Fidelity Investments: Public Listing And Share Offerings Explored

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 trillions of dollars in assets under management and administration. But is Fidelity Investments listed?

Fidelity's history and corporate structure

Fidelity's History

Fidelity Investments, formerly known as Fidelity Management & Research (FMR), was established in 1946 and is an American multinational financial services corporation based in Boston, Massachusetts. The Fidelity Fund was incorporated in Massachusetts on May 1, 1930, with Edward C. Johnson II serving as president. The corporate structure changed in 1946 and became known as Fidelity Management & Research (FMR).

In 1969, the company formed Fidelity International Limited (FIL) to serve non-U.S. markets and subsequently spun it off in 1980 into an independent entity owned by its employees. In 1982, FMR started offering 401(k) products and, in 1984, it offered computerized stock trading. In 1997, Robert Pozen was named CEO. In 2001, Geode Capital Management was established to run and incubate investment strategies for FMR and was spun off as an independent company in 2003.

In 2003, the company launched its first ETF, the Fidelity Nasdaq Composite Index Tracking Stock Fund (ONEQ). In 2010, Fidelity Ventures, its venture capital arm, was shut down, and many of the employees created Volition Capital. In 2011, Fidelity changed the name of its international division from Fidelity International to Fidelity Worldwide Investment and introduced a new logo. In 2012, the company moved its Boston headquarters to 245 Summer Street.

In 2014, Abigail Johnson became president and CEO of Fidelity Investments (FMR) and chairman of Fidelity International (FIL). In 2018, Fidelity launched a separate entity dedicated to institutional crypto-asset custody and cryptocurrency trading. In May 2019, it was reported that the firm would soon be offering cryptocurrency trading to institutional customers. In October 2019, the company launched Fidelity Digital Asset Services, which handles cryptocurrency custody and trade execution for institutional investors.

In March 2021, FMR filed for introducing a Bitcoin ETF with the SEC. In April 2022, Fidelity Investments announced that it would start offering Bitcoin as an investment option in its 401(k) plans. It is also the first major 401(k) provider to offer cryptocurrency as an investment for retirement savers. In June 2023, Fidelity applied with the United States Securities and Exchange Commission (SEC) to launch a Spot Bitcoin exchange-traded fund (ETF).

Fidelity's Corporate Structure

Fidelity Investments operates a major brokerage firm and has investor centers in over 140 locations throughout the U.S. Through its subsidiary, National Financial Services LLC, Fidelity Investments provides services to its correspondent broker-dealers, institutional investment firms, banks and trusts, family offices, and registered investment advisors. These services include brokerage clearing, back-office support, and a suite of software products for financial services firms.

Fidelity has three fund divisions: Equity (headquartered in Boston, Massachusetts), High-Income (headquartered in Boston), and Fixed-Income (headquartered in Merrimack, New Hampshire). The company's largest equity mutual fund is Fidelity Contrafund, which has $107.4 billion in assets, making it the largest non-indexed fund in the U.S. and the largest fund managed by an individual. William Danoff has managed Contrafund since 1990.

Fidelity Magellan is another large equity fund, with $15.5 billion in assets. Its current manager is Jeffrey Feingold, who also manages the Fidelity Trend Fund. Founded by Ned Johnson in 1963 as the Fidelity International Fund, it was renamed the Magellan Fund in 1965.

Fidelity's largest U.S. operations are located in Merrimack, New Hampshire; Smithfield, Rhode Island; Westlake, Texas; Dallas, Texas; Houston, Texas; San Antonio, Texas; Mission Hills, Kansas; Covington, Kentucky; Durham, North Carolina; Albuquerque, New Mexico; Cincinnati, Ohio; Salt Lake City, Utah; Jacksonville, Florida; Greenwood Village, Colorado; and American Fork, Utah. It also has offices in Canada, India, Ireland, and several European countries.

The services it offers

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 trillions of dollars in assets under management and administration. Here is a detailed overview of the services that Fidelity Investments offers:

Financial Planning and Advice:

Fidelity provides financial planning and advice to help investors, including young and first-time investors, achieve their financial goals. They offer a range of resources, such as educational tools and investment guidance, to empower individuals to make informed decisions about their money.

Retirement Services:

Fidelity assists individuals in planning for retirement, offering a variety of retirement accounts and services. This includes 401(k) plans, retirement savings programs, and the Fidelity Roth IRA, which provides flexibility in saving for retirement while balancing long-term and short-term goals. They also enable individuals to transfer retirement funds from former 401(k) and workplace accounts into a single account without taxes or penalties.

