Fidelity FundsNetwork reveals fund manager payments

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Fidelity FundsNetwork is publishing full details of the fees it receives from fund management groups which show a 0.25 per cent charge is taken for the majority of funds, rising to 0.5 per cent on a few occasions.

Fidelity says information on its pricing policy and the details of payments the platform receives for each share class of funds available will be accessible to all advisers and their clients via the FundsNetwork website from September 1. (A table of the payments it receives from the top 20 funds by asset size is available below.)

The FSA’s platform policy statement, published last month, states the regulator’s intention to require disclosure of platform fees and remuneration under the RDR.
Fidelity says its standard platform fee is 0.25 per cent and adds that over 90 per cent of funds available via Funds-Network have a platform fee of 0.25 per cent or less.

The platform fee is worked out through a platform rate card which is driven by a fund’s annual management charge, meaning the higher the fund’s AMC, the higher the platform fee.

In the top 20 funds by assets on FundsNetwork, 18 have a platform fee of 0.25 per cent while the Aberdeen emerging markets fund and the BlackRock gold and general fund have fees of 0.375 per cent.

Fidelity also levies a one-off charge of up to 20,000 per fund group to list funds on the platform. These charges will also be disclosed on its website.

Sixteen funds have the highest platform fee of 0.5 per cent. Fidelity says those funds account for around £15m of the £37bn-worth of assets under administration on FundsNetwork.

Head of commercial Ed Dymott says: “We strongly support the FSA’s view that this information should be made available.”

Skandia head of proposition Graham Bentley has ruled out publishing information on fund manager fees.

He says: “We have contractual obligations with all our fund manager partners that specifically prevent us from broadcasting commercially sensitive information.”

Cofunds says it will publish further information on charges after the summer.

Investment Quorum chief executive Lee Robertson says: “It will be interesting to see which other platforms decide to reveal this information.”