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Nir Kaissar

Fidelity's Fee Fix Comes Up Short

A low, flat fee may be the easiest way for managers to deliver more value to investors.
Photographer: Jb Reed/Bloomberg via Getty Images

As investors lose faith in active managers, Fidelity Investments CEO Abby Johnson is trying to stem their flight to index funds. I doubt her plan will work.

Johnson, head of the money manager that built its name and fortune on traditional active management, wrote in the Financial Times last week that the growth in index funds “in part reflects investors’ desire for value and clarity around what they are paying for, and active managers have to respond.”