Investment Options:

Fidelity offers a diverse range of investment options, such as stocks, ETFs, mutual funds, CDs, and more. They provide the resources and support for individuals to manage their own investments or guide them through the process. The company also introduced the ZERO Total Market Index Fund and ZERO International Index Fund, which have grown to over $1 billion in assets, offering zero-expense-ratio mutual funds for individual investors.

Brokerage Services:

As a leading brokerage firm, Fidelity provides comprehensive brokerage services, including online trading capabilities. They offer various account choices, enabling individuals to invest on their own or with the support of Fidelity's resources and expertise. The company was also rated #1 for Overall Broker, emphasizing its commitment to putting customers first.

Wealth Management:

Fidelity's wealth management services cater to both individuals and institutions. They create customized plans to help individuals grow and protect their wealth, offering dedicated advisors to partner with clients. Additionally, they support wealth management firms by providing investment and technology solutions to enhance their businesses and meet their clients' evolving financial needs.

Cash and Asset Management:

Fidelity offers cash management products to help individuals spend and save smarter, aligning with their financial goals. They also provide asset management services, including discretionary assets and a diverse range of investment options across asset classes.

Life Insurance and Benefits Consulting:

Fidelity provides life insurance services, ensuring individuals and families are protected. Additionally, they offer benefits consulting, including pension administration, health and welfare administration, and stock plan administration, helping employers create dynamic and integrated benefit programs for their employees.

Cryptocurrency and Digital Assets:

Fidelity has shown a commitment to innovation by launching services related to cryptocurrency and digital assets. They introduced institutional crypto-asset custody and cryptocurrency trading, allowing individuals to include Bitcoin in their 401(k) plans.

Global Presence:

With headquarters in Boston and a global presence spanning North America, Europe, Asia, and Australia, Fidelity serves a diverse customer base with unique needs. They have investor centers in over 140 locations across the United States and additional sites internationally.

Fidelity Investments' range of services reflects its commitment to strengthening the financial well-being of its customers and delivering valuable solutions to individuals, families, employers, and institutions.

The types of investment accounts available

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 trillions of dollars in assets under management and administration.

Fidelity offers a wide range of investment accounts, each serving different purposes and catering to diverse financial goals. Here is an overview of the types of investment accounts available:

• Brokerage Account: The Fidelity Account® is a multi-feature trading and investing account offering a broad range of investment choices, including stocks, bonds, ETFs, options, and mutual funds. It has no account fees or minimums, and you can invest with as little as $1. It offers potential tax-free growth and withdrawals, making it ideal for those seeking flexibility in accessing their funds.
• Roth IRA: This individual retirement account offers tax-free growth and withdrawals once specific conditions are met. It is suitable for those looking for tax-free growth and withdrawals while meeting IRS income limit requirements.
• Traditional IRA: This account helps individuals save and invest for retirement independently from workplace accounts. It offers tax-deferred growth potential, with taxes due upon withdrawal. It provides some access to funds for specific expenses, such as a first home purchase or qualified education expenses.
• Rollover IRA: This account simplifies retirement savings by consolidating old 401(k) and workplace accounts into a centralized location without taxes or penalties. It is ideal for those changing jobs or retiring.
• Inherited IRA: This account is designed for retirement plan beneficiaries who have inherited an IRA or workplace savings plan, such as a 401(k). It helps continue the tax-deferred growth of the inherited retirement account.
• Fidelity Cash Management Account: This account combines the features of a traditional checking account with the flexibility of a brokerage account. It offers check writing, bill pay, a debit card, and competitive rates on cash balances, along with global ATM reimbursement.
• SEP IRA: A Simplified Employee Pension Individual Retirement Account is designed for self-employed individuals and small business owners. It offers tax benefits, easy setup, high contribution limits, and flexibility. However, it does not allow catch-up contributions for individuals aged 50 and older.
• Solo 401(k): This account is tailored for self-employed individuals or small business owners with no employees (except their spouses). It offers employee and employer contribution options, tax benefits, and a wide range of investment choices.
• SIMPLE IRA: A Savings Incentive Match Plan for Employees is ideal for self-employed individuals or small businesses with fewer than 100 employees. It provides tax benefits, easy setup, and a broad range of investment options. However, early withdrawals may be subject to penalties.
• Health Savings Account (HSA): This tax-advantaged account is designed for those with an HSA-eligible health plan, typically a high-deductible health plan. It offers triple tax benefits, flexibility after age 65, and portability. It is well-suited for those saving for current and future medical expenses while seeking tax advantages.
• 529 Plan: This flexible and tax-advantaged investment plan helps save and invest for future education expenses, including K-12 and college tuition, room and board, books, and technology expenses. It offers tax-free withdrawals for qualified education expenses and is applicable in multiple states.
• Fidelity Youth® Account: This teen-owned brokerage account empowers teens ages 13 to 17 to save and invest their money under parental supervision. It offers free account opening, the ability to invest with as little as $1, parental guidance, and financial learning content.
• UGMA/UTMA Brokerage Account: These custodial accounts help adults save and invest for minors. They allow contributions of cash, stocks, bonds, and other securities, with no contribution limits. However, assets and control must be transferred to the minor when they reach adulthood.
• Roth IRA for Kids: This tax-advantaged retirement account is opened for children under 18 and managed by an adult custodian until the child reaches adulthood. It offers a savings head start, emergency access to contributions, and tax-free growth potential.
• Fidelity Go®: This robo-advisor account handles investing for the user, with no minimum balance required to open. It is available for various account types, including Roth IRA, Rollover IRA, Traditional IRA, and SEP IRA.

