Investing
Fidelity cuts index tracker charges to ‘lowest level for retail investors’
Fidelity Worldwide Investment has cut the cost of its newly launched index tracker range.
The new pricing, available directly through Fidelity Personal Investing, via advisers using FundsNetwork and to selected wealth managers, relates to six of its seven-strong range of index trackers.
Fidelity said the move makes it the lowest cost provider of index tracker funds available to UK retail investors today.
The group launched its UK, US, Japan, Europe ex UK, Pacific ex Japan, Emerging Markets and World trackers earlier this year in a surprise move, challenging established giants including BlackRock and Vanguard on price.
Retail investors can now access Fidelity Index tracker funds from as low as 0.07% per annum.
For example, Fidelity’s UK tracker has seen its price cut to 0.07 per cent, while the cost of equivalent products from BlackRock, Vanguard, L&G, and HSBC are priced between 0.15 per cent and 0.17 per cent.
Fidelity has also made the trackers available via other platforms for the first time.
John Clougherty head of UK retail at Fidelity, said: “Index trackers sit at the core of many investment portfolios and, while charges have come down over time, there are still many that are poor value for investors.
“With these price cuts, Fidelity is offering the best value index trackers available to UK retail investors today.”
According to data from the Investment Management Association, £76bn was invested in tracker funds as at the end of March 2014 and their overall share of assets under management was 9.7 per cent, compared with 9 per cent in March 2013.
| Provider | UK | US | Japan | Europe ex UK |
| Fidelity |
0.07% via Fidelity 0.09% via other platforms |
0.08% via Fidelity 0.10% via other platforms |
0.10% via Fidelity 0.12% via other platforms |
0.10% via Fidelity 0.12% via other platforms |
| BlackRock | 0.16% | 0.17% | 0.17% | 0.17% |
| Vanguard | 0.15% | 0.20% | 0.30% | 0.25% |
| L&G | 0.17% | 0.18% | 0.19% | 0.20% |
| HSBC | 0.17% | 0.18% | 0.24% | 0.26% |
|
Provider |
Pacific ex Japan | Emerging Markets | World |
| Fidelity |
0.13% via Fidelity 0.15% via other platforms |
0.23% via Fidelity 0.25% via other platforms |
0.18% via Fidelity 0.20% via other platforms |
| BlackRock | 0.20% | 0.26% | 0.21% |
| Vanguard | 0.30% | 0.40% | 0.30% |
| L&G | 0.22% | 0.43% | 0.31% |
| HSBC | 0.33% | – | – |
