Fidelity, the world’s largest mutual fund firm, announced it was investing $200 million in an asset management firm focused on retirement funds.
Fidelity Investments CEO and founder Steve Munster said in a news release that Fidelity plans to “focus on high-quality investment products that offer low fees and easy access to the wealth that FIT funds are built upon.”
The Fidelity investments are tied to FITs asset allocation models and are expected to generate annualized returns of 3% or higher.FITs portfolio manager, Peter Pfeifer, said in the release that the fund is focused on investments that “focus in low-cost assets and offer high returns.”FIT has been in the spotlight lately due to its investments in Wells Fargo, the country’s largest mortgage lender, and Home Depot.
FIT also invests in an array of other firms, including Microsoft, Apple and Amazon.
The FIT fund is a part of the portfolio of funds overseen by the Fidelity Investment Management Co., which was founded in 1988.
Fidelity’s investment firm manages $2.4 trillion in assets, according to the company’s website.