Fund Times

Fidelity's Equity Division Comes Under Fire

Katie Rushkewicz Reichart, CFA

Reports of sexual harassment and a hostile work environment have roiled Fidelity's equity division, as first reported by The Wall Street Journal. The turmoil has led to the departures of a few portfolio managers, including Gavin Baker of  Fidelity OTC (FOCPX).

Morningstar is monitoring the situation. For now, Fidelity retains its Positive Parent rating. While the reported issues within Fidelity's equity division are disturbing, it's encouraging that the firm has parted ways with some of the alleged offenders and that CEO Abby Johnson has conveyed a zero-tolerance attitude for future offenses.

Katie Rushkewicz Reichart, CFA does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.