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Fidelity offering investment fund drawdown deal

Fidelity is adding a regular withdrawal facility to its investment funds to enable investors to draw down income without having to switch funds.

The facility will be available on all Fidelity funds and products from third-party providers on FundsNetwork. Income drawdown is available mon-thly or quarterly.

The service is free and will initially be available on unwrapped funds but will be extended to Isas and Peps later in the year.

Head of IFA business Peter Hicks says: “Advisers regularly tell us that they would like a regular withdrawal facility on mutual funds for two reasons. The first is that their clients’ requirements can change overnight on reaching retirement from accumulating assets to wanting to draw an income. At the moment, their clients often have to sell growth funds, despite being more than happy with the performance, because they now need an income.

“The second reason is that it is very challenging for advisers to construct a portfolio of mutual funds to produce a natural regular income due to different dividend levels and distribution dates.”

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