FMR (Fidelity Investments): A Leading Mutual Fund Company, Discount Brokerage Firm, Retirement Plan Provider, Custodian, & Clearing Broker Tiburon Research

FMR (Fidelity Investments):A Leading Mutual Fund Company, Discount Brokerage Firm,

Retirement Plan Provider, Custodian, & Clearing Broker

Tiburon ResearchSeptember 17, 2015

15.09.17 – FMR (Fidelity Investments) © Tiburon Strategic Advisors, LLC™ 2

FMR (Fidelity Investments)

Source: 9/7/15 Barron’s; 9/9/15 Fidelity Investments Web Site; 3/17/15 Fidelity Investments Web Site; 3/16/15 Wall Street Journal; 10/13/14 Business Journals.Com; 4/30/14 Fidelity Investments Corporate Fact Sheet; 8/6/13 Business Week Web Site; 8/2/13 Privco Web Site; 3/6/13 Fidelity Worldwide Investment Web Site; 3/4/13 Fidelity Investments Web Site; 2/27/13 Fidelity Investments Web Site; Tiburon Research & Analysis

• Founded in 1930– Founded as Fidelity Fund

• Based in Boston, MA• 25 countries• 12 offices• 41,000 employees• 23.0 million clients• $4.9 trillion assets under management & administration

– $2.9 trillion assets under administration – $2.0 trillion assets under management

• 454,000 daily average revenue trades• $11.5 billion revenues• $2.5 billion operating income• Chairman: Ned Johnson

− CEO: Abby Johnson• Web sites: www.fidelity.com, www.fidelityinsuranceagency.com,

www.fidelitycharitableservices.com, www.401k.com, www.nationalfinancial.com, www.fidelitycapitalmarkets.com, www.fidelityprime.com, www.begreater.com, www.advisorchannel.com, www.pyramis.com, www.emoneyadvisor.com, www.e2platform.com, & www.fidelityworldwideinvestment.com

Comments


FMR Has 41,000 Employees, Up 40% Since 2002 But Down from its Peak of 44,000 in 2007

Source: 9/9/15 Fidelity Investments Web Site; 4/14 Fidelity Investments Corporate Fact Sheet; 2/27/13 Wikipedia Web Site; 2/9/11 Wikipedia Web Site; 2/25/10 Boston Business Journal; 9/18/07 Fidelity Investments Web Site; 3/8/05 Fidelity Investments Web Site; Tiburon Research & Analysis

FMR Employees

28,000

32,500

44,000

38,000 37,00040,000 41,000

2002 2004 2007 2009 2010 2013 2014


FMR Serves 23.0 Million Clients, Up 33% Since 2003 and Relatively Consistent Since 2007

FMR Clients

(Millions)

Source: 9/9/15 Fidelity Investments Web Site; 9/9/15 Fidelity Investments Web Site; 4/14 Fidelity Investments Corporate Fact Sheet; 8/2/13 Privco Web Site: 2/27/13 Wikipedia Web Site; 5/21/08 Fidelity Investments Web Site; 5/7/08 Bloomberg; 3/15/09 Robert Scott Email (Corley); 9/18/07 Fidelity Investments Web Site; 2/1/06 National Financial Services Press Release; 3/8/05 Fidelity Investments Web Site; Tiburon Research & Analysis

18.020.0

21.0

24.0 24.0 24.023.0 23.0

2003 2004 2005 2007 2008 2009 2013 2014


$1.5

$2.1$2.4 $2.5

$3.3 $3.3 $3.4

$3.9 $4.0

$4.9

2003 2004 2005 2006 2008 2010 2011 2012 2013 2014

FMR Has Gathered $4.9 Trillion Assets Under Administration & Management, Up Over 200% Since 2003

