Notes SME email = FLI for all screens. Using This Course Please take a moment to review the...

NotesSME email = FLI for all screens

Using This Course

Please take a moment to review the following information before beginning FIIS Overview.

Pre-requisites: There are no pre-requisites for this course.

Time Estimate: The estimated time to complete this course is 30 minutes.

Assessment: You will be asked to complete a 10-question assessment upon completion of the course material. You must complete the assessment to obtain course completion status.

Look for the [ICON] icon and bold black text for additional instructions.

Click the blue underline text to display additional information, including Internet resources.

Place your cursor over the bold yellow text to display additional information.

Click to review these tips during the course.

Use the forward and back arrows to navigate between screens.

Use the to jump to a specific course topic.

Click to print the current screen.

Click to email the current topic’s subject matter expert.

Click [FAVBUTTON] to add a referenced site to your Favorites list.

Click to exit the course.

Navigation & Course Conventions:

1.1

Introduction

What Is FIIS?

What Does FIIS Sell?

How Is FIIS Organized?

Resources

Summary

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Introduction

[BULLET] Describe FIIS and its role within the Fidelity organization

[BULLET] Identify and describe FIIS products and programs

[BULLET] Explain the FIIS sales strategy

[BULLET] Identify and describe the groups that compose FIIS

Photo: employeesFIIS_OV_2.1_assoc

Welcome to FIIS Overview!

This course provides an introduction to Fidelity Investments Institutional Services (FIIS). An understanding of FIIS, its place within Fidelity, and its core functions helps FIIS associates to function more effectively within their work environment.

Upon course completion, you will be able to:

Course topics are listed on the Main Menu to the left. To read a topic description, place your cursor over the topic. To jump to the topic, click on it.

To review all topics in sequence, click the forward arrow.

2.1

Introduction

What Is FIIS?



Resources

Summary

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Using This Course presents guidelines for navigating the course. To review these guidelines during the course, click Navigation on the bottom navigation bar.

Introduction gives a brief description of the course and outlines its learning objectives.

What Is FIIS? defines FIIS and its place within the Fidelity enterprise.

What Does FIIS Sell? provides an overview of the Fidelity products, programs, and retirement options for which FIIS is responsible.

How Is FIIS Organized? provides an overview of the seven groups that compose FIIS.

Resources lists web sites, documents, and other reference materials.

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2.1 rollovers

Summary revisits the learning objectives and concludes the course.

What Is FIIS?

Brokerage firms

Financial planners

Insurance

Banks

Graphic: FIISFIIS_OV_3.1_FIIS

Fidelity Investments Institutional ServicesCompany, Inc. (FIIS) provides investment products and programs to over 4,500 financial institutions and institutional brokerage clients. FIIS offerings are in turn distributed to individual investors who rely on our institutional clients for investment services.

FIIS operates in the following markets:

FIISnet [FAV] http://fnw.fmr.com/fiisnet/index.html

3.1

Introduction

What Is FIIS?



Resources

Summary

Place your cursor over each market to learn more.

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Insurance clients include insurance wholesalers as well as insurance agencies that offer investment services to their clients (see “Financial planners” above)

Banking clients include bank business units, formerly known as bank trusts, that administer and manage assets for the benefit of others. The bank acts in fiduciary capacity for personal, institutional, employee benefit, and corporate trust investment portfolios. Other clients include banks that offer investment services to their clients in addition to their traditional products and programs (see “Financial planners” above).

Brokerage clients include both wirehouses and regional brokerages. A wirehouse is a national or international firm whose offices are linked by a communications system that allows rapid dissemination of financial information. Today, the term “wirehouse” refers to the biggest brokerages. Regional brokerages are full-service intermediaries whose data access is similar to that of wirehouses, but that are smaller in size (i.e., the next 50 largest full-service firms).

Financial planners include banks and insurance agencies that offer investment services to their clients in addition to their traditional products and programs. This category also includes firms that provide securities transaction services to independent investment professionals.


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FIIS Facts

FIIS Financial Facts*

Total Assets Under Management: 191.5 billion

Advisor Sales: 65.5 billion

Institutional Sales: 125.2 billion

Other: 0.8 billion

* as of 3/31/05

Graphic: location mapFIIS_OV_3.2_map

Founded in 1979, FIIS is headquartered in Boston, with field locations in Smithfield, RI and Merrimack, NH. In addition, regional sales representatives operate throughout the United States and Latin America. The company’s workforce of approximately 1200 employees help manage total assets of more than 190 billion on behalf of the institutional client and individual investor.

3.2

Introduction

What Is FIIS?



Resources

Summary

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FIIS: A Fidelity Company

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Graphic: Fidelity channelsFIIS_OV_3.3_Fidchannels

Fidelity Investments, the nation’s largest financial services mutual fund provider, sells its products and programs through three channels: directly to the public, through institutional intermediaries, and through company-sponsored retirement plans. FIIS is the organization within Fidelity that is responsible for distribution through institutional intermediaries. FIIS accounts for approximately 10.7% of total Fidelity customer assets under management.

To learn more about Fidelity distribution, place your cursor over each sales channel below.

Fidelity.com [FAV] https://www.fidelity.com/

3.3a

Introduction

What Is FIIS?



Resources

Summary

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The Fidelity Value Proposition

Graphic: Fidelity/FIIS Value PropFIIS_OV_3.3b_FidVP

As a Fidelity company, FIIS has adopted the Fidelity Value Proposition. This value proposition conveys Fidelity’s commitment to customer success as expressed through its three core principles – Insight, Diversification, and Dedicated Support.

