | title=Fidelity Applies for Bitcoin ETF With U.S. Securities Regulator |url=https://www.cnbc.com/2018/10/15/fidelity-launches-trade-execution-and-custody-for-cryptocurrencies.html | work=CNBC | date=March 24, 2021}}

In August 2018, Fidelity introduced mutual funds with no mutual fund fees and expenses.{{Cite news | url=https://eu.usatoday.com/story/money/2018/08/02/fidelity-offer-fee-free-index-funds/882311002/ | title=Fidelity offers two index funds with zero fees, escalating a fight for customers | first=Adam | last=Shell | work=USA Today | date=August 2, 2018}}

In May 2019, Fidelity launched cryptocurrency trading to institutional customers.{{Cite news | url=https://www.cnbc.com/2019/05/06/fidelity-is-reportedly-about-to-offer-cryptocurrency-trading-for-pros-within-a-few-weeks.html | title=Fidelity is reportedly about to offer cryptocurrency trading for pros within a few weeks | last=Fitzgerald | first=Maggie | work=CNBC | date=May 6, 2019}}

In September 2019, Fidelity completed the corporate spin-off of Eight Roads Ventures, its venture capital division. It was known as Fidelity Growth Partners until 2015.{{Cite news | url=https://techcrunch.com/2015/07/20/fidelity-growth-partners-becomes-eight-roads-ventures-announces-new-150m-fund/ | title=Fidelity Growth Partners Becomes Eight Roads Ventures, Announces New £150M Fund | first=Mike | last=Butcher | work=TechCrunch | date=July 20, 2015}} In 2018, Eight Roads launched a $375 million European fund.{{Cite news | url=https://techcrunch.com/2018/03/20/eight-roads-ventures-europe-iii/ | title=Eight Roads Ventures launches new $375M scale-up fund for European and Israeli startups | first=Steve | last=O'Hear | work=TechCrunch |date=March 20, 2018 |archive-date=2020-02-20 |archive-url=https://web.archive.org/web/20200220045656/http://social.techcrunch.com/2018/03/20/eight-roads-ventures-europe-iii/ |url-status=live}}{{Cite news |url=https://www.businesstimes.com.sg/garage/fidelity-considering-demerger-of-venture-arm-eight-roads |title=Fidelity considering demerger of venture arm Eight Roads | work=The Business Times |date=2019-06-17}}

In August 2021, Fidelity announced plans to hire 16,000 employees in 2021,{{Cite news | url=https://www.bostonglobe.com/2021/08/31/business/fidelity-boosts-hiring-target-16000-year/ | last=Edelman | first=Larry |title=Fidelity Investments boosts hiring target to 16,000 for the year | work=The Boston Globe | date=August 31, 2021}} including 9,000 during the second half of the year.{{Cite news | url=https://www.wsj.com/articles/fidelity-is-going-on-a-hiring-spree-11630414800 | last=Baer |first=Justin | title=Fidelity Wants to Add 9,000 Jobs by Year-End | work=The Wall Street Journal | date=August 31, 2021 | url-access=subscription | issn=0099-9660}}

In April 2022, Fidelity announced that it will start offering Bitcoin as an investment option in 401(k) plans to participants whose employers have elected to include it in their plan.{{Cite news | url=https://www.cnn.com/2022/04/26/success/fidelity-bitcoin-401k/index.html | first=Jeanne | last=Sahadi | title=Fidelity will soon offer bitcoin as an option in 401(k)s | work=CNN | date=April 26, 2022}}

In January 2024, after receiving approval, Fidelity was one of several issuers that launched a spot Bitcoin exchange-traded fund (ETF).{{Cite news | url=https://www.reuters.com/technology/decade-long-journey-us-spot-bitcoin-etf-2024-01-10/ | title=The decade-long journey to a US spot bitcoin ETF | first1=Suzanne | last1=McGee | first2=Hannah | last2=Lang | editor-first1=Michelle | editor-last1=Price | editor-first2=Marguerita | editor-last2=Choy | work=Reuters | date=January 11, 2024}}

In July 2024, after receiving approval, Fidelity was one of several issuers that launched a spot Ethereum exchange-traded fund.{{Cite news | url=https://www.reuters.com/technology/us-spot-ether-etfs-set-make-market-debut-another-win-crypto-industry-2024-07-23/ | title=US spot ether ETFs make market debut in another win for crypto industry | last1=McGee | first2=Hannah | last2=Lang | editor-first1=Christina | editor-last1=Fincher | editor-first2=Stephen | editor-last2=Coates | work=Reuters | date=July 25, 2024}}

In April 2025, Fidelity launched no-fee cryptocurrency trading in individual retirement accounts.{{Cite news | url=https://www.thestreet.com/crypto/markets/fidelitys-new-retirement-plan-lets-you-invest-in-crypto-at-no-fee | title=Fidelity's new IRA lets you invest in crypto at no fee | first=Anand | last=Sinha | work=TheStreet.com | date=April 2, 2025}}

Fidelity has three fund divisions: Equity (headquartered in Boston, Massachusetts), High-Income (headquartered in Boston) and Fixed-Income (headquartered in Merrimack, New Hampshire).

