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Fidelity launches new investment management solutions for advisers


Fidelity Investments has launched Fidelity Model Portfolios – a new offering to complement the portfolio construction capabilities that Fidelity currently provides to advisers. 

Fidelity Model Portfolios offer advisoes a lower cost way to deliver professional, institutional-quality investment management for their clients.

New research finds that 81 per cent of advisers use some form of model to construct their clients’ portfolios. According to Cerulli data, the managed accounts market is estimated at USD6 trillion and is expected to grow at a 14.5 per cent annual rate over the next few years. Fidelity Model Portfolios are designed to support this growing trend by helping advisors manage their clients’ investments more efficiently and, in turn, enable them to spend more time building better relationships with their clients and growing their books of business.

“As fee compression continues across the industry, advisers are focused on finding ways to more efficiently manage their clients’ assets,” says Matt Goulet, senior vice president, Fidelity Institutional Asset Management®. “With this new offering, advisors can feel confident that they’re delivering institutional-quality portfolios for their clients, and they can spend more time focusing on services that can help them deliver even higher value, including helping their clients achieve their life goals.”

The research also found that of those advisers using model portfolios, roughly half of their client assets are invested in them. According to the survey, the top three reasons that advisers use model portfolios are to help provide better investment outcomes, help efficiently scale their business, and enable them to focus more on providing planning services to their clients.

Fidelity Model Portfolios offer access to Fidelity’s 70 years of investing and portfolio management experience and 25 years of experience managing models which seek to align to risk profiles. The initial offering will include the Fidelity Target Allocation Model Portfolios, which offer five different asset mixes that align to different risk profiles and comprise a mix of Fidelity active and passive mutual funds, with plans to launch additional options later this year. These portfolios enhance Fidelity’s current line-up of portfolio capabilities, which include insights from the Capital Markets Strategy team, a robust thought leadership program on portfolio construction, portfolio evaluations with the Portfolio Quick Check diagnostic tool, and consultation from the Portfolio Construction Guidance team.

“The model portfolio space is a natural extension of our existing portfolio construction capabilities,” says Goulet. “From insights to implementation, we offer a range of services that support advisers’ portfolio needs.”

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