Fidelity is aiming to hit the bullseye in the British retirement market with target-date funds, according to London’s CityWire. Fidelity’s funds will be a first-of-their kind for U.K. investors, who are adjusting to retirement savings, as the pension crisis in that country deepens. Richard Skelt will manage the seven funds, which have target dates in five-year intervals running between 2015 and 2040. Like their U.S. counterparts, the further away the date of maturity, the more equity-heavy the funds will be. At maturity, funds are then rolled into the Fidelity Retirement Income Fund, which is 70% fixed income. Although the philosophy and structure of these funds is essentially the same as in the U.S., the fee system is a graduated rate. Fidelity will sell the funds through individual financial advisers. Investors pay 3.5% for their initial investment, and then annual fees of 1.5%. Financial advisers get 3%. Five years prior to retirement, the annual fee drops by another 25 basis points. The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.
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