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BOSTON, July 19, 2006 - Fidelity Investments today announced second-quarter results for Fidelity Brokerage Company showing that retail brokerage net new client assets more than doubled, total client assets increased 21 percent, daily average commissionable trades rose 26 percent, and total client accounts remained steady for the three months ending June 30, 2006, compared with the second quarter 2005.
For the second quarter of 2006, total client assets under administration were $1.5 trillion, an increase of 21 percent from $1.3 trillion, compared with one year ago, while total client accounts increased to 16.3 million.
Fidelity Brokerage Company also reported that daily average commissionable trades were 308,858 in the second quarter, up 26 percent from 244,262 in the second quarter of 2005. Net new client assets, which include sales of Fidelity and non-Fidelity mutual funds and individual securities, were $41.7 billion, a decrease of 32 percent compared with $61.3 billion in the second quarter of 2005, resulting from several large institutional client implementations in the same period a year ago.
First Half Results
For the first half ended June 30, 2006, Fidelity Brokerage Company retail net new client assets were $37.3 billion, an increase of 90 percent compared with $19.6 billion during the first half of 2005. Daily average commissionable trades were 316,646 in the first half of 2006, an increase of 30 percent over the same period in 2005.
"Despite unsteady markets, our retail brokerage business is showing remarkable strength as net new client assets more than doubled year over year and both of our institutional brokerage businesses continued to grow and pick up market share," said Ellyn A. McColgan, president, Fidelity Brokerage Company. "Our solid results this quarter were driven in large part by a strong IRA season, along with the expanding adoption, utilization and success of our retiree solutions."
At the end of the quarter, Fidelity had created more than 425,000 retirement income plans for investors through its two-year old Fidelity Retirement Income Advantagesm program. Through the program's Income Management Account, Fidelity is helping retirees monitor and manage more than $9 billion in retirement assets.
Second Quarter Business Highlights
Fidelity Personal Investments, the company's retail brokerage business, opened its 111th investor center in Sunnyvale, Calif., strengthened its international fund offering with the launch of Fidelity International Value Fund, announced the restructuring of the sector mutual fund product lines to make the funds easier to use for individuals and advisors, and announced plans to open a new customer contact center in Jacksonville, Fla.
Fidelity Registered Investment Advisor Group enhanced its technology platform to include online cashiering, customer service request capabilities, forms management and upgraded alerts and continued to strengthen its Trustee Services offering with the addition of streamlined account enrollment and simplified workflow capabilities.
National Financial, Fidelity's correspondent broker/dealer business, added new business from 13 broker/dealer firms in the first six months of the year. The clearing unit also introduced a data integration program that is integrated with National Financial's Streetscape® brokerage platform and executed a multi-year extension of its relationship with Finetre, a leading provider of financial transaction technology for annuities.
About Fidelity Brokerage Company
Fidelity Brokerage Company, one of the nation's leading brokerage firms, has more than $1.5 trillion in assets under administration, provides investment products, services and technology to 10.4 million individual investor accounts, more than 3,200 registered investment advisors and more than 350 broker/dealers and their approximately 70,000 brokers. As of June 30, 2006, it served 16.3 million client accounts and executed more than 300,000 daily average commissionable trades.
About Fidelity Investments
Fidelity Investments is one of the world's largest providers of financial services, with custodied assets of more than $2.6 trillion, including managed assets of $1.3 trillion as of June 30, 2006. Fidelity offers investment management, retirement planning, brokerage, and human resources and benefits outsourcing services to more than 22 million individuals and institutions as well as through 5,500 financial intermediary firms. The firm is the largest mutual fund company in the United States, the No. 1 provider of workplace retirement savings plans, the largest mutual fund supermarket and a leading online brokerage firm. For more information about Fidelity Investments, visit www.fidelity.com.
Because of their narrow focus, sector funds tend to be more volatile than funds that diversify across many sectors and companies.
Before investing, consider the funds' investment objectives, risks, charges and expenses. Contact Fidelity for a prospectus containing this information. Read it carefully.
Foreign investments involve greater risks than U.S. investments, including political and economic risks and the risk of currency fluctuations.
Clearing, custody, or other brokerage services may be provided by National Financial Services LLC or Fidelity Brokerage Services LLC. Member NYSE, SIPC
Fidelity Brokerage Services, LLC, Member NYSE, SIPC
100 Summer Street, Boston, MA 02110
National Financial Services LLC, Member NYSE, SIPC
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