Fidelity Investments: Performance, Strategies, And Future Outlook

Fidelity Investments is an American multinational financial services corporation based in Boston, Massachusetts. It is one of the largest mutual fund companies in the US, offering financial products and services to over 50 million individuals. The company was founded in 1946 and is still managed by the family who own 49% of it. Fidelity Investments operates a brokerage firm, manages mutual funds, provides fund distribution and investment advice, and offers retirement services, index funds, wealth management, and more. The company has been recognised for its customer service, innovation, and commitment to diversity, and has a global presence spanning 11 countries.

Fidelity's history and ownership

Fidelity Investments, formerly known as Fidelity Management & Research (FMR), is an American multinational financial services corporation based in Boston, Massachusetts. It was established in 1946 and is one of the largest asset managers in the world, with $5.8 trillion in assets under management and $15 trillion in assets under administration as of September 2024. The company has a long history that dates back to the creation of the "Fidelity Fund" in 1930, which was the only fund approved by John C. Hull during his term as Securities Director for Massachusetts due to widespread bank failures. The fund was later incorporated as Fidelity Management & Research (FMR) in 1946 under Edward C. Johnson II, who is considered the founder of the company.

The Johnson family, the founding family of Fidelity, has maintained ownership and control of the company throughout its history. They own 49% of the voting interest in FMR and have signed agreements to vote as a bloc. Abigail Johnson, the current CEO and chairman of FMR, is the third generation of the Johnson family to lead the company. She was named CEO in 2014 and chairman in 2016, taking over from her father, Edward Johnson III. Abigail was once the largest single shareholder with about 25% ownership, but she sold a significant portion of her shares to family trusts in 2005.

Fidelity has undergone several changes and expansions over the years. In 1969, they formed Fidelity International Limited (FIL) to serve non-U.S. markets, and it was later spun off as an independent entity owned by its employees in 1980. The company started offering 401(k) products in 1982 and introduced computerized stock trading in 1984. In the following decades, Fidelity continued to grow and expand its services, including launching its first ETF in 2003 and establishing a separate entity dedicated to institutional cryptoasset custody and cryptocurrency trading in 2018.

In addition to the Johnson family's ownership, most of the remaining 51% of the company is held by various Fidelity employees and ex-employees, including fund managers and ex-managers. The company has a global presence, with operations and offices in several countries, including the United States, Canada, India, Ireland, and Japan.

The services it provides

Fidelity Investments, formerly known as Fidelity Management & Research (FMR), is an American multinational financial services corporation based in Boston, Massachusetts. Established in 1946, the company is one of the largest asset managers in the world, with $5.8 trillion in assets under management and $15 trillion in assets under administration as of September 2024.

Fidelity offers a wide range of services to its customers, including:

Retirement Services

Fidelity helps its customers plan and save for retirement. The company offers a range of retirement plan options, including 401(k) plans, IRAs (Individual Retirement Accounts), and pension plans. They also provide tools and resources to help individuals manage their retirement planning and investment options to suit their needs, such as the Fidelity Roth IRA, which offers flexibility in saving for retirement while balancing long-term and short-term goals.

Wealth Management

Fidelity provides wealth management services to individuals, families, and institutions. They offer investment advice, asset management, and financial planning to help customers grow and protect their wealth. Fidelity's dedicated team of professionals works closely with clients to create customized plans tailored to their financial goals.

Brokerage Services

Fidelity operates as a brokerage firm, providing customers with the ability to invest in stocks, ETFs, mutual funds, CDs, and more. The company offers a range of account choices, allowing individuals to manage their own investments or seek guidance from Fidelity's advisors. Fidelity was rated the "#1 for Overall Broker" and does not charge any fees or minimums to open a retail brokerage account.

Financial Planning and Advice

Fidelity offers financial planning and advice to help individuals, including young and first-time investors, achieve their financial goals. They provide educational resources, retirement planning assistance, and support in areas such as saving for college or a new home. The company's cash management products also help individuals spend and save smarter.

Online Trading

Fidelity enables customers to engage in online trading across various asset classes, including stocks, ETFs, mutual funds, bonds, and more. The company provides online tools and resources to facilitate trading and has introduced innovations such as computerized trading and mobile trading applications.

Life Insurance and Other Services

In addition to the above, Fidelity offers life insurance, benefits consulting, stock plan services, and health and welfare administration. The company also has a presence in other industries, such as real estate and telecommunications, through its Devonshire Investors arm.

Awards and recognition

Fidelity Investments, formerly known as Fidelity Management & Research (FMR), is an American multinational financial services corporation based in Boston, Massachusetts. It is one of the largest asset managers in the world, with US$5.8 trillion in assets under management and US$15.0 trillion in assets under administration as of September 2024.

