Portfolio managers for Fidelity Investments' Advisor funds were not exempt from the mutual fund giant's recent massive reassignments.
The company replaced managers at five of its 23 Advisor funds, which are sold through banks and other financial intermediaries. The moves were part of the largest realignment of managers in Fidelity's history.
On Monday, Fidelity, the nation's largest fund complex, with $373.2 billion of assets, announced it was reassigning 26 stock fund portfolio managers, or 30% of the total. The Boston-based fund company is one of the top sellers of fund portfolios through banks.
Edward "Ned" Johnson, chairman of Fidelity's parent, FMR Corp., regularly changes portfolio managers to give rising stars a chance for higher profiles, said a company spokeswoman.
But the latest management changes may have more to do with Mr. Johnson's desire to tighten oversight of managers, said Don Phillips, president of Morningstar Inc., a Chicago-based fund tracking firm.
Fidelity's image was hurt slightly when two of its retail funds invested heavily in exotic stocks, he said.
"I don't think Fidelity wants its managers making their grandstand plays anymore," said Mr. Phillips.
Advisor Funds that have new portfolio managers are Equity Income, Income & Growth, Large Cap, Overseas, and Strategic Opportunities.
The moves are effective April 1, except for Strategic Opportunities, which took effect immediately.
At the same time, Fidelity expanded its fund categories to eight, from four. Equity funds are now categorized according to the following investment objectives: capital appreciation, growth, income growth, asset allocation-income, international, specialized growth, quantitative, and structured investments.