3.3b

Introduction

What Is FIIS?



Resources

Summary

Individual investors who manage their own investment portfolio can purchase Fidelity products by phone, mail, over the Internet, or in person. The available product line includes trading and cash management, retirement and college savings plans, life insurance, estate planning, and charitable giving options.

Individual investors who do not manage their own portfolios can obtain investment products and services through a financial institution (e.g., brokerage, bank, or insurance company). Fidelity established FIIS to distribute Fidelity offerings to financial institutions that advise individual investors.

Companies, tax-exempt organizations, and government agencies rely on Fidelity for retirement plans and services. Fidelity is the nation's No. 1 provider of 401(k) plans and services, and one of the nation's top providers of 403(b), 457 and 401(a) retirement savings plans for colleges, universities, health care institutions, states, state agencies, and local governments.


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FIIS Core Strategies

[BULLET] Grow advisor base

[BULLET] Diversify asset base

[BULLET] Further pursue bank market and protect position in insurance

[BULLET] Protect and expand Institutional Money Market (IMM)

[BULLET] Improve quality of the customer experience

[BULLET] Better position FIIS in the marketplace

Graphic: Annual Report icon FIIS_OV_3.4_docicon

FIIS is committed to evolving rapidly in response to challenges and opportunities in the business environment. To ensure the continued success of the organization, its clients, and individual investors, FIIS works continuously to chart and maintain a sound strategic direction. FIIS core strategies for 2005 include:

Click the icon above to download Fidelity’s Annual Report. This report summarizes the business performance of each Fidelity business, including FIIS.

3.4

Introduction

What Is FIIS?



Resources

Summary

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Check Your Knowledge

(X) FIIS is headquartered in New York, NY, with field locations in Boston, MA and Smithfield, RI.

Incorrect. FIIS is headquartered in Boston, MA, with field locations in both Smithfield, RI and Merrimack, NH. Regional sales representatives operate throughout the United States and Latin America.

(X) FIIS distributes investment products and programs directly to the public.

Incorrect. FIIS distributes investment products and programs through institutional intermediaries.

($) FIIS operates in the insurance market.

Correct. FIIS distributes investment products through insurance wholesalers as well as through insurance agencies that offer investment services to their clients.

($) FIIS total assets under management account for approximately 10.7% of total Fidelity assets under management.

Correct. FIIS total assets under management account for approximately 10.7% of total Fidelity assets under management.

Which of the following statements regarding Fidelity Investments Institutional ServicesCompany, Inc. (FIIS) are TRUE?

3.5

Introduction

What Is FIIS?



Resources

Summary


Graphic: Products

FIIS_OV_4.1_products

FIIS sells investment products, programs, and retirement options. Each category is described briefly below and in detail on the following screens.

Graphic: Programs

FIIS_OV_4.1_programs

Graphic: Ret. OptsFIIS_OV_4.1_retops

FIIS Sales & Marketing [FAV]

http://fnw.fmr.com/fiisnet/distribution/index.html

FIIS offers a wide range of investment products designed specifically for the investment professional (IP).

FIIS offers investment programs to help both the institutional client and the investment professional grow their business.

FIIS offers a comprehensive line of employer-sponsored and individual retirement products created exclusively for the investment professional market.

4.1

Introduction

What Is FIIS?



Resources

Summary

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FIIS Products

Fidelity Advisor Funds

Fidelity Advisor World Funds

Fidelity Destiny Plans

Fidelity Institutional Money Market Funds

Sub-Advised Portfolios

Fidelity Variable Insurance Products (VIP) Portfolios

Photo: IP FIIS_OV_4.2_IP

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FIIS distributes its investment products through investment professionals employed by or under contract with institutional clients. Fidelity investment products are listed below.

Place your cursor over each product to learn more.

4.2

Introduction

What Is FIIS?



Resources

Summary

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Fidelity Advisor Funds include equity, fixed-income and money market mutual funds to meet the core investment needs of most investors. Advisor funds are distributed exclusively through investment professionals.

Fidelity Advisor World Funds are offshore, Bermuda-based funds available only to investors who are neither citizens nor residents of the U.S. These funds are distributed through intermediaries, such as banks and brokerages, with operations in Latin America.

Fidelity Destiny Plans are systematic investment plans that allow long-term investors to accumulate wealth over time by making disciplined monthly investments.

Fidelity Institutional Money Market Funds are distributed to institutional and corporate clients who are extremely risk sensitive and are looking to preserve principal and earn a competitive return.

Sub-Advised Portfolios are investment portfolios sub-advised by Fidelity Management and Research Company for FIIS' insurance clients, including Equitable, John Hancock, and MetLife.

Fidelity Variable Insurance Products (VIP) Portfolios are distributed through large insurance companies as underlying investments for variable life and variable annuity products.

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4.2 rollovers

FIIS Programs

Fidelity Advisor Charitable Gift Fund (ACGF)

Fidelity Advisor 529 Plan

Retirement Income Services

Photo: IP/investor

FIIS_OV_4.3_IPinvestor

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FIIS offers investment programs targeted to specific investor needs. These programs help institutional clients and investment professionals grow their business by better serving the needs of their customers. Fidelity investment programs are listed below.

Place your cursor over each program to learn more.

4.3

Introduction

What Is FIIS?



Resources

Summary


The Advisor Charitable Gift Fund (ACGF) is a donor-advised fund and an IRS-approved public charity. Donors receive the tax advantages of donating to a public charity and the flexibility of recommending grants to the charities of their choice on their own timetable. Donors are able to choose from three investment pools including Growth (most aggressive), Asset Allocation, and Money Market (least aggressive).

