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Fund Spy

Fidelity Working to Up Its Game

The firm has strong spots, but it needs more consistency.

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Morningstar recently issued a new Stewardship Grade for Fidelity. The firm's overall grade--which considers corporate culture, fund board quality, fund manager incentives, fees, and regulatory history--is a B. What follows is Morningstar's analysis of the firm's corporate culture, for which Fidelity receives a C. This text, as well as analytical text on the other four Stewardship Grade criteria, is available to subscribers of Morningstar's software for advisors and institutions: Morningstar Principia®, Morningstar Advisor Workstation(SM), Morningstar Office(SM), and Morningstar Direct(SM).

Fidelity's impressive size has worked for and against it. As one of the fund industry's biggest companies with roughly $1.5 trillion in assets under management as of mid-2013, the privately held firm has never had a problem pouring resources into areas that benefit the end investor. The scale of its research, compliance, and trading operations are hard to match. However, its size hasn't translated into industry-leading offerings across the board.  

Katie Rushkewicz Reichart does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.