Fidelity surpasses $10T in client assets

Fidelity accounts 3/5/21

As markets soared during the first quarter, Fidelity hit a new growth milestone.

The Boston-based financial services company — which spans the asset management, custody, wealth management and retirement markets — grew to $10.4 trillion in assets under administration, up 42.6% from the year-ago period.

It’s the first time Fidelity has reported more than $10 trillion in assets. The company had $9.8 trillion at the end of December.

Fidelity has benefited from the surge in markets since the dip in 2020, caused by the coronavirus pandemic. In addition, younger and more ethnically and racially diverse investors have been entering the market, according to research by FINRA. Fidelity has also seen a spike in breakaway advisory teams moving to the independent RIA channel.

The Boston-based asset and wealth manager and custodian has been rapidly building out its ranks to meet demand. The company announced in early April that it would hire 4,000 new employees, approximately 1,000 of whom would be financial planners. The company brought on 7,200 new associates in 2020. Within its custody unit, the company has been hiring service reps.

Net new assets at Fidelity Institutional, which serves broker-dealers, RIAs, hedge funds and other financial intermediaries, grew by more than 15% in the first quarter of this year, it says.

Average earnings and housing costs are just some of the factors taken into account in a new report.

Fidelity’s growth comes alongside custodial consolidation after the industry’s largest custodian, Charles Schwab, purchased rival TD Ameritrade. Competitors have said there’s an opportunity to stand out and in terms of service and technology in the wake of the Schwab-TD deal.

This quarter, Fidelity landed the State of Connecticut as a 529 plan client.

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