Fidelity Investments’ total assets under management dropped 22 %

Fidelity Investments, a Boston-based leader in financial services providing, that oversees trillions in client dollars via its mutual fund and brokerage divisions, announced that global economic crisis drove its assets under management below 2006 levels and levied a direct hit to its revenue and operating income for 2008. Fidelity’s total assets under management fell by $351 billion, or 22% year-on-year, that led primarily by a fourth-quarter freefall in stock and bond markets globally.Compared to $1.6 trillion in 2007 and $1.39 trillion in 2006, Fidelity ended the year with $1.25 trillion in assets under management.The company said its incomes went down 4% to $12.94 billion last year, at the same time operating income dropped 18% to $2.36 billion.As Fidelity Chairman Edward C. Johnson said, company’s mutual funds booked $87.9 billion in positive net inflows, or net investments from clients, that increase means virtually the company’s entire year-to-year decline in total assets was attributable to declines in securities markets.The company’s Cash Reserves money market fund became the largest fund in the country, excelling 80% of its competitors in the process. The gross sales within Fidelity’s institutional investment arm, Pyramis Global Advisors, got 61% change to $11.6 billion. Assets at Pyramis decreased 27% to $120 billion.The group is led by Johnson’s daughter, Abigail P. Johnson. PWI’s assets under management fell 23% to $1.41 billion.