Advisors Will Be Able to Build a Diversified Portfolio of Stocks and ETFs for their Clients Based on the Dollar Amount They Want to Invest

Fidelity Institutional^®, the division of Fidelity Investments dedicated to providing technology, solutions and insights to wealth management firms and institutions, today announced that it will launch real-time fractional share trading for stocks and ETFs for wealth management firms. The new capability, which allows advisors to build portfolios for their clients based on the amount they want to invest, is beginning to roll out this month to Fidelity Institutional clients. Offering fractional share trading to advisors is the first step in enabling them to offer proprietary strategies to a much broader set of clients, including the next generation of investors, at lower investment minimums.

“With our industry offering more personalization for investors, advisors have been looking for a way to more finely tune investor portfolios,” said Ryan Plotner, head of Transaction and Banking Solutions at Fidelity Institutional. “With fractional share trading, we’re now giving advisors the ability to address that challenge.”

Fractional share trading also enables advisors to better serve clients with tactical situations; for example, raising cash from a security with a high share price or reducing concentrated low-basis positions in similar stocks.

Fidelity will execute all fractional trades in real-time during market hours, meaning advisors and their clients will always know the share price, unlike some firms that execute fractional trades at the end of a trading day or wait for multiple orders to add up to full shares.

Fractional share or dollar-based trades, which must be market or limit order types and are good for the day only, are available through Wealthscape^SM.

This capability for advisors expands on Fidelity’s Stocks by the Slice^SM offering for retail investors which was launched last year. Fidelity invests billions of dollars annually in its technology enterprise-wide, leveraging its scale to develop new capabilities that help meet the distinct needs of each of its customers.

“Fidelity is building on our significant experience and proven success in the trading space with this new offering, which will make it easier for advisors to efficiently invest their clients’ assets,” continued Plotner.

Fidelity Institutional is beginning to roll out fractional share trading to advisors this month. For more information, advisors can contact their Fidelity relationship manager.

About Fidelity Investments

Fidelity’s mission is to inspire better futures and deliver better outcomes for the customers and businesses we serve. With assets under administration of $11.2 trillion, including discretionary assets of $4.3 trillion as of August 31, 2021, we focus on meeting the unique needs of a diverse set of customers: helping more than 38 million people invest their own life savings, 22,000 businesses manage employee benefit programs, as well as providing more than 13,500 wealth management firms and institutions with investment and technology solutions to drive growth. Privately held for 75 years, Fidelity employs more than 52,000 associates who are focused on the long-term success of our customers. For more information about Fidelity Investments, visit https://www.fidelity.com/about-fidelity/our-company.

For investment professional use only. Not authorized for distribution to the public as sales material in any form.

Fidelity Institutional® provides investment products through Fidelity Distributors Company LLC; clearing, custody, or other brokerage services through National Financial Services LLC or Fidelity Brokerage Services LLC, Member NYSE, SIPC

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