Fidelity’s RIA clients can tap hot IPO marketNews added by Benefits Pro on July 22, 2014
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By Nick Thornton

Fidelity brokerage customers can now get in on an IPO market that is seeing substantially increased activity over last year.

An agreement with Credit Suisse will extend the investment bank’s potential investor base to the millions of retail clients working with RIAs through Fidelity.

Today’s announcement comes in light of Fidelity research of 2,500 affluent and high net worth clients. More than half said they were open to investing in IPOs.

“With the increase in IPO activity over the past year and the potential for growth in the IPO market over the next few years, this new agreement with one of the industry’s leading underwriters will provide our clients with more opportunities to participate in new issue equity deals,” said Brian Conroy, president of Fidelity Capital Markets, in a statement.”

A spokesperson for Fidelity confirmed to BeneftisPro.com that 401(k) enrollees in plans advised by Fidelity will not be eligible.

In order to qualify for the IPOs underwritten by Credit Suisse, individuals will need a minimum of $500,000 in retail assets — that exclude institutional and annuity assets.

The first half of 2014 has seen 150 IPOs offered, up 60 percent from the first half of 2013.

Fidelity Capital Markets participated in 285 IPO and follow-on transactions (stock issuance subsequent to the IPO) last year, representing more than $3.5 billion raised from retail customers.

For the first half of this year, Fidelity has participated in 174 IPO and follow-on transactions, up 30 percent from the same time last year.

So far in 2014, Credit Suisse ranks first globally in long-term IPO performance.

“This agreement will benefit Credit Suisse’s corporate clients by giving them direct access to Fidelity’s vast investor base, allowing issuers to capture demand for IPOs and follow-ons from the broadest possible segment of the market,” said David Hermer, head of Equity Capital Markets in the Americas for Credit Suisse.

See also:

Stock purchase plans regain popularity

Fidelity hits best-ever sales in small- to mid-sized DC plan market

Fidelity finds millions of ‘unengaged’ 401(k) account holders

Originally published on BenefitsPro.com
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