February 28, 2017 11:23 AM ET

Capital Markets

Company Overview of Fidelity Management Trust Company Inc.

Company Overview

Fidelity Management Trust Company (FMTC) is a privately owned investment manager. The firm provides its services to corporate and public retirement funds, endowments, foundations, and other institutions worldwide. It manages mutual funds and REITs for its clients. The firm invests in the public equity, fixed income, and real estate markets across the globe. It invests in stocks of small-cap, mid-cap, and large-cap companies. Fidelity Management Trust was founded in 1981 and is based in Boston, Massachusetts. Fidelity Management Trust Company operates as a subsidiary of Fidelity Investments.

82 Devonshire Street

Boston, MA 02109

United States

Founded in 1981



Key Executives for Fidelity Management Trust Company Inc.

Senior Vice President and National Sales Director
Senior Vice President of Consultant Relations
Compensation as of Fiscal Year 2016.

Fidelity Management Trust Company Inc. Key Developments

Fidelity Management Trust Company Faces ERISA Lawsuit over Stable Value Fund

A recently filed lawsuit accuses Fidelity Management Trust Company of engaging in imprudent investment strategies for the Fidelity Group Employee Benefit Plan Managed Income Portfolio Commingled Pool (MIP), a stable value fund offered as an investment option in some 401(k) plans trusteed by Fidelity. According to the lawsuit, during a specified class period, the MIP had such low investment returns and high fees that it was an imprudent retirement plan investment. The poor performance and high fees of the MIP were the result of the intentional actions and omissions of Fidelity as trustee of the plans, the suit alleges. Fidelity delegated day-to-day management of the MIP to its affiliate, Fidelity Management and Research Company, and the lawsuit accuses Fidelity of failing to continuously monitor and supervise its affiliate. The compliant says that prior to 2009, Fidelity engaged in an imprudent investment strategy for the MIP that caused substantial losses to the fund and accordingly exposed itself and the MIP's 'wrap providers' to substantial losses. Faced with a substantial decline in the MIP's market value, and with resulting pressure from the wrap providers-which were exposed to liability in the event of significant MIP fund withdrawals-Fidelity responded by adopting an unduly conservative investment strategy that was contrary to the purposes of stable value fund investing, agreeing to allow the wrap providers to charge excessive fees, and charging excessive fees for its own account. According to the compliant, in addition to its fiduciary breach under the Employee Retirement Income Security Act (ERISA), Fidelity also attempted to conceal its improperly conservative investment and excessive fees from investors by solely reporting to investors an inappropriate 'money market' benchmark for the MIP rather than a proper stable value fund benchmark that made the MIP returns appear to be competitive. The lawsuit contends that competing stable value funds which were subject to the exact same underlying economic conditions as the MIP and had the same conservative investment goals earned substantially higher returns than the MIP during the relevant time period while at the same time preserving principal, ensuring liquidity, and providing stable returns.

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