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corporate and governmental obligations (money market funds).
These RIC's began to attract the investing public, particularly
when coupled with a novel feature such as the checkwriting
feature of petitioner's money market fund.
By 1980, petitioner managed $8.2 billion of assets for 21
different RIC's. At the beginning of 1985 (the first year in
issue), petitioner managed $35.8 billion in assets for 79 RIC's,
and by the end of 1987 (the last year in issue), petitioner
managed $71.8 billion for 140 RIC's.
Petitioner is the sole underwriter and distributor of the
shares in the RIC's that it manages in the Fidelity family.2
Petitioner divides its distribution functions between Fidelity
Distributors Corp. (FDC) and Fidelity Investments Institutional
Services Co. (FIIS), depending upon whether the shares in the
RIC's are sold directly to the public or to or through
institutions, respectively. In accordance with this distribution
scheme, petitioner classifies the RIC's that it manages as either
retail funds; i.e., those the shares of which are directly
offered to the public, or institutional funds; i.e., those the
shares of which are offered to, or through large institutions,
such as financial planners, banks, insurance companies, or
employee plans. The marketing efforts of the retail RIC's are
2The group of funds managed by a particular investment
adviser is known in the industry as that adviser's "family of
funds".
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