Fidelity Investments has expanded its partnership with BlackRock by launching a new ETF managed account designed to offer income for investors preparing for retirement.
Known as BlackRock Diversified Income Portfolio, the ETF managed account will be available for retail investors via Fidelity’s managed accounts service from 1 May.
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The managed account is a multi-asset tactical solution that offers income opportunities across various asset classes, regions and sectors globally.
The extended partnership will enable Fidelity to further expand into the $1.7 trillion US ETF market and offer BlackRock access to Fidelity’s vast distribution platform.
BlackRock Investment Management will serve as the portfolio strategist for the new managed account, while Fidelity will serve as the investment adviser for its customer’s accounts.
The new Fidelity managed account will charge an annual advisory fee between 0.55% and 1.1% of total assets invested based on the investment size.
Kathleen Murphy, president of personal investing at Fidelity Investments, said: "The extremely strong investor and advisor demand for our innovative ETF products and the introduction of the BlackRock Diversified Income Portfolio are just two examples of the power of this partnership."