Fidelity Advisor 529 Plan is a college fund plan that offers income-, gift- and estate-planning benefits to investors. Offered exclusively through investment professionals, the Plan can be used to fund tuition, fees, room and board, books, supplies, required equipment, and other qualified expenses at almost any accredited higher learning institution in the United States.

Retirement Income Services is a comprehensive program that provides investment professionals with business building ideas (e.g., client marketing, planning materials, possible investment solutions) to help them acquire clients and build clients’ retirement income.


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FIIS Retirement Options

Fidelity Advisor 403(b) Plan

Fidelity Advisor-Delivered 401(k)

Fidelity Advisor Traditional, Roth, and Rollover IRAs

Fidelity Advisor SEP and SIMPLE IRAs

Photo: IP/retiree

FIIS_OV_4.5_IPretire

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FIIS also offers employer-sponsored and individual retirement products created exclusively for the investment professional market. Fidelity retirement options programs are listed below.

Place your cursor over each retirement option to learn more.

4.4

Introduction

What Is FIIS?



Resources

Summary


Fidelity Advisor SEP and SIMPLE IRAs provide small business owners with a retirement savings option. Because these plans are cost-effective and easy to maintain, they are ideal solutions for the small business owner who must manage both personal and employee retirement accounts.

The Fidelity Advisor 403(b) Plan is a retirement savings plan available exclusively to K-12 public school employees.

The Fidelity Advisor-Delivered 401(k) serves companies with 10 to 1,500 participants with more than 100 investment options. This retirement plan is composed of the following programs:

• Premium Service Program: A full-service plan for 25 to 1,500 participants and $2 million or more in plan assets.

• Premium 100 Service Program: A comprehensive, lower-cost plan for 10 to 150 participants.

Fidelity Advisor Traditional, Roth, and Rollover IRAs meet most clients’ retirement needs. Fueled by tax savings and potentially compounding earnings and interest, IRAs can be a powerful savings vehicle for retirement and legacy planning.


4.4 rollovers


(X) Fidelity Institutional Money Market Funds Incorrect. Fidelity Institutional Money Market Funds are distributed to institutional and corporate clients who are extremely risk sensitive and are looking to preserve principal

and earn a competitive return. ($) Fidelity Advisor Funds

Correct. Fidelity Advisor Funds include equity, fixed-income and money market mutual funds to meet the core investment needs of most investors. Advisor funds are distributed exclusively through investment professionals.

(X) Fidelity Advisor 529 Plans

Incorrect. Fidelity Advisor 529 Plans are designed for a specific investment purpose –helping investors save for college.

(X) Fidelity Advisor 403(b) Plans

Incorrect. The Fidelity Advisor 403(b) Plan is a retirement savings plan available exclusively to K-12 public school employees.

(X) Retirement Income ServicesIncorrect. Retirement Income Services is a comprehensive program that provides investment professionals with business building ideas (e.g., client marketing, planning materials, possible investment solutions) to help them acquire clients and build clients’ retirement income.

Which of the following FIIS offerings meet the core investment needs of most clients?

4.5

Introduction

What Is FIIS?



Resources

Summary


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Graphic: FIIS Org chart

FIIS_OV_5.1_FIISorg

FIIS is composed of seven departments. As illustrated below, some departments provide direct client service and support, while others maintain FIIS operations in support of client satisfaction. Each department will be reviewed in detail on the following screens.

To read a brief description of each department, place your cursor over the department name below.

5.1

Introduction

What Is FIIS?



Resources

Summary

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Client Services supports FIIS by providing transaction processing and record-keeping for the transfer agent, Fidelity Investments Institutional Operations Company, Inc. (FIIOC), as well as intermediary support and relationship management for FIIS clients.

Distribution is the FIIS sales force. This department manages relationships with institutional clients and distributes Fidelity offerings through investment professionals.

Finance oversees responsibility for all financial functions within FIIS, working closely with all levels of management to ensure the long-term financial success of FIIS and its component departments.


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Human Resources provides support on compensation, benefits, staffing, leadership development, and other services.

Marketing supports strategic business analysis, product and program development and management, fund performance analysis and consulting, investment professional acquisition and retention, and marketing communications and planning.

Risk Management and Compliance protects the professional reputation of FIIS and the safety and security of FIIS Associates and by managing risk and ensuring regulatory and institutional compliance.

Technology supports FIIS through the identification, development, and integration of technical solutions.

FIIS Distribution

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Graphic: Distribution Model

FIIS_OV_5.2_DistModel

Distribution is the FIIS sales force. This department is responsible for selling products and programs to both institutions and investment professionals. Because FIIS clients differ in terms of the traditional services they offer and the infrastructure they possess, FIIS has developed a tailored distribution model to accommodate a varied client base.

To learn more about the FIIS distribution model, place your cursor over each level below.

5.2

Introduction

What Is FIIS?



Resources

Summary

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Distribution is composed of the Advisor Distribution Group (ADG) and the Institutional Distribution Group (IDG). Both ADG and IDG provide sales and relationship management support to current and prospective clients. ADG focuses on advisor clients (i.e., wirehouses; brokerages; financial planners) while IDG focuses on institutional clients (i.e., insurance companies and wholesalers; bank and cash business units).

Both ADG and IDG distribute Fidelity products, programs, and services through their respective clientele. The product line offered by each group is determined by the institution type. Institutional Money Market Funds, for example, are only distributed through cash business units, while Destiny Plans are only distributed through wirehouses, regional brokerages, and financial planners.

