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 undercuts Hargreaves with 0.35% platform charge

3 Comments
Fidelity undercuts Hargreaves with 0.35% platform charge

Fidelity has secured prices as low as 0.2% for active funds on its platform, as part of its RDR pricing structure which undercuts Hargreaves Lansdown's.

Fidelity, with £48 billion of assets under administration on its platform, has secured an average annual management charge (AMC) of 0.64% for funds on its Select List of approximately 140 products. This spans 35 sectors, with two to five funds in each category.

Fidelity will offer tracker funds from 0.09%, bond and gilt funds from 0.15%, actively managed funds from 0.2%, and multi-asset funds - such as its Pathfinder range - from 0.35%. The firm also confirmed that there would be no charge for holding investment trusts, while Fidelity's own five closed-ended funds would not incur any service charge at all.

Hargreaves Lansdown, which revealed its RDR charging structure last week, has an average AMC of 0.65% for its Wealth 150 list, and 0.54% for its Wealth 150 plus range of 27 funds. The firm's head of research Mark Dampier said he had rejected pricing offers as low as 0.2% Hargreaves Lansdown for the new Wealth 150 plus list.

The news comes as Fidelity reveals lower headline charges for clients who use its platform. Investors with up to £250,000 will pay a 0.35% service fee, falling to 0.2% between £250,000 and £1 million, with no service fees thereafter. Fidelity said there would be no initial charges, switching charges or exit fees. The firm added there would be no extra fees for product wrappers or for having a preference for using the phone or receiving paper valuations.

It contrasts with Hargreaves' structure which starts at 0.45% for the first £250,000 invested, drops to 0.25%  £1 million, going down to 0.1% up to £2 million, with no charge thereafter.

Mark Till (pictured), head of personal investing, commented: 'We are extremely excited to be announcing our new pricing which offers a much simpler way to invest, providing access to the high quality products and services we provide to our customers at exceptionally good value. 

'An investor who invests £10,000 in an ISA, choosing funds from the Select List, will now pay on average £99 a year, with no additional charges whether they want to phone us, receive a paper statement or switch their funds every day. This represents a significant saving for our investors, who would have paid £175 previously.'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge: Yuan direction

Brewin's Gutteridge: Yuan direction

This week Brewin Dolphin's research head chats to Fidelity Asian Investment Directors Jenny Lee and Gary Monaghan about the big changes in China.

Play On the Road Challenge: horsing around on the polo pitch

On the Road Challenge: horsing around on the polo pitch

Libby Ashby takes to the polo pitch with Stuart Leigh-Davies from Redmayne-Bentley for an 'On the Road' challenge.

Brewin's Gutteridge: where Miton's Godber sees value

Brewin's Gutteridge: where Miton's Godber sees value

This week Brewin Dolphin's research head talks to George Godber, co-lead fund manager of the Miton UK Value Opportunities fund, about value investing.

Your Business: Cover Star Club

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Rathbones’ Glasgow office has only been open for three months but the team, led by Angus Kerr, has already attracted new clients

Wealth Manager on Twitter