FIDELITY® EXPANDS ITS INTERNATIONAL INVESTING PLATFORM WITH LAUNCH OF DIRECT ONLINE TRADING FOR FOREIGN STOCKS AND CURRENCY EXCHANGES

Retail Investors Gain Access to 12 Foreign Markets and Eight Currencies All From One Brokerage Account;
Brokers and Advisors Can Access a Broad Set of Foreign Markets and Online Reporting

BOSTON, Oct. 22, 2009 /PRNewswire/ — Fidelity Investments® today announced it has significantly expanded its international investing capabilities with the launch of a new online platform that can make it faster, easier and more accessible for retail investors¹, broker/dealers and financial advisors to trade international stocks and exchange foreign currencies in some of the world’s largest and most popular international markets.

With this new offering, individual investors who trade on their own, or those who work with financial professionals, can more easily diversify the equity portions of their portfolios and take advantage of an increasingly global economy. According to new Fidelity researchⁱ, investors say diversification and the potential for higher returns are the top two benefits of trading international stocks.

By combining this new international stock trading platform with the more than 1,200 mutual funds and 250 ETFs with international securities exposure already available, Fidelity now provides one of the industry’s most comprehensive suite of international investing options.

Fidelity also published today a new Viewpoint, which is the company’s customer e-newsletter that delivers weekly market and economic commentary, investment ideas and personal finance insights. The new Viewpoint, available at www.fidelity.com/internationalpov, discusses how international equity exposure as part of an investor’s overall stock exposure may help reduce risk, while providing the potential for increased returns.

Specifically, Fidelity believes for most investors with longer-term timeframes (greater than five years), an international equity allocation of 30 percent of their overall stock allocation provides a reasonable tradeoff between the shorter term possibilities of increased volatility and the long-term potential for increased returns. Fidelity announced this new weighting last month as part of a firm-wide enhancement to its online guidance tools, asset allocation portfolios, managed accounts, and across all Fidelity Freedom Fund® product lines.

“When you consider that over the past 10 years, 80 percent of the world’s best-performing stocks were listed outside the United States², it is understandable why investors are increasing their focus on international investingⁱⁱ,” said James C. Burton, president of Fidelity’s retail brokerage business. “And when we asked investors what would make their international trading experience successful, the top responses were an easy to use trading platform, availability of research, and fast trade executions — all core features of Fidelity’s new international trading platform.”

With the new platform, retail investors and broker/dealer and advisor clients now have automated and direct access to a broad set of global markets and foreign currencies; third-party research, news and real-time market data and quotes for foreign currency and international equities; and streamlined processing and recordkeeping of international equities and foreign currencies.

“Fidelity’s new international trading offering can help broker/dealers and advisors better meet their clients’ international investing needs and provide greater efficiencies, enabling them to spend more time with clients and grow their businesses,” said Richard N. Hart III, senior vice president, National Financial®. “Additionally, the new offering, combined with the recent launch of Fidelity Clearing Canada ULC, reinforces Fidelity’s commitment to building a global trading platform to support the evolving needs of its broker/dealer and advisor clients.”

Retail Investors Can Trade Foreign Stocks as Easily as U.S. Stocks

Retail investors will be able to trade in 12 foreign markets and exchange eight currencies all from their existing brokerage accounts³ in which they currently conduct their domestic trading. This allows them to view all of their equity investments and currency positions in one place, and to be able to sort positions by country and currency. Investors can get started on Fidelity’s new International Trading Web page: www.fidelity.com/internationaltrading.

The 12 markets available to retail investors represent those to which Fidelity's customers currently direct the vast majority of their international trades:

• Australia
• Belgium
• Canada
• France
• Germany
• Hong Kong
• Italy
• Japan
• Netherlands
• Norway
• Portugal
• United Kingdom

The eight currencies include:

• Australian Dollar
• British Pound
• Canadian Dollar
• Euro
• Hong Kong Dollar
• Japanese Yen
• Norwegian Krone
• U.S. Dollar

Fidelity gives investors the choice to settle foreign trades with U.S. dollars. When an investor chooses this option, it eliminates the extra step of having to exchange currencies before placing a trade. Instead, the investor places a foreign trade and then Fidelity automatically exchanges the exact amount of foreign currency needed to execute the trade when the order is filled. If it is not filled, no currency exchange takes place.

“Fidelity research shows that investors trading international stocks are often frustrated by the lack of information on foreign markets and companiesi,” said Burton. “As a result, Fidelity’s platform provides real-time foreign quotes and market information, as well as independent research reports on companies overseas, all at no cost.”

For international trading customers who want extra help, Fidelity provides phone access to international trading representatives 24 hours a day, six days a week. Additionally, Fidelity offers the Trading Knowledge Center®, an online interactive learning tool that provides education on trading and investment strategies. In order to help customers better understand the advantages of international investing and how to conduct foreign stock trades and currency exchanges, Fidelity created a new Trading Knowledge Center module about international investing, available at http://personal.fidelity.com/products/trading/Knowledge_Center/tkc2/ (Click "Trade").

