March 3, 2020 / 4:32 PM / a month ago

Fidelity 2019 profits rose 10% on strong flows into index and money-market funds

BOSTON, March 3 (Reuters) - Fidelity Investments said on Tuesday operating profit in 2019 climbed 10% to $6.9 billion as investors pushed their cash into money-market and passively managed products while pulling billions of dollars from actively managed stock funds.

FMR LLC, the owner of Boston-based Fidelity, said its collection of financial services and diversified businesses generated revenue of $20.9 billion, up from $20.4 billion in 2018. Fidelity is privately held and controlled by the family of Chairman Abigail Johnson.

As the stock market surged last year, Fidelity clients plowed $121 billion into money-market funds and $66 billion into index funds. By contrast, Fidelity’s actively managed direct-to-investor stock products were hit with $65 billion in net redemptions, up from $51 billion in 2018.

Overall, net asset flows to Fidelity’s platform totaled $315 billion in 2019, a 2% increase from the previous year.

Fidelity’s annual report does not provide a balance sheet, an income statement or a statement of cash flows. (Reporting By Tim McLaughlin; Editing by Bernadette Baum)

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