Strength Led by Growing Demand from Advisors and Plan Sponsors in Below $50M Market for Leading Platform, Broad Fund Selection and Service
Fidelity Investments®, a leader in helping America’s workforce save for retirement1, today reported strong growth in 2011 defined contribution sales commitments2 in the small-mid market representing assets of $6.6 billion, a 40 percent increase over the previous year. The number of plans sold with $50 million in retirement assets or less reached more than 1,400, a 57 percent jump over the same period last year.
“We see tremendous opportunity in this segment as smaller and mid-sized employers and advisors seek a provider with a leading recordkeeping platform with the flexibility and experience from providing retirement plans to more participants than anyone in the industry,” said Jeffrey Lagarce, executive vice president, Fidelity Investments. “We offer plan sponsors and advisors recordkeeping expertise combined with superior service levels and a growing fund network.”
Fidelity services approximately 11.6 million 401(k) participants in 20,000 plans3 working with both plan sponsors and nearly 3,000 financial advisors. As the industry’s largest retirement provider4, Fidelity is in a unique position to provide smaller and mid-sized employers and their advisors the benefits of the industry’s leading defined contribution platform5, plan design options, and broad fund selection often considered available only to Fortune 100 companies.
Employers and Advisors Continue to Seek Fidelity for Retirement Plans
Burke & Herbert Bank of Northern Virginia, a 401(k) client with nearly 400 participants, worked closely with Fidelity in 2011 to build a workplace retirement plan that incorporates a mix of Fidelity and non-Fidelity funds.
“A rewarding retirement plan is one of the most important benefits an employer can provide its people,” said Emily Debeniotis, Principal Vice President, Human Resources Department of Burke & Herbert Bank. “Working with Fidelity, we built a retirement plan that incorporates a wide array of funds that we believe are best suited for our 401(k) participants. Additionally, our employees have access to the same retirement benefit experience and service offered to employees at some of the nation’s largest companies.”
Additionally, advisors like Bjork Asset Management, a Chicago-based advisory firm, and their plan sponsor clients are increasingly choosing Fidelity for their workplace retirement needs. “When it comes to understanding and serving the needs of my plan sponsor clients and their employees’ needs, Fidelity is second to none,” said Sean C. Bjork, President, Bjork Asset Management. “They work hard to keep our clients happy, and that frees us up to do what we do best—advise our clients.”