Both ADG and IDG focus on developing and maintaining contacts with client home offices. Strong relationships with senior management and other decision-makers within the client firm enable FIIS to build, maintain, and extend sales programs.

Within ADG, the Field Sales group (i.e., wholesalers) distribute Fidelity products directly to investment professionals working within the client firm. The Inside Sales group provides sales support to Field Sales and also distributes via outbound calls.

Within IDG, the Field Sales group supports the client firm’s sales force in selling to investment professionals. The Inside Sales group provides sales support to Field Sales and also distributes via outbound calls.

ADG and IDG support the investment professional in building his or her business and in using Fidelity products and programs as part of their investment strategies. Because IPs connect individual investors to Fidelity products, developing and maintaining strong IPs relationships is key to FIIS’ success.

Investment professionals at client firms advise individual investors on investment strategies, including those options offered by Fidelity.

The Advisor Distribution Group (ADG)

Eastern and Western Regional Sales

Offshore

Retirement

Inside Sales

Relationship Management

Sales Development

Graphic: Advisor model FIIS_OV_5.3_AdvModel

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The Advisor Distribution Group (ADG) provides sales and relationship management support to Advisor clients and prospects, including wirehouses, regional brokerages, and financial planners. Fidelity products, and programs are distributed through the FIIS sales force to investment professionals within Advisor client firms. ADG is composed of six teams.

Place your cursor over each ADG team to learn more.

5.3

Introduction

What Is FIIS?



Resources

Summary

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Eastern and Western Regional Sales supports the distribution of Fidelity Advisor Funds, Fidelity Advisor 529 Plans, and 401(k) retirement products to Advisor client firms.

Offshore supports sales of Fidelity Advisor World Funds through intermediaries to non-resident aliens.

Retirement is responsible for the development of a wide range of Premium 401(k) products. This team offers bundled products, programs, and services to meet the needs of plan sponsors and plan participants. Retirement works with investment professionals at Advisor client firms to help them build their retirement business with Fidelity.

Relationship Management works with client home offices to coordinate sales programs and obtain approval for the distribution of new Fidelity offerings.

Inside Sales works jointly with field sales representatives in other ADG teams by providing telephone sales support to clients and prospects.

Sales Development coordinates business planning, training, and sales analysis.


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The Institutional Advisor Group (IDG)

Bank Business Unit & Cash Business Unit

Destiny Business Unit

Insurance Business Unit

Institutional Channel Management

[BULLET/indent] Institutional Inside Sales

Graphic: Inst model FIIS_OV_5.4_InstModel

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The Advisor Distribution Group (ADG) provides sales and relationship management support to Institutional clients and prospects, including insurance wholesalers, bank business units (BBU), and cash business units (CBU). Fidelity products and programs are typically distributed through the client firm's sales force to the investment professional. For BBU and CBU products, IDG also distributes directly to bank money managers and corporate senior management. IDG is composed of five teams.

Place your cursor over IDG team to learn more.

5.4

Introduction

What Is FIIS?



Resources

Summary

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Institutional Channel Management includes the key account managers and Institutional Inside Sales representatives who support various IDG field sales teams.

The Insurance Business Unit coordinates relationship management and sales through insurance companies.

The Bank Business Unit and Cash Business Unit are responsible for the product strategy, marketing, relationship management and sales of Fidelity money market funds through bank capital markets departments and direct to large corporations. In addition, the Bank Business Unit supports sales of Advisor funds, 401(k) and 529 Plans, and Fidelity Advisor Charitable Gift Funds.

The Destiny Business Unit is responsible for the product strategy, marketing, and sales of Destiny investment plans. Fidelity Destiny plans are systematic investment plans that allow long-term investors to accumulate wealth over time by making disciplined monthly investments in diversified mutual funds for either a 10- or 15-year period.

Institutional Inside Sales is responsible for the development and management of relationships with senior management, home office contacts, sales forces, and various decision makers within Institutional client firms. Inside Sales teams include Bank Business Unit, Cash Business Unit (Direct and Institutional Cash Services), Destiny Business Unit, and Insurance Wholesale.

Institutional Inside Sales is part of Institutional Channel Management.


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5.5

Introduction

What Is FIIS?



Resources

Summary


(X) They distribute the same product line.

Incorrect. The product line offered by each group is determined by the institution type. Institutional Money Market Funds, for example, are only distributed through cash business units, while Destiny Plans are only distributed through wirehouses, regional brokerages, and financial planners.

($) They work to develop relationships with client home offices.

Correct. Strong relationships with senior management and other decision-makers within both Advisor and Institutional client firms enable FIIS to build, maintain, and extend sales programs.

(X) They distribute through the client’s sales force.

Incorrect. ADG distributes Fidelity products directly to investment professionals working within the client firm. IDG supports the client firm’s sales force in selling to investment professionals.

($) They are composed of both Field Sales and Inside Sales representatives.

Correct. Field Sales acts as a face-to-face point of contact for clients in their territory. Inside Sales provides sales support to Field Sales and also distributes via outbound calls.

($) They focus on building business with investment professionals.Correct. Because IPs connect individual investors to the ADG and IDG product line, both groups work to develop and maintain strong IP relationships. Because IDG distributes through the client sales force, this group also supports the client sales force in developing IP relationships.

(X) They distribute through wirehouses and regional brokerages.Incorrect. ADG distributes through wirehouses, regional brokerages, and financial planers. IDG distributes through insurance wholesalers, bank business units, and cash business units.

In which of the following ways are the Advisor Distribution Group (ADG) and the Institutional Distribution Group (IDG) similar?

