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Fidelity to launch low-cost multi-asset range

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Fidelity Worldwide Investment is the latest fund firm to add a low-cost range, launching three multi-asset funds with an annual charge of 0.5 per cent.

This week’s Money Marketing reveals the multi-asset allocator defensive, multi-asset allocator balanced and multi-asset allocator growth funds will launch on October 10.

They will mirror Fidelity’s active multi-asset range, which includes the £28.4m multi-asset defensive, £573m multi-asset strategic and £351.7m multi-asset growth funds. The range will use the same active asset allocation and investment process as the existing multi-asset funds but will use index funds to implement asset allocation decisions.

The funds will have an A-share class with a 0.5 per cent AMC plus 0.5 per cent trail commission and an N-share class with 0.5 per cent AMC and no trail.

Fidelity estimates the total expense ratios for the funds will be 1.17 per cent for the A-share class and 0.67 per cent for the N-share class.

In February, JP Morgan launched a low-cost fund with a maximum TER of 0.55 per cent. Schroders added three low-cost funds this year with capped TERs of between 0.4 and 0.5 per cent.

Fidelity Worldwide Investment head of retail sales (pictured) Ben Waterhouse says: “For cost-sensitive investors and those wanting to avoid stock selection risk, the multi-asset allocator funds are an alternative.”

Premier Wealth Management managing director Adrian Shandley says: “There’s going to be a big demand for low-cost funds and it is going to be really hard for investors to choose between them.”

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Readers' comments (1)

  • With more funds like this will advice still be necessary ?

    The answer probably has to be yes, but only for some - but the above does raise the question as to what sort of advice and at what cost ?


    The vast majority of the population could do worse that pay 0.67% pa for a portfolio of multi-asset funds - going direct - and simply ignore advice.

    So what will "Advisers" do post RDR ? Go for the HNW , complex advice market presumably and abandon the main market ?

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