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.”