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Fidelity launches new investment management solutions for advisors

07/12/2018
- Fidelity Model Portfolios are designed to help advisors build scale and directly apply Fidelity investment solutions to client accounts in a cost-effective way.

BOSTON — Fidelity Investments®, one of the largest and most diversified global financial services firms with more than $7 trillion in assets1 under administration, today announced the launch of Fidelity Model Portfolios – a new offering to complement the portfolio construction capabilities that Fidelity currently provides to advisors. Fidelity Model Portfolios offer advisors a lower cost way to deliver professional, institutional-quality investment management for their clients.

New research finds that 81 percent of advisors use some form of model to construct their clients' portfolios.2 According to Cerulli data, the managed accounts market is estimated at $6 trillion and is expected to grow at a 14.5 percent annual rate over the next few years.3 Fidelity Model Portfolios are designed to support this growing trend by helping advisors manage their clients' investments more efficiently and, in turn, enable them to spend more time building better relationships with their clients and growing their books of business.

"As fee compression continues across the industry, advisors are focused on finding ways to more efficiently manage their clients' assets," said Matt Goulet, senior vice president, Fidelity Institutional Asset Management®. "With this new offering, advisors can feel confident that they're delivering institutional-quality portfolios for their clients, and they can spend more time focusing on services that can help them deliver even higher value, including helping their clients achieve their life goals."

The research also found that of those advisors using model portfolios, roughly half of their client assets are invested in them. According to the survey, the top three reasons that advisors use model portfolios are to help provide better investment outcomes, help efficiently scale their business, and enable them to focus more on providing planning services to their clients.4

Fidelity Model Portfolios offer access to Fidelity's 70 years of investing and portfolio management experience and 25 years of experience managing models which seek to align to risk profiles. The initial offering will include the Fidelity Target Allocation Model Portfolios, which offer five different asset mixes that align to different risk profiles and comprise a mix of Fidelity active and passive mutual funds, with plans to launch additional options later this year. These portfolios enhance Fidelity's current line-up of portfolio capabilities, which include insights from the Capital Markets Strategy team, a robust thought leadership program on portfolio construction, portfolio evaluations with the Portfolio Quick Check diagnostic tool, and consultation from the Portfolio Construction Guidance team.

"The model portfolio space is a natural extension of our existing portfolio construction capabilities," said Goulet. "From insights to implementation, we offer a range of services that support advisors' portfolio needs."

Fidelity Model Portfolios are available to advisors at broker-dealers, registered investment advisors, banks, and insurance companies. For more information, please visit go.fidelity.com/models.

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 $7.0 trillion, including managed assets of $2.5 trillion as of May 31, 2018, we focus on meeting the unique needs of a diverse set of customers: helping more than 27 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 more than 40,000 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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