MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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|
MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Monday, April 4, 2011 Moody's Attacks Fidelity for 'Weak Performance' in Stock Funds Moody's is worried about Fidelity [see profile]. On Friday the rating agency reportedly reduced its outlook on Fidelity parent FMR's debt from stable to negative while maintaining the A2 rating. The Associated Press and the Boston Globe both reported on the news. "Today's outlook change reflects the relatively weak performance of Fidelity's equities funds, which has led to a loss of market share," Moody's vice president Dagmar Silva reportedly wrote, alluding to how Vanguard overtook Fidelity as having the most mutual fund assets. "While the company has leading market positions in retail brokerage and defined contribution plans, these businesses have lower margins than its asset management businesses." Fidelity spokesman Vin Loporchio countered by noting that last year revenue rose seven percent to $12.3 billion and operating profits rose 17 percent to $2.9 billion. "The company is doing very well," Loporchio reportedly told the Globe. "Our balance sheet remains very strong. And we continue to invest significantly in our business." Printed from: MFWire.com/story.asp?s=36451 Copyright 2011, InvestmentWires, Inc. All Rights Reserved |