Fidelity Investments® Reports Significant Growth In Workplace Managed Account Business In 2012

Enrolled participants grew by 57 percent while managed assets increased by 50 percent
 
AMD among newly signed clients

BOSTON – Fidelity Investments® today reported that Fidelity Portfolio Advisory Service at Work (PAS-W) – the company’s proprietary managed account offering for workplace retirement accounts – increased both participants and assets by 50 percent or more in 2012.

Fidelity added 440 new plan sponsors – 24 percent growth – for a total of more than 1,700 clients at the end of 2012. These additions represented 484 new plans and 486,000 new eligible participants, which brings total assets to $110 billion for all PAS-W clients. Also, enrolled participants in the service grew by 57 percent in 2012 to 63,000 participants, and assets under management grew by 50 percent to $4.7 billion. New clients – which span various industries and markets – include technology company AMD, among others.

Extending the positive momentum into 2013, Fidelity also reported that it secured 135 new clients in Q1, which represent approximately 217,000 new eligible participants with more than $5.4 billion in assets.

“With increased concerns about market volatility and investor uncertainty, both plan sponsors and their participants are opting for a more personal experience that provides management for their retirement portfolios customized to their plan line-up,” said Sangeeta Moorjani, senior vice president of Fidelity’s Professional Services Group. “Fidelity’s integrated investment approach, combined with more than 20 years of managed account experience, offers those with more complex financial situations the resources and guidance needed to help achieve their desired outcomes.”

Demand for Managed Accounts on the Rise
According to Fidelity data, 56 percent of plan sponsor participants may not be properly allocated1 2 and 88 percent do not rebalance3. Further, 27 percent of workers say that they are “not at all confident” about retirement, an increase of 5 percent from the year before.4

As part of Fidelity’s workplace participant experience, Plan for Life, PAS-W is designed to provide guidance to help sponsors and participants alike build appropriate risk-adjusted model portfolios to help achieve their intended goals. The offering integrates Fidelity’s vast resources to attempt to balance growth and control risk by actively managing investments that are matched to an individual’s financial situation and risk tolerance. The result is a solution that leads to higher participant satisfaction, including a 97 percent retention rate among PAS-W enrollees.5

In addition, PAS-W’s robust cross-channel support includes a variety of communications options that enable the participant to choose his or her preferred method of guidance. These channels range from extensive on-site and phone presence to online tools.

For more information on PAS-W, plan sponsors may contact their Fidelity representative.


About Fidelity Investments
Fidelity Investments is one of the world’s largest providers of financial services, with assets under administration of $4.1 trillion, including managed assets of $1.7 trillion, as of March 31, 2013. Founded in 1946, the firm is a leading provider of investment management, retirement planning, portfolio guidance, brokerage, benefits outsourcing and many other financial products and services to more than 20 million individuals and institutions, as well as through 5,000 financial intermediary firms. For more information about Fidelity Investments, visit www.fidelity.com.

 1 Determination of “not properly allocated” is based on whether a participant is more than +/–10 percentage points off from the Fidelity Freedom® Fund equity rolldown schedule. The Fidelity Freedom® Fund rolldown assumes a retirement age of 65. Freedom Funds are target-date lifecycle funds designed to become more conservative and to hold a smaller percentage of equities as investors approach their retirement date. Investors should allocate assets based on individual risk tolerance, investment time horizon, and personal financial situation. A particular asset allocation may be achieved by using different allocations in different accounts or by using the same one across multiple accounts. The equity rolldown is not intended as a benchmark for individual investors; rather, it is a range of equity allocations that may be appropriate for many investors saving for retirement and retiring at age 65.
2 Based on Fidelity Investments recordkept data of corporate defined contribution (DC) plans of nearly 20,000 plans and 11.8 million participants, as of March 31, 2012.
3 Source: Includes all participants who are not 100% invested in either a target date fund or managed account.
4 2011 Retirement Confidence Survey (RCS); March 15, 2011.
5 Percentage of participants who maintained a PAS-W account, measured from 1/1/2010 through 12/31/2012.