Fidelity Investments, commonly known as Fidelity, is a globally influential investment management company with a rich history. Founded in 1946 by Edward C. Johnson, Fidelity has emerged as one of the leading enterprises in the global asset management industry. Headquartered in Boston, Massachusetts, United States, the company's operations span various sectors including mutual funds, pension services, wealth management, securities trading and clearing, as well as life insurance.

Company Overview and Historical Evolution:

Fidelity is renowned for its excellence in active management. Initially focused on investing in railway bonds during its early years, the company maintained a conservative investment style during the Great Depression. However, over time, Fidelity continually adjusted and optimized its investment strategies, gradually shifting towards a diversified asset allocation with a focus on equity assets.

Fidelity's international footprint extends across the globe, with the company venturing into overseas markets as early as 1969. Presently, Fidelity has branches in 25 countries and regions worldwide. Of particular note is Fidelity's rapid business expansion in the Chinese market, where it has obtained approval from the China Securities Regulatory Commission to establish Fidelity Fund Management (China) Co., Ltd., marking a new milestone in its operations in China.

source：FIL

Investment Style and Product Line

Fidelity's investment style has undergone a shift from conservative to proactive, primarily focusing on actively managed funds while also actively developing index funds and ETF products. The company's lineup of mutual fund products is comprehensive, covering various asset classes including equities, fixed income, balanced allocation, and money market funds, catering to the needs of different investors. Fidelity offers a wide range of financial products and services, including but not limited to:

Retirement Services and Market Position

In the retirement services sector, Fidelity holds a leading position in the US market. Through 401(k) plans and Individual Retirement Accounts (IRAs), the company provides retirement savings solutions to millions of American investors. Fidelity's retirement services not only enhance its stickiness with customers but also bring in stable management fee income.

Investment Philosophy and Research Capabilities

Fidelity adheres to fundamental research, with its analyst team providing in-depth micro-level analysis of company operations, forming the basis for investment decisions. Fidelity's strong research capabilities enable it to provide real-time research support globally, ensuring the scientific and forward-looking nature of investment decisions.

With assets under management (AUM) exceeding $4 trillion, Fidelity ranks fourth globally. In the first quarter of 2022, Fidelity's AUM reached $4,283.3 billion, representing a 9% year-over-year increase. Equity assets accounted for approximately 60% of the total, while money market assets accounted for about 20%. On May 8, 2024, Fidelity National Financial Corporation released its first-quarter 2024 financial report, including the following key data points:

source：statementdog

Data as of May 8, 2024

Fidelity's mutual funds are primarily equity funds, with investment coverage spanning both domestic and overseas markets. Among Fidelity mutual funds sold in the US market, equity funds and money market funds are the largest, accounting for 50.46% and 22.59% respectively. Additionally, Fidelity's actively managed funds have a total size of approximately $930 billion, representing about 60% of the size of actively managed equity funds sold in the US.

Future Outlook

Fidelity's future investment direction may focus on the following areas:

●Technology and Innovation: Fidelity's Co-Head of Investments, Jing Ning, suggests that amidst global economic challenges, technological advancements and innovation are crucial for future economic growth. Innovations in technology can serve as key drivers for industrial transformation.
●Retirement Services: With Fidelity's leading market share in both the second and third pillars of retirement services in the United States, it indicates its intention to deepen its retirement business and explore retirement opportunities in international markets.
●Sustainable Investing: Fidelity may continue to promote sustainable investing, integrating sustainability factors across asset classes into its investment process to enhance investment returns and promote responsible asset allocation.

With the flourishing development of financial technology, Fidelity is actively exploring the application of new technologies in investment management. Through artificial intelligence technology, the company aims to improve investment efficiency and customer service experience, while collaborating with industry partners to explore new investment opportunities. Fidelity's comprehensive investment solutions, extensive market experience, and proactive embrace of financial technology innovation have established its leadership position in the global asset management industry.

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