Powerstreet Said Not to Poach on Shareholders
February 7, 2000
Powerstreet, the online brokerage of Fidelity Investments of Boston and an adaptation of its online electronic-brokerage services, introduced last year, has been booming. But it is not doing so at the expense of converting mutual fund shareholders into day traders, the company says.
Powerstreet reached 3.5 million accounts valued at $269 billion in assets at year-end 1999, up 71 percent from year-end 1998, the company announced last week.
Fidelity said that nearly all of its 3.5 million Powerstreet customers hold Fidelity mutual funds in addition to stocks. Fidelity research shows that those mutual fund shareholders have signed up for Powerstreet for the convenience of seeing their retail mutual fund, 401(k) and stock holdings all in one place, said Tracey Curvey, executive vice president of Fidelity online brokerage. And that convenience is holding Fidelity mutual fund shareholders who also trade online.
Powerstreet is a convenience to both Fidelity mutual fund and brokerage clients, Curvey said.
"We are not seeing any kind of major selling activities from mutual funds to brokerage," she said.