Source: 9/9/15 Fidelity Investments Web Site; 4/30/14 Fidelity Investments Corporate Fact Sheet; 8/2/13 Privco Web Site; 4/3/13 TD Ameritrade Email (Schweiss); 3/13/13 Fidelity Investments Press Release; 2/27/13 Fidelity Investments Web Site; 2/27/13 Wikipedia Web Site; 2/9/11 Wikipedia Web Site; 6/15/09 Securities Industry News; 5/18/09 Securities Industry News; 5/11/09 Barron’s; 5/09 Registered Rep; Tiburon Research & Analysis

FMRAssets Under Administration & Management

($ Trillions)


FMR’s Assets Under Administration are About Two-Thirds Assets Under Administration

Source: 9/9/15 Fidelity Investments Web Site; 4/30/14 Fidelity Investments Corporate Fact Sheet; 4/3/13 TD Ameritrade Email (Schweiss); 2/27/13 Fidelity Investments Web Site; 11/18/12 Fidelity Investments Web Site; 3/18/09 Robert Scott Email (Corley); 1/08 Bank Insurance & Securities Markets; 9/18/07 Fidelity Investments Web Site; 3/8/05 Fidelity Investments Web Site; 4/5/04 Money Management Executive; Tiburon Research & Analysis

FMRAssets Under Administration

By Asset Type

41%

$2.9

56% 59%

$2.0

44%

2004 2013 2014

Assets Under Administration

Assets Under Management


$0.6

$1.9

$2.2

$2.7

$2.0

2003 2011 2012 2013 2014

FMR Has Gathered $2.9 Trillion Assets Under Administration, Up Over 300% Since 2003

FMR Assets Under Administration

($ Trillions)

Source: 9/9/15 Fidelity Investments Web Site; 4/14 Fidelity Investments Corporate Fact Sheet; 2/27/13 Fidelity Investments Web Site; 7/1/03 Business Wire; Tiburon Research & Analysis


FMR Has Three Businesses, Including Fidelity Investments, Fidelity Worldwide Investment (FIL Limited), & Devonshire Investors

Source: 2/27/13 Business Week; 2/27/13 Wikipedia Web Site; 3/10/05 Fidelity Investments Web Site; Tiburon Research & Analysis

FMR Businesses

FMR Businesses

Fidelity Investments Devonshire InvestorsFidelity Worldwide

Investment(FIL Limited)


• 2 countries• 12 offices• 40,000 employees• 23.0 million clients• 19.0 million accounts• $4.9 trillion assets under management & administration

− $2.9 trillion assets under administration− $2.0 trillion assets under management

• 413,300 daily average revenue trades• $11.5 billion revenues• $2.5 billion operating income• Web site: www.fidelity.com,

www.fidelityinsuranceagency.com, www.fidelitycharitableservices.com, www.401k.com, www.nationalfinancial.com, www.begreater.com, www.fidelitycapitalmarkets.com, www.fidelityprime.com, www.advisorchannel.com, www.pyramis.com, & www.emoneyadvisor.com

Comments

FMR’s First Business is Fidelity Investments

Source: 9/9/15 Fidleity Investments Web Site; 3/16/15 Fidelity Investments Web Site; 4/30/14 Fidelity Investments Corporate Fact Sheet; 8/6/13 Business Week Web Site; 8/2/13 Privco Web Site; 3/6/13 Fidelity Worldwide Investment Web Site; 3/4/13 Fidelity Investments Web Site; 2/27/13 Fidelity Investments Web Site; 2/27/13 Pyramis Web Site; 2/27/13 Wikipedia Web Site; 2/9/11 Wikipedia Web Site; Tiburon Research & Analysis


FMR’s Fidelity Investments Serves 23.0 Million Clients, Up 33% Since 2003 But Consistent Since 2007

Fidelity Investments Clients

(Millions)

Source: 9/9/15 Fidelity Investments Web Site; 3/16/15 Fidelity Investments Web Site; 4/14 Fidelity Investments Corporate Fact Sheet; 2/27/13 Wikipedia Web Site; 5/21/08 Fidelity Investments Web Site; 5/7/08 Bloomberg; 3/15/09 Robert Scott Email (Corley); 9/18/07 Fidelity Investments Web Site; 2/1/06 National Financial Services Press Release; 3/8/05 Fidelity Investments Web Site; 7/1/03 Business Wire; Tiburon Research & Analysis

