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Fidelity fires latest salvo in price war

Indices_boardFidelity International has launched six low cost cross-border equity index funds and slashed three UK domiciled index funds’ costs in an intensification of a price war in the index fund market.

The range of six Irish-domiciled funds covering the US, Europe, Japan, Pacific ex Japan, developed global and emerging markets will have a fee starting at 0.06% for the S&P 500 fund and reaching 0.20% for the MSCI Emerging Markets Fund.

Sterling and euro currency hedged share classes will also be available for the US, Global, Europe and Japan funds.

The ongoing charges figure on the US, World and Emerging Markets Index Funds was cut by one basis point at the start of the month to align with pricing on the new cross-border range.

Nick King, head of indexing and exchange delivered products, said: “There is currently a total of $661 billion (€535.7 billion) invested in European domiciled equity index funds and this is only set to increase as investors look for efficient, low cost access to global markets.”

John Clougherty, head of wholesale, Fidelity International added: “While active management remains at the heart of our business, we know that investors want choice and value when it comes to investing, whether that’s through an active fund, a tracker or both.”

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