Fidelity pursues ‘rates for access’ superclean drive

The majority of the top fund managers with assets on the Fidelity platform have agreed to provide access to the lowest-costing share classes on the market, Fidelity has revealed.

In October, FTAdviser sister publication Investment Adviser reported that Fidelity was attempting to secure access to new cheap share classes through the launch of a new investment programme which would offer a range of services to fund managers.

A spokesperson for Fidelity said: “The programme helps fund partners get closer to the end customer through providing access to an extensive series of marketing and events opportunities, enhanced insight and management information and direct access to Fidelity’s people, including its sales team and senior executives.”

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Membership of the programme is based on criteria concerning quality of products, operational effectiveness and pricing.

More specifically, fund managers looking to join the Access programme must agree to give Fidelity access to their cheapest share classes.

According to Fidelity, 86 per cent of fund partners and 15 of its top 20 groups by assets have agreed to supply the Fidelity’s platform with the lowest cost share classes available and will therefore be included in the Access programme.

Although Fidelity would not disclose specific fund groups or the prices they have agreed, a spokesperson told FTAdviser that the firm is still in the process of talking to our fund partners. What, if any, commercial terms Fidelity has secured are yet to be revealed.