Fidelity Investments, one of the best-known names in fund management, could start losing institutional clients unless it dramatically improves on its poor 2004 equities performance, according to investment consultants.

The company, which manages $185bn (€139bn) outside the US, posted disappointing numbers last year. Several flagship funds ended low down the rankings and its three-year performance in UK equities has fallen to the bottom end of the third quartile.