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Randall Financial Group News

26-Sep-08

The Strength of Fidelity Inves

Fidelity Investments

Randall Financial Groups custodian, Fidelity Brokerage Services LLC, a company of Fidelity Investments, retains the strength and stability that it has been known for in the past. Below you will find some information about Fidelity, and the financial strength of the firm, which may address concerns you might have.

§ Strong financial condition: Fidelity has very diversified lines of business, all of which are supported by the strength and stability of its parent company, Fidelity Investments, a strong and growing company that achieved strong operating results in 2007. Revenues of Fidelity's parent company, FMR LLC, were a record $14.9 billion, 16% higher than 2006 and income before taxes totaled $2.2 billion, which was also higher than 2006.

§ Trading on behalf of clients: The decline of the mortgage market and other credit markets in recent months has led to losses in certain types of fixed income securities and has contributed to the difficulties faced by some financial firms. In contrast to these firms, Fidelity does not have an investment banking business or pursue its own trading strategies, such as taking a large position or maintaining large inventories of particular fixed income securities; rather, it executes trades at the direction of retail and institutional brokerage clients. Similarly, Fidelitys fund operations trade on behalf of the companys mutual funds.

§ Customer asset protection: Fidelity Brokerage Services LLC is a member of the Securities Investor Protection Corporation (SIPC). Brokerage accounts maintained with Fidelity are protected by SIPC, which protects brokerage accounts of each customer up to $500,000 in securities, including a limit of $100,000 on claims for cash awaiting reinvestment. Money market funds held in a brokerage account are considered securities.

§ Additional coverage: In addition to SIPC protection, Fidelity provides additional coverage for its customers, which offers asset protection for total net equity (cash and securities) in an account. This supplemental coverage, called "excess SIPC coverage", is not subject to a dollar limitation for any one account or for the firm. For more information about Fidelity's excess SIPC coverage, visit www.capcoexcess.com.

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