Fidelity admits mistake on two mispriced Fofs

Fofs

multimanager income falls from first quartile to second once pricing error corrected

Fidelity has accidentally mispriced two of its unfettered fund of funds (Fof) every day since their launch more than a year ago. This has led to advisers being paid a higher level of trail commission than warranted. Trade ads from the group in November 2004 were promoting the Multimanager Income fund as first in its sector since launch when the correct figures are used, the fund is second quartile. The mistake was discovered after an internal audit in December and the group has already issued more shares to investors in its Multimanager Growth and Multimanager Income funds so no one is ...