Fidelity Institutional ended 2012 with record level of assets

Firm's RIA chief pegs 21% increase to investor interest in independent advice

Feb 8, 2013 @ 12:38 pm

By Dan Jamieson

fidelity, assets under administration, RIA
+ Zoom
(Bloomberg)

Fidelity Institutional Wealth Services attracted record levels of new assets to its platform last year, according to the company, ending the year with $608 billion in assets under administration for 3,300 institutional clients.

Such assets rose 21% over 2011. Net new assets were nearly one and a half times higher than in 2011, firm officials said.

Mike Durbin, head of Fidelity's registered investment adviser custody unit, chalked the performance up to “a secular momentum in the independent space.”

Fidelity runs second, behind Schwab Advisor Services, which finished the year with $788.5 billion in assets held for nearly 7,000 advisers.

The numbers aren't directly comparable because Fidelity counts assets held for banks and third-party administrators.

And privately held Fidelity doesn't break out net new assets or the number of pure RIA breakaways versus hybrid advisers landed by its correspondent broker-dealer firms.

Fidelity's National Financial Services LLC is a major player in clearing.

At the RIA unit, Mr. Durbin said growth came across the board, with much of it coming from Fidelity's existing adviser base.

“Increasingly, end-consumers are alert to the merits of an independent provider” and are seeking out RIA firms, he said.

Separately, this week, Fidelity released results of its annual adviser benchmarking study , based on a survey of more than 300 firms last summer.

Results showed that the top 25% of firms ranked by performance were more selective in their service offerings. Most advisory firms offer financial and retirement planning, but fewer top firms offer estate/trust planning, philanthropic planning, insurance planning or tax planning.

Top-performing firms also charge higher fees across the board, for all client sizes — a median of 100 basis points on a $2 million account, for example, versus 95 basis points by all other firms, and just 82 basis points by firms with less than $50 million under management.

“Our experience shows that those [top] firms are so strong and so successful, they do not seem to be feeling the same secular downward pressure on fees that we read about,” Mr. Durbin said.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

Perspectives from a NextGen adviser

Male advisers still outnumber female advisers 4 to 1. Allei Holway of AXA talks about why becoming an adviser appealed to her and why more millennials are a good fit for this industry.

Video Spotlight

A Teacher’s Lesson Plan

Sponsored by Prudential

Latest news & opinion

Plaintiffs win in Tibble vs. Edison 401(k) fee case

After a decade of activity around the lawsuit, including a hearing before the U.S. Supreme Court, judge rules a prudent fiduciary would have invested in institutional shares.

Advisers get more breathing room to make Form ADV changes

RIAs can enter '0' in some new parts of the document before their annual filing next year.

Since banking scandal, Wells Fargo advisers with more than $19.2 billion leave firm

Despite a trying year, the firm has said it will sweeten signing bonuses for veteran advisers.

Is LPL's deal sweet enough for NPH's 3,200 reps and advisers?

They will have to decide if the signing package they are being offered by LPL makes sense. A lot is hanging in the balance.

Eduardo Repetto to leave Dimensional Fund Advisors

Gerald O'Reilly, currently co-CIO, will take over as co-CEO with David Butler.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print