Fidelity Investments is to continue the shake-up of its local operation with a new policy of localisation and a restructuring of its reporting lines from Boston to London. Chairman Barry Bateman yesterday said the company was also planning the launch of a software company to sell its customised service system to other fund management companies. Mr Bateman is in Hong Kong for the first time since Asia chairman Stuart Leckie announced he was going to quit and William Ebsworth, the chief investment officer, announced he was to return to Boston to head the company's global research. Mr Bateman who is boss of the Continental European and British operation will also take responsibility for Asia. He has split William Ebsworth's position between Tokyo-based Simon Fraser and Robert Auld, now based in the United States. Mr Fraser, who has helped to restructure the Japan operation, will be the chief investment officer while Mr Auld will focus on the day-to-day running of the company. The company is set to announce the appointment of a managing director for Hong Kong in mid-July. It will be an in-house promotion. Bill Wilder is the current president of the Japan operation. Fidelity is a global fund management business with Fidelity Management Research (FMR) focusing on the US and Fidelity Investments in charge of the rest of the world. FMR manages about US$492.2 billion while Fidelity Investments has about 31.5 billion with about 40 per cent in Asia, including Japan, and 46 per cent in Europe. The remainder consists of Asian assets managed in North America. Under the previous arrangements, Mr Leckie reported directly to Edward Johnson, chairman of FMR. The president of the Japan, operation and managing directors of Hong Kong, Continental Europe and Britain will now report directly to Mr Bateman who will use London as his base but make regular visits to Hong Kong. Mr Bateman said: 'Some of the ways Fidelity has developed in Europe could be developed for Europe.' The company aims to repeat its Continental European strategy of localising its key positions, particularly on the operations side. While the new chief appointments will be expatriates the aim will be to train local replacements. Mr Bateman said: 'I would also like to bring-on young people and give them more responsibility.' The group plans to sell its computerised customer service system, the Multicurrency Deal Management System, which is in operation throughout the group. It has standardised its stock selection procedure and global customer service. Mr Bateman said: 'We are looking to sell it to our competitors and turn it into a commercial business.' It would be sold as a software package with annual renewal fees.
