Fidelity Expands Into Alternative Credit Amid Industry Price War

Fidelity Investments is expanding into the higher-fee business of alternative credit as an industry price war pressures revenue from mutual funds and brokerage trading.

Fidelity formed a “high-income and alternatives” investment division in August headed by Harley Lank, a high-yield portfolio manager and 23-year veteran of the Boston-based firm, according to the company. It plans to develop and launch innovative products in the alternatives space, a spokeswoman said by email.

The mutual fund giant, which managed $2.8 trillion in August, is expanding into a business that’s dominated by private capital giants like Apollo Global Management Inc. and Ares Management ...