Fidelity Investments is a multinational financial services company that's been in business for more than 70 years. The privately held company’s corporate headquarters are in Boston, and it has regional offices and investor centers located across the U.S. The company serves individuals, businesses and advisors.
Perhaps best known for its mutual funds, Fidelity offers a wide range of services, including retirement planning, life insurance services, investment management, portfolio guidance and brokerage services. Fidelity provides financial advisory services through its portfolio advisory and wealth management programs.
The minimum for the firm's advisory services begins at $50,000, which makes it readily accessible to lower-level investors. However, the firm also offers digital, discretionary investment management services with no minimum requirement, and personalized and planning advice for clients who maintain a $25,000 minimum balance. For its private wealth management services, Fidelity requires clients to invest at least $2 million or more in investable assets.
Fidelity Background
Fidelity was founded in 1946 by Edward C. Johnson. In 1969, Fidelity International Limited was formed to serve non-U.S. markets. Fidelity began offering investment management to investors in 1989, when it launched its portfolio advisory services division.
Fidelity Investments is privately held by FMR LLC, which is under the Johnson family's control. Abby Johnson is currently the chairperson of FMR LLC, making her the third generation to lead the company.
Fidelity Client Types and Minimum Account Sizes
Fidelity’s wide range of account minimums makes it accessible for non-high-net-worth individuals and high-net-worth individuals alike. In addition to individual advisors, Fidelity works with pension and profit-sharing plans, charitable organizations, government entities and businesses.
Fidelity’s account minimums for its asset management services vary by program type. To be eligible for Fidelity® Wealth Services, clients must maintain a minimum account balance of $50,000. Clients who invest in a BlackRock® Diversified Income Portfolio or tax-sensitive program accounts are subject to a $200,000 minimum investment.
The highest account minimum is for the Fidelity Wealth Management Advisory program, which is offered through the firm's Private Wealth Management group and offers "highly personalized service." This option requires a minimum investment of $2 million and at least $10 million in investable assets.
Services Offered by Fidelity
Fidelity offers a wide range of services and products, including:
- Small business retirement plans
- IRAs
- Retirement products
- Retirement planning
- 529 plans
- Charitable giving
- Life insurance and long-term care
- Annuities
- Mutual fund management
- Investment management
- Wealth management
- Portfolio guidance
- Robo-advisory program
For advisory clients, Fidelity can provide advice on areas such as choosing investments, navigating certain life stages, making decisions during big life events and planning for retirement, taxes, insurance and estates.
Fidelity manages assets for high-net-worth and non-high-net-worth individuals, as well as pension and profit sharing plans, charitable organizations, and corporations.
Investment Philosophy
Fidelity says that its clients’ goals are its priority, whether that be saving for retirement or a major purchases. It will also more broadly help clients to grow their assets. The company takes into account clients' investment preferences, current portfolios and tax situations. The exact investments and strategies used in a portfolio depend largely on a client’s investment goals, which inform the program type they’re assigned.
Fidelity Portfolio Advisory Service portfolios, which require the lowest minimum investment, are comprised of an actively managed, diversified mix of funds. Fidelity Personalized Portfolios contain funds, ETFs and stocks, and are actively managed with specific focuses on a client's tax situation and long-term goals. Fidelity Separately Managed Accounts portfolios each focus on a single asset class or a certain investment objective. The most personalizable option is Fidelity Wealth Management Advisory, which offers a comprehensive set of strategies specifically designed to meet a client's individual needs.
Fees Under Fidelity
For Fidelity® Wealth Services, the company charges a gross advisory fee that covers the cost of access to Fidelity representatives, financial planning services and ongoing portfolio management, as well as expenses associated with brokerage, clearing and custody services. In an effort to offset potential conflicts of interest related to Fidelity earning money from the sale of certain investments, clients will get a credit. Gross advisory fees are reduced by the credit amount, which is applied each quarter.
If the total of a client's average account assets on a daily basis falls below $500,000, a client will pay a 1.5% annual gross advisory fee, minus the credit amount. The maximum fee will be $6,250. For accounts above $500,000, the following fee schedule applies:
| Annual Advisory Fee Schedule for Program Accounts | |
| Average Daily Assets | Annual Gross Advisory Fee |
| First $500,000 | 1.25% |
| Next $500,000 | 1.1% |
| Next $1,000,000 | 0.9% |
| Next $3,000,000 | 0.7% |
| More than $5,000,000 | 0.5% |
Keep in mind that the actual fee you pay will be the asset-based fee minus your credit amount.
What to Watch Out For
Fidelity has 13 disclosures reported on its ADV form.
Prospective clients interested in Fidelity’s asset management services should note that only wealth management clients get a dedicated financial advisor. The other types of client account types are overseen by an investment team at Strategic Advisers, Inc., a Fidelity company. For certain Separately Managed Account portfolios, Strategic Advisors will work with other asset managers, including BlackRock Investment Management and Breckinridge Capital Advisors, Inc.
Additionally, Fidelity has disciplinary actions by government regulators on its record - see more below.
Opening an Account With Fidelity
To help prospective clients determine which account type best suits their individual investment goals, Fidelity has them answer a short questionnaire. Interested investors who want to talk to a financial advisor have the option of calling Fidelity at (800) 343-3548, filling out a form to have an advisor contact them or getting free in-person guidance at one of Fidelity’s branch locations.
To find an Investor Center near you, simply go to Fidelity's website, scroll down to the very bottom of the page and enter your zip code to find an Investor Center by zip code.
Fidelity’s corporate headquarters is in downtown Boston. However, the firm has financial advisor branch offices located across the U.S. You can find a complete list of Fidelity’s numerous office locations on its website. In addition to its U.S. offices, Fidelity has a presence in eight other countries across North America, Europe, Asia and Australia.
All information is accurate as of the writing of this article.
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