Launchpad: Investments

John Clougherty, head of UK retail at Fidelity Worldwide Investment, said: “Index trackers sit at the core of many investment portfolios, and while charges have come down over time, there are still many that are poor value for investors.

“In fact, there is £7bn of investors’ money sitting in funds that charge 1 per cent or more.”

■ The new pricing is based on a fixed total ongoing charge of 0.07 per cent a year for the Fidelity Index UK fund and 0.08 per cent a year for the Fidelity Index US fund

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■ It is available to advisers using FundsNetwork and to selected wealth managers

■ The range of seven funds, covering the UK, the US, Europe, Japan, Pacific Ex-Japan, Emerging Markets and World, is also being extended to other platforms

■ The cost of the range will be set at 0.09 per cent for its UK tracker and 0.1 per cent for its US tracker

IFA verdict

Colette Glassey, partner at Edinburgh-based Wealthflow, said: “I think it is tremendous news. It will put added pressure on active fund management in the UK to lower their costs as well. For too long active management has been expensive, and unjustifiably so.”