Fidelity Investments reported strong sales growth last year of defined contribution plans to small and midsized employers, the Boston-based retirement services provider reported Thursday.
The company sold more than 1,400 plans with $50 million in retirement assets or less, a 57% jump over the number sold in 2010. Its 2011 sales commitments represented $6.6 billion in assets, up 40% from a year earlier, according to Fidelity.
“We see tremendous opportunity in this segment as smaller and mid-sized employers and advisors seek a provider with a leading recordkeeping platform,” said Jeffrey Lagarce, executive vice president of Fidelity Investments, in a statement.
Fidelity services approximately 11.6 million 401(k) participants in 20,000 plans for both plan sponsors and nearly 3,000 financial advisors, according to the company.
In a press release, Burke & Herbert Bank of Northern Virginia gave Fidelity a strong endorsement for the workplace retirement plan it built for the bank’s nearly 400 participants. Emily Debeniotis, principal vice president in the Human Resources department of Burke & Herbert Bank, lauded the plan, saying that it gives employees access to the same retirement benefit experience and service offered to employees at some of the nation’s largest companies. The plan includes both Fidelity and non-Fidelity funds.
Margarida Correia writes for Bank Investment Consultant.