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Fidelity lowers expenses on 27 index mutual funds and ETFs


Fidelity Investments is to reduce total expenses on 27 of its equity and bond index mutual funds and exchange traded funds (ETFs), effective 1 July.

The average expenses across Fidelity’s index fund line-up will decrease to 10.2 basis points (0.102 per cent), down from 11.6 basis points today. The expense reductions are expected to save current shareholders approximately USD20 million annually.

“We are taking already one of the lowest cost index fund offerings in the industry and making it even more compelling,” says Colby Penzone, senior vice president for Fidelity’s Investment Product Group. “While cost matters, investors should also consider the overall experience and value a financial services firm can deliver when deciding where to invest. When you combine low expenses with access to our award-winning online brokerage platform, mobile applications, more than 190 Investor Centres in the US, and live 24/7 customer service via phone, we believe Fidelity provides the best customer experience and value in the industry.”

Fidelity has been managing index mutual funds for more than 25 years and is currently the second-largest index mutual fund manager in the industry with more than USD216 billion in assets under management. Fidelity offers 19 equity, fixed income and hybrid index mutual funds, and manages more than USD3.5 billion in assets across 12 index ETFs. In addition to having some of the lowest total net expenses in the industry, Fidelity’s index funds are also offered to customers on the company’s platform with no transaction fees or sales loads.

“Whether index funds, actively managed funds or managed products, Fidelity has proven time and again its commitment to offering our tens of millions of customers – individual investors, workplace retirement plan sponsors and participants, and financial advisors – one of the most comprehensive and competitive investment product lines in the industry,” says Penzone.

“As we’ve done for 70 years, we’ll continue to look for opportunities to strengthen our investment products regardless of asset class, style or vehicle. As a diversified financial services provider, we’re focused on helping our customers meet their unique investment needs by providing them access to choice, value and expertise,” says Penzone.

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