18.020.0

21.0

24.0 24.0 24.023.0 23.0

2003 2004 2005 2007 2008 2009 2013 2014


19.0 19.0

2013 2014

Fidelity InvestmentsAccounts(Millions)

FMR’s Fidelity Investments Has Gathered 19.0 Million Accounts, Consistent Since 2013

Source: 3/16/15 Fidelity Investments Web Site; Tiburon Research & Analysis


$1.5

$2.1$2.4 $2.5

$3.3 $3.3 $3.4

$3.9 $4.0

$4.9

2003 2004 2005 2006 2008 2010 2011 2012 2013 2014

FMR’s Fidelity Investments Has Gathered $4.9 Trillion Assets Under Management & Administration, Up Over 200% Since 2003

Source: 9/9/15 Fidelity Investments Web Site; 3/17/15 Fidelity Investments Web Site; 3/16/15 Fidelity Investments Web Site; 4/14 Fidelity Investments Corporate Fact Sheet; 8/2/13 Privco Web Site; 2/27/13 Fidelity Investments Web Site; 2/27/13 Wikipedia Web Site; 2/9/11 Wikipedia Web Site; 6/15/09 Securities Industry News; 5/18/09 Securities Industry News; 5/11/09 Barron’s; 5/09 Registered Rep; 3/18/09 Robert Scott Email (Corley); Tiburon Research & Analysis

Fidelity Investments Assets Under Management & Administration

($ Trillions)


FMR’s Fidelity Investments’ Assets Under Administration are About One-Third Assets Under Management

Source: 9/9/15 Fidelity Investments Web Site; 3/17/15 Fidelity Investments Web Site; 4/30/14 Fidelity Investments Corporate Fact Sheet; 2/27/13 Fidelity Investments Web Site; 3/18/09 Robert Scott Email (Corley); 1/08 Bank Insurance & Securities Markets; 9/18/07 Fidelity Investments Web Site; 3/8/05 Fidelity Investments Web Site; 4/5/04 Money Management Executive; 1/19/04 Money Management Executive; Tiburon Research & Analysis

Fidelity Investments Assets Under Administration

By Asset Type

41% 41%

56% 59% 59%

44%

2004 2013 2014

Assets Under Administration

Assets Under Management


FMR’s Fidelity Investments Has Gathered $2.0 Trillion Assets Under Management, Up 300% Since 1996

Fidelity Investments Assets Under Management

($ Trillions)

Source: 9/9/15 Fidelity Investments Web Site; 3/17/15 Fidelity Investments Web Site; 4/14 Fidelity Investments Corporate Fact Sheet; 3/4/13 Fidelity Investments Web Site; 2/27/13 Crunch Base Web Site; 2/27/13 Wikipedia Web Site; 4/17/12 Pyramis Global Advisors Presentation (Young); 3/18/09 Robert Scott Email (Corley); 3/2/09 Money Management Executive; 2/25/09 Wall Street Journal; 11/5/08 Fidelity Investments Web Site; Tiburon Research & Analysis

$0.5

$0.9

$1.1$1.2

$1.4

$1.6

$1.2

$1.5 $1.5

$1.7

$1.9$2.0

1996 2003 2004 2005 2006 2007 2008 2010 2011 2012 2013 2014


$0.6

$1.9

$2.2

$2.7$2.9

2003 2011 2012 2013 2014

FMR’s Fidelity Investments Has Gathered $2.9 Trillion Assets Under Administration, Up Over 300% Since 2003

Fidelity Investments Assets Under Administration

($ Trillions)

Source: 9/9/15 Fidelity Investments Web Site; 3/17/15 Fidelity Investments Web Site; 4/14 Fidelity Investments Corporate Fact Sheet; 2/27/13 Fidelity Investments Web Site; 7/1/03 Business Wire; Tiburon Research & Analysis


FMR’s Fidelity Investments Executes 413,300 Daily Average Revenue Trades, Up 15% Since 2007 But Down from its Peak of 454,000 in 2008