Broker/Dealers and Advisors Gain Increased Market Access and Efficiencies

To help broker/dealer and advisor clients more easily achieve diversification in their customers’ portfolios, Fidelity provides straight-through execution, settlement and custody of stocks in 25 foreign markets and 16 currencies through its brokerage technology workstations. Combined with the markets and currencies listed above, broker/dealers and advisors also can access these markets and currencies:

• Austria (Euro)
• Denmark (Krone)
• Finland (Euro)
• Greece (Euro)
• Ireland (Euro)
• Mexico (Peso)
• New Zealand (Dollar)
• Poland (Zloty)
• Singapore (Dollar)
• South Africa (Rand)
• Spain (Euro)
• Sweden (Krona)
• Switzerland (Franc)

Broker/dealers and advisors can provide their customers a single monthly account statement for their U.S. and local currency holdings, as well as a consolidated tax reporting statement. They can rely on dedicated trading support 24 hours a day, six days a week. For broker/dealers, Fidelity offers risk management tools, such as pre- and post-trade supervision, to help them monitor international transactions executed through Fidelity. More information about Fidelity’s new international trading offering, including an online educational video, is available for broker/dealers and advisors at www.fidelity.com/institutional.

In addition to new online trading capabilities, broker/dealers and advisors also can execute trades in U.S. dollars, with the help of Fidelity Capital Markets’ dedicated international trading desk, in the following countries: Argentina, Brazil, Czech Republic, Estonia, Hungary, Indonesia, Israel, Luxembourg, Malaysia, Peru, Philippines, Russia, South Korea, Taiwan, Thailand and Turkey.

“With more than half of the world’s stock market opportunities residing outside the United States⁴, Fidelity’s new international trading platform offers retail investors, broker/dealers and advisors an easy way to reflect the global economy and diversify the equity portion of a portfolio,” said Hart.

About Fidelity Investments

Fidelity Investments is one of the world’s largest providers of financial services, with assets under administration of $3.1 trillion, including managed assets of nearly $1.5 trillion as of September 30, 2009. Fidelity offers investment management, retirement planning, brokerage, and human resources and benefits outsourcing services to over 20 million individuals and institutions as well as through 5,000 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.

 

¹Gold level commission schedule customers only.

²FactSet, March 31, 2009. There were only 10 U.S. companies in the top 50 of the ACWI for the preceding 10-year period.

³International trading may only be conducted in non-retirement accounts. International stock trades are restricted to Day Orders only; trades must be Market or Limit Orders; trades must be cash only – not margin; short sales are not permitted; international stocks must be bought and sold in the same country.

⁴Morgan Stanley Capital International (MSCI) (from FactSet) as of Sept. 2009

ⁱAbout the International Trading Study
Data for Fidelity Investments' International Trading Study were collected between September 3, 2009, and September 8, 2009, by JLA Strategic Research through a national online survey of 405 investors. All investors are actively involved in placing at least 36 trades per year, have household incomes of $100,000 a year or more and have investable assets of at least $250,000.

Study results may not be representative of all investors who meet the criteria of this study.

ⁱⁱ About the Seattle Traders’ Summit Poll
The Fidelity 2009 Seattle Traders’ Summit Active Trader Poll was conducted September 29, 2009, on hand-held Audience Response System devices by JStryker, Inc. On average, 321 Traders’ Summit attendees responded to each question. Fidelity invited to the Traders’ Summit customers and other guests, many of whom are active traders, making 120 or more trades per year. Of the active traders polled, 71% indicated they would increase their exposure to foreign markets in the next year.

Study results may not be representative of all investors who meet the criteria of this poll.

# # #

 

Before investing, consider the funds’ investment objectives, risks, charges and expenses. Contact Fidelity for a prospectus containing this information. Read it carefully.

Diversification does not ensure a profit or protect against loss.

International trading, including direct investments in foreign markets, involves various investment risks, including foreign exchange risk (the possibility that foreign currency will fluctuate in value against the U.S. dollar), increased volatility as compared to the U.S. markets, political, economic and social events that may influence foreign markets or affect the prices of foreign securities, lack of liquidity (foreign markets may have lower trading volumes and fewer listed companies, shorter trading hours and restrictions on the types of securities that foreign investors may buy and sell) and less access to information about foreign companies. Emerging markets, in particular, can be subject to greater social, economic, regulatory, and political uncertainties and can be extremely volatile.

System availability and response times may be subject to market conditions.

Currency exchanges are completed on behalf of Fidelity Brokerage Services LLC by Fidelity FOREX, Inc., a Fidelity affiliate and may include a mark-up. More favorable exchange rates may be available through third parties not affiliated with Fidelity.

Canadian clearing and custody services are provided by Fidelity Clearing Canada ULC. Fidelity Clearing Canada ULC, National Financial Services LLC and Fidelity Brokerage Services LLC are affiliates.

Fidelity Capital Markets is a division of National Financial Services LLC.

Fidelity Investments, Fidelity, the Fidelity Pyramid design logo, Fidelity Freedom Funds, Trading Knowledge Center and National Financial are registered service marks of FMR LLC.

Fidelity Brokerage Services LLC, Member NYSE, SIPC
900 Salem Street, Smithfield, RI 02917

National Financial Services LLC, Member NYSE, SIPC
200 Seaport Boulevard, Boston, MA 02110

Fidelity Investments Institutional Services Company, Inc.
82 Devonshire Street, Boston, MA 02109

 

534212.1.0/R2Dn/FDC