FIIS Marketing

Marketing is responsible for providing marketing strategy and support to FIIS’ sales efforts. Core marketing functions include:

[BULLET] Acquiring and retaining high value advisors

[BULLET] Providing investment consulting services to sales representatives and clients

[BULLET] Managing marketing communications, meetings, and events

[BULLET] Managing product and program lines

[BULLET] Performing market analyses and developing business strategies

Graphic:

FIIS_OV_5.6_mrktsales

Introduction

What Is FIIS?



Resources

Summary

5.6

Marketing Teams

Advisor Marketing

Investment Consulting Services (ICS)

Marketing Communications (Marcom)

Product Management

Program Management

Strategic Marketing

Photo:

FIIS_OV_5.7_mrktcharts

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Marketing is composed of six teams, each of which performs a different marketing function in support of sales efforts.

Place your cursor over each Marketing team to learn more.

Introduction

What Is FIIS?



Resources

Summary


5.7

Product Management is responsible for the promotion, development, positioning and maintenance of FIIS' product menu, including Fidelity Advisor Funds, Variable Insurance Product (VIP) Portfolios and Sub-advised Portfolios.

Marketing Communications (Marcom) provides planning, strategy development, and execution for all marketing communications and meetings and events. Teams within Marcom include: Account Management; Associate Communications; Creative Development; Electronic Marketing; Meetings & Events; and Operations.

Advisor Marketing plans and implements the marketing initiatives necessary to acquire new advisors, develop strong and lasting relationships with the current base, and improve retention efforts for high value advisors.

The Investment Consulting Services (ICS) team collects and analyzes information on fund performance and positioning (both FIIS’ and competitors’ funds) and consults with sales representatives and top-tier clients on its conclusions.

Program Management focuses on the development and management of rollovers, individual retirement and small business products, and the Fidelity Advisor 403(b) program.


Strategic Marketing performs customer, competitor, and industry analyses; identifies and evaluates strategic opportunities; and develops business strategies.

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FIIS Client Services

Client Services supports FIIS by providing transaction processing and record-keeping for the transfer agent, Fidelity Investments Institutional Operations Company, Inc. (FIIOC), as well as intermediary support and relationship management for FIIS clients.

To help ensure it fulfills its responsibilities to both FIIS and FIIS clients, Client Services has identified core attributes that its associates are expected to embrace and exemplify.

Click on each attribute below to learn more.

Graphic:

FIIS_OV_5.8_CSlist

FocusedSimplicityUnsiloedetc.etc.

Introduction

What Is FIIS?



Resources

Summary

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5.8

Focused: Associates understand and concentrate on the few key issues that truly make a difference.

Simplicity: Associates approach work in a straightforward way, getting to the heart of the issue quickly and easily

"Unsiloed" — Associates who work comfortably cross-functionally within FIIS and across Fidelity.

Decisive — Associates who take action, sometimes on limited information, and who get things done with speed and flexibility.

Accountable — Associates who feel a strong sense of ownership for getting results and making the decisions entrusted to them.

Caring — Associates who are generous toward colleagues and extend themselves warmly to those who work with and for them.

Passionate — Associates who bring energy and a sense of total personal commitment to their work and to the success of the organization.

Client Services Teams

Financial Advisor & Shareholder Services

Integrated Client Solutions

Business Development

Operations Services

Regulatory Policy Development

Photo:FIIS_OV_5.9_CSrep

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Client Services consists of five teams. Some teams provide direct service to clients and investors. Others provide business and operational support to Client Services as a whole.

Place your cursor over each Client Services team to learn more.

Introduction

What Is FIIS?



Resources

Summary


Introduction

What Is FIIS?



Resources

Summary


5.9

Integrated Client Solutions consists of five teams:

[BULLET] The Client Resolution Unit (CRU) handles all aspects of the problem resolution process. [BULLET] The Home Office Support Team (HOST) proactively supports the operational needs of client home offices. [BULLET] Relationship Management (RM) develops and strengthens relationships with leadership at strategic client organizations.

[BULLET] The Settlement Services Group (SSG) performs wire-related trade activities (e.g., inbound wire purchase reconciliation).

[BULLET] Automated Client Services (ACS) provides automated transaction support to client home offices.

Financial Advisor & Shareholder Services consists of two teams:

[BULLET] The Call Center, located in Smithfield, RI and Merrimack, NH, provides customer service to clients and individual investors by responding to inbound calls and performing trade execution.

[BULLET] Transaction Processing is responsible for establishing new accounts, maintaining existing accounts, and completing trade requests that are mailed by either IPs or investors. This team also supports the sales force by ensuring Inside and Field Sales representatives are associated with the correct IPs and by maintaining the database that links IPs to their home offices and investors.

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5.9 rollovers

The Business Development Team provides business analysis and project management support to Client Services. This team is responsible for the business implementation of key strategic initiatives that impact all aspects of transfer agent operations.

Operations Services provides operational support to Client Services and is composed of the following teams: Learning & Development, Outbound Services (e.g., statements, compensation, communications), Project Management, Reporting & Analysis, and Tax & Control.

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Regulatory Policy Development ensures organizational compliance with regulatory requirements by researching current and forthcoming regulations and developing appropriate policies around them.

FIIS Technology

Technology is responsible for identifying, developing, integrating, and supporting technical solutions for all FIIS departments.

To achieve its mission of delivering timely solutions through the innovative application and development of cost-effective technologies, Technology has established four Technology Key Focus Areas.

Click on each Key Focus Area below to learn more.

Graphic:

FIIS_OV_5.10_TechFocus

Introduction

What Is FIIS?



