Fund management company Fidelity launched six new exchange-traded funds (ETFs) last year in order to capitalise on the unprecedented flow of money to cheaper, index-based products. Where the company once resisted bulking up in ETFs, it now risks losing customers if it fails to offer this service, head of Fidelity's asset management business, Charles Morrison said. That push came in a year when clients pulled more money from Fidelity’s traditional mutual funds than in any since 2011,... The firm has been forced into a position where its investors are being asked to pay more for their investments and is having to make decisions about which products they want to invest in.
Fund management company Fidelity launched six new exchange-traded funds (ETFs) last year in order to capitalise on the unprecedented flow of money to cheaper, index-based products. Where the company once resisted bulking up in ETFs, it now risks losing customers if it fails to offer this service, head of Fidelity's asset management business, Charles Morrison said. The firm has been forced into a position where its investors are being asked to pay more for their investments and is having to make decisions about which products they want to invest in.