BOSTON--(BUSINESS WIRE)--Fidelity Investments® today announced new defined contribution retirement plan sales of $35 billion over the first half of 2015, plus $21 billion in commitments for 2016. Sales for the first six months of 2015 included plans of all sizes, ranging from large corporations to tax-exempt employers, and emerging companies that often leverage advisors in their selection process. In total, plans sold in 2015 represent nearly 800 employers with 700,000 employees.
“Our singular focus on delivering an outstanding customer experience has created new business opportunities for Fidelity, especially in the smaller end of the market where we won more than $8 billion in sales already this year,” said Jim MacDonald, president, Workplace Investing, Fidelity Investments.
The firm works closely with financial advisors whose insights help guide employers in their provider choice. As a result, Airbnb, NerdWallet, eSilicon and Prysm, each emerging companies in Silicon Valley, chose Fidelity for its retirement savings expertise and services. Fidelity also won business from tax-exempt health care institutions Allegiance Health, based in Jackson, Mich. and UnityPoint Health of West Des Moines, Iowa.
“We appreciate the continued confidence our current clients have in our people, service and products,” continued MacDonald. “This trust was demonstrated in our ability to retain 99 percent of our business as of the mid-year mark.”
Clients representing more than $100 billion in assets under administration extended their relationship with Fidelity and include Delta Airlines, General Motors, Halliburton, Amway, Wolters Kluwer, Synopsys, First American Financial Corporation and Marshfield Clinic, the largest private group medical practice in Wisconsin. In addition, Blue Cross and Blue Shield of Minnesota and University of Vermont Medical Center deepened their relationship by adding Portfolio Advisory Services, Fidelity’s workplace managed account solution.
Umbrella Effect – More Clients Seeking One Provider for Multiple Benefits
Companies are increasingly seeking a provider that can deliver multiple benefits on one platform. Many Fidelity clients now offer high-deductible health plans with health savings accounts as a complement to their 401(k). This combination makes for a powerful savings opportunity for employees, including helping them prepare for the escalating health care expenses they may face in retirement. Companies are also incorporating managed accounts and company stock plans onto the same platform as their workplace savings plan. This integration offers benefits teams simplified administration from a single provider, enabling them to better support the needs of today’s evolving workforce.
“Employers expect high levels of service, quality and performance from their benefits provider,” added MacDonald. “Fidelity’s ability to integrate and manage multiple benefit offerings on one platform, plus offer innovative tools and insight on outcome-driven plan design, has us well-positioned to meet the growing needs of sponsors and their employees, as our client roster continues to grow.”
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 $5.2 trillion, including managed assets of $2.1 trillion as of June 30, 2015, we focus on meeting the unique needs of a diverse set of customers: helping more than 24 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 technology solutions to invest their own clients’ money. Privately held for nearly 70 years, Fidelity employs 41,000 associates who are focused on the long-term success of our customers. For more information about Fidelity Investments, visit https://www.fidelity.com/about.
Portfolio Advisory Services is a service of Strategic Advisers, Inc., a registered investment adviser and a Fidelity Investments company.
Fidelity Brokerage Services LLC, Member NYSE, SIPC
900 Salem Street, Smithfield, RI 02917
Fidelity Investments Institutional Services Company, Inc.,
500 Salem Street, Smithfield, RI 02917
National Financial Services LLC, Member NYSE, SIPC,
200 Seaport Boulevard, Boston, MA 02110
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