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Friday, February 22, 2019|
Fidelity Institutional Holds Steady
A giant RIA custody and brokerage clearing specialist kept assets steady last year, despite market woes.
FI (which includes Fidelity Clearing & Custody Solutions, i.e. FCCS, the unit that handles RIA custody and broker-dealer clearing) ended 2018 with $2.6 trillion in assets under administration, level with the end of 2017 (while the S&P 500, for example, fell 4.4 percent). FCCS added more than $100 billion in net new client assets for a fifth year in a row.
Meanwhile, Fidelity's AUM fell 1.0 percent to $2.42 trillion at the end of 2018, and AUA, fell 1.5 percent to $6.69 trillion. In the AM section on pages 21 through 23, AM's new president, Stephen Neff, confirms that Fidelity's discretionary AM products brought in $100.8 billion in net inflows in 2018, a 318-percent increase, despite net active equity product outflows of $53.2 billion.
Fidelity parent FMR brought in record revenue of $20.4 billion last year, up 11.5 percent, chairman and CEO Abby Johnson confirms in her letter (pages 2 through 10). FMR's operating income rose 18.6 percent to a record $6.3 billion, while operating expenses rose 8.6 percent to $14.1 billion.
Printed from: MFWire.com/story.asp?s=59367
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