The Markets April 19, 2007

Mid-Cap Equities Will Be Strong in 2007

Investors would do well to focus on the mid-cap asset class in 2007, according to Standard&Poor's Equity Research Services.
Reported by
An S&P news release said that, as of April 17, the S&P MidCap 400 Index is handily outperforming the large-cap S&P 500 Index year-to-date, rising 8.9% versus only a 3.8% advance for the blue chip index.
Standard & Poor’s Equity Research believes it will be difficult for many large-cap companies to continue to post double-digit EPS advances, because of the size of gains needed. On the other hand, Standard & Poor’s believes mid-caps – defined as companies with market capitalizations ranging from $1 billion – $5 billion – are generally at an earlier point in their growth trajectories, leaving them with a potentially longer asset class profit cycle, according to the news release.
“In a slowing economic environment characterized by decelerating, single-digit EPS growth for the U.S. large-cap equity asset class, we believe investors are gravitating towards mid-caps’ ongoing profit momentum,” said Alec Young, Equity Strategist for Standard & Poor’s Equity Research, in the news release. “We expect 2007 EPS growth for the S&P MidCap 400 Index to rise 13% vs. a 7% gain for the S&P 500 Index.”
Deals & People April 19, 2007

Changes In Fidelity's Ranks

Fidelity Investments’ Vice Chairman and Chief Operating Officer Robert L. Reynolds announced his departure today.
Reported by
The Boston-based investment company also announced an executive appointment for its product and services distribution channel, according to a company news release.
Reynolds’ Fidelity career began in 1984 and included a stint as president of Fidelity Investments Institutional Retirement Group (now FESCo), before assuming his current position in June 2000.
“After 23 years at Fidelity – and the past seven as Chief Operating Officer – I feel it’s time for some new experiences,” Reynolds asserted in the news release. “Therefore, I’ve decided to take the opportunity that change always affords to stop and reassess my next 23 years. Like so many other American Baby Boomers, I’m contemplating the exciting challenges and opportunities that lie ahead of me. I’m not certain at this time where my many varied interests will lead me, but I’ll always look back fondly on my Fidelity career.”
Chairman and Chief Executive Officer Edward Johnson had kind words for the departing executive. “Bob Reynolds has made tremendous contributions to Fidelity during his extensive career here,” said Johnson, in the news release. “We thank Bob for his great efforts on Fidelity’s behalf, and of course wish him all the best in the future.”
Also Thursday, Fidelity announced that Ellyn A. McColgan has been named president, Distribution and Operations. In this role, McColgan will oversee distribution of the company’s products and services sold to individual investors and through third-party intermediaries – as well as a group of the firm’s other operations, according to the news release.
McColgan, now president of Fidelity Brokerage Company (FBC) will oversee a number of Fidelity’s other distribution and operations functions, including Fidelity Investments Institutional Services Company (FIIS), under the leadership of Joseph P. LoRusso; Fidelity Investments Life Insurance Company (FILI), under the leadership of Jon J. Skillman; and Fidelity Enterprise Operations, under the leadership of Raymond J. Marcinowski, Fidelity said.
Sharing distribution leadership with McColgan is Johnson’s daughter Abigail who will continue in her role as president of Fidelity Employer Services Company (FESCo), which provides defined contribution and defined benefit retirement services, employer benefits and human resources administration, and payroll services to more than 20 million American employees and retirees.
Finally, Fidelity said that John J. Remondi has been named interim chief administrative officer and will oversee functions such as Human Resources, Finance and Enterprise Services, which includes Legal, Risk and Compliance, Corporate Affairs, Real Estate, Regional Management, Public Policy and Government Relations.

«