Source: 3/16/15 Fidelity Investments Web Site; 7/29/10 Fidelity Web Site; 2/25/09 Wall Street Journal; Tiburon Research & Analysis

Fidelity Investments Daily Average Revenue Trades

372,131

454,000

413,300 413,300

2007 2008 2013 2014


FMR’s Fidelity Investments Has Four Core Businesses, Including its Fidelity Personal & Workplace Investing, Fidelity Institutional Products Group, and Fidelity Asset Management & Corporate Services

Source: 2/27/13 Business Week; 2/27/13 Wikipedia Web Site; 3/10/05 Fidelity Investments Web Site; Tiburon Research & Analysis

Fidelity Investments Businesses

Fidelity Investments Businesses

Fidelity Personal & Workplace Investing

Fidelity Asset Management &

Corporate Services

Fidelity Institutional Products Group


FMR’s Fidelity Investments’ Fidelity Asset Management & Corporate Services’ Fidelity Asset Management’s Fidelity Management & Research Contra Fund is the Company’s Largest Mutual Fund, Followed by its Cash Reserves

Source: 3/13/15 Seeking Alpha Web Site; 3/4/15 Reuters; 2/27/13 Wikipedia Web Site; 7/13/09 Barron’s; 5/11/09 Money Management Executive; 10/20/08 Fund Action; 5/24/08 Investment News; 3/19/08 Money Management Executive; 9/18/07 Fidelity Investments; 9/5/05 Fidelity Investments Web Site; 3/8/05 Fidelity Investments Web Site; 2/00 Money; 11/99 Morningstar; 10/99 Capital Group Research; Tiburon Research & Analysis

Fidelity Management & Research Mutual Funds Assets Under Management

By Fund($ Billions)

$14.9

$15.7

$17.1

$20.0

$20.2

$24.0

$27.1

$29.0

$99.0

$117.0

Puritan

Equity Income

Freedom 2020

Magellan

Low-Priced Stock

Growth Company

Diversified International

New Insights Fund

Cash Reserves

Contra Fund


15

2014 2015

Fidelity Management & Research Exchange Traded Funds

FMR’s Fidelity Investments’ Fidelity Asset Management & Corporate Services’ Fidelity Asset Management’s Fidelity Management & Research Has Fifteen Exchange Traded Funds

Source: 3/16/15 Barron’s; 7/13/09 Barron’s; Tiburon Research & Analysis


$90

2014 2015

Fidelity Management & Research Exchange Traded Funds

Assets Under Management($ Millions)

FMR’s Fidelity Investments’ Fidelity Asset Management & Corporate Services’ Fidelity Asset Management’s Fidelity Management & Research’s Exchange Traded Funds Have Gathered $90 Million Assets Under Management

Source: 3/16/15 Barron’s; 7/13/09 Barron’s; Tiburon Research & Analysis


FMR’s Fidelity Investments’ Fidelity Asset Management & Corporate Services’ Fidelity Asset Management’s Pyramis Global Advisors Manages $239 Billion in Assets, Up Over 100% Since 2004

Pyramis Global Advisors Assets Under Management

($ Billions)

Source: 3/17/15 Fidelity Investments Web Site; 4/14 Fidelity Investments Corporate Fact Sheet; 3/4/13 Fidelity Investments Web Site; 3/4/13 Pyramis Global Advisors Web Site; 2/27/13 Pyramis Web Site; 9/18/07 Fidelity Investments Web Site; 4/14/06 Fidelity Investments Web Site; 9/12/05 Money Management Executive; 8/23/05 Fidelity Investments Web Site; 3/8/05 Fidelity Investments Web Site; Tiburon Research & Analysis

$102 $107

$162 $159

$188

$229$239

2004 2005 2007 2011 2012 2013 2014


• Founded in 1969– Founded as Fidelity International Limited (FIL)

• Based in London, England• 25 countries• 5,500 employees• 897 mutual funds• $240 billion assets under management

