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BOSTON, November 14, 2007 -- Fidelity Institutional Wealth Services, a leading provider of trading, custody and brokerage services to Registered Investment Advisors, Trust Institutions and Third Party Administrators (TPA), today reported that total client assets under administration reached a record $325 billion1, up more than 50 percent from the prior year. Fidelity's client assets have increased at a compound annual growth rate (CAGR) of 40 percent over the past five years.
Fidelity Institutional Wealth Services also reported a record $28 billion in net new client assets in the third quarter, a 300 percent year-over-year increase. The firm also realized $65 billion in net new client assets year-to-date.
"We have seen record growth in our assets over the past couple of years from the addition of hundreds of new advisors to our platform, through our joint offering with SunGard, and the continuing success of our existing clients," said John W. "Jack" Callahan, president, Fidelity Institutional Wealth Services. "While we are pleased with surpassing the $300 billion milestone, we are confident that if we continue investing in solutions that address critical client needs and make it easier for them to manage their businesses, that there is no limit to their growth and ours."
Fidelity Institutional Wealth Services has introduced several major initiatives over the past year that will help to accelerate the company's growth. They include:
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Fidelity WealthCentralSM -- WealthCentral will address a critical market need, helping advisors more efficiently and cost-effectively manage their practices by integrating their most critical operational systems, including portfolio management, customer relationship management (CRM) and financial planning into one unified workstation. Unlike any other platform in the industry, WealthCentral's core applications will be compatible with each other, allowing advisors to enter client information once, into one system, and have it automatically pre-populate and update across the platform's various applications.
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Fidelity-SunGard -- Fidelity continues to invest in its integrated trading and custody platform for trust institutions and TPAs with SunGard. More than 200 firms have transitioned to the offering since it was introduced a little more than one year ago. Fidelity recently launched several new services including a directed trustee services program, a payment and reporting program for brokers who support retirement plans, and an online revenue management tool.
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Fidelity Trustee Services -- Fidelity introduced a series of enhancements to its trust platform in late 2006. The enhancements added a range of educational resources to Fidelity's Trustee Services Program, including an on-demand webcast, a white paper and a series of online training modules.
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Fidelity Retirement Income Evaluator -- Fidelity introduced a sophisticated Web-based planning tool designed to help advisors create and manage retirement income plans for their clients as well as build a more efficient and profitable retirement business model.
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Wealth Advisor SolutionsSM -- Fidelity launched its new advisor referral program for high-net-worth investors in December 2006. Wealth Advisor Solutions is an expansion of the wealth management services the company currently offers its high-net-worth customers.
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Demand for advice is increasing, fueling the growth for intermediaries
The growing reliance on workplace retirement plans, the maturing of the Baby Boomers and greater consumer demand for access to sophisticated wealth management products and services is driving increased demand for the services of RIAs, trust institutions and TPAs. This growing demand is supported by Fidelity research and third-party data. According to research conducted for Fidelity, the majority (70 percent) of millionaires work with at least one financial professional, and an additional 13 percent report they are likely to start working with one over the next 12 months.2 Additionally, assets in personal trusts are expected to increase from $3 trillion today to $7 trillion by 20103. While increased flows into TPAs has resulted in their market share increasing to 35 percent, up from 28 percent in 2000.4
"We expect to see consistent growth across our business in the coming years driven by growing investor demand for trust and retirement services," said Callahan. "Our commitment is to provide our clients access to the vast resources of Fidelity, whether that be new technologies, innovative platforms, products and services and -- providing new ways for them to capture evolving marketing opportunities and grow profitably."
About Fidelity Institutional Wealth Services
Fidelity Institutional Wealth Services is a leading provider of trading, custody and brokerage services to Registered Investment Advisors, Trust Institutions and Third Party Administrators. The company is able to leverage the capital, resources and expertise of the Fidelity organization, one of the world's largest financial services companies, on behalf of its clients. This includes access to a comprehensive set of products and services, innovative investment tools and research, an integrated brokerage and trust platform, and dedicated client service professionals -- all designed to help its clients thrive by growing their businesses, more effectively meeting customer needs, and enhancing operational efficiency and profitability. Fidelity Institutional Wealth Services custodies more than $325 billion in assets on behalf of nearly 4,000 clients, as of September 30, 2007. For more information about Fidelity's services, please visit http://fiws.fidelity.com.
About Fidelity Investments
Fidelity Investments is one of the world's largest providers of financial services, with custodied assets of $3.3 trillion, including managed assets of more than $1.5 trillion as of September 30, 2007. Fidelity offers investment management, retirement planning, brokerage, and human resources and benefits outsourcing services to more than 23 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 Fidelity.com.
1As of September 30, 2007.
2Based on the Fidelity Millionaire OutlookSM, a survey of 2,507 financial decision makers at households with at least $1 million in investable assets, excluding workplace retirement accounts or any real estate.
3 Source: Tiburon Strategic Advisors, Estate Planning & Charitable Giving Through Life Insurance & Trust Accounts, June 2005.
4Source: Spectrem Group, 2006.
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Clearing, custody, or other brokerage services may be provided by National Financial Services LLC or Fidelity Brokerage Services LLC, Members NYSE, SIPC |
