Fidelity Investments, headquartered in Boston, earned a record-breaking 2018 income of $6.3 billion, an increase of 18.6 percent over 2017 earnings.
The company said its operating and financial performance last year was one of the best in its history as a result of several significant market launches; growth in major lines of business; and strong financial performance.
Fidelity earned record revenue for parent company FMR LLC, totaling $20.4 billion in 2018, an increase of 11.5 percent over 2017. In addition, FMR topped the $6 billion level in annual income for the first time. FMR closed out the year with $6.3 billion in operating income, an increase of 18.6 percent from 2017.
Net asset flows to Fidelity’s platform, both managed and non-managed, totaled $309 billion, representing a 19.6 percent increase from $258.3 billion in 2017. Record annual net flows of $100.8 billion for discretionary products increased 318 percent year over year, up from $24.1 billion in 2017 and $9.3 billion in 2016.
Fidelity closed 2018 with $6.69 trillion in investor assets under administration (AUA), down 1.50 percent from year-end 2017. Most domestic and global asset classes experienced declines during 2018.
In aggregate, Fidelity reported its mutual funds beat 66 percent, 72 percent and 76 percent of peers for the trailing one-, three-, and five-year periods, respectively, ending Dec. 31. This compares with 78 percent, 77 percent and 76 percent in 2017.
For the fifth consecutive year, Fidelity Clearing & Custody Solutions (FCCS) added more than $100 billion in net new client assets from its registered investment advisor, bank, broker-dealer and family office segments. Managed account assets on the FCCS platform reached nearly $185 billion. The Fidelity Institution Asset Management (FIAM) business achieved rapid growth in the areas of integrated solutions and passive investing.
Founded in 1946, Fidelity Investments is a privately owned multinational financial services corporation.