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Fidelity cuts 0.5% off initial charges

Fidelity has reduced the initial charge on its multi-manager growth and income funds until the end of October.

Customers investing in either fund will receive a 0.5 discount on the initial charge from 3.5 to 3 per cent. The initial charge includes 3 per cent commission for advisers.

The discount offer comes as Fidelity expands its multi-manager team, with Chris Ralph taking on the day-to-day management of both multi-manager funds.

More fund analysts are also being recruited to the team.

Both funds were launched in October 2003. The growth fund has returned 20.6 per cent in that time while the income fund has returned 18.6 per cent.

While the growth fund invests primarily in equity funds, the income fund also invests in bonds.

The two funds invest in between 15 and 20 funds from across the UK market. The approach is to select and combine low correlation funds to reduce volatility.

Head of UK distribution Michael Jones says: “Unlike some of our competitors in this field, we de-emphasise high- risk asset allocation decisions which can have such a big impact on overall return.

“Instead, successfully selecting and blending funds is the primary driver of alpha within our portfolios.”

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