Fidelity is a household name in the retirement market with a long history, and their advisor sales and service model is becoming very well- established.  In 1995, using an outside record keeping provider, Fidelity’s interest in advisors began to grow with their increased importance to sponsors and participants.  For advisors focused on this market, Fidelity’s brand, technology and value-added services make it a compelling choice.

With more than 2,400 plans and  over $16.7 billion in DC assets, the Fidelity Advisor 401(k) has grown quickly, and reported year-over-year sales increases of 38% in 2005 and 47% in 2006.  Utilizing Fidelity’s proprietary state-of-the-art record keeping and technology since 1998 (supporting over 13 million participants) Fidelity has kept its eye on the ball by consistently helping advisors to assist participants to become retirement-ready.  Any advisor that states they can help prepare participants for a successful retirement and then proves it, is bound to be a winner.  Fidelity’s advisors realize that good technology, service and investments are not enough to separate them from the pack.  With auto enrollment, auto increases, asset allocation funds, education specialists, Spanish participant workshops and customized communications in English and Spanish, Fidelity tries to assist advisors to increase participation, deferral rates, and diversify investments. Using its large client base as a benchmark, Fidelity offers both on-line and print tools to track advisors efforts and report back to plan sponsor clients. 

Fidelity Advisor offers special services such as analysis and investment review tools, including Stylus and FiRM, and plan-level and market review presentations for advisors and plan sponsors.  To help its retirement leader clients, Fidelity offers due diligence events and outside manager calls and meetings.    Under established rules of engagement, the Fidelity direct teams will not call on a plan sold by an advisor using the Fidelity platform.  Neither group encourages advisors to become brokers of record on direct-sold business.  Proprietary investment menu requirements are fund-specific – not asset-specific – with a starting point of 50% of the line-up. With a fairly open platform of 850 funds in various share classes from over 30 fund families, the outside fund research criteria includes a three star, overall rating, and a $100 million asset level where the manager holds a minimum three year tenure.  Sub TA fees are levelized at 25 Basis Points except for index funds.

Senior management at Fidelity Advisor is of the highest caliber, continually demonstrating a strong commitment to advisors.  With institutional share classes, fee-based advisors can access the special support services that commission-based advisors enjoy when working with Fidelity Advisor.  As mutual fund platforms in the small market and advisor-supported mid-market providers become more limited,  Fidelity will continue to strengthen its position as an excellent and obvious choice.

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