The company's largest equity mutual fund is Fidelity Contrafund, which has $145 billion in assets,{{cite web | url=https://www.morningstar.com/funds/xnas/fcntx/quote | title=Fidelity Contrafund | website=Morningstar, Inc.| date=July 15, 2024 }} making it the largest non-index fund in the U.S. and the largest fund managed by an individual. William Danoff has managed Contrafund since 1990.{{cite news | url=https://www.bloomberg.com/news/articles/2024-12-13/world-s-biggest-solo-stock-picker-is-having-best-year-since-1991 |title=World's Biggest Solo Stock-Picker Is Having Best Year Since 1991 | first=Loukia | last=Gyftopoulou | work=Bloomberg news | date=December 13, 2024 | url-access=subscription}}

Fidelity Magellan has $25 billion in assets.{{cite web | url=https://www.morningstar.com/funds/xnas/fmagx/quote | title=Fidelity Magellan | website=Morningstar, Inc.| date=January 7, 2025 }} Its current manager is Jeffrey Feingold, who also manages the Fidelity Trend Fund. Founded by Ned Johnson in 1963 as the Fidelity International Fund during what Peter Lynch called the "great fund boom", it was renamed the Magellan Fund in 1965. As Lynch recounted, the early sales staff of the Magellan Fund was mostly part-time, traveling employees until the 1973–1974 stock market crash led to a severe decline in interest.{{cite book | last=Lynch | first=Peter | authorlink=Peter Lynch | title=Beating the Street | edition=Revised |year=1994 |orig-year=1993 |pages=[https://books.google.com/books?id=80wxjQuGCVYC&q=flotilla&pg=PA83 83-84] | place=New York | publisher=Simon & Schuster |isbn=978-0-671-89163-3}}

Magellan was managed by Johnson from May 2, 1963, to Dec. 31, 1971, Lynch from May 31, 1977, to May 31, 1990, and Harry W. Lange from 2005 to 2012. Under Lynch's leadership Magellan averaged 29% a year, more than doubling the growth rate of the benchmark S&P 500, and remains the best-performing mutual fund in history over such an extended period.{{Cite news | url=https://www.alphawealthfunds.com/2022/11/most-of-the-magellan-funds-investors-lost-money/ | title=Most of the Magellan Fund's Investors Lost Money | first=Michael | last=Torrence | date=November 1, 2022}}

The company's Devonshire Investors arm is a division that gives the owners of the company the ability to make other investments outside its funds.{{cite news | url=https://www.bostonglobe.com/business/2013/08/08/fidelity-johnson-takes-heavy-loss-his-pursuit-perfect-tomato/1K47Kxicqhrd35i5EKj2II/story.html | title=A heavy loss in Fidelity's pursuit of the perfect tomato | first=Shirley | last=Leung | work=Boston Globe | date=August 9, 2013}}

Investments include:

• Seaport Center and 2.5 million square feet of office space in Boston.{{cite news | url=https://www.nytimes.com/2000/04/09/realestate/fidelity-a-major-investor-in-real-estate-too.html | title=Fidelity: A Major Investor in Real Estate, Too | first=SUSAN | last=DIESENHOUSE | work=The New York Times | date=April 9, 2000}}

• COLT Telecom Group{{cite news | url=https://www.theregister.co.uk/2015/08/12/colt_shareholders_flee_loss_making_biz/ | title=Colt shareholders grab Fidelity offer, declare 'we're outta here' | first=Paul | last=Kunert | work=The Register | date=August 12, 2015}}

Former investments include:

• MetroRed{{Cite news | url=https://www.wsj.com/articles/SB1046100626982993183 | title=Fidelity to Give $217 Million To a Number of Top Retirees | first=John | last=Hechinger | work=The Wall Street Journal | date=February 25, 2003 | url-access=subscription}}

• Community Newspaper Company, the largest chain of newspapers in suburban Boston, Massachusetts, sold to the Boston Herald in 2000{{cite news | url=https://www.nytimes.com/2000/09/29/business/the-media-business-fidelity-sells-newspapers-to-boston-herald-owner.html | title=THE MEDIA BUSINESS; Fidelity Sells Newspapers To Boston Herald Owner | first=FELICITY | last=BARRINGER | work=The New York Times | date=September 29, 2000}} and now owned by GateHouse Media.

