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Comprehensive program helps mid-sized defined benefit plans manage risks and volatility

BOSTON, February 1, 2006 - Leveraging its experience in providing solutions to pension plans, Fidelity Investments today introduced "Fidelity Pension AdvantageSM," a comprehensive new product and service offering designed to help CFOs confront the complex challenges facing defined benefit plans.  This solution will allow CFOs to better manage their pension plan's impact on corporate financials and meet their fiduciary responsibilities.

Through an integrated, consultative approach, Fidelity Pension Advantage combines Fidelity's highly-regarded asset allocation, portfolio construction and actuarial analysis with a new platform of investment options screened and recommended by independent consultant Rocaton Investment Advisors, LLC.  The platform includes an array of products intended to provide increased diversification and enhanced performance, from leading institutional managers such as AXA Rosenberg Investment Management, LLC, Fidelity, Martin Currie, Inc., Shenkman Capital Management, Inc., Trust Company of the West, Wells Capital Management, Inc., and Western Asset Management Company.

"With low interest rates, an uncertain regulatory environment, a more efficient global capital markets system, and a confusing array of financial instruments and management strategies, the challenges confronting mid-sized defined benefit plan sponsors have never been greater or more complex," said Drew E. Lawton, president and chief executive officer of Fidelity's defined benefit unit, Fidelity Management Trust Company.  "Fidelity is committed to helping these organizations overcome these challenges, and in doing so, preserve an important component of our nation's retirement system."   

The Fidelity Pension AdvantageSM program offers:

  • Liability sensitive portfolio management - Fidelity's team of dedicated professionals helps CFOs better manage risks through an integrated actuarial and investment analysis of plan assets and liabilities.  Instead of a manager-of-managers solution, the team helps diversify portfolios for each client with liability-sensitive portfolio construction and proprietary asset allocation models, resulting in a customized investment solution.  These experts also help mitigate risk by continuously monitoring the impact of the defined benefit plan on company earnings, balance sheet performance and cash flow.  In the near future, Fidelity plans to offer clients on-line access to interactive modeling tools to simulate plan changes and help evaluate their potential impact.
  • Investment flexibility and access - Plan sponsors can currently select from approximately 30 products from leading institutional managers, without the constraint of required investment minimums, including proprietary product allocations.  Fidelity plans to add several additional investment managers and expects to have over 50 products on the platform in the near future.  The platform is continuously screened, recommended and monitored by independent consultant Rocaton Investment Advisors, LLC and all products (including Fidelity's) are subject to the same objective selection and performance criteria.  Pricing is product neutral, and includes investment disciplines across the risk/return spectrum.
  • Enhanced fiduciary support - In addition to serving as fiduciary for trustee services and management of Fidelity investment products, Fidelity also offers its expertise in helping plan sponsors select managers and products from the platform for their plan.
  • Streamlined plan management - Fidelity simplifies plan management for CFOs of both active and frozen defined benefit plans through an integrated approach to actuarial and investment analysis, convenient access to multiple investment managers through a single-provider, and client service delivered through dedicated relationship managers.  The program also includes trustee, custody and disbursement services.
For more information on managing risks and volatility in defined benefit programs, plan sponsors can contact 617-392-2419 to speak with a Fidelity Pension AdvantageSM specialist. 

About Rocaton Investment Advisors
Rocaton Investment Advisors, LLC, is a leading independent investment consultant who has applied its proprietary due diligence process to develop a recommended list of products to include on the Fidelity Pension Advantage Platform.  Currently, Rocaton has approximately $225 billion in assets under advisement, representing 50 clients.  Rocaton's twelve manager research professionals average 15 years of industry experience.  As part of its ongoing qualitative and quantitative due diligence process, Rocaton conducts more than 1300 investment manager meetings annually.

About Fidelity Management Trust Company
Fidelity Management Trust Company manages assets for approximately 550 institutional clients worldwide, including corporate and public retirement funds, endowments, foundations and other institutional investors. The company offers institutional asset management for active and risk‐controlled equity, fixed-income, international equity, real estate and alternative disciplines such as market neutral.  As of October 31, 2005, the company's total assets under management were $103.5 billion.

About Fidelity Investments
Fidelity Investments is one of the world's largest providers of financial services, with custodied assets of $2.3 trillion, including managed assets of $1.1 trillion as of October 31, 2005. Fidelity offers investment management, retirement planning, brokerage, and human resources and benefits outsourcing services to more than 20 million individuals and institutions as well as through 5,500 financial intermediary firms. The firm is the largest mutual fund company in the United States, the No. 1 provider of workplace retirement savings plans, one of the largest mutual fund supermarkets and a leading online brokerage firm. For more information about Fidelity Investments, visit


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Fidelity Management Trust Company[1]
82 Devonshire Street, Boston, MA  02109




[1] Fidelity Management Trust Company is a Massachusetts state-chartered trust company primarily engaged in providing investment management, fiduciary and related services for corporate and public retirement funds, endowments, foundations and other major institutions worldwide.