Fidelity’s advice offerings are not as broad as Charles Schwab’s. For instance, Fidelity does not advise on individual stocks. It does offer Lehman Brothers’ research, however, for self-directed investors. For retail clients who want their money managed by Fidelity, the product they get is Portfolio Advisory Services or Private Portfolio Service, which have about $30 billion under management. Both are mutual fund wrap programs. The main difference between PAS and PPS is that PPS will take a client’s existing stock holdings and slowly convert them to funds or manage them alongside a fund portfolio, while PAS only manages fund portfolios. PPS is thus sold to individuals seeking tax-sensitive management. In addition, PPS has a higher minimum of $300,000, versus $50,000 for PAS.
PAS “is a convenient, economical way to help ensure that your portfolio of $50,000 or more is actively managed for the long term by our experienced professionals,” says the PAS brochure. “After identifying the most appropriate model portfolio for you, they’ll make ongoing investment decisions using the time-tested investing disciplines for which we are renowned–objectivity, balance, and a long-term perspective.”