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Fidelity Investments® Lowers Costs for Index Fund Shareholders
Fidelity Lowers Investment Minimums on 16 Index Funds and Six Enhanced Index Funds, And Reduces Expenses on Eight Index Funds to Among Lowest in IndustryBOSTON -- Fidelity Investments®, a leading global asset management firm with $1.6 trillion in managed assets, including more than $100 billion in index assets1, today announced it has significantly lowered the investment minimums on 22 equity, fixed income and enhanced index funds.
Effective January 1, 2013, Fidelity also will reduce total net expenses on eight of its Spartan® Index funds: Spartan 500 Index Fund, Spartan Total Market Index Fund, Spartan Emerging Markets Index Fund, Spartan Global ex U.S. Index Fund, Spartan Mid Cap Index Fund, Spartan Real Estate Index Fund, Spartan Small Cap Index Fund, and Spartan U.S. Bond Index Fund.
“Over the past 18 months, Fidelity has aggressively enhanced its Spartan index mutual fund offering with reduced fees and new products,” said JS Wynant, executive vice president, Investment Product Management and Research at Fidelity Investments. “These latest moves are another example of our commitment to providing workplace retirement plan sponsors and individual investors access to a wide-array of high-quality index funds at some of the most competitive pricing in the industry.”
Lowering Investment Minimums
For Fidelity’s 14 Spartan index funds, the Investor Class investment minimum will be lowered from $10,000 to $2,500, while the Fidelity Advantage® Class will be lowered from $100,000 to $10,000. The Investor Class and Fidelity Advantage® Class are retail share classes available to retail investors and retirement plans2. Investment minimums also were lowered across eight other Fidelity funds from $10,000 to $2,500. The table below lists the 22 funds that will have their investment minimums lowered.
For Spartan index shareholders, Fidelity will automatically convert qualifying Investor Class shares into the lower-cost Fidelity Advantage® Class shares of the same fund in January 2013. Share conversions within the same fund are tax free.
Fidelity is reducing total net expenses in multiple share classes across eight Spartan index funds.
“Active management and indexing does not need to be an ‘either/or’ proposition,” said Wynant. “Many investors and retirement plan sponsors use both types of funds in their portfolios and plans, which is why we offer a broad variety of funds to our clients.”
About Fidelity Investments
Fidelity Investments is one of the world’s largest providers of financial services, with assets under administration of $3.8 trillion, including managed assets of $1.6 trillion, as of October 31, 2012. Founded in 1946, the firm is a leading provider of investment management, retirement planning, portfolio guidance, brokerage, benefits outsourcing and many other financial products and services to more than 20 million individuals and institutions, as well as through 5,000 financial intermediary firms. For more information about Fidelity Investments, visit www.fidelity.com.
1) As of October 31, 2012.