Fidelity Trading Boom Lifts Johnson Family Wealth to $48 Billion

0 51

(Bloomberg) — The bet that Fidelity Investments made on retail investors who swarmed the stock market during the pandemic is paying off for Abigail Johnson and her family.

Most Read from Bloomberg

China Warns U.S. Over Forming Pacific NATO, Backing Taiwan

Ukraine Open to Neutrality, Won’t Yield Territory, Aide Says

Owners Fear Planes ‘Are Gone Forever’ After Russia Shields Them From Seizure

China Pushes Conspiracy Theory About U.S. Labs in Ukraine

Ukraine Update: Firms Exit Russia, Fitch Sees ‘Imminent’ Default

The fortune of Fidelity’s chief executive officer jumped to $21.5 billion after the closely held fund manager reported Wednesday that revenue rose 15% last year, according to the Bloomberg Billionaires Index. The family, which owns almost half the Boston-based company, is now worth $48 billion, an increase of $6.2 billion.

Fidelity and its competitors spent much of last year courting the flood of individual investors who entered the market during the pandemic as stocks and other risky assets soared in value, even creating a new type of brokerage account to give teenagers access to financial markets. The company said in August it would make 9,000 new hires across the U.S. by the end of 2021 amid a boom in retail trading.

An increase in the number of retail accounts helped push Fidelity’s discretionary assets to $4.5 trillion, up 18% from a year earlier, according to the firm’s annual report released Wednesday. Its revenue rose to $24 billion, up from $21 billion, with operating income of $8.1 billion.

The Bloomberg Billionaires Index calculates that Fidelity is worth $74.8 billion, an increase of $12 billion, based on data in the report.

Susan Coburn, a spokeswoman for Fidelity, declined to comment.

Most Read from Bloomberg Businessweek

Putin’s Endgame Starts to Look Like Reducing Ukraine to Rubble

Putin Clings to Russia’s Market Economy as Sanctions Wind Back the Clock

Remote-Work Experts Are in Demand as Return to Office Begins Anew

Powell’s Fed Is Set to Attempt a Rare Soft Landing—in the Fog of War, No Less

The GOP’s Toomey Rails Against the Fed Becoming ‘Politburo’ for Credit

©2022 Bloomberg L.P.

Leave A Reply

Your email address will not be published.