Rodger Lawson Update and Fidelity's Health

Earlier this summer rumors were flying that Rodger Lawson had done what he came to do and was leaving Fidelity. He put those rumors to rest this week in an interview at Fidelity HQ in Boston. Lawson reported that he will stay on at Fidelity as long as needed. He is in it for the long haul. (You can click here for the article in the Boston Globe.)

Lawson must be doing something right down on Devonshire Street. The Boston Herald reported yesterday that Fidelity's assets under administration rose to $2.8 trillion during the first six months of the year from $2.6 trillion, and assets under active management rose from $1.24 trillion at the start of 2009 to $1.35 trillion. In his interview, Lawson also announced that lay-offs at Fidelity are over "thanks to improving market and company conditions." And last week, in an article discussing how actively managed funds are currently beating out index funds for performance, the Boston Globe reported that "nine of the 10 largest diversified stock funds at Fidelity Investments are beating the S&P 500." You can click here for that article. 

It helps that the money that has been sitting on the sidelines has started to dribble back into the markets. Last week we saw reports that 401(k) contributions have started to go back up after decreasing last year. The recent rally has helped, as have reports that many companies that suspended their 401(k) matching contributions are planning on resuming those matches within the next 6 months, and many more plan on reversing their cuts to 401(k) matching within the next 12 to 18 months.