These investment accounts cater to diverse financial goals, offering flexibility, tax advantages, and a wide range of investment choices.

The company's performance and growth

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 $15.0 trillion in assets under administration as of September 2024.

Fidelity's assets under management climbed 26% in 2019 to a record $3.2 trillion, which helped boost revenue to $20.9 billion and operating income to $6.9 billion. The company's revenue and income have continued to grow, with a 4.6% increase in operating income in March 2021.

Fidelity serves roughly 50 million individuals, 28,000 businesses, and 16,000 wealth management firms. The company has a presence in 11 countries across North America, Europe, Asia, and Australia, with over 76,000 associates.

Fidelity's diverse businesses and independence give it insight into the entire market and the stability and scale needed to act for the long term. The company has a strong focus on innovation, constantly developing new products and services to meet the evolving financial needs of its customers.

Fidelity offers a wide range of financial products and services, including financial planning, advice, brokerage services, wealth management, retirement services, index funds, securities execution and clearance, asset custody, and life insurance. The company also provides innovative investment and technology solutions to support wealth management firms and institutions.

In terms of investment performance, Fidelity's Growth Company Fund has delivered solid returns. Over the past year, the fund has returned 19.66%, with a three-year return of 6.29%, a five-year return of 16.23%, and a 10-year return of 15.54%.

Fidelity's commitment to innovation is evident in its early adoption of new technologies. For example, in 2012, the company established its sector investing division, the ETF Management and Strategy Group. In 2018, Fidelity launched a separate entity dedicated to institutional cryptoasset custody and cryptocurrency trading, and it now offers Bitcoin and Ethereum trading through the Fidelity Crypto platform.

Fidelity's pricing structure is also a key factor in its performance and growth. The company offers many low-cost and fee-free mutual funds, fixed-income products, stocks, and ETFs. Commission and margin rates are relatively low, and numerous services are free, contributing to its reputation as a low-fee, comprehensive investment platform.

Overall, Fidelity Investments has demonstrated strong performance and growth over the years, solidifying its position as one of the leading financial services corporations in the world.

The benefits of using Fidelity

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 trillions of dollars in assets under management and administration.

Wide Range of Services

Fidelity offers a comprehensive range of financial products and services, including investment advice, retirement services, wealth management, securities execution, and life insurance. They also operate a brokerage firm and manage a large family of mutual funds.

Accessibility and Knowledgeable Customer Service

Fidelity provides 24/7 live customer support, specialized trading and fixed-income customer service, and access to financial advisors in their branches. Their customer service is highly accessible and knowledgeable, ensuring customers get the help they need.

Superior Trading Platforms

Fidelity offers excellent investment platforms suitable for all types of investors, from beginners to advanced traders. Their platforms include mobile, desktop, and the downloadable Active Trader Pro, which is highly customizable and comprehensive.

Low Fees and No-Fee Services

Fidelity stands out for its low fees and many fee-free services. They offer $0 commission trades on stocks, ETFs, and options, as well as thousands of $0 commission mutual funds. Additionally, many other services are free, such as account management, returned checks, and more.

Extensive Research and Screening Tools

Fidelity provides superior research and screening capabilities, offering more research than other similarly-sized discount brokerage firms. They offer access to in-depth research reports from over 20 independent research firms and provide a wide range of screeners for stocks, ETFs, mutual funds, fixed-income, and options.

Security and Protection

Fidelity is committed to providing the latest technology to protect your portfolio and personal information. They offer multi-factor authentication, security text alerts, and other security features to give you peace of mind.

Support for Beginners

Fidelity is an excellent choice for beginner investors due to its extensive educational resources, low pricing, and stellar customer service. They offer articles, videos, webinars, and other tools to help new investors get started and make informed decisions.

In summary, Fidelity is a trusted and well-known investment platform that caters to the needs of beginners and advanced investors alike. With their low fees, comprehensive research tools, and accessible customer service, they provide a range of benefits that make managing your financial future easier and more efficient.

Frequently asked questions