Fidelity’s decision  to consolidate its Private Wealth Management unit into two other divisions is a curious move at a time when competitors are touting their stand-alone operations.

The nation’s second-largest mutual fund company has seen the departure of David Lamere, who left this month after little more than a year as president of Fidelity Private Wealth Management. His unit has been folded into the firm’s Global Asset Allocation and Personal Investing divisions, a spokesman said.

Lamere arrived in November 2012 after leaving BNY Mellon, where he spent 27-years. He had been a vice chairman and chief executive officer of BNY Mellon’s wealth management operations.

The decision to fold a stand-alone unit into two other divisions raises some questions about Fidelity’s strategy for potential clients who are multimillionaires, said Bill Butterfield, an analyst in the wealth management practice for the Aite Group, a Boston-based research firm. 

 “That was a newer division that was really targeting what I would call the ultra-high-net-worth individual—minimum accounts of $5 million to $10 million—more of a private banking play,” Butterfield said. “From the outside looking in, maybe it just wasn’t a go for the particular set-up that Fidelity has. I didn’t feel it was highly promoted, either. My gut tells me that if it was making hand-over-fist profits that it would have stuck around. Something tells me there is more to this than meets the eye.”

Fidelity is known as a product manufacturer and a huge player in the retirement space. However, wealthy individuals might not have the fund giant on their short list of wealth managers, he said.

“I don’t think of Fidelity as a brick-and-mortar firm where you would show up and make a deposit like you would at Bank of New York (BNY Mellon) or some of these other large banking organizations,” he said. “If you compare Fidelity’s set-up to others, they are probably more similar to a Schwab than they are to a Goldman Sachs.”

Fidelity “has had numerous offerings” in the private wealth management space over the years, according to Geoffrey Bobroff, president of Bobroff Consulting, a Rhode Island mutual fund consultant.

 “The part that is puzzling about the change is that you can’t pick up a story about any of the brokerage firms or private banks that aren’t touting their wealth management group as a premier thing-a-ma-bob that is doing well,” he said. “Clearly, that is the buzzword in the marketplace.”

Fidelity spokesman Adam Banker explained that the unit was started in late 2012 in partnership with the personal investing division to meet the estate, tax and wealth planning needs of affluent clients.  

 “As is the case with many new initiatives, we felt it was important to create a separate, dedicated division for this effort, to allow the team to focus exclusively on the design, creation and implementation of a comprehensive wealth offering that would best meet our clients’ needs,” he said in a statement. “That focus enabled us to hire the industry’s best talent, expand our investment and planning capabilities, and develop a strategic business plan that we are confident positions us for success.

“What began as a small wealth management pilot offering in a few select regions of the U.S. has today grown into a fully operational offering serving a number of affluent clients,” Banker said.

Because of “the success and maturity of this initiative,” the timing was right for realignment, which is why Lamere left “to pursue other opportunities,” he said.

“Dave joined Fidelity in 2012 specifically to get this new initiative up-and-running, and we thank him for his leadership during this important period of growth,” Banker said. “Roger Hobby, executive vice president, now leads Wealth Management, which is part of our personal investing division.”

Hobby was previously the president of Wilmington Trust’s Northeast division. He had served as president of Fidelity’s Family Office Services division before joining Wilmington Trust.