Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. 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 Investment Pulse: the highs and lows of 2014

Investment Pulse: the highs and lows of 2014

This week's Investment Pulse looks back at some of the biggest stories of the year as well as looking forward to 2015.

Play Inside ETFs: Why the US bull-run still has legs

Inside ETFs: Why the US bull-run still has legs

Global equities suffered a sharp sell-off in the third quarter but exchange traded fund investors are continuing to back the US to outperform in 2015

Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter