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Fidelity claims lead in UK tracker price war

Fidelity Worldwide Investment UK retail sales head Ben Waterhouse says the price cut should give it dominance in a sector driven by price

Fidelity has slashed the cost of its index range, making it the UK’s cheapest passive provider for a number of indices.

Its FTSE All Share tracker has an ongoing charge figure of 0.07 per cent, down from 9 basis points at launch, while the S&P 500 fund is now 0.08 per cent, 1 basis point
lower than at launch.

The average charge for a UK tracker offered by the top-four providers is 0.16 per cent, according to Investment Management Association data.

Fidelity’s range of seven low-cost portfolio building blocks was launched in February through its adviser and direct-to-consumer platforms.

Fidelity Worldwide Investment UK retail sales head Ben Waterhouse says the price cut should give it dominance in a sector driven by price.

He says: “It is a simple message but we think it is pretty powerful because it makes us the lowest-cost provider of retail funds available to UK investors.”

Hart Greaves chartered financial planner Paul Greaves says: “This is a household name launching something extremely cheap, which always seems to be quite well received. Price is obviously an important factor with passive funds but it is not everything.”

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