Fidelity slashes the cost of passive investing with a range starting at 0.07% for UK

27th May 2014


Fidelity Worldwide Investment has cut passive charges across its newly launched equity index range saying it has become the price leader in the UK retail market across the seven most popular indices.

The new pricing, available directly through Fidelity Personal Investing, via advisers using FundsNetwork and to selected wealth managers, is based on a fixed total ongoing charge at 0.07% p.a. for the Fidelity Index UK fund and 0.08% p.a. for the Fidelity Index US fund.

The range of seven funds, covering the UK, US, Europe, Japan, Pacific Ex Japan, Emerging Markets and World, is also being extended to other platforms with pricing at 0.09% p.a. for its UK tracker and 0.10% p.a. for its US tracker – which it says is well below most of its major competitors.

Fidelity says the move makes it the lowest cost provider of index tracker funds available to UK retail investors today. The average ongoing charge for a UK tracker from one of the four leading providers stands at 0.16%. In addition, the firm argues that over £7bn of UK savings still sits in UK trackers with ongoing charges of 1% or more.

John Clougherty, Head of UK Retail at Fidelity Worldwide Investment, 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 – in fact there is £7 billion of investors’ money still sitting in funds that charge 1% or more.”

Fidelity’s index tracker ongoing charges compared to other leading providers.



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