To try and lure investors from rivals, Fidelity U.K. has cut the management fee on its flagship equity index fund to 10 basis points, about one-tenth of what other fund companies in the U.K. charge, Fidelity told Reuters.

The total expense ratio on the Fidelity MoneyBuilder UK Index Fund is just 30 basis points, according to the firm. Fidelity marketing research has found 16 other fund complexes in the U.K. charging 1% or more for index funds, seven of which charge an additional 5.5% front-end charge.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.