Fidelity Five Holdings of Fidelity:

Fidelity

Five Holdings of Fidelity: Institutional Ownership

Fidelity Magellan: Noika, Corning, Canadian Natural Resources LTD, Monsanto, Staples

Fidelity Blue Chip Growth Fund: Microsoft, CISCO Systems, International Business Machinery Corporation, Schlumberger, Exxon Mobile

Fidelity Large Cap Stock Fund: Inverness Media Innovations, Honeywell, CISCO Systems, Staples, GE

The predominance of a major financial investment firm such as Fidelity in the holdings of these corporate entities suggests that Fidelity, rather than individual shareholders, may have more influence upon the decision-making of the boards of directors at these firms, because its ownership is so wide and far-reaching in relation to the numbers of the shares it owns and in terms of its influence in the world economy in general. The fact that the companies are already historically major players in the business life of America and the world means that through its influence upon such corporations as GE and Exxon as a major shareholder, Fidelity can exercise power in the economy as a whole, even spanning beyond its number of votes as a shareholder in such companies. If Fidelity were to divest in even one of these companies, the impact could be catastrophic upon the American economy. or, conversely, if Fidelity was in financial difficulty, the effect upon the companies in which it has large shares of ownership rights would be substantial, and have larger economic repercussions.

The negative aspects of a shift to institutional rather than individual holdings is that large investment firms such as Fidelity may be less apt to closely follow corporate ethical practices, and focus more on profits, meaning that large companies will lack individual oversight and be inspired to take ethical actions, such as some firms were pressured to do, when there was a movement to divest in South African firms during the apartheid era. Firms under the guidance of individual investors are more likely to take a conservative approach to ethics, since the shareholders may take a greater interest in this 'human' side to investing than a large firm like Fidelity. Also, very simply, if Fidelity or one of the companies in which it concentrates a large share of its ownership experiences financial difficulties is in trouble, then Fidelity, investors in Fidelity mutual funds, and the economy as a whole, can all be harmed far more than if individual investors selected from a wider range of businesses.