401(k) provider looks to expand overseas

July 21, 1996|By BLOOMBERG BUSINESS NEWS

BOSTON -- Fidelity Investments is expanding its defined contribution business overseas, initially to Canada, the United Kingdom and Hong Kong.

The Boston-based money management firm is looking abroad because "the market opportunities in these countries are very similar to where the U.S. was eight to 10 years ago in the growth of defined contribution plans," said Robert Reynolds, president of Fidelity Investments Institutional Retirement Group.

Assets in 401(k) plans in the U.S. have rocketed to $675 billion at the end of 1995 from $105 billion 10 years ago, according to Access Research Inc.

Fidelity is the largest provider of 401(k) plans and other "defined contribution" plans and services in the United States.

Fidelity does have investment management offices overseas already, but this is their first attempt at administrating defined bTC contribution funds, Reynolds said.

Fidelity's defined contribution business now accounts for $108 billion of its $453 billion in assets.

Pub Date: 7/21/96

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