• Fidelity paid $1.14 billion for Lanoga, the third-largest U.S. professional materials dealer, and $548 million for Hope Lumber, an Oklahoma-based supplier of trusses and other wood products.{{cite news | url=https://www.reuters.com/article/fidelity-probuild-idUSN0512528620091105 | title=Fidelity's ProBuild investment stumbles -- filing | first1=Ross | last1=Kerber | first2=Aaron | last2=Pressman | editor-first1=Ros | editor-last1=Krasny | editor-first2=Andre | editor-last2=Grenon | work=Reuters | date=November 5, 2009}}

• In 2013, it sold Boston Coach, a limousine and black-car service, founded in 1985 by Ned Johnson after waiting too long for a taxi, to Harrison Global.{{cite news | url=https://www.bostonglobe.com/business/2013/05/23/fidelity-selling-bostoncoach-limousine-group-launched-chairman-ned-johnson/pgujsz0a4xNQqDtDMS0uGI/story.html | title=Fidelity selling BostonCoach limousine group, launched in 1985 by chairman Ned Johnson | first=Beth | last=Healy | work=The Boston Globe | date=May 23, 2013 | url-access=subscription}}

• It formed ProBuild in 2006 and sold it to Builders FirstSource in 2015.{{cite press release | url=https://www.globenewswire.com/news-release/2015/07/31/756836/10168/en/Builders-FirstSource-Completes-Acquisition-of-ProBuild.html | title=Builders FirstSource Completes Acquisition of ProBuild | publisher=Globe Newswire | date=July 31, 2015 | archive-date=October 19, 2017 | archive-url=https://web.archive.org/web/20171019111715/http://investors.bldr.com/releasedetail.cfm?releaseid=925078 | url-status=live}}

Owners and employees of the company are able to invest in pre-IPO startup companies via the company's subsidiary, F-Prime Capital Partners. An investigation by Reuters in 2016 identified multiple cases where F-Prime Capital Partners was able to make investments in shares at a fraction of the price later paid by funds managed by Fidelity Investments. Because of regulations, the funds are not allowed to make the same early venture capital investments as F-Prime Capital Partners. However, the funds allegedly made large investments in companies after they go public in which shares are already owned by Fidelity employees via F-Prime Capital Partners.{{Cite news | url=https://www.reuters.com/investigates/special-report/usa-fidelity-family/ | title=How the owners of Fidelity get richer at everyday investors' expense | first=Tim | last=McLaughlin | work=Reuters | date=October 5, 2016}} An example included William Danoff's personal purchase of shares of Alibaba Group for 7 cents each; many shares were later purchased by the fund he manages.{{Cite news | url=https://fortune.com/2016/10/05/fidelity-danoff-pay-alibaba/ | title=How One Fidelity Fund Manager Made Millions Off Alibaba's IPO for Himself | agency=Reuters | work=Fortune | date=October 5, 2016 | url-access=limited}} While the practice is not illegal, it poses a corporate conflict of interest.{{Cite news | url=https://riabiz.com/a/2016/10/14/after-fidelity-investments-and-its-owners-get-blasted-by-reuters-for-alleged-high-level-conflicts-of-interest-morningstar-accepts-the-boston-based-giants-explanation | title=After Fidelity Investments and its owners get blasted by Reuters for alleged high-level conflicts of interest, Morningstar accepts the Boston-based giant's explanation | first=Janice | last=Kirkel | work=RIABiz | date=October 14, 2016}} The same Reuters investigation documents six cases (out of 10) where Fidelity Investments became one of the largest investors of F-Prime Capital companies after the start-up companies became publicly traded. Legal and academic experts said that major investments by Fidelity mutual funds - with their market-moving buying power - could be seen as propping up the values of the investments made by F-Prime Capital, to the benefit of Fidelity insiders.

In February 2007, the NASD, a division of the Financial Industry Regulatory Authority, fined four FMR-affiliated broker-dealers $3.75 million for alleged registration, supervision and e-mail retention violations. The broker-dealers settled without admitting or denying the charges.{{cite news | url=https://www.reuters.com/article/markets/us/nasd-fines-four-fidelity-broker-dealers-375-mln-idUSN05457298/ | title=NASD fines four Fidelity broker-dealers $3.75 mln | work=Reuters | date=August 10, 2007}}

