Fidelity looking at direct discounts

Fidelity FundsNetwork is considering discounting annual management charges (AMC) on funds for direct investors.

Ed Dymott, the head of UK fund partners at Fidelity International, says the group is considering the move ahead of the retail distribution review (RDR), which he says will lead to increased price competition for retail clients.

Dymott says: “It is something that we are considering and we continue to assess what we do in the direct marketplace.”

All the major platforms offer discounts on initial charges, which tend to be about 5%, but not all offer rebates on AMCs for direct clients. (article continues below)

Funds Network offers AMC rebates for many of its bigger IFA customers in addition to healthy initial charge discounts. Hargreaves Lansdown offers AMC discounts on its most popular funds for direct investors. A FundsNetwork special offer for direct investors, scrapping initial charges on the platform’s select list ended this week.

Philip Milton, the managing director of Philip J Milton & Company, says: “I cannot see this endearing Fidelity to the wider IFA community in relation to the use of FundsNetwork. It will not affect us but could encourage investors to go direct more often.