September 13, 2016 – Boston – Outstanding customer service and product innovations are leading to unprecedented sales for Fidelity Investments’ defined contribution (DC) business. As of June 30, Fidelity added nearly $65 billion in DC assets from approximately 1,350 employers, with $14 billion already committed for 2017. In addition, Fidelity retained 99 percent of its existing DC clients, many of whom have gone through evaluations of their provider relationships in an increasingly competitive marketplace.
A significant amount of employers are adding multiple Fidelity products such as managed accounts, stock plan services, health savings accounts (HSA) and payroll to help simplify the employee experience. For example, United Airlines consolidated its non-pilot 401(k) plans with Fidelity this year, extending a positive relationship that includes Fidelity as the service provider of United’s equity compensation plan.
In addition, Fidelity’s Financial Wellness offering is experiencing significant employer interest – 98 percent of Fidelity’s DC clients have adopted the program and over 250,000 people completed Fidelity’s Money Checkup assessment over the past three months. This high level of demand is in response to employees asking for more financial wellness solutions, since most people (88 percent)1 are not confident about their financial future.
“We’re bringing on new corporate and not-for-profit clients of all sizes, from emerging startups to large global enterprises, and we continue to see a demand in all markets for quality service and expanded products beyond DC recordkeeping,” said Jim MacDonald, president, Workplace Investing, Fidelity Investments.
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