Fidelity® Launches Bond Beacon℠, an Innovative, Digital Fixed Income Trading Solution for Firms and Advisors
New Solution, Accessible Through the WealthscapeSM Platform, Leverages Fidelity’s Trading Technology and Deep Investment Expertise to Help Advisors Seamlessly Manage Fixed Income Investing Needs, Access More Liquidity and Execute at Improved Prices
BOSTON–(BUSINESS WIRE)–Fidelity InstitutionalSM today announced the launch of Fidelity Bond BeaconSM, a comprehensive, fully digital fixed income trading solution that helps advisors manage all aspects of individual fixed income investing for their clients. This solution brings together a range of features that advisors seek in building and managing fixed income portfolios. Bond Beacon:
- helps guide better outcomes by supporting intermediary bond trading and bond management from start to finish;
- features advanced portfolio management capabilities and tools to support firms’ execution quality management;
- offers institutional grade liquidity delivered by Fidelity Capital Markets’ open architecture brokerage technology, which gives advisors greater access to the broad fixed income market;
- allows Fidelity to continuously increase the tradeable universe available;
- strengthens price efficiency and enables advisors to act on changes in market structure; and
- is integrated with WealthscapeSM, Fidelity’s advisor technology platform.
“For years, the industry has been working toward digitizing fixed income investing, and we believe Bond Beacon takes a leap forward in delivering that to our customers, offering an unmatched experience,” said Renzo Iturrino, head of fixed income product solutions for Fidelity Institutional’s Capital Markets group. “The three primary benefits to advisors are that it brings together all of their fixed income needs in one simple platform, it gives them access to a much broader range of offerings than before, and it offers competitive prices through greater depth, which we’re able to achieve as the only major clearing and custody firm with an in-house institutional fixed income trading capability for advisors. That allows us to consistently deliver value back to our customers.”
In addition to offering access to a broad and evolving trade universe, Bond Beacon helps advisors work more efficiently by enabling them to navigate the full fixed income experience (including pre-trade, at-trade and post-trade activity) alongside other Wealthscape activity. Advisors can manage their existing holdings or portfolios as well as construct new ones, analyze and interact with the market from multiple launch points, and manage order flow all in one place through an easy-to-use interface. Additional features include:
- Advanced portfolio management, construction and analytics, including advisor-driven, institutional grade portfolio construction with the ability for an advisor to incorporate all client fixed income holdings at Fidelity and manage important portfolio events. Advisors can create portfolios from their own defined criteria and view proposed bond offerings that adhere to executable quantities and minimum increment sizes.
- Risk analytics, conditional market scenarios and risk modeling informed by Fidelity research and supported by machine learning technologies that enable enhanced understanding of the impact of market stress on investments. This helps advisors make better informed decisions when building and rebalancing portfolios.
- Post-trade reporting with portfolio analytics, including consolidated views for pre-trade, trade and post-trade workflow.
How Bond Beacon is Meeting Advisor Needs
Following a pilot, Bond Beacon is beginning to roll out this month to Fidelity Institutional clients. Early adopters reported that they value the liquidity available in the solution, the integration of holdings views with execution workflows, the platform’s portfolio construction capabilities, and Bond Beacon’s simple and intuitive interface.
“Bond Beacon helps our team work much more efficiently because we’re able to quickly access the broad market and get the latest details on a wide range of fixed income offerings, and then use that knowledge to take action right within the platform,” said Alan Rosenfield, chief investment officer for Harmony Asset Management. “The depth of liquidity and easy navigation make it simple to find the information we need and to compare offerings, and having everything in one place streamlines the whole trading process.”*
Fidelity’s Overall Fixed Income Offering for Advisors
Bond Beacon expands on Fidelity’s existing capabilities for advisors in the fixed income space. In January 2020, Fidelity launched a new suite of bond model portfolios, including four fixed income strategies leveraging both mutual funds and ETFs. The bond model portfolios offer a range of risk profiles for advisors who are looking for strategies that can serve as — or complement — the fixed income allocations in their clients’ portfolios.
In 2019, Fidelity launched the Fixed Income Portfolio Review diagnostic tool, which uses comprehensive holdings-level data to help advisors and investors understand detailed sector allocations within their fixed income mutual funds and ETFs, enabling them to make informed decisions about their bond positioning in the context of their overall portfolio.
Fidelity invests billions annually in its technology enterprise-wide, leveraging its scale to develop new capabilities and enhancements that meet the unique needs of customers, as well as consistently delivering value to customers, including through its commitment to execution quality. Fidelity will continue to enhance Bond Beacon based on client needs and feedback.
For more information about Bond Beacon, please visit go.fidelity.com/bondbeacon. More information about Fidelity’s approach to advanced analytics and how analytical techniques may help advisors and investors deepen their understanding of investment risk management is available in this white paper: “A Fidelity Approach to Providing Advanced Risk Analytics for Investors” (for investment professional use only).
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 $8.3 trillion, including discretionary assets of $3.3 trillion as of June 30, 2020, we focus on meeting the unique needs of a diverse set of customers: helping more than 32 million people invest their own life savings, 22,000 businesses manage employee benefit programs, as well as providing more than 13,500 institutions with investment and technology solutions to invest their own clients’ money. Privately held for more than 70 years, Fidelity employs more than 40,000 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.
*Client’s experience is no guarantee of future success and may not be representative of the experience of other clients.
Fidelity Bond Beacon℠ is made available to intermediary clients of Fidelity Institutional℠ on a non-discretionary basis through Fidelity Capital Markets, a division of National Financial Services LLC, Member NYSE, SIPC (“NFS”).
The Fidelity Model Portfolios are made available to financial intermediaries on a non-discretionary basis by FIAM LLC, a registered investment adviser, or by Fidelity Distributor Company LLC (“FDC”), a registered broker-dealer, (collectively “Fidelity”). Fidelity is not acting as a fiduciary or in any advisory capacity in providing this information. The information is designed to be utilized by you solely as a resource, along with other potential sources, in providing advisory services to your clients. You are solely responsible for determining whether the Models, the investment products included in the Models, and the share class of those products, are appropriate and suitable for you to base a recommendation or provide advice to any end investor about the potential use of the Models.
The content provided herein is general in nature and is for informational purposes only. This information is not individualized and is not intended to serve as the primary or sole basis for your decisions as there may be other factors you should consider. Fidelity Institutional℠ does not provide financial or investment advice. You should conduct your own due diligence and analysis based on your specific needs.
Unlike mutual funds, ETF shares are bought and sold at market price, which may be higher or lower than their NAV, and are not individually redeemed from the fund.
Before investing, consider the funds’ investment objectives, risks, charges, and expenses. Contact your investment professional or visit institutional.fidelity.com for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
Fidelity Institutional℠ provides investment products via Fidelity Distributors Company LLC.
Fidelity Institutional℠ provides clearing, custody, or other brokerage services through National Financial Services LLC or Fidelity Brokerage Services LLC, Members NYSE, SIPC. 245 Summer St., Boston, MA 02210.
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