The new operation, which also focuses on non-Investment Company Act of 1940 business, will become independent of Fidelity’s Management & Research Company (FMRCo) – the group that currently looks after the company’s mutual funds. The new group will serve corporate and public employee pension funds, endowment and foundations, and commingled pools and separate accounts, according to the company.
The company has started putting the process in place that will bring about the necessary tools to develop the new business, according to the company. It will be separate from FMRCo except where sharing resources makes the most sense, according to the company.
Both Fidelity Chairman Edward Johnson and FMRCo President Abigail Johnson have said that they will both be involved in the new operation’s development during the transition period, according to the company.