Fidelity's Annual Report

Fidelity has released its most recent annual report. It includes a Q&A with president, Abby Johnson and chairman Ned Johnson’s letter to Fidelity shareholders. Looks like higher customer asset levels coupled with product, service and productivity enhancements resulted in solid profits for Fidelity . . . again. Click to read the report: Download Fidelity_2013_AR-LR

Some of the highlights:

  • Operating income rose 13% to $2.6 billion; operating revenue was up 8% to $13.6 billion.
  • Total customer assets under administration ended 2013 at a record $4.61 trillion, up 19% from year-end 2011. Total assets under management ended the year at a record $1.94 trillion, a 15% gain since the end of 2012.
  • Fidelity mutual funds achieved reasonably strong results versus their competitors and benchmarks. In aggregate, Fidelity funds beat 66%, 66%, and 74% of peers for the trailing one-, three-, and five-year periods ended December 31, 2013, respectively, compared with 69%, 65%, and 68% for the corresponding periods a year earlier.
  • Net customer purchases of Fidelity administered assets totaled $126.9 billion for the year.
  • Almost a million more people began participating in workplace savings plans administered by Fidelity in 2013.  Fidelity also helped 1.9 million workplace plan participants complete guidance interactions during 2013, a 42% increase over the prior year.
  • Their managed account offerings – including Fidelity Portfolio Advisory Service and Fidelity Personalized Portfolios – generated very strong demand, attracting net inflows of $17.7 billion, more than double the previous year’s rate.