Group Sees Opportunities in Individual Stocks, Fixed-Income Products and Real Estate

BOSTON, April 29, 2008 -- Fidelity Investments today released new research on millionaires' investment attitudes and behaviors, which reveals that, while they currently have a negative view of the U.S. economy, they see a significant improvement one year from now.

Using a scale where +100 represents the most favorable outlook, zero a neutral outlook and -100 the most negative outlook, The Fidelity Millionaire Outlook^SM1 2008 survey found that millionaires' current view of the U.S. economy is "very weak" (-50), down significantly from a "strong" (+41) level of confidence a little more than one year ago. Millionaires' confidence shifts significantly in the positive direction (+18) for early 2009, buoyed by optimism in the future of the stock market.

"Just over a year ago, millionaires were cautious when predicting the state of U.S. economy by the end of 2007, something which happened to prove fairly accurate," said John W. "Jack" Callahan, president, Fidelity Institutional Wealth Services^SM. "For this year's Outlook, the reverse is true, although their future confidence is a bit tempered.

"Millionaires' attitudes and behaviors could be seen as a harbinger for economic stabilization or turnaround beginning in early 2009," Callahan added.

Where Others See Risk, Millionaires See Opportunity

Despite current pessimism in all five key areas that make up The Fidelity Millionaire Outlook -- the stock market, value of real estate, business spending, consumer spending and the overall economy -- millionaires seem poised to take action with their investments. According to the survey, in the next 12 months, 27 percent of millionaires plan to increase their exposure to individual stocks, while only 7 percent plan to decrease it. Meanwhile, 31 percent plan to allocate additional assets to fixed-income vehicles and 14 percent will move more into real estate.

"What this shows is that while some investors might see a decline in the stock market or a drop in real estate values as cause to get out or sit on the sidelines, millionaires view it as a buying opportunity, and -- given their liquid net worth -- seem poised to take action," said Gail Graham, executive vice president, Fidelity Institutional Wealth Services.

Tax Changes Could Impact Investment Strategies

Millionaires are divided on their expectation of whether higher taxes are likely in the next five years. Slightly more than half think there is either a likely or very likely chance of significant increases in three of the main federal tax rates: income, capital gains and dividend. Among the millionaires who expect an increase in the income tax rate, 69 percent believe it will have a moderate to large impact on their investment strategy, compared to 77 percent for capital gains and 70 percent for dividends.

$1 Million Isn't Enough: When Millionaires Feel "Wealthy"

One in five (19 percent) millionaires do not feel wealthy, despite having average investable assets of $3 million and annual income of $270,000. These millionaires report that they would consider themselves "wealthy" when their investable assets reached $23 million, on average. Millionaires' perception of their wealth is related to their confidence in the economy, as those who feel wealthy are less pessimistic about the current state of the economy (-47) and more optimistic about the future (+21) than those who do not feel wealthy, (-58) and (+8), respectively.

Additionally, 13 percent of millionaires who don't feel wealthy say finding a financial advisor is a pressing concern to them, compared to just 5 percent of those feeling wealthy, indicating they may be looking for help in order to achieve a sense of wealth.

Three-quarters (75 percent) of millionaires indicate that the subprime situation has had at least a slight negative impact on the performance of their investments in the past year, with 42 percent saying its had a moderate to large negative impact.

Millionaire Attitudes and Behaviors Vary by Assets, Political Affiliation

The study showed that millionaires' attitudes and behaviors across a variety of investment-related topics vary by assets and political affiliation:

•		By Assets -- Ironically, despite having at least $10 million in investable assets, deca-millionaires tend to be less optimistic about the outlook for the U.S. economy than those with assets between $1 million and $2.5 million. This group is generally younger (48 vs. 59), still working (28 percent retired vs. 48 percent), and has younger children (55 percent have children under 18 vs. 22 percent).
•		By Political Party -- Republican millionaires are less pessimistic about the current state of the economy (-41) and more optimistic about the future (+29) than Democrats are (-59) and (+5), respectively. The Republican group also reflects a greater level of wealth (42 percent have $2.5 million or more in investable assets vs. 32 percent of Democrats) and holds more sophisticated investment products, including precious metals and venture capital investments than Democrats.

"While attitudes and behaviors may vary across asset levels and party affiliation, one thing is consistent: Millionaires are cautiously optimistic for an economic and stock market turnaround, and they are looking for the right opportunities to help them grow their wealth," said Graham.

Independent Advisors Valued

According to the survey, the use of independent advisors by millionaires has grown, with 26 percent of millionaires working with such advisors, compared to 22 percent last year. Independent advisors hold, on average, 71 percent of millionaires' investable assets, compared to 56 percent the previous year -- the largest share among any other financial provider. Nearly nine in 10 (89 percent) are satisfied to very satisfied with their independent advisor.

More than one-third (37 percent) of millionaires still work with their first advisor, a relationship that began at age 39 and lasted nearly 10 years, on average. Interestingly, millionaires no longer work with their first advisor because either the advisor retired or the client moved away, among the top reasons.

"Millionaires told us that, while they seek control and validation in their investments, they recognize the value of independent and objective investment advice," said Callahan. "Independent advisors are well-positioned to service millionaires by offering the sophisticated wealth management capabilities they desire, and by establishing themselves as objective partners who can play the role of sounding board or decision-maker, based on each client's distinct needs."

This year's Fidelity Millionaire Outlook once again reveals that Fidelity Investments has more millionaire households than any other financial provider in the U.S. Of the nearly 6 million U.S. millionaire households -- those with at least $1 million in investable assets, not including workplace retirement assets and real estate -- 40 percent have at least one account with Fidelity, compared to 37 percent last year.

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 $350 billion in assets on behalf of over 3,800 clients, as of March 31, 2008. For more information about Fidelity Institutional Wealth 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 more than $3.2 trillion, including managed assets of more than $1.5 trillion as of March 31, 2008. Fidelity offers investment management, retirement planning, brokerage, and human resources and benefits outsourcing services to 24 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.

¹The Fidelity Millionaire Outlook^SM measures millionaires' confidence levels across five key areas -- the stock market, consumer spending, the economy, business spending and the value of real estate. The national survey was conducted for Fidelity Institutional Wealth Services in January, 2008 by Burke, Inc., an independent research firm that has been conducting research since 1931. The survey did not identify Fidelity as the sponsor and received completed responses from 1,000 financial decision makers at households with at least $1 million in investable assets, excluding workplace retirement accounts and real estate. The data from it are representative of U.S. households with those assets, with a margin of error of plus or minus 3%.

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