Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Fidelity slashes tracker fund prices

Fidelity slashes tracker fund prices

Fidelity Worldwide Investment has lowered the charges on its range of passive equity funds, with its FTSE All Share tracker now available for 7 basis points.

The group’s price range has now been set at:

Provider UK US Japan Europe ex UK Pacific ex Japan Emerging Markets World
Fidelity 0.07% via Fidelity 0.08% via Fidelity 0.10% via Fidelity 0.10% via Fidelity 0.13% via Fidelity 0.23% via Fidelity 0.18% via Fidelity
0.09% via other platforms 0.10% via other platforms 0.12% via other platforms 0.12% via other platforms 0.15% via other platforms 0.25% via other platforms 0.20% via other platforms
(was 0.09%) (was 0.09%) (was 0.15%) (was 0.16%) (was 0.20%) (was 0.27%) (was 0.18%)
BlackRock 0.16% 0.17% 0.17% 0.17% 0.20% 0.26% 0.21%
Vanguard 0.15% 0.20% 0.30% 0.25% 0.30% 0.40% 0.30%
L&G 0.17% 0.18% 0.19% 0.20% 0.22% 0.43% 0.31%
HSBC 0.17% 0.18% 0.24% 0.26% 0.33% - -

(Source: Fidelity)

Fidelity emphasised that its rates were all calculated as ongoing charges figures.

For comparison, the total expense ratios for Hargreaves Lansdown’s range of core trackers includes Legal & General UK Index at 0.10%, Legal & General US Index at 0.12%, Legal & General International Index Trust at 0.20%, BlackRock Japan Equity Tracker at 0.12%, and BlackRock Emerging Markets Equity Tracker at 0.25%.

According to Fidelity, over £7 billion is held in UK trackers with ongoing charges of 1% or more.

‘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,’ John Clougherty (pictured), head of UK retail at Fidelity, explained.

Data from the Investment Management Association revealed that £76 billion was held in tracker funds at the end of March 2014, representing an overall share of assets under management of 9.7%, compared with 9% in March 2013.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Liontrust ESG head says sustainable investment doesn't mean low return

Liontrust ESG head says sustainable investment doesn't mean low return

Peter Michaelis talks about ethical investment growth and where he sees future opportunites.

Play Are platforms the biggest barrier to wealth manager ETF take-up?

Are platforms the biggest barrier to wealth manager ETF take-up?

Citywire hosted a roundtable discussion to find out how and if wealth managers are using ETFs in their clients' portfolios and the challenges they face trading through different platforms.

Play SVM's Veitch on what's next for banks

SVM's Veitch on what's next for banks

SVM fund manager Neil Veitch is finding value in what he describes as unstable financials and talks through his favourite small caps.

Read More
Your Business: Cover Star Club

Profile: UBS' robo boss on what his tween can teach the industry

Profile: UBS' robo boss on what his tween can teach the industry

Co-head of UBS SmartWealth Shane Williams explains the simple life lessons missed by the first wave of robo pioneers

Wealth Manager on Twitter