In the Wake of Record Growth, Fidelity Launches New Enhancements to Workplace Managed Account Platform

  • Managed Accounts
  • 401(k)
  • Managed Accounts
  • Retirement Accounts
  • 401(k)
  • Managed Accounts
  • Retirement Accounts
  • 401(k)
  • Managed Accounts
  • Retirement Accounts
  • 401(k)
  • Managed Accounts
  • Retirement Accounts

BOSTON — With the growing popularity of "do it for me" strategies among 401(k) savers, Fidelity Investments is expanding its offering for people who want professional help managing their retirement savings.

"Do it for me" investment solutions, including target date funds and managed accounts, are increasingly popular, and Fidelity's managed account platform recently surpassed one million1 accounts, with nearly 300,000 of them in workplace savings plans like 401(k)s and 403(b)s. However, as the number of employees using these options increases, employers are demanding more flexibility and choice to give their employees the professionally managed strategy that best fits their retirement savings needs.

In response to this demand, Fidelity has released two enhancements:

  • Smart QDIASM. Most employees who are automatically enrolled in their 401(k) are defaulted into an age-appropriate target date fund.2 However, employees have different investing needs, and with Fidelity's Smart QDIA3, employers can make use of two defaults — a target date fund and Fidelity's managed account service, Fidelity® Portfolio Advisory Service at Work (PAS-W) — to help keep employees on a path to financial security. Employers can customize and set criteria to determine each employee's default investment based on factors including age, account balance and other financial indicators.
  • Index-based managed account. Fidelity is expanding the managed account offering to include an index-based managed account, which will track to a market benchmark using index funds from the employer's 401(k) lineup. The Index-based managed account complements Fidelity's Core offering and gives employers the option to choose the solution that best aligns with their investment philosophy and plan objectives.

"As more employees view their retirement savings as part of their overall financial wellness, employers need flexible solutions that can help their employees' investment needs," said Sangeeta Moorjani, Head of Fidelity's Workplace Managed Accounts business. "We're pleased to enhance our offering while continuing to provide clients with a seamless managed account service to meet the evolving demands of workplace investors."

Fidelity experiences record growth for PAS-W in 2016

These enhancements come as Fidelity's managed account offering is experiencing record growth4.

  • Fidelity added more than 750 plan sponsors to its PAS-W business for a total of nearly 4,500 clients at the end of 2016, up 16 percent over the prior year.
  • Enrolled participants in the service grew 26 percent in 2016 to 300,000, which is five times the number of enrolled participants from five years ago.
  • Assets under management grew 41 percent to $20.4 billion, nearly triple the $7.3 billion reported at the end of 2013.
  • Fidelity's overall managed account business, including both Portfolio Advisory Services and Portfolio Advisory Service at Work, grew to $243 billion in 2016, an increase of 35 percent from the end of 2013.

While most of Fidelity's business represents organizations that added a managed account to their benefits platform for the first time, many clients were in a competing managed account and replaced it with Fidelity's offering. In 2016, clients representing 90,000 employees and nearly $10 billion in assets switched from a competing managed account to Fidelity's PAS-W, and another 135,000 employees and $13 billion in assets are projected to move to PAS-W in early 2017.

"An increasing number of employers are recognizing that a managed account is another great option for people who need help managing their own retirement savings or staying on track as they transition into and live in retirement ," added Moorjani. "Fidelity believes in guiding participants to the right solution that meets their retirement savings needs, whether that is a target date fund or a managed account."

The integration of PAS-W offers employees a consistent cross-channel experience when saving, planning and investing for retirement, whether they choose to do it themselves or enroll in a professionally managed account. For more information on PAS-W, plan sponsors or consultants can contact their Fidelity representative.

About Fidelity Investments

Fidelity's mission is to inspire better futures and deliver better outcomes for the customers and businesses we serve. With assets under administration of $6.0 trillion, including managed assets of $2.2 trillion as of February 28, 2017, we focus on meeting the unique needs of a diverse set of customers: helping more than 26 million people invest their own life savings, 23,000 businesses manage employee benefit programs, as well as providing more than 12,500 financial advisory firms with investment and technology solutions to invest their own clients' money. Privately held for 70 years, Fidelity employs 45,000 associates who are focused on the long-term success of our customers. For more information about Fidelity Investments, visit https://www.fidelity.com/about.

Our Company

Personal Investing

We provide financial planning and retirement options such as IRAs, annuities, and managed accounts; brokerage and cash management products; college savings accounts; and other financial services for millions of individual investors.

Workplace Investing

We work with employers to build benefit programs for their employees, and provide recordkeeping, investments, and servicing in defined contribution, defined benefit, health & welfare, and stock plan services.

Fidelity Institutional

We bring sophisticated technology and highly personalized service together to offer clearing, custody, investment products, brokerage, and trading services to a wide range of financial firms.

Fidelity Institutional Asset Management

Fidelity Institutional Asset Management is a distribution organization dedicated to the institutional marketplace. It serves consultants and institutional investors, such as defined benefit and defined contribution plans, endowments, and financial advisors.

Fidelity Charitable

Fidelity Charitable is an independent public charity that allows donors to establish a dedicated donor-advised fund to support their favorite charities in the short term and create a systematic plan for longer term philanthropic goals.

Fidelity Labs

Fidelity Labs explores emerging technology and harnesses innovation to benefit Fidelity's businesses and customers.

Discovery Ventures Program

The Discovery Ventures Program is a program focused on startups looking to grow their businesses in the financial services industry. The program is designed to help participating companies better understand how to engage with large enterprises so that they can accelerate their sales into large enterprises and significantly increase their growth.

Careers at Fidelity

Fidelity Careers Sales, relationship management, product, marketing, technology, operations, and corporate functions


Asset Management Careers Investment management and support