In 2004, Fidelity Brokerage paid $2 million to settle charges by the U.S. Securities and Exchange Commission that employees altered and destroyed documents in 21 of its 88 branch offices between January 2001 and July 2002. Fidelity has internal inspections every year to make sure it is complying with federal regulations. Management was accused of pressuring branch employees to have perfect inspections and gave notice of the inspections and that at least 62 employees destroyed or altered potentially improper documents maintained at branch offices including new account applications, letters of authorization and variable annuity forms.{{cite press release | url=https://www.sec.gov/news/press/2004-103.htm | title=SEC and NYSE File Settled Action Charging Fidelity Brokerage Services for Violating Federal Securities Laws and NYSE Rules in Connection with Document Alteration and Destruction | publisher=U.S. Securities and Exchange Commission | date=August 3, 2004}}

In May 2007, NASD fined two Fidelity broker-dealers $400,000 for preparing and distributing misleading sales literature promoting Fidelity's Destiny I and II Systematic Investment Plans, which were sold primarily to U.S. military personnel. As part of the settlement, the FMR affiliates were required to notify Destiny Plan holders who want to increase their investments in existing Destiny Plans that additional shares of the underlying fund can be purchased outside the Destiny Plans without paying the additional sales charges.{{cite press release | url=https://www.finra.org/newsroom/2007/nasd-fines-two-fidelity-broker-dealers-400000-distributing-misleading-sales-literature | title=NASD Fines Two Fidelity Broker Dealers $400,000 for Distributing Misleading Sales Literature About Systematic Investment Plans Sold to Military Personnel | publisher=Financial Industry Regulatory Authority | date=May 8, 2007}}

In 2025, the company was fined $600,000 by the Financial Industry Regulatory Authority for lax supervision after an employee stole $750,000 from the accounts of 37 international clients over an eight year period from 2012 to 2020.{{Cite news | url=https://www.advisorhub.com/fidelity-failed-to-supervise-employee-who-stole-750k-from-stock-plan-clients-finra/ | title=Fidelity Failed to Supervise Employee Who Stole $750K From Stock Plan Clients: Finra | first=Miriam | last=Rozen | work=AdvisorHub | date=January 9, 2025}}{{Cite news | url=https://www.bizjournals.com/boston/news/2025/03/19/fidelity-investments-600000-fine.html | title=Fidelity fined $600,000 over lax supervision that led to account fraud | first=William | last=Hall | work=American City Business Journals | date=March 19, 2025 | url-access=subscription}}

In December 2006, the company was fined $42 million after some employees accepted gifts from salespeople of Jefferies Group in violation of the company's policies. The firm was fined an additional $3.75 million in February 2007 and $8 million in 2008. Gifts included private chartered flights, tickets to the 2004 Super Bowl, Wimbledon Championships and the US Open tennis tournament; tickets to Justin Timberlake, U2, and Christina Aguilera concerts; and high-end wines such as 1993 Château Pétrus.{{Cite news | url=https://www.fnlondon.com/articles/fidelity-pays-penalty-over-gifts-20061222 | title=Fidelity pays $42m penalty over gifts | first=Heide | last=Moore | work=Financial News London | date=December 22, 2006}}{{Cite news | url=https://www.fnlondon.com/articles/fidelity-fined-for-accepting-gifts-1-20070206 | title=Fidelity fined for accepting gifts | first=Heide | last=Moore | work=Financial News London | date=February 6, 2007}}{{Cite news | url=https://www.nytimes.com/2008/03/06/business/worldbusiness/06iht-fidelity.1.10761911.html | title=Fidelity is fined $8 million over improper gifts | first=Jenny | last=Anderson | work=The New York Times | date=March 6, 2008 | url-access=limited}}

Fidelity has experimented with marketing techniques directed to the baby boomer demographic, releasing Never Stop Doing What You Love, a compilation of songs by Paul McCartney. McCartney became the firm's spokesman in 2005 in a campaign entitled "This Is Paul". On the day of the disc's release, company employees were treated to a special recorded message by Paul himself informing them that "Fidelity and [he] have a lot in common" and urging them to "never stop doing what you love".{{cite news | url=http://archive.boston.com/business/articles/2005/09/08/brand_on_the_run/ | title=Brand on the run: Struggling Fidelity turns to ex-Beatle to lure boomers | first=Jenn | last=Abelson | work=Boston Globe | date=September 8, 2005}}

• List of US mutual funds by assets under management
• Mutual funds:
• Fidelity Contrafund
• Fidelity Magellan
• Fidelity International
• Mutual fund fees and expenses
• Wealth Lab
• Asset management in Singapore
• Merrill Lynch, Pierce, Fenner & Smith Inc. v. Manning, a 2016 Supreme Court case involving naked short selling claims against National Financial, a subsidiary of Fidelity, Merrill Lynch, and others.

{{Reflist}}

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• {{Official website|https://www.fidelity.com/}}

{{Fidelity Investments}}

{{Online brokerages}}{{Major asset management companies}}{{Authority control}}

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