The firm has adapted well to investor preferences that have shifted markedly over the past two decades. As index funds and exchange-traded funds have garnered most of the industry's flows and money has gushed from actively managed products—Fidelity's included—the firm has continued to grow its top line, reinvested heavily into its existing capabilities, and sought to stay ahead of the competition with new products and aggressive pricing. These moves are made possible by the firm's strong distribution network, scale, established brand, and willingness to tolerate losses on some products in pursuit of broader strategic objectives.
The firm is not without blemishes. Many of the active equity funds it has launched in recent years have questionable investment merit. For those that are well established, the firm could do better to maintain continuity in an equity fund's risk profile as the fund's leadership inevitably changes.
Overall, the firm has served its funds' investors well. It boasts an outstanding fixed-income division and a strong team supporting its target-date series, and it's home to some of the industry's most talented equity managers. It remains an attractive destination for top talent, which tends to stay for the long haul.