With the markets siphoning value from mutual funds and investors running for cover to the tune of billions of dollars in redemptions a month, Fidelity Investments is trying to hold onto customers assets by promoting FDIC-insured certificates of deposit.
Fidelity is promoting the CDs through mailers to existing clients and in no-nonsense advertisements.
Certainly, Fidelity is being impacted by the downturn, having announced it is laying off a total of 3,000 people, or 7% of its workforce, by the end of the first quarter of 2009. Thus, it makes sense that Fidelity is trying to hold onto assets, even in lower-paying CDs.
As you might expect, in this volatile market, our customers have expressed interest in conservative, fixed-income investments, Fidelity spokeswoman Jennifer Engle told the Boston Herald. Fidelity is letting its customers know that, like banks, CDs are available at select mutual fund companies, including Fidelity.