Resources

Summary

5.10

SP: can we have areas of the graphic pop up text (the text in dotted line boxes) when clicked? See graphics ppt

Business Value: [bullet] Align application and business strategies[bullet] Provide applications that drive business results[bullet] Increase development capacity[bullet] Anticipate FIIS business needs

Production Stability: [bullet] Provide reliable applications[bullet] Monitor and tune applications[bullet] Scale to meet increasing demands[bullet] Maintain security and privacy

Solution Delivery: [bullet] Deliver on technology portfolio commitments[bullet] Evolve FIIS technology architecture[bullet] Expand development pipeline

Workforce Effectiveness: [bullet] Grow capabilities and competencies[bullet] Retain top talent[bullet] Develop a pipeline of talent[bullet] Instill FIIS goals, strategies, and objectives

Technology Teams

Architecture & Planning

Customer Relationship Management Technologies

Products & Processing

Sales & Service Technologies

Shared Services

Photo:FIIS_OV_5.11_Tech

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Technology consists of five teams. Some of these teams provide application development and support services to specific FIIS functions. Other teams provide cross-functional technical support (e.g., Shared Services).

Place your cursor over each Technology team below to learn more.

Introduction

What Is FIIS?



Resources

Summary


5.11


5.11 rollovers

Architecture & Planning helps FIIS departments and other Technology teams achieve their goals by defining, delivering, and supporting effective technology solutions. This team’s job is to ‘connect the dots’ by integrating and supporting applications. Architecture and Planning teams include:Architecture; Business Services and Data Engineering (BSDE); Program Support ; Retirement Technology; and Training.

Customer Relationship Management Technologies helps FIIS build stronger customer relationships by advancing our customer knowledge. CRM Technologies achieves this objective by providing tools to manage and enrich customer data, maximizing the availability and reliability of data access, advancing the quality of customer data, and providing business insight through data transformation. Teams include: Marketing Automation: Reporting and Business Data Management: and Warehousing, ETL, and Offshore.

Products and Processing promotes the success of our business partners by delivering high quality, timely, and efficient technology solutions and services.Products and Processing teams include: Infrastructure; Platform Products; and Processing and Compliance.

Sales and Service Technologies creates business opportunities and solves business problems through innovative application development and cost-effective technologies. Sales and Service Technologies teams include: FIISView Team; Internet Presence; Remote Applications; and Sales Technology.

Shared Services collaborates with business partners to provide outstanding services in testing, environment support, and release management. Shared Services teams include: Application and Infrastructure Services (AIS); Application Certification/ Data Security; Environment Services and Tools; and Systems Acceptance Testing/ Release Management.

FIIS Finance

Finance oversees all financial functions within FIIS, including support for Distribution, Marketing, Client Services, Technology, and administrative functions. By working closely with all levels of management, Finance ensures the long-term financial success of FIIS and its individual departments.

Finance’s primary responsibilities include:

[bullet] Directing financial analysis activities; making financial recommendations to management; highlighting problems, issues, and trends.

[bullet] Partnering with all levels of management to define the strategic plan and deliverables for FIIS; measuring plan results

[bullet] Performing profitability reviews

[bullet] Analyzing new business opportunities and making recommendations to management on economic and operational feasibility

[bullet] Leading the annual budget and business planning process and providing ongoing business support

Photo:FIIS_OV_5.12_Finchart

Introduction

What Is FIIS?



Resources

Summary

5.12

Finance Teams

Photo:FIIS_OV_5.13_Fincalc

Finance consists of four teams. The first of these, Shared Financial Services, is responsible for the key processes, activities, and applications that are central to all business support functions within finance. The focus of this group is to drive higher overall efficiency and effectiveness across Finance through process expertise and improvement.

The three other Finance teams support specific FIIS departments. These teams include:

[bullet] Distribution Business Support[bullet] Business Planning & Analysis and Marketing Business Support[bullet] Client Services & Technology Business Support

Introduction

What Is FIIS?



Resources

Summary

5.13

FIIS Risk Management & Compliance

Risk Management & Compliance is responsible for assessing risks to FIIS operations and developing strategies to manage them. This departmentalso ensures that FIIS is compliant with industry regulations. By providing an integrated framework of risk management and compliance practices, standards, controls, and support services, Risk Management & Compliance protects FIIS and its associates and advances FIIS’ business objectives.

Graphic:FIIS_OV_5.14_caution

Introduction

What Is FIIS?



Resources

Summary

5.14

Risk Management & Compliance Teams

Program Management[bullet/indent] Regulatory Execution[bullet/indent] Cross-Fidelity Programs[bullet/indent] Reporting

Oversight[bullet/indent] Monitoring & Testing[bullet/indent] Education & Training[bullet/indent] Issue Resolution

Control[bullet/indent] Correspondence Review[bullet/indent] Collateral Review[bullet/indent] Contract Management

Photo:FIIS_OV_5.15_stamp

Rollover area

Risk Management & Compliance consists of three teams, each of which performs a core risk management or compliance function.

Place your cursor over each team below to learn more.

Introduction

What Is FIIS?



Resources

Summary


5.15

The Program Management function includes regulatory and Fidelity mandated program executions, including:

[bullet] Implementation of industry rules, including SEC (Securities & Exchange Commission) and NASD (National Association of Securities Dealers) requirements[bullet] Management of cross-Fidelity programs (i.e., Business Contingency Planning, Records Management, and Privacy)[bullet] Centralized risk reporting


5.15 rollovers

The Oversight function creates, implements, and advises on supervisory controls to help ensure that FIIS departments are compliant with corporate and industry regulatory standards and procedures. Activities include evaluating and monitoring controls on an ongoing basis, providing education and training on regulatory issues and controls, and conducting issue resolution. Specialized teams provide oversight and control for each of the following areas: Distribution, Marketing, Transfer Agent, and Information Security.

