Chairman’s Letter

Fidelity Investments had another year of strong financial and operating performance, enabled by our continued investments in the people and technology needed to deliver outstanding experiences to our growing customer base. While strong equity markets buoyed the company’s results, our diversified combination of robust, revenue-generating businesses gives us the financial and operating stability to deliver resilient results during both bull and bear markets.

For the year, FMR LLC, comprising results from Fidelity Financial Services and FMR’s diversified businesses, recorded revenue of $28.2 billion — another record high, surpassing 2022 revenue of $25.2 billion by 12%. Operating income, at $8.5 billion, was 6% higher than the prior year.

We continue to grow and diversify our customer base, ending the year with nearly 50 million individual customers, which includes approximately six million new individual customers we added companywide in 2023.

Net flows into Fidelity’s discretionary investment products continued to be strong, totaling $351 billion in 2023, an increase of 314% versus the prior year. This increase was led by strong inflows into index funds, money market funds, and managed accounts. The firm had another $296 billion in non-discretionary flows, for a total net asset flow tally for the year of $647 billion, a year-over-year increase of 38%.

Fidelity’s growth in assets and revenue came from both new and existing clients and is enabled by the customer value proposition created across Fidelity’s diversified businesses. In particular, the investments we have made in our technology infrastructure and the work underway to provide a seamless and safe digital customer experience across our platform have made it easier for existing customers to navigate the products and services that Fidelity has to offer across workplace investing, retail brokerage, wealth management, asset management, clearing and custody, and digital assets. There are now 10.3 million customers who have relationships with more than one Fidelity business, up from 9.2 million in 2022.

Our decade-long journey of research and investment in blockchain technology and digital assets helped establish Fidelity with the expertise necessary to provide safe and secure opportunities for investing in digital assets. In the first quarter, Fidelity’s Personal Investing business launched Fidelity Crypto® for general availability, allowing our retail customers to buy, sell, and securely custody bitcoin and ether with as little as $1 invested. In the third quarter, Fidelity Institutional launched early access to Fidelity Crypto® for Wealth Managers, which integrated crypto trading into the existing advisor workstation.

At Fidelity, we have long believed that the key to providing a great customer service experience is in the combination of easy-to-use digital tools and live channel support. We let our customers choose how to engage with us, and we meet them where they are — whether that’s in person, on social media platforms, over the phone, or in a digital chat. In 2023, our customer service teams deftly managed increased customer engagement across inperson, web, and mobile experiences, including through educational webinars. During 2023, our Investor and Regional Centers engaged in nearly five million customer appointments, and more than 35 million customers engaged with Fidelity digitally. Throughout the year, we helped nearly eight million customers create financial plans — both in person and online.

Fidelity’s continued success is enabled by our dedicated associates, who work hard every day on behalf of our customers. We ended 2023 with more than 74,000 associates and 31% of associates experienced internal mobility. Our ability to recruit and retain the talent we need to serve our customers is enabled by our award-winning benefits and our commitment to career vitality, which provides rewarding career and learning opportunities and strengthens our ability to provide exceptional customer service.

Going forward, we remain hyper-focused on updating our technology to continue to provide robust, intuitive, and secure digital and in-person experiences that expand our relationships with existing customers and help us attract new customers. These efforts enable what has always been our highest priority: strengthening and securing the financial well-being of our individual customers and business-to-business clients.

Thank you to all our customers and clients whom we have the privilege to serve.

Abigail P. Johnson, Chairman and Chief Executive Officer: “Fidelity Investments had another year of strong financial and operating performance, enabled by our continued investments in the people and technology needed to deliver outstanding experiences to our growing customer base.”

For the full 2023 annual report, click here.

Source: Fidelity