Fidelity updated

aldershot

Fidelity have updated their site with clean funds this morning. There are 50 with and AMC of 20bp or less and 148 of 50bp or less. I'm a disgruntled HL mover and would be in Fidelity's 20bp SIPP charge bracket so I'm pretty tempted to move to them. I am a passive investor with a few index tracker funds but need to diversify to bonds as well. I can create a portfolio with a total expense of 40bp or less. I like their totally clean charging structure, I've had good service from them in the past and I trust their name.

Other opinions?

Rollinghome

They've also announced there'll be more Fidelity trackers on Fundsnetwork.

"Fidelity to expand passive range to seven funds" http://www.ftadviser.com/2014/02/07/investments/etfs-and-trackers/fidelity-to-expand-passive-range-to-seven-funds-s5hkYy9yQROsCpF4ciK5zJ/article.html

Fund TER/Ongoing charge
FTSE All-Share index 0.09%
S&P 500 index 0.09%
MSCI Japan 0.15%
MSCI Europe ex UK 0.16%
MSCI World 0.18%
MSCI Pacific ex Japan 0.20%
MSCI Emerging Markets 0.27%

As the figure given is the OCF, not the AMC, sounds very competitive and presumably should be available via intermediaries such as Cavendishonline.

dave875933

I too am considering them and made another thread on Fidelity before I saw this.

If you have that much then even at 0.2% you are paying significantly more than some of the flat fee places, but alot less than HL. So as between Fidelity and HL it's a no brainer. As between Fidelity and the non percentage fee providers like iweb, Halifax, II and Alliance Trust, then not so obvious as they will be significantly cheaper and you could look at it that you are offsetting some of the yearly money you save against future exit fees or other administrative charges. Obviously this is like insurance and you are gambling on when exactly you might need to exit or use some of the admin features.

(There is also an element of saving your time not worrying about working out/contesting all the other charges though!)

See http://langcatfinancial.co.uk/2014/01/fashionably-late-halifax-sharedealing-bestinvest-slink-back/

for the figures. You don't sound like you'll be trading much. The non-percentage based providers would be even cheaper in that case as the table assumes 5 fund switches a year.

For SIPPs in drawdown Fidelity becomes more competitive even for quite large SIPPs.

puk999

Rollinghome wrote: »

They've also announced there'll be more Fidelity trackers on Fundsnetwork.

"Fidelity to expand passive range to seven funds" http://www.ftadviser.com/2014/02/07/investments/etfs-and-trackers/fidelity-to-expand-passive-range-to-seven-funds-s5hkYy9yQROsCpF4ciK5zJ/article.html

It says in that article

...said the tracker range would be available to advisers solely through Fidelity’s fund platform, FundsNetwork, and also sold to discretionary managers.

He said if demand grew Fidelity would “consider our position” in terms of broadening access to the funds by listing them on other platforms.

I have a Fidelity account but I'm just a plain investor so does that mean I can't invest in these?

DealFan

puk999 wrote: »

It says in that article

I have a Fidelity account but I'm just a plain investor so does that mean I can't invest in these?

No, this article is just aimed at Advisers. You can invest in it as an individual.

puk999

Thanks DealFan. Advisers can purchase but to do so they must go through FundsNetwork. I'm looking forward to these low cost funds.