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Fidelity secures lowest share classes from key fund partners

Fidelity Worldwide Investment has agreed a deal with 15 of the top 20 fund groups on its FundsNetwork platform to provide enhanced marketing and other services in exchange for making the lowest share classes available on the platform.

Under its ‘Access’ programme announced in October, Fidelity will offer participating fund managers improved communications and marketing opportunities and direct access to Fidelity sales staff and senior executives in exchange for access to fund managers’ full range of products and the lowest share classes.

Fidelity initially invited 89 fund groups to participate. It says 86 per cent of its funds partners, and 75 per cent of its top 20 fund groups based on assets under administration, have agreed to offer FundsNetwork the cheapest available share class on funds.

It says 7 per cent have been excluded from the Access programme as they have not agreed to Fidelity’s terms, which are based on “competitive pricing, quality products” and “operational effectiveness.

The remainder of fund partners are yet to agree their position. 

Fidelity has declined to name the fund groups that have signed up to Access, and those that have not.

A spokeswoman for Fidelity says: “Whilst pricing is only one of three key criteria, we are pleased that 86 per cent of fund partners, and 75 per cent of our top 20 groups by assets, have agreed to supply Fidelity’s platform with the lowest cost share classes available and will therefore be included in the Access programme. 

“Just 7 per cent of fund partners have been excluded from the Access programme at this time as they have not met one or more of our minimum criteria.  We will continue to work with these fund partners to try and resolve the situation as and when possible. For the remaining few fund partners, we are still in the process of finalising their position.”


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