Fidelity fires two managers in Asia for fraud

Fidelity fires two managers in Asia for fraud

Friday, 26 February 2010, 03:01 Hrs   |    2 Comments
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Hong Kong: Fidelity International, the money manager overseeing $212 billion globally has fired two Hong Kong-based fund managers for breaches of the internal code of ethics.

"Our routine checks discovered a pattern of behavior that breached our internal policies," Fidelity said in an e-mailed statement on Thursday. "The managers were also found to have put their personal interests ahead of those of the company."

The two mangers were handling 14 funds with a combined $7.4 billion of assets at the time of their suspension on January 18 amid an internal investigation into a possible breach, said a person with knowledge of the matter. They were dismissed this week.

Clients' funds haven't been negatively affected because of the breaches and the funds have been assigned to replacement managers, Fidelity said in the statement. Megan Aitken, a Hong Kong-based spokeswoman for Fidelity, declined to identify the managers, citing employer-employee confidentiality, and added there is no evidence of criminal activity.

The investigations and dismissal came as Fidelity is seeking 630 million pounds ($968 million) for a new China fund, marking the return of its President of Investments Anthony Bolton to day-to-day portfolio management. Bolton announced in November that he was relocating to Hong Kong as "the center of gravity is shifting."

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Reader's comments(2)
1: It is good. But, I am surprised that such a large company, with it state of art processes allowed it to happen in the first place.

But, like they say, it is better late than never.

They identified the fraud now.

Way2Goals Software India Private Limited.
Posted by: Anand Bhairat - 01 Mar, 2010
2: this is good. guilty should be punsihed
Posted by:ahana - 25 Feb, 2010