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Fidelity cuts fees as new equity index funds launched

Fidelity International has launched six cross-border equity index funds and further reduced the pricing on three of its UK-domiciled OEIC index funds.

The range of six Irish-domiciled ICAV funds cover the US, Europe, Japan, Pacific ex-Japan, developed global and emerging markets.

Fees start at 0.06 per cent for the S&P 500 fund, increasing to 0.20 per cent for the MSCI Emerging Markets Fund.

Sterling and euro currency hedged share classes will also be made available for the US, Global, Europe and Japan funds.

Fidelity is also cutting fees on three of its UK-domiciled OEIC index funds by one basis point.

The Fidelity Index US Fund will have an OCF charge of 0.06 per cent, while the Fidelity Index World Fund will have an OCF of 0.12 per cent. The Fidelity Index Emerging Markets Fund will have an OCF of 0.20 per cent.

Fidelity head of indexing and exchange delivered products Nick King says: “We have witnessed the strong growth in index tracking products, including our own UK domiciled index funds and our Quality Income ETFs.

“There is currently a total of $661bn (£465bn) invested in European-domiciled equity index funds and this is only set to increase as investors look for efficient, low cost access to global markets.

“Extending our passive investment capability across Europe at market leading prices reaffirms our commitment to deliver greater choice and value for clients.”

Last October, Fidelity said it was introducing a fulcrum fee, whereby the manager charges a higher fee when it delivers outperformance net of charges.

Fidelity says plans to launch the new share classes are well underway, but subject to regulatory approval.

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