Fidelity officially launches retail robo-adviser
After months of testing, Fidelity Go is up and running, giving investors access to an automated platform with traditional management.
Boston-based fund company Fidelity Investments on Wednesday officially launched its retail robo-adviser, Fidelity Go, after months of testing it out with about 1,000 users.
Investors will have access to an automated platform that includes construction and monitoring by investment professionals once they answer at least seven questions about their finances, goals and risk tolerance. Retirement accounts will exclusively use Fidelity funds, while taxable accounts will use Fidelity funds as well as BlackRock iShares exchange-traded funds and tax-advantaged municipal bond funds. Both types of accounts hold less than one percent of assets in money market funds.
Geode Capital Management, a Boston-based investment firm that has acted as a sub-adviser for Fidelity products for 13 years, will invest, monitor and manage Fidelity Go portfolios. The account minimum is $5,000, and clients are charged 35 to 40 basis points.
The company is focusing on younger, emerging and digitally-savvy investors with the platform, and has worked with this target audience to develop the robo. Users will have access to their accounts, where they can deposit and withdraw funds and receive updates, across desktops and mobile devices. Fidelity has been working on Fidelity Go for six months, said John Danahy, head of digital managed solutions at Fidelity. In March, it began offering it to non-employee users.
“Everyone knows the positive impact starting early has for these investors — it can make a tremendous difference,” Mr. Danahy said. Fidelity Go allows the firm to “grow along with this new cohort and new segment of investors and customers for us.”
Clients with any questions can call or chat with an investment adviser representative, but it is a digital-first solution, Mr. Danahy said. The platform is integrated with Fidelity’s investment and online financial planning tools.
“It is not intended to be an advisory relationship,” he said.
Fidelity is also working on an institutional platform, which will be an integrated experience for investment advisers, bankers and broker-dealers, a spokesman said. More details will be available by the end of the year, he said.
Last year, the company severed its relationship with the institutional arm of robo-adviser Betterment after its year-long “strategic alliance.”
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