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FIRST-OF-ITS-KIND "NATIONAL FINANCIAL BROKER SENTIMENT INDEX"SM REVEALS OVERALL CAREER SATISFACTION
Career Satisfaction Driven by Marketing, Professional Development and Compensation 81% of Brokers Say They Believe They Will Outperform the S&P 500® Over the Next Year Findings Can Help Firms Strengthen Broker Recruiting and Retention Efforts

BOSTON, August 16, 2005 — Despite working in an industry facing numerous challenges, such as rapidly evolving regulatory requirements and increasingly complex client needs, the typical U.S. broker reports an overall career satisfaction level of 5.4, or “quite satisfied,” according to a first-of-its-kind analytical index unveiled today by National Financial, a Fidelity Investments company.

The first annual National Financial Broker Sentiment Index^SM, which is based on a study of more than 700 investment professionals from a random industry sample of regional, bank, insurance, independent and wire house firms, reveals that the most important contributors to brokers' satisfaction are having: 1) A flexible and competitive compensation plan; 2) Marketing support; and 3) Professional development programs that meet their needs.

“We are encouraged that brokers say they are quite satisfied with their careers, especially given all that they have been through in the past decade, and that the vast majority are likely to remain with their current firms for the next 12 months,” said Norman R. Malo, president and chief executive officer, National Financial. “Brokers are resilient-evolving to meet new challenges, while maintaining their focus on meeting the financial needs of their clients.

“Historically, brokerages have not looked to their clearing firm to provide support with recruiting and retention; however, this is changing,” said Malo. “We developed the Index in an effort to help our more than 300 clients better understand what is driving satisfaction and retention among their 65,000 brokers-data that can help firms strengthen their recruiting and retention efforts.”

According to the National Financial study, an overwhelming 71 percent of brokers say that 'helping clients achieve their goals' is what they like most about their career. The National Financial study also reveals that 78 percent of brokers are mostly- to fully-satisfied with their career choice. Interestingly, 69 percent of brokers would recommend their career to their children.

Career Satisfaction Varies Across Age, Asset Size, Business Type and Gender

The National Financial index, which is based on a scale of one to seven, with one being “not at all satisfied” and seven being “fully satisfied,” reveals some interesting dynamics of overall satisfaction across business type, asset size, size of firm and age. For example:

• Broker responses by business type indicate those at regional firms are the most satisfied, while those at banks are least satisfied;
• Brokers managing assets greater than $10 million are more satisfied than those with less than $10 million;
• Brokers working at firms with 250-499 reps are more satisfied than those at either larger or smaller firms; and
• Brokers over the age of 55 are more satisfied than those 54 and under.

Satisfaction Levels with Employer Support and Work/Life Balance

When asked to rate their satisfaction levels with a variety of support items provided by their employers, brokers indicate being most satisfied with: 1) Accurate administration of accounts and trades; 2) Individual and packaged products; and 3) Compliance support.

With work/life balance, brokers say that they are most satisfied with: 1) Having time to connect with clients and learn more about them; 2) Having time to take care of personal health; and 3) Spending as much time with family and friends as they want.

Broker Likeliness to Switch Employers is Low

By and large, brokers like their employers. When asked how likely they are to consider switching to another firm within the next 12 months, 80 percent of brokers say they are not likely or not at all likely to switch.

Interestingly, the most important contributors to broker retention-flexible and competitive compensation plan, marketing support and professional development-are also the most important contributors to overall career satisfaction.

“While compensation, marketing support and professional development are among the most important contributors to brokers' career satisfaction and retention, it is important to note that they also are three areas that brokers are least satisfied with,” said Malo. “To help attract and retain top brokers, firms should consider making incremental investments in these areas, such as increasing lead generation programs or funding local investor events, while maintaining an ongoing commitment to all other applicable support areas.”

Brokers' Market Expectations

According to the study, brokers are cautiously optimistic when it comes to performance expectations of the stock market, expecting the S&P 500^® to return nearly 7.2 percent, on average, over the next 12 months.

“Brokers appear to be looking optimistically into the future, especially given the S&P 500's three-year average annual return of 4 percent¹. With regard to longer-term historical averages-where the S&P 500 has a 10-year average annual return of 10.2² percent -it appears that brokers are setting more realistic and appropriate expectations with their clients,” said Malo.³

“Whether looking at brokers' performance expectations for the stock market, sentiment about their employers or profession, one thing is clear: brokers are a generally optimistic and satisfied group overall,” said Malo. “Broker/dealers should feel good about the level of satisfaction revealed in our study; however, firms shouldn't become complacent. Competition for top brokers is strong, so firms need to continually look for ways to strengthen their support and, ultimately, help create greater satisfaction and loyalty among their broker population.”

About the National Financial Broker Sentiment Index

The National Financial Broker Sentiment Index is a first-of-its-kind analytical measurement of U.S. brokers' satisfaction with their profession and current employers that combines the content about satisfaction with the levels of support brokers feel they get from their employers in various areas, with the content concerning brokers' satisfaction with their work/life balance in terms of having the time and ability to accomplish their personal financial, relationship and work goals. Data for the Index comes from a National Financial survey of 702 U.S. investment professionals. A range of content from the survey was examined statistically for its suitability to be combined into the Index. This included variance analysis, simple and partial correlational analysis, principal components analysis and Cronbach alpha internal consistency reliability analysis.

The National Financial study was conducted by telephone interviews carried out by Research House, an independent North American-based market research firm, between May 9 and June 3, 2005. The mean average number of years working as a producing investment broker of respondents was 15. The study screening eliminated people with one year or less experience. The respondents came from a mix of regional, bank, insurance, independent and wire house firms, weighted to accurately reflect the industry composition.

About National Financial

National Financial provides broker/dealers, ranging from institutional and full-service firms to independent contractors, banks and discount brokers, with clearing and execution products and integrated productivity tools to help enhance firm profitability, drive business growth and forge deeper customer relationships. National Financial also offers a leading online brokerage platform, compliance support, middle-office outsourcing, consolidated record keeping tools, fee-based solutions, and retirement and high-net-worth products, all supported by dedicated client service professionals. The company currently provides clearing services to 309 financial institutions representing 4.6 million client accounts and approximately $457.2 billion in assets, as of June 30, 2005. For more information about National Financial, please visit www.nationalfinancial.com.

About Fidelity Investments

Fidelity Investments is one of the world's largest providers of financial services, with custodied assets of $2.2 trillion, including managed assets of $1.1 trillion as of June 30, 2005. Fidelity offers investment management, retirement planning, brokerage, and human resources and benefits outsourcing services to approximately 20 million individuals and institutions as well as through 5,500 financial intermediary firms. The firm is the largest mutual fund company in the United States, the No. 1 provider of workplace retirement savings plans, one of the largest mutual fund supermarkets and a leading online brokerage firm. For more information about Fidelity Investments, visit www.fidelity.com.

Research House is an independent company and is not affiliated with National Financial.

¹ As of April 30, 2005.
² Ibid.
³ Past performance is no guarantee of future results.

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