Fidelity platform restricts fund of investment trusts following changes to charge disclosures

2.5% ongoing charge cap

Kathleen Gallagher
clock • 3 min read
The Fidelity platform only offers funds that have an OCF below 2.5%, Investment Week has learned
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The Fidelity platform only offers funds that have an OCF below 2.5%, Investment Week has learned

Fidelity platform Fidelity International has restricted investment into the Premier Miton Worldwide Opportunities fund, a fund of investments trusts, after a change to cost disclosure guidance meant the charges exceeded 2.5%, the platform’s unofficial ongoing charges cap.

On 30 June 2022, Fidelity International decided to restrict new investments in fund, because it was "in the best interests of our customers," according to a statement on its website. Investors are still able to redeem existing holdings in the fund either by selling to cash or by switching to other funds.  While Fidelity did not disclose the rationale, Investment Week has learned that it is because the platform has an unofficial cap on funds' ongoing costs of 2.5%, with most funds beyond the threshold considered not suitable for its clients. The Premier Miton fund, which is a fund of i...

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