Fidelity’s Workplace Retirement Business Adds $65 Billion in New DC Assets in the First Half of 2016

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  • Saving for Retirement
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BOSTON — Outstanding customer service and product innovations are leading to unprecedented sales for Fidelity Investments' defined contribution (DC) business. As of June 30, Fidelity added nearly $65 billion in DC assets from approximately 1,350 employers, with $14 billion already committed for 2017. In addition, Fidelity retained 99 percent of its existing DC clients, many of whom have gone through evaluations of their provider relationships in an increasingly competitive marketplace.

A significant amount of employers are adding multiple Fidelity products such as managed accounts, stock plan services, health savings accounts (HSA) and payroll to help simplify the employee experience. For example, United Airlines consolidated its non-pilot 401(k) plans with Fidelity this year, extending a positive relationship that includes Fidelity as the service provider of United's equity compensation plan.

In addition, Fidelity's Financial Wellness offering is experiencing significant employer interest – 98 percent of Fidelity's DC clients have adopted the program and over 250,000 people completed Fidelity's Money Checkup assessment over the past three months. This high level of demand is in response to employees asking for more financial wellness solutions, since most people (88 percent)1 are not confident about their financial future.

"We're bringing on new corporate and not-for-profit clients of all sizes, from emerging startups to large global enterprises, and we continue to see a demand in all markets for quality service and expanded products beyond DC recordkeeping," said Jim MacDonald, president, Workplace Investing, Fidelity Investments.

Some of the organizations2 who turned to Fidelity this year are Xylem, a leading global water technology company; Estes, Thorne & Carr, a law firm in Dallas; and St. Luke's Hospital, a not-for-profit health care provider in Chesterfield, Mo. These employers also adopted Fidelity's Portfolio Advisory Service at Work to give their employees professional management of their retirement plan account assets.

For those clients using a third party to guide their provider choice, such as Coinbase3 of San Francisco, the largest bitcoin platform in the U.S., Fidelity recently announced FidelityConnect®, a website for retirement advisors that simplifies how they manage their workplace plans with Fidelity.

"Fidelity is easy to do business with," said Jody Giles, senior vice president of Old National Wealth Management, an advisory firm in Evansville, Ind. that recordkeeps multiple DC plans with Fidelity. "Their expertise servicing and designing retirement plans offers me more time to support my clients, not administration."

About Fidelity Investments

Fidelity's goal is to make financial expertise broadly accessible and effective in helping people live the lives they want. With assets under administration of $5.6 trillion, including managed assets of $2.1 trillion as of July 31, 2016, we focus on meeting the unique needs of a diverse set of customers: helping more than 25 million people invest their own life savings, nearly 20,000 businesses manage employee benefit programs, as well as providing nearly 10,000 advisory firms with investment and technology solutions to invest their own clients' money. Privately held for nearly 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.

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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.

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