Comments

FMR's Second Business is Fidelity Worldwide Investment (FIL Limited)

Source: 3/5/13 Fidelity Worldwide Investment Web Site; 2/27/13 Wikipedia Web Site; 3/18/09 Robert Scott Email (Corley); 5/1/0/08 Wall Street Journal; 4/11/08 Financial Times; 4/10/08 Financial Times; 9/18/07 Fidelity Investments Web Site; 4/14/06 Fidelity Investments Web Site; 8/23/05 Fidelity Investments Web Site; 3/8/05 Fidelity Investments Web Site; Tiburon Research & Analysis


FMR's Fidelity Worldwide Investment (FIL Limited) Has Gathered $240 Billion Assets Under Management, Down 5% Since 2005

Fidelity Worldwide InvestmentAssets Under Management

($ Billions)

$250$261

$230$240

2005 2008 2010 2012

Source: 3/5/13 Fidelity Worldwide Investment Web Site; 2/27/13 Wikipedia Web Site; 5/10/08 Wall Street Journal; 9/18/07 Fidelity Investments Web Site; 4/14/06 Fidelity Investments Web Site; 8/23/05 Fidelity Investments Web Site; 3/8/05 Fidelity Investments Web Site; Tiburon Research & Analysis


Case Example… FMR's Fidelity Worldwide Investment (FIL Limited) Has Gathered $240 Billion Assets Under Management, Down 5% Since 2005

Fidelity Worldwide InvestmentAssets Under Management

($ Billions)

$250$261

$230$240

2005 2008 2010 2012

Source: 3/5/13 Fidelity Worldwide Investment Web Site; 2/27/13 Wikipedia Web Site; 5/10/08 Wall Street Journal; 9/18/07 Fidelity Investments Web Site; 4/14/06 Fidelity Investments Web Site; 8/23/05 Fidelity Investments Web Site; 3/8/05 Fidelity Investments Web Site; Tiburon Research & Analysis


• Founded in 1969• Based in Boston, MA• $500 million assets under management• President: Tim Hilton

Comments

FMR’s Third Business is Devonshire Investors

Source: 2/27/13 Business Week; 7/13/09 Wall Street Journal; 3/18/09 Robert Scott Email (Corley); 5/20/08 International Herald Tribune; Tiburon Research & Analysis


Devonshire InvestorsBusinesses

FMR's Devonshire Investors Has Five Businesses, Including Fidelity Growth Partners, Fidelity Ventures, Fidelity Asia Ventures, Fidelity Biosciences, & Pembroke Real Estate

Source: 8/2/13 Google Web Site; 2/27/13 Wikipedia Web Site; 7/13/09 Wall Street Journal; 5/26/08 Money Management Executive; 5/26/08 Boston Globe; 5/22/08 Money Management Executive; 5/20/08 International Herald Tribune; 5/15/08 Boston Globe; Tiburon Research & Analysis

Fidelity Growth Partners

Fidelity Asia Ventures

Fidelity BiosciencesFidelity VenturesPembroke Real

Estate

Devonshire InvestorsBusinesses


FMR is Led by its Chairman Ned Johnson & CEO Abby Johnson

FMROrganizational Chart

Note: Ned Johnson joined the firm in 1957 and became CEO in 1977; Thomas Balk joined the firm in 1999; he was formerly at Foreign & Colonial; Tim Hilton joined the firm in 1996; he was formerly at Sullivan & Worcester; Abby Johnson joined the firm in 1988 and became CEO in 2014?; she was formerly at Bain & Company; Kathleen Murphy joined the firm in 2009; she was formerly at ING Group and Aetna Financial Services; James MacDonald joined the firm in XXXX; Gerry McGraw joined the firm in XXXX; Charles Morrison joined the firm in XXXX; Jim Speros joined the firm in XXXX; John Penandli joined the firm in XXXX; Brian Johnson joined the firm in XXXX; Jonathan Chiel joined the firm in XXXX; JJ Johnstone joined the firm in 2008; he was formerly at NASDAQ Stock Market; AT&T, and Akin, Gump, Hauer, & Feld

