Investors, perhaps tired of the big three asset managers and the tired old bulge bracket Wall Street firms, are flocking to Fidelity. Aex Ortolani reports at Plan Adviser:
Fidelity Investments released on Thursday select second-quarter financial results that showed a 20% year-over-year uptick in assets under administration.
The firm, which is not publicly listed, announced that AUA grew to $14.1 trillion, which is 3% higher than in Q1.
“In addition to strong market conditions over the past year, asset growth is attributed to inflows from new and existing Fidelity customers and clients, having brought in more than $620B since June of last year,” according to an emailed statement from the firm.
Fidelity also reported an increase in total customer accounts across recordkeeping retail clients, up 9% at the end of Q2 to 84.9 million. Those customers are also more engaged, according to the financial giant, which shared statistics such as:
- Customer appointments were up 11% year-over-year to 1.3 million;
- Customer engagement digitally was up 15% year-over-year to 26.4 million;
- Social media service interactions were up 68% year-over-year to 776,000; and
- Daily average trades were up 34% year-over-year to 3.3 million.
When it comes to defined contribution assets only (not individuals or other accounts), Fidelity remains solidly in the lead nationally, according to PLANSPONSOR’s most recent DC recordkeeping survey. PLANSPONSOR, a sister publication of PLANADVISER, reported Fidelity’s DC assets at $3.5 trillion at the end of 2023, with second-place Empower at $1.4 trillion.
Action Line: I like Fidelity’s technology and the fact that it’s a family business. When you want to talk about how to move to Fidelity, I’m here. In the meantime, click here to subscribe to my free monthly Survive & Thrive letter.