The Control function is composed of three teams:[bullet] Correspondence Review monitors the email and hardcopy correspondence of FIIS Distribution staff (e.g, wholesalers, managers).[bullet] Collateral Review monitors the production and distribution of sales and other communications to ensure compliance with regulatory standards and internal policies and procedures.[bullet] Contract Management establishes, maintains, and retains FIIS contracts.

FIIS Human Resources

Photo:FIIS_OV_5.16_

Fidelity Core Human Resources provides enterprise-wide support on compensation, benefits, staffing, leadership development, and other services. Within FIIS, however, the Human Resources Management Effectiveness team is responsible for providing internal support. This team works with FIIS managers to:

[bullet] Develop leadership capabilities[bullet] Handle workforce issues[bullet] Develop teams through talent management and succession planning

In addition, FIIS managers and associates can get help regarding payroll, benefits, and other human resources issues by contacting the HR Solutions group at 1-800-835-5099.

Introduction

What Is FIIS?



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Summary

5.16

HR Solutions [FAV] https://hrsolutions.fidelity.com/wps/hr/Main

SP: create fav and link

FIIS At A Glance The preceding topic has provided an overview of FIIS’ seven departments. To review how these departments work together to support FIIS and FIIS products, click on each oval below.

Introduction

What Is FIIS?



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Summary

5.17

Graphic: FIIS_OV_5.17_FIISoval

Marketing develops strategies around the FIIS product line to drive product awareness and increase sales. Distribution builds client relationships and sells the product. Client Services supports the client through transaction processing, problem resolution, and other customer service activities.

FIIS is the intermediary distribution channel for Fidelity products. All FIIS departments support the sale of Fidelity products through institutional clients.

Technology develops and supports technical solutions that enable FIIS to operate efficiently and continuously. Finance ensures that FIIS is profitable against its objectives. Risk Management & Compliance minimizes risks to business operations and maintains compliance with regulatory standards, thereby protecting FIIS operations, organizational reputation, and associate safety.

Human Resources helps acquire, retain, and develop the associates who maintain FIIS operations.

SP: click on graphic areas launch text boxes (see graphics ppt)


5.18

Introduction

What Is FIIS?



Resources

Summary


($) Marketing

Correct. Marketing is responsible for providing marketing strategy and support to FIIS’ sales efforts.

(X) Investment Consulting Services (ICS)Incorrect. Investment Consulting Services (ICS) is a team within Marketing. This team collects and analyzes information on fund performance and positioning (both FIIS’ and competitors’ funds) and consults with sales representatives and top-tier clients on its conclusions.

(X) Financial Advisor & Shareholder ServicesIncorrect. Financial Advisor & Shareholder Servicesis a team within Client Services. Client Services is the FIIS department that provides transaction processing and record-keeping services for the transfer agent, as well as intermediary support and relationship management for FIIS clients.

($) Risk Management & ComplianceCorrect. Risk Management & Compliance is responsible for assessing risks to FIIS operations and developing strategies to manage them. This department also ensures that FIIS is compliant with industry regulations.

($) FinanceCorrect. Finance oversees all financial functions within FIIS, including support for Distribution, Marketing, Client Services, Technology, and administrative functions.

Which of the following is a department within FIIS? Select ALL that apply.

Resources

Use the following resources to learn more about Fidelity Investments and FIIS. Make sure to book mark the sites or download the documents for easy reference.

Fidelity Resources

Fidelity.com https://www.fidelity.com/

Fidelity Annual Report http://fnw.fmr.com/Fidelity_Exchange/03-04/2003annualreport.pdf

Fidelity Organizational Chart https://hrsolutions.fidelity.com/dcl/uploadedfiles/NewHireOverview_Fidelity_Org_Chart.pdf

Fidelity NOW http://www.fmr.com/Fidelity_NOW/

FIIS Resources

FIIS Organizational Chart http://fnw.fmr.com/fiisnet/about_fiis/media/fiis_org_chart.pdf

FIIS Fact Sheet http://www.fmr.com/fidelityfacts/FIIS/fiis.pdf

FIISnet http://fnw.fmr.com/fiisnet

FIIS Today http://fnw.fmr.com/fiisnet/about_fiis/fiis_today/index.html

FIIS Online Reference http://fiisolr.fmr.com/olrsite/fiisgen/index.htm

FIIS Learning Institute http://aspen.fmr.com/aspen/lang-en/management/LMS_LearnerHome.asp

FIIS Product Lines[indent/bullet] Advisor (ADG) (doc: ADGProductGrid2.gif)[indent/bullet] Institutional (IDG) (doc: IDGProductGrid2.gif)

Introduction

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Summary

6.1

SP: link to sites or docs as indicated

Course Summary

Congratulations! You have completed FIIS Overview!

This course provided an introduction to Fidelity Investments Institutional Services (FIIS). An understanding of FIIS, its place within Fidelity, and its core functions helps FIIS associates to function more effectively within their work environment.

You should now be able to:

[BULLET] Describe FIIS and its role within the Fidelity organization[BULLET] Identify and describe FIIS products and programs[BULLET] Explain the FIIS sales strategy[BULLET] Identify and describe the groups that compose FIIS

To advance to the Assessment, click the forward arrow.

Introduction

What Is FIIS?



Resources

Summary

7.1

Assessment Introduction

Standard text here

Question 1 of 10

FIIS is the distribution channel within Fidelity that distributes investment products:

(X) directly to the public.($) through institutional intermediaries. (X) through company-sponsored retirement plans.

