Fidelity Will Be the First RIA-focused Custodian to Integrate Web-based Rebalancing Tool Into Unified Brokerage Technology Platform

BOSTON — Fidelity Investments today announced that it will integrate a sophisticated portfolio modeling and rebalancing tool into its Fidelity WealthCentral SM1 platform for Registered Investment Advisors (RIAs). Fidelity Investments (Fidelity) will be the first RIA-focused custodian to integrate a rebalancing system, along with other core applications such as customer relationship management (CRM), into a single workstation.

The Fidelity WealthCentral Portfolio Modeling and Rebalancing tool is a Web-based system that will be designed to allow RIAs to use sophisticated rules and risk-based factors to help them identify, measure and control overall portfolio risk for their client accounts. When rebalancing an account, the system will factor in risk, user-defined return forecasts and potential tax consequences at both the trade and portfolio level, resulting in a fully optimized, tax efficient portfolio at the individual client account or household level. Fidelity is leveraging the technology and portfolio modeling expertise of Northfield Information Services to build its new tool.

Every minute that advisors can reclaim from basic account administration tasks, allows them to focus more on investment management and client service, which are crucial to the success and profitability of every firm, said John W. Jack Callahan, president, Fidelity Institutional Wealth Services.

As part of our $50 million investment in developing WealthCentral, we will be integrating a sophisticated rebalancing tool in an effort to help advisors reduce the time and complexity typically associated with managing multiple investment strategies across hundreds, and in some cases, thousands of accounts. While we see an integrated rebalancing tool benefiting all of our RIA clients, we believe it will be especially useful in helping to meet the investment management needs of asset managers.

Integrating advanced capabilities, such as rebalancing, into Fidelity WealthCentral will further demonstrate our commitment to offering advisors the industry’s most advanced and scalable platform to help them increase operational efficiencies and grow more profitable practices, Callahan added.

Potential Benefits and Industry Leading Capabilities

Because it will be tightly integrated into the Fidelity WealthCentral platform, the Fidelity Portfolio Modeling and Rebalancing tool will provide advisors with the ability to more easily manage the entire workflow process and may reduce the need for manual tasks such as importing and exporting data from one database or application to the next. Once the system performs portfolio modeling and rebalancing functions, it will then be able to automatically route trade orders directly to Fidelity Order Central which will then be sent to market.

The sophisticated capabilities of the Fidelity WealthCentral Portfolio Modeling and Rebalancing tool will be designed to help advisors to incorporate a high level of consistency and operational efficiency across their firm, while improving productivity and building investment management credibility among investors. Some of the industry-leading features and potential benefits that will be available to advisors include:

• Model of Models: Combine multiple portfolio models into individual investment strategies tailored to each client’s needs.
• Real-Time Pricing: Rebalance portfolios with greater precision.

• Multi-Custody: View and rebalance of accounts held with other custodians to manage client accounts holistically.
• Drift Reporting: Receive an integrated report showing all accounts that have drifted outside of their respective model tolerance bands.
• Risk-Based Reporting: Use factor-based risk modeling, provided by the integration of Northfield’s Risk Reporting engine, to help advisors more accurately identify, decompose and manage portfolio risk.
• Tax-based Portfolio Rebalancing: Generate trades through consideration of portfolio risk and advisor-defined return as well as individual client’s risk tolerance and potential tax consequences using Northfield’s optimization engine, creating an optimal portfolio for each individual account or household.

Fidelity has been providing portfolio modeling and rebalancing capabilities to RIAs for more than a decade through its Fidelity Advisor CHANNEL platform. In fact, a recent survey 2 reveals that more RIA’s use Fidelity Advisor CHANNEL’s portfolio modeling and rebalancing capabilities than any other commercially available third-party application.

Fidelity WealthCentral SM Integration

Announced in October 2007, Fidelity WealthCentral will be the industry’s first Web-based wealth management platform that integrates RIA’s most critical operational systems, including rebalancing, portfolio management, CRM and financial planning, into one unified workstation.

As with the other applications integrated into Fidelity WealthCentral, the rebalancing system will be accessible through a single sign-on. The system will be compatible with WealthCentral’s other core applications, allowing advisors to enter client information once, into one system, and have it automatically pre-populate and update across the entire platform.

Because of traditionally high price points, tools like the Fidelity WealthCentral Portfolio Modeling and Rebalancing system will generally be geared toward only the largest institutions, said Edward O’Brien, senior vice president, Fidelity Institutional Wealth Services. Through our association with Northfield, we will be able to bring sophisticated portfolio modeling and rebalancing capabilities to the RIA market. The advanced nature of this tool, combined with the unique value of our WealthCentral platform, will be designed to help enable advisors to transform the way they manage not only their investment management strategies, but the way they manage their practices.

About Fidelity Institutional Wealth Services

fiws.fidelity.com .

About Fidelity Investments

Fidelity Investments is one of the world’s largest providers of financial services, with custodied assets of more than $3.2 trillion, including managed assets of more than $1.5 trillion as of March 31, 2008. Fidelity offers investment management, retirement planning, brokerage, and human resources and benefits outsourcing services to 24 million individuals and institutions as well as through 5,500 financial intermediary firms. The firm is the largest mutual fund company in the United States, the No. 1 provider of workplace retirement savings plans, the largest mutual fund supermarket and a leading online brokerage firm. For more information about Fidelity Investments, visit www.fidelity.com .