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Overview of Fidelity International
Fidelity International is a prominent global asset management firm, known for providing investment management and retirement solutions across various asset classes. The company serves both individual investors and institutional clients worldwide, with a focus on long-term value creation through active management. Fidelity International has a strong reputation for its research-driven investment strategies and commitment to responsible investing.
Fidelity International Overview Table
| Feature | Details |
|---|---|
| Founded | 1969 |
| Headquarters | Hong Kong |
| CEO | Anne Richards |
| Industry | Asset Management |
| Employees | ~7,500 (2024) |
| AUM (Q1 2024) | $824 Billion |
| Stock Symbol | Private |
How Fidelity International Earns Revenue: A Breakdown of Its Business Model
Fidelity International generates revenue primarily through asset management fees, which are earned from managing investment portfolios, including equities, bonds, and alternative assets. Below is a breakdown of its core revenue streams:
Active Management Fees
- Fidelity International specializes in actively managed equity and bond funds.
- Revenue is generated through management fees from these actively managed funds, which are tailored to meet clients’ investment goals.
Passive Investment Management
- The company offers passive investment products, including index funds and ETFs, which generate fees based on the assets under management.
- This segment caters to cost-conscious investors looking for low-cost passive investment options.
Retirement Solutions
- Fidelity International provides retirement solutions to individual investors and institutions, including pension funds and employee benefit plans.
- The company earns fees for managing these long-term retirement-focused investments.
Wealth Management & Advisory Services
- The company offers wealth management and advisory services to high-net-worth individuals (HNWIs) and institutions.
- These services are charged based on assets under management or advisory fees, providing personalized financial advice and tailored investment strategies.
ESG & Responsible Investing
- Fidelity International has a strong focus on sustainable investing and ESG (Environmental, Social, and Governance) strategies.
- It generates revenue from offering ESG-focused funds and investment solutions.
Revenue Breakdown by Segment (2024)
| Revenue Stream | Contribution (%) |
|---|---|
| Active Management Fees | 45% |
| Passive Investment Management | 20% |
| Retirement Solutions | 15% |
| Wealth Management & Advisory Services | 10% |
| ESG & Responsible Investing | 10% |
Total Assets Under Management (AUM) Growth (2015-2024)
Fidelity International’s AUM has steadily increased due to strong performance across various investment strategies, including active and passive management.
| Year | AUM (USD Billions) | Growth (%) |
|---|---|---|
| 2015 | 500 | – |
| 2016 | 540 | 8.00% |
| 2017 | 590 | 9.26% |
| 2018 | 620 | 5.08% |
| 2019 | 660 | 6.45% |
| 2020 | 700 | 6.06% |
| 2021 | 740 | 5.71% |
| 2022 | 770 | 4.05% |
| 2023 | 800 | 3.90% |
| 2024 | 824 | 3.00% |
Fidelity International’s Revenue Growth (2015-2024)
| Year | Revenue (USD Billions) | Growth (%) |
|---|---|---|
| 2015 | 1.10 | – |
| 2016 | 1.18 | 7.27% |
| 2017 | 1.30 | 10.17% |
| 2018 | 1.40 | 7.69% |
| 2019 | 1.45 | 3.57% |
| 2020 | 1.50 | 3.45% |
| 2021 | 1.60 | 6.67% |
| 2022 | 1.65 | 3.13% |
| 2023 | 1.70 | 3.03% |
| 2024 | 1.75 | 2.94% |
Business Strategy: Key Pillars Driving Fidelity International’s Success
Fidelity International’s growth and success are driven by its focus on investment excellence, innovation, and sustainable practices. Below are the key pillars of the firm’s strategy:
Active Investment Strategies
- Fidelity International’s primary focus is on active management, with a strong emphasis on equity and fixed income funds.
- This strategy aims to outperform benchmarks through careful selection of securities based on deep research and analysis.
Expansion of Passive Investment Offerings
- While Fidelity is known for its active management, it has also expanded its range of passive investment products, such as ETFs and index funds, to meet the needs of cost-conscious investors.
Global Presence & Institutional Focus
- Fidelity International operates in over 25 countries, serving institutional clients such as pension funds, endowments, and sovereign wealth funds.
- The firm’s global footprint and institutional focus allow it to capture a significant portion of the institutional asset management market.
Wealth Management & Financial Planning
- Fidelity offers wealth management services to individuals, including high-net-worth clients, providing personalized investment advice and retirement planning.
- This strategic move helps Fidelity build strong client relationships and generate additional revenue streams.
Commitment to ESG & Responsible Investing
- Fidelity International is committed to offering investment solutions that align with environmental, social, and governance (ESG) principles.
- This focus on responsible investing is in line with growing demand for sustainable investment products.
Innovation & Technology
- Fidelity has made significant investments in technology to improve its investment management, client servicing, and operational efficiency.
- The firm is leveraging technology to enhance decision-making and provide cutting-edge investment solutions to its clients.
Summary
Fidelity International is a leading global asset manager, known for its expertise in active management, strong focus on ESG, and a comprehensive range of investment solutions. With steady growth in both AUM and revenue, Fidelity continues to expand its footprint across institutional and individual markets. The company’s emphasis on responsible investing, innovation, and client-centric solutions positions it for continued success in the competitive asset management industry.
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