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Fidelity to lower fees on multi asset fund range

Fidelity’s Multi Asset fund range will lower ongoing charges after merging with the Fidelity Multi Asset Open range.

The merger due to take place in March will mean OCF dropping as much as 15 per cent in the case of the Multi Asset Defensive fund.

Both five-funds-strong ranges have similar investment objectives and risk-return profiles. The merger seeks to increase efficiency. The step follows Fidelity’s moving its multi asset business to a Manager of Manager structure.

Applied across all funds in the Fidelity Multi Asset Open range, Fidelity says the MoM initiative leverages its institutional scale to gain the most efficient access to the best active management talent from across the industry.

It claims the approach gives Fidelity Multi Asset a broader investment universe, enabling the team to hold managers without existing retail fund structures, and allows clients to benefit from the scale available to Fidelity as a global asset manager.

Fidelity Multi Asset chief executive James Bateman says: “Our move to a ‘Manager of Manager’ structure last year was a major milestone for Fidelity’s Multi Asset business.

It has enabled lower-cost access to a broader range of third-party managers, giving our portfolio managers an enhanced toolkit to deliver the right outcomes for clients.”

Fidelity International head of wholesale John Clougherty says: “As the operational and regulatory burden of Mifid II continues to bite the adviser community, we expect there to be increasing demand for robust, scalable multi asset solutions.

“With the move to ‘manager of manager’ and the merger of the ranges, we believe our multi asset offering provides an ideal solution for advisers looking to outsource their investments decisions.”

Funds impacted and ongoing charges figures (OCF):

Merging from

Merging to
Fund OCF (N shares) Fund Post-merger OCF (N shares)
Fidelity Multi Asset Defensive 1.15% Fidelity Multi Asset Open Defensive 1.00%
Fidelity Multi Asset Strategic 1.10% Fidelity Multi Asset Open Strategic 1.05%
Fidelity Multi Asset Growth 1.15% Fidelity Multi Asset Open Growth 1.10%
Fidelity Multi Asset Adventurous 1.20% Fidelity Multi Asset Open Adventurous 1.15%
Fidelity WealthBuilder 1.25% Fidelity Open World 1.20%

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  1. Still expensive in my opinion given by the time you add platform and adviser costs you are probably north of 2%?

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