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 French fund CEOs: 'Brexit is a lose-lose situation for all of us'

French fund CEOs: 'Brexit is a lose-lose situation for all of us'

'We'll all lose out - but London is an international city, Paris is not.' Leading French asset management CEOs tell us what they think Brexit will mean for the investment business.

Play Henderson Eurotrust's Stevenson: dealing with European cynicism

Henderson Eurotrust's Stevenson: dealing with European cynicism

Tim Stevenson talks about where he finds his opportunities in the current environment in Europe

Play Mark Barnett - part 2: why I'm not buying Lloyds

Mark Barnett - part 2: why I'm not buying Lloyds

In the second part of our exclusive video interview, Barnett explains why he has no intention of buying Lloyds, and where he sees the greatest income opportunities.

Read More
Wealth Manager on Twitter