Source: 9/14/15 Bloomberg Web Site; 9/7/15 Barron’s; 3/17/15 The Hans India Web Site; 3/13/15 Seeking Alpha Web Site; 3/11/15 Edmonton Journal; 10/13/14 Business Journals.Com; 12/13 Fidelity Funds Prospectus; 8/9/13 Business Week Web Site; 8/6/13 Business Week Web Site; 8/6/13 Linked In Web Site; 8/6/13 Global Equity Organization Web Site; 8/2/13 Google Web Site; 8/2/13 CNN Money Web Site; 9/23/12 Business Week Web Site; Tiburon Research & Analysis

Kathleen MurphyPresident

Fidelity Personal Investing

James MacDonaldPresident

Fidelity Workplace Investing

Gerry McGrawPresident

Fidelity Institutional Products Group

Charles MorrisonPresident

Asset Management & Corporate Services

Jim SperosChief Marketing Officer

Abby JohnsonCEO

Ned JohnsonChairman

Tim HiltonPresident

Devonshire Investors

Thomas BalkPresident

Fidelity Worldwide Investments

John PenandiChief Administrative

Officer

Brian JohnsonExecutive Vice

President Human Resources

Jonathan ChielGeneral Counsel

J.J. JohnsonExecutive Vice

PresidentGovernment Relations & Public Policy Group


FMRBoard of Directors

FMR Has a Board of Directors Led by its Chairman Ned Johnson & Vice Chairman Peter Lynch (Page 1)

Source: 8/6/13 Linked In Web Site; 2/27/13 Wikipedia Web Site; 11/8/12 Business Week Web Site; 5/15/08 Financial Times; 5/15/08 Wall Street Journal; 5/10/08 Money Management Executive; Tiburon Research & Analysis

Ned Johnson(Chairman)

Peter Lynch(Vice Chairman)

-- -- --

• CEO, Fidelity Investments

• Former portfolio manager, Magellan

• -- • -- • --


Source: 9/9/15 Fidelity Investments Web Site; 9/11/14 Securities & Exchange Commission Web Site; 8/6/13 Securities & Exchange Commission Web Site; 2/27/13 Wikipedia Web Site; 5/24/08 Investment News; 5/8/08 Boston Globe Web Site; 2/29/08 Wall Street Journal; 4/18/05 Money Management Letter; Tiburon Research & Analysis

• Privately owned• Net asset value per share: ~$105.00• Earnings per share: $2.16

Comments

FMR is Privately Owned


$2.7

2009 2014

National Financial ServicesCapital

($ Billions)

FMR’s National Financial Services Business Has $2.7 Billion Capital

Source: 6/15/09 Securities Industry News; 5/18/09 Securities Industry News; 5/09 Registered Rep; Tiburon Research & Analysis


$105.00

2007 2014

FMRNet Asset Value Per Share

FMR’s Net Asset Value is $105.00 Per Share

Source: 5/24/08 Investment News; 5/8/08 Boston Globe Web Site; 2/29/08 Wall Street Journal; Tiburon Research & Analysis


$2.16

2007 2014

FMREarnings Per Share

FMR Earns $2.16 Per Share

Source: 5/24/08 Investment News; 5/8/08 Boston Globe Web Site; 2/29/08 Wall Street Journal; Tiburon Research & Analysis


Source: Tiburon Research & Analysis

Tiburon Strategic Advisors

• Focus on corporate-level strategy- Serve senior executives only at financial

services companies- Key services: market seminars, market

research, & strategy consulting - Served over 400 corporate clients and

completed over 1,700 projects since 1998- Host semi-annual CEO Summits, offer free

weekly research releases, and offer free business benchmarking tools for all types of advisors

• Chip Roame background- McKinsey & Company- Charles Schwab & Company- Tiburon since 1998

Comments

Documents

FMR (Fidelity Investments): A Leading Mutual Fund Company, Discount Brokerage Firm, Retirement Plan Provider, Custodian, & Clearing Broker Tiburon Research