What You Need to Know
- In reporting another strong quarterly update, Fidelity said AUM and AUA grew in Q2 from last year.
- New retail account openings increased 39% to 1.7 million, 41% by investors 35 years old or younger.
- The number of accounts opened by investors 35 or younger jumped 65% to 697,000.
Fidelity on Wednesday reported strong growth for the second quarter of 2021, with assets under management increasing 26% from the second quarter last year to $4.2 trillion.
In the quarterly update, Fidelity also reported that its assets under administration, which includes those under management, grew 33% from Q2 last year to $11.1 trillion.
New retail account openings, meanwhile, increased 39% to 1.7 million, and 41% of those accounts were opened by investors 35 years old or younger. The number of accounts opened by investors 35 or younger jumped 65% to 697,000.
At the end of the second quarter, Fidelity accounts totaled 82.8 million, up 11% from the year-ago quarter. But accounts were down from 83.4 million at the end of the first quarter.
Total daily average trades grew 14% from the year-ago quarter to 2.6 million. But that was down from 3.5 million in the first quarter.
New, Expanded Services
Fidelity’s second quarter was also marked by new and expanded services. For example, the firm said it built on its commitment to educate and support the next generation of investors by launching the Fidelity Youth Account, a no-fee saving, spending and investing account designed for teens 13 to 17.
The company, meanwhile, expanded its active fixed income exchange-traded fund offering to include the Fidelity Preferred Securities & Income ETF, now available on Fidelity’s retail brokerage platform.
Fidelity also launched five sustainable mutual funds and ETFs focused on companies addressing climate change, prioritizing and advancing women’s leadership and development, providing environmental solutions or supporting efforts to reduce their environmental footprints, or have proven or improving sustainability practices.
Also new was Fidelity Agency Lending, a digital platform that manages all aspects of securities lending for asset managers and other financial institutions. FAL also announced the commercial expansion of the business to non-Fidelity asset managers and other institutions.