Question 2 of 10

FIIS operates in which of the following markets? Select ALL that apply.

($) Brokerage firms($) Financial planners($) Insurance($) Banks

Question 3 of 10

FIIS accounts for approximately what percentage of Fidelity’s total customer assets under management?

(X) 5% ($) 10%(X) 15%(X) 20%

Question 4 of 10

Which of the following products distributed by FIIS serves the core investment needs of most investors?

(X) Retirement Income Services($) Fidelity Advisor Funds(X) Fidelity Institutional Money Market Funds(X) Fidelity Advisor SEP and SIMPLE IRAs

Question 5 of 10

Matching instructions here

Fidelity Destiny Plan

Fidelity Institutional Money Market Funds

Fidelity Advisor 529 Plans

Fidelity Advisor 403(b) Plans

allows long-term investors to accumulate wealth over time by making disciplined monthly investments

distributed to institutional and corporate clients who are extremely risk sensitive and are looking to preserve principal and earn a competitive return

Allows investors to save for college while offering income-, gift- and estate-planning benefits

available exclusively to K-12 public school employees who want to save for retirement

Question 6 of 10

Which of the following FIIS departments typically have direct client contact??

(X) Technology($) Distribution(X) Finance($) Client Services(X) Risk Management & Compliance

Question 7 of 10

Which FIIS Distribution group sells to wirehouses and regional brokerages?

($) Advisor Distribution Group(X) Institutional Distribution Group(X) Both of the above

Question 8 of 10

FIIS focuses on developing relationships with investment professionals because they are the primary means of connecting investors to Fidelity products.

($) True(X) False

Question 9 of 10

Which FIIS Distribution group distributes through investment professionals (IPs)?

(X) Advisor Distribution Group(X) Institutional Distribution Group($) Both of the above

Question 10 of 10

Matching instructions here

Distribution

Marketing

Client Services

Technology

Finance

Risk Management & Compliance

Human Resources

develops relationships with clients and sells FIIS products

manages product and program lines

performs trade executions

provides tools to automate processes and manage client data

leads the business planning process

ensures FIIS is compliant with industry regulations

performs succession planning

Assessment Summary

Standard text here for both scoring thresholds

Linked Text

A mutual fund is collection of investments, typically stocks and/or bonds, that enables groups of investors to pool their money and place it under professional investment management.

Advisor sales are comprised of broker-dealer, financial planner, and international sales.

Institutional sales are comprised of insurance retirement, insurance wholesale, bank trust, corporate direct and capital markets, and Destiny product sales.

FIIS distributes to investors through advisors (also known as investment advisors or investment professionals), so a sizable base of high-value advisors enables FIIS to sell more products to more investors.

A diverse asset base helps protect investors by spreading risk across investments that perform differently according to the economic environment. To meet the diversification needs of its investors, FIIS is working toward further diversifying its product offering to ensure it has appropriate breadth to meet client demand during different market cycles.

Fidelity Institutional Money Market Funds (IMM) are distributed to institutional and corporate clients who are extremely risk sensitive and are looking to preserve principal and earn a competitive return. Because IMMs are short-term investments, clients are able to move large volumes of cash in and out of IMMs on short notice. To control the volatility of this market, FIIS is working toward increasing the number of IMM clients as well as maintaining IMM funds for longer periods of time.

Investment professionals (IPs), or investment advisors, are defined by the Investment Advisor Act of 1940 as any person who (1) provides investment advice, (2) is in the business of providing investment advice, and (3) is compensated for providing investment advice (directly via face to face or indirectly through a newsletter). FIIS distributes Fidelity products through IPs.

A wirehouse is a national or international firm whose branch offices are linked by a communications system that allows rapid dissemination of prices, information, and research related to financial markets and individual securities. Today, the term “wirehouse” refers to the biggest brokerage houses (e.g. Merrill Lynch, Prudential Securities).

Regional brokerages are full-service intermediaries whose data access is similar to that of wirehouses, but that are smaller in size (i.e., the next 50 largest full-service firms are considered regional brokerages

Financial planners include banks and insurance agencies that offer investment services to their clients in addition to their traditional products and programs. This category also includes firms that provide securities transaction services to independent investment professionals.

Bank business units (BBU), formerly known as bank trusts, are responsible for the administration and management of assets for the benefit of others. The bank acts in fiduciary capacity for personal, institutional, employee benefit, and corporate trust investment portfolios.

Cash business units (CBU) distribute money market funds to cash management professionals. Cash business units distribute directly through cash managers at corporations and through intermediaries that sell funds to cash management professionals. Insurance wholesalers provide specialized insurance products to retail insurance agents and brokers.

Bank trust departments manage trusts and guardianships on behalf of individuals. FIIS experienced high growth in this lucrative bank market in 2004 and is committed to further growth in 2005.

Sub-Advised Portfolios are investment portfolios sub-advised by Fidelity for FIIS' insurance clients. Insurance companies are attempting to gain more control over the portfolio funds currently managed by FIIS. To maintain its position in this market, FIIS is committed to retaining management control.

The goal of both Fidelity and FIIS is to improve the customer experience by presenting a unified face to clients. By consolidating its processes and platforms, Fidelity will streamline its service operations and deliver a best-in-class customer experience.

In 2004, FIIS ranked 4th in market share of the advisor marketplace, up from 87th in 2002. FIIS’ goal is to further increase its market share in 2005.

Sales representatives include Inside Sales and Field Sales within the Advisor and Institutional Distribution Groups.

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