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Fidelity publishes clean share price details

Fidelity has published its list of clean fund prices with only four actively managed equity funds priced below 0.75 per cent.

Analysts at Numis Securities say it shows platforms have not been able to apply as much pressure for preferential terms as first thought.

The Select list of funds on Fidelity’s direct-to-consumer platform shows only four of the 66 active funds on the list are priced below 0.75 per cent. 

These are: Baillie Gifford Japanese Fund – 0.65 per cent; Fidelity MoneyBuilder Dividend Fund – 0.5 per cent; JOHCM UK Equity Income Fund – 0.63 per cent; Royal London UK Mid Cap Growth Fund – 0.7 per cent.

Fidelity revealed its Access deal in December, which gives fund managers increased access to Fidelity management and enhanced marketing in exchange for offering their lowest available share price.

Numis analyst David McCann says: “Only four out of 66 actively managed equity funds are at rates lower than 75 basis points and nine are actually priced above 75bps. In our view, this suggests no incremental margin pressure for the fund managers appearing on the list.

“It appears that one of the big platforms – Fidelity – has not been able to negotiate any material price reductions compared to the status quo, on a like for like basis.”

Other platforms, including Hargreaves Lansdown, Standard Life and Barclays have yet to confirm full clean pricing lists.

Stiddard director Jason Levett says: “Discount fund pricing has been a bit of a red herring. It also poses a risk to transfers between platforms if certain share classes are not available on all platforms.”


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