An advisory solution for ‘digital first’ investorsFidelity Go is an easy to use digital solution that keeps investors’ money on track
BOSTON, July 28, 2016 – Building on its long history of offering industry-leading managed account solutions and online planning tools, Fidelity Investments® announced today the national launch of Fidelity GoSM, an advisory solution designed for investors seeking a trusted team1 to manage their money through a simple and efficient digital experience.
- Fidelity Go was developed in collaboration with younger, digitally-savvy investors, and is a unique combination of a professionally managed portfolio, an easy-to-use digital dashboard, integration with Fidelity’s broader investment tools and services, and an all-in cost2 that is among the lowest in the industry.
Fidelity Go features:
- Portfolios constructed, monitored and rebalanced over time by investment professionals – not simply by an automated “robo” algorithm – available at a minimum investment of $5,000.
- A transparent advisory fee and underlying investment portfolios that include Fidelity Index Funds Premium Class and Institutional Class, some of the lowest cost offerings in the market. Current all-in costs, including the advisory fee and underlying fund fees, range from 0.35 – 0.40 percent, which may vary over time based on changes in the underlying investments.
- Convenient access across smartphones, tablets and desktops to deposit and withdraw funds, monitor progress to goal, and receive updates and alerts.
“Fidelity Go makes professionally managed portfolios broadly accessible by helping people move from saving to investing quickly and efficiently, with costs starting at approximately $20 a year3,” said Rich Compson, head of managed accounts at Fidelity. “Our goal is to help people meet their lifetime financial needs, and Fidelity Go is a new way for Fidelity to help digital-first investors and those just getting started.”
Fidelity Go investors also benefit from Fidelity’s broader capabilities, including integration with its online financial planning tools, ongoing monitoring with Fidelity mobile apps including Apple Watch alerts, and the ability to direct the unlimited 2% cash back4 from the new Fidelity Rewards Visa Signature Card into their Fidelity Go accounts. “Integration with Fidelity’s broader experience can help customers both enhance and simplify their financial lives,” said Compson.
How Does Fidelity Go Work?
- Investors visit Fidelity.com/Go and answer seven questions (or more if they choose) about their goals, current financial situation and risk tolerance. Fidelity uses a proprietary profiling methodology developed by Strategic Advisers, Inc. that has been informed by its experience with Fidelity’s suite of financial planning tools, and with Strategic Advisers’ more than 500,000 retail managed accounts customers5.
- Fidelity Go suggests an investment strategy based on the investor’s needs and preferences; investors can accept or change the suggestion, then open the account.
- Retirement and taxable accounts include low-priced Fidelity Index Funds, while the taxable accounts can also include BlackRock iShares ETFs and tax-advantaged municipal bond funds. Both account types typically hold less than 1 percent of assets in money market funds.
Ongoing Management and Monitoring
- Geode Capital Management, an institutional investment adviser that has served as the sub-adviser to the Fidelity equity index funds and other Fidelity products since 2003, invests, monitors and manages the portfolios over time to help achieve customers’ goals. This ongoing management includes rebalancing, commission-free trading, and automatic investment of dividends and new contributions.
- Investors have full transparency into their investments and outcomes, including how they are tracking towards their goals.
- Investors receive regular communications on Fidelity’s perspectives on the market, and educational content including Fidelity Viewpoints.
Access and Support
- Fidelity Go’s responsive design makes it continuously available on desktops, laptops, tablets and smartphones, letting customers access their accounts from anywhere.
- As needed, Fidelity Go customer service representatives are available via online chat and phone to provide assistance.
Building on Fidelity’s 25 Years of Experience Offering Advisory Solutions
Fidelity has been a leader in retail advisory solutions for more than two decades, offering a range of solutions designed to meet the diverse needs of investors. The company’s retail managed accounts business has more than $200 billion in assets and helps more than 500,000 individuals achieve their investing goals6.
Fidelity Go extends this suite of advisory solutions to a broader audience, including investors who may be just starting out. As an investor’s needs change and grow over time, Fidelity’s Portfolio Advisory Services (PAS) offers a spectrum of solutions, including active asset allocation, tax sensitive investing and separately managed accounts. Fidelity is committed to continually enhancing its advisory line up, as evidenced by Fidelity Go and the recently introduced Index-Focused PAS offering.
About Fidelity Investments
Fidelity’s goal is to make financial expertise broadly accessible and effective in helping people live the lives they want. With assets under administration of $5.4 trillion, including managed assets of $2.1 trillion as of June 30, 2016, we focus on meeting the unique needs of a diverse set of customers: helping more than 25 million people invest their own life savings, nearly 20,000 businesses manage employee benefit programs, as well as providing nearly 10,000 advisory firms with investment and technology solutions to invest their own clients’ money. Privately held for nearly 70 years, Fidelity employs 45,000 associates who are focused on the long-term success of our customers. For more information about Fidelity Investments, visit https://www.fidelity.com/about.
© 2016 FMR LLC. All rights reserved.
1 The Fidelity Go team works together to create a comprehensive investment service, with each member of the team playing an important role.
Fidelity Investments, working through Strategic Advisers, Inc., a registered investment adviser and a Fidelity Investments company, assists customers in the selection of an investment strategy.
Fidelity Brokerage Services LLC and National Financial Services LLC, provides brokerage, custodial and all related recordkeeping and reporting services.
Geode Capital Management, LLC, an unaffiliated registered investment adviser that has served as the sub-adviser to the Fidelity equity index funds and other Fidelity products since 2003, manage the accounts on a discretionary basis, including making all day-to-day investment decisions.
2 The Fidelity Go “all-in fee” includes the net advisory fee and all fund related expenses. It does not include extraneous regulatory fees that currently range from $0.01 to $0.03 per $1,000 invested in ETFs.
3 At the minimum investment level of $5,000, the total fees equal $17.50 – $20.00 for Fidelity Go because the total out of pocket customer fees range from 0.35% to 0.40%, which includes the advisory fee and an estimate of the underlying fund fees.
4 Cardmembers will earn 2 Points per dollar in eligible net purchases (purchases minus credits and returns) that you charge. Credits, returns, adjustments and certain transactions do not earn Points. The 2% rewards value applies only to Points redeemed for a deposit into an eligible Fidelity account. The redemption value is different if you choose to redeem your Points for other rewards such as travel options, merchandise, gift cards, and/or a statement credit. Other restrictions apply. Full details appear in the Program Rules new card customers receive with their card. Establishment or ownership of a Fidelity account or other relationship with Fidelity Investments is not required to obtain a card or to be eligible to use Points to obtain any rewards offered under the program other than Fidelity Rewards. The creditor and issuer of this card is Elan Financial Services, pursuant to license from Visa U.S.A. Inc.
5 Based on internal Fidelity business data as of July 27, 2016
6 Based on internal Fidelity business data as of July 27, 2016.