Fidelity unveils income share classes for low-cost tracker range

Fidelity Worldwide Investment has launched income share classes for its core range of trackers.

In February Fidelity added European ex-UK, emerging market and Pacific ex-Japan funds to its existing UK, World, US and Japan tracker funds.

The firm has today launched income share classes for all of these funds.

In May, Fidelity slashed the ongoing charges figure to become the lowest cost unit trust index fund range in the UK retail space.

The FTSE All Share tracker has an OCF of 7 basis points on the FundsNetwork platform and 9bps through rival distributors.

Vanguard’s is the next cheapest fund with a 0.16 per cent OCF.

Fidelity head of UK retail sales Ben Waterhouse says intermediaries have been asking for income share classes for the seven funds to aid fee-based charging.

It also helps satiate “yield-hungry” investors as well, he adds.

The demand for the index range has picked up from advisers and discretionary managers, since the re-launch, he says.

“We’re pleased with the progress, we have seen some £290m flow into the product set since we started promoting them,” he says.