Aug 18, 2020
Fidelity assets reach record of US$3.3T with trading surge
Fidelity Investments’ discretionary assets reached a record of US$3.3 trillion at the end of June, a 15 per cent increase from the year prior, as stock trading surged.
Trading more than doubled to an average of 2.3 million daily transactions in the second quarter as equity markets rebounded, the Boston-based company said Tuesday in a report. Share volume increased 134 per cent to an average of 671 million a day.
The results are more evidence of how Wall Street has roared back from a steep selloff earlier in the year, shaking off concerns about the COVID-19 pandemic and an underlying economy that has seen record job losses and rising unemployment. The S&P 500 briefly touched a record high Tuesday. Fidelity, like other firms including Robinhood Financial, is benefiting from a surge in day trading.
Closely held Fidelity also said it followed through on a plan to hire more than 2,000 people last quarter, including financial consultants and customer service representatives.
Other highlights from the report include:
- Assets under administration reached US$8.3 trillion, up 8 per cent from a year ago.
- Customers opened almost 1.2 million new retail accounts in the second quarter, a new peak.
- Fidelity lowered minimums in its separately managed accounts to US$250,000 from US$500,000 while launching eight new mutual funds and its first commission-free suite of active equity exchange-traded funds.
Fidelity has about 45,000 employees globally, including more than 5,000 in Boston.