Fidelity Investments today announced record results in 2008 for its businesses serving registered investment advisors (RIAs), broker-dealers, banks, insurers and other institutional clients.
An interesting piece of news relating to RIAs is that the firm attracted 102 breakaway brokers, nearly double the number in 2007, who are using Fidelity as their custodian for their new RIA businesses.
In 2008, Fidelity's intermediary businesses, which are part of its Institutional Products Group, achieved all-time highs in many areas, including daily average commissionable trades, new breakaway brokers on its platform, equity order flow, prime brokerage and advisor-sold 401(k) plans.
Fidelity's Institutional Products Group-which includes Fidelity Institutional Wealth Services (IWS), Fidelity Investments Institutional Services Co. Inc., (FIIS) National Financial, Fidelity Family Office Services (FFOS) and Fidelity Capital Markets (FCM)-had nearly $1.1 trillion in assets under administration at year end.
Among its record results in 2008, Fidelity achieved an all-time high in daily average commissionable trades, processing 241,000 trades per day for the year across its IWS, National Financial and FFOS businesses-an 18% increase over 2007. Daily average commissionable trades reached their highest levels in company history in September and October at 259,000 and 314,000, respectively.
"Despite arguably one of the most volatile business environments in recent memory, we repeatedly demonstrated our ability to help intermediary clients navigate challenging financial markets," said Michael K. Clark, president of Fidelity Institutional Products Group. "While 2009 will likely continue to be a challenging environment in financial services, our clients should know that Fidelity will continue to invest across its many businesses," Clark said.
The company noted these 2008 highlights:
FIIS sold 702 new Fidelity Advisor 401(k) plans in 2008, up 36% from 2007, and reached a record 3,310 in total advisor 401(k) plans on the platform. Fidelity's Advisor 401(k) platform is offered through third-party advisors to small- and midsized companies.
FIIS saw its money market assets reach a company record of $137 billion in 2008, up 44% from 2007.
IWS saw 102 breakaway brokers, some of whom also have hybrid business, select Fidelity as the custodian for their newly established RIA firms, nearly double the number attracted in 2007.
FCM's Prime Services business realized strong results in a number of areas including a 127% increase in client assets and a 57% increase in net new clients.
FCM increased municipal, CD, corporate and Treasury par value traded by 29% over 2007. The company also participated in 420 municipal new issue deals in 2008, up 25% from 2007-a company record.
FCM's Equity group increased its institutional average daily order flow by 95% over 2007, while also handling a record 601 million shares in a single day.
The strong business results, along with the roll-out of new technology products and services, made 2008 one of Fidelity's busiest years, the company said.