Fidelity Canada will launch new low-cost fund share classes
Starting Jan. 10 Fidelity Canadas investors will pay 15 fewer basis points to purchase front-end loads shares of the firms equity, asset allocation and balanced funds. The management fee on initial sales charge (ISC) units of Fidelity fixed income and money market funds will also drop by 25 basis points during the same period.
Management-related fees o Fidelity Canadas equity, asset allocation and balanced fees will also decrease by 20 basis points after Jan. 10. Similar fees of fixed-income funds and money markets will shrink by 30 basis points.
The fee reduction also comes with name changes for various share classes. Front-end loads, now dubbed Series A, will be known as Series B. After Jan. 10, the current fund shares now held as Series A ISC will automatically convert into the new lower-fee units. Shares purchased through DSC, or back-end loads, will remain in Series A. The new units will have separate net asset values.
In addition, Fidelity will launch Series S on Jan. 10 to replace existing Series T share units. The fund provider developed this share class to facilitate lower costs of tax-efficient systematic withdrawals, or T-SWP.
