Fidelity Index Tracker P-Acc and A-Acc

delmar39

Hi there

Currently have the Fidelity UK Index Tracker A Accumulation.

I have recently opened the US Index Tracker, but this has P Accumulation next to it.

Perhaps a really silly question, but does anyone know what the 'A' and 'P' represents or the difference between the two?

Welcome any feedback.

Thanks

bowlhead99

The different codes represent different 'classes' which are sub-funds within the funds. Different funds might have different target audiences, annual management fees, minimum contributions. Some older style funds had higher management fees but gave kickbacks to the investment platform or investment adviser. Now you can buy the funds in new 'clean' classes with lower headline fees, and Fidelity's are some of the cheapest (ignoring the relatively high annual fee for actually using their platform on which you hold the various funds).

If I look at your UK tracker A:
https://www.fidelity.co.uk/investor/research-funds/fund-supermarket/factsheet/summary.page?idtype=ISIN&fundid=GB0003875324&UserChannel=Direct

It shows an annual management fee of 0.3% and the little graph shows it is trailing the morningstar index over time (you would expect it to keep up, if the fees were very low).

If you go to somewhere like Morningstar or Trustnet you can see the different available classes. For example this http://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=FIMNI&univ=O shows the class P is a clean class with an ongoing charges forecast of 0.07%. Versus your class A at 0.30%

So, looks like you recently opened the US tracker in the cheapest class possible (http://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=GWFUC&univ=O) - 0.08%, but you're still holding the 'old' version of your UK tracker.

If Fidelity don't give you some sort of automatic rebate for the difference between the existing fund management fee and the the management of the Class P clean-priced alternative, you should sell out of A and then buy P, or maybe they have a switching solution that lets you automatically sell out of one and transfer all the proceeds into the other on the same day. Just drop them an email or secure message or phonecall, however it works with Fidelity, and enquire.

Azza_1

You should have got some kind of notification from Fidelity and you would have got a popup when you logged into your account for the past few months about switching to the clean class funds.

See here for details - https://www.fidelity.co.uk/investor/funds/fund-charges/convert-my-funds.page

delmar39

Thank you both for your replies very useful. My UK tracker was previously the moneybuilder and Fidelity closed this and switched me to the new tracker. I'll make enquiries with them and of course read the links you sent I see I can download a doc to help me do this.

Thanks again for taking the time to reply.