2024

• Ranked No. 1 overall out of 17 online brokers by StockBrokers.com in their 2024 Annual Awards.
• Named Best Online Broker by Kiplinger's magazine in their August 2024 Online Broker Survey.
• Rated No. 1 Online Broker by Investor's Business Daily in their September 2024 Most Trusted Financial Companies Survey.
• Named Best Overall Online Broker by Investopedia in February 2023.
• Named Best Broker for Low Costs by Investopedia in February 2023.
• Won 32 U.S. Lipper Fund Awards, which honour fund management firms and individual mutual funds that have outperformed peers based on risk-adjusted, consistent returns.
• Named Best Broker for Bond Investors by NerdWallet.
• Eddie Yoon, Fidelity® Select Medical Technology and Devices Portfolio, was named Bloomberg 2018 Stock Picker of the Year.
• Joel Tillinghast, Fidelity® Low Priced Stock Fund, was named Morningstar's 2021 Outstanding Portfolio Manager.
• Named the best HSA provider for the sixth consecutive year.
• FDTX Wins 2024 ETF.com Award for the Fidelity® Disruptive Technology ETF.

2023

• Named NerdWallet's winner for Best Online Broker for Beginning Investors, Best Online Broker for IRA Investing, and Best App for Investing.
• Ranked No. 1 overall out of 17 online brokers by StockBrokers.com in their 2023 Online Broker Review.
• Named Best Online Broker by Barron's in their June 2023 Online Broker Survey.
• Named Best Overall Online Broker by Investor's Business Daily in January 2022.
• Named Best Online Broker for Beginning Investors by StockBrokers.com in January 2023.
• Named Best Online Broker by Kiplinger's magazine in their August 2023 Online Broker Survey.
• Named Best Broker for Low Costs by Kiplinger's magazine in their August 2023 Online Broker Survey.
• Named Best Broker for ETFs by Investopedia in February 2023.
• Named Best Broker for Low Costs by Investopedia in February 2023.
• Named the #1 Most Trusted Wealth Management Company by Investor's Business Daily in September 2023.

2022

• Named Best Online Broker for Beginning Investors by NerdWallet.
• Named Best Online Broker for IRA Investing by NerdWallet.
• Named Best App for Investing by NerdWallet.
• Ranked No. 1 overall out of 15 online brokers by StockBrokers.com in their 2022 Online Broker Review.
• Named Best Workplace in Salt Lake City by Salt Lake Tribune.

Its global presence

Fidelity Investments, formerly known as Fidelity Management & Research (FMR), is an American multinational financial services corporation based in Boston, Massachusetts. Established in 1946, the company has a global presence spanning 11 countries across North America, Europe, Asia, and Australia.

In 1969, the company formed Fidelity International Limited (FIL) to serve non-U.S. markets, which was subsequently spun off in 1980 into an independent entity owned by its employees. FIL has offices in several countries, including Austria, Canada, France, Germany, Hong Kong, Japan, the Netherlands, Spain, Sweden, Switzerland, Taiwan, and the United Kingdom.

Fidelity Investments also has a significant presence in India, with over 4,000 employees and its second-largest software development facility located in Bangalore and Chennai. The company established its presence in India in 2004 by opening an office in Mumbai.

In addition to its global reach, Fidelity Investments has expanded its operations within the United States as well. In 1983, the company had its first major expansion outside of Boston, its headquarters, by establishing a presence in Texas. Since then, Fidelity has continued to expand across the country, with regional centers and investor centers in numerous states, including New Mexico, Colorado, Florida, North Carolina, New York, New Jersey, and more.

Fidelity Investments' global presence and expansion reflect its commitment to serving customers worldwide and adapting to the evolving financial needs of its diverse client base.

The company's future plans

Fidelity Investments has a number of future plans, including continuing to expand its services and global presence. With a focus on innovation, the company aims to meet the evolving financial needs of its customers and stay ahead of the competition.

Fidelity Investments' future plans include:

• Expanding its global presence: The company currently operates in 11 countries across North America, Europe, Asia, and Australia. It plans to continue expanding its global reach to better serve its customers and clients around the world.
• Enhancing its digital capabilities: Fidelity Investments is committed to exploring new technologies to enhance the customer experience. For example, it was the first financial services company to develop a financial services application for Google Glass. Additionally, it has integrated Amazon's Echo into its mobile lineup, allowing customers to use voice control to access information.
• Introducing new products and services: The company plans to continue introducing innovative products and services to meet the diverse and evolving financial needs of its customers. For example, in 2021, Fidelity launched "Stocks By The Slice," a program aimed at investors interested in fractional-share ownership and micro-investing. In the same year, the company also established Fidelity Digital Assets, providing services to institutions investing in bitcoin and other digital assets.
• Growing its workforce: In August 2021, Fidelity announced plans to hire 16,000 employees, with 9,000 of those positions to be filled in the second half of the year. This expansion reflects the company's commitment to investing in talent and growing its business.
• Fostering a culture of innovation: Fidelity Investments embraces a culture of innovation, challenging the status quo, and taking intelligent risks. This mindset has guided the company since its founding and continues to drive its success in the world of investing.
• Strengthening its position in the market: As the financial industry evolves and customer needs become more complex, Fidelity aims to strengthen its position as a pioneer in the industry. By staying ahead of industry trends and leveraging its expertise, the company will continue to meet the changing needs of its customers.
• Focusing on sustainability: Fidelity Investments is committed to environmentally friendly practices and has incorporated eco-friendly features into its building designs and operations. This includes LEED-certified buildings and the use of renewable energy sources.

Frequently asked questions