Fidelity Investments reported Oct. 2 that it has added more than $148 billion in assets from new workplace savings and company stock plan clients so far in 2020.
More than 1,200 new organizations have joined Fidelity’s platform to date in 2020, including Fortune 500 companies, tech startups, universities and nonprofits, the company announced in a news release. With this year’s “record sales numbers,” Fidelity’s platform now includes 24,400 total workplace clients representing 32.2 million participant accounts and more than $2.5 trillion in client assets.
Fidelity’s defined contribution (DC) business, which includes 401(k) plans and 403(b) plans, added a record $115.5 billion in sales to its platform, driven by record sales across nearly every market. This new business includes more than 1,000 new clients where Fidelity teams with a financial advisor to manage their plan.
New 401(k) clients include the Cleveland Browns NFL football team as well as Walgreens, one of the largest drugstore chains in the U.S., which in August 2019 was sued for $300 million by a group of its 401(k) plan participants because the plan under its previous administrator had target-date funds that allegedly performed worse than 70% to 90% of peer funds.
New clients added to Fidelity’s 403(b) platform, which experienced a record 200% growth in assets over 2019, include Reform Pension Board, which provides clergy, professionals, educators, and other staff of Reform Movement congregations and other qualified organizations with plans and programs to help them achieve their retirement goals.
Additional new clients in the higher education market include Indiana University, one of the top educational and research institutions in the country with over 110,000 students across seven campuses.
Boston-based Fidelity Investments said its record sales across workplace savings and company stock plans were driven by several factors, including the company’s ability to offer multiple workplace benefits, including health savings accounts, managed accounts, workplace giving programs, payroll solutions and student debt repayment programs, on a single, unified platform.
More than 800 of Fidelity’s new clients are leveraging multiple workplace benefits.
New clients cited Fidelity’s continued investment in new products and technologies as a significant factor in their decision, including improved mobile capabilities, enhanced cybersecurity, expanded investment in cloud computing to improve access to data and analytics, and additional features to help employees understand and engage with the benefits available to them.
The company said plan sponsors also noted the strength and stability of Fidelity’s platform.
“Organizations of all sizes consider workplace benefit plans as an important tool in attracting and retaining top talent, as well as an important part of the overall well-being of their employees. As a result, they are extremely selective about the provider they choose to manage these plans,” said Kevin Barry, president, Workplace Investing, Fidelity Investments. “As part of our effort to be the industry’s most trusted benefits provider, we continue to invest in our technology infrastructure and focus on adding additional associates in order to continue to provide the exceptional levels of customer service our clients have come to expect from Fidelity.”
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
