Fidelity Launches SmartFund Account for Retail Investors to Manage their Fund Portfolios Flexibly

An all-in-one monthly fee scheme offering investors to buy and switch funds on Fidelity’s FundsNetwork platform without upfront subscription or switching fee

HONG KONG, 19 August 2013 – Fidelity Worldwide Investment ("Fidelity") today launched Fidelity SmartFund Account, a flexible pricing scheme that allows retail investors to conduct multiple transactions1 on Fidelity’s open fund platform, FundsNetwork, at a simple and transparent all-in-one monthly account fee based on an average asset balance.

Without paying any upfront subscription or switching fees2, Fidelity SmartFund account holders can buy and switch amongst the over 380 funds provided by 10 fund houses at the FundsNetwork platform. Depending on the asset balance, the monthly account fee can range between 0.3% to 1% p.a.3 of the market value of average daily fund holdings for all funds except cash funds which is 0%. Fidelity SmartFund Account is available only to investors who open an account directly with Fidelity. The minimum account opening requirement is USD50,000.

Mr. Bruno Lee, Regional Head of Retail, Asia ex Japan, Fidelity Worldwide Investment
, said, "In today’s volatile investment market, regular and timely portfolio rebalancing is critical, yet, the transaction cost could be a deterrent for some investors. Fidelity SmartFund Account is a new solution for Hong Kong retail investors to put aside the one-off transaction cost consideration and help investors focus instead on the more important decision related to allocating the right fund asset classes mix at the right time based on their personal financial circumstance and changing investment market environment.

"We believe an asset-based pricing model will create a new trend in the fund distribution market in Hong Kong and will further enhance the usage of funds as part of the investors' wealth management component. This alternate pricing scheme will best suit investors who plan to review their portfolios periodically and have a diverse interest in asset classes, geographical exposure and sector preferences over a changing investment market environment. Our key priority is to offer our clients more options on product range, personalized investment guidance supported by Fidelity's global investment experience, easy and convenient tools to monitor their fund portfolio, and a simple pricing scheme that is aligned with our customers' interest and preference.

"According to the Hong Kong Investment Funds Association's latest statistics, the gross sales of Hong Kong retail fund in the first five months of this year was USD35.3 billion, representing an increase of 75.6% compared with the corresponding period last year. It shows that more retail investors are adding mutual funds to their investment portfolios. To help investors have a better picture of their overall fund portfolios, we recently launched an online portfolio tracking tool, Portfolio X-ray, which will allow them to review their portfolios details and breakdown around-the-clock."

As the only asset manager in Hong Kong to offer third-party funds to retail investors, Fidelity has over 300 investment professionals worldwide to conduct in-depth research and analysis. Fidelity’s investors can leverage Fidelity's unrivalled research resources to keep abreast with the latest market insights and investment opportunities. They can also access Fidelity's Select List which is derived by the Fidelity's Investment Solutions Group's combination of advanced mathematical techniques and in-depth understanding of fund managers' processes and investment philosophies.

1
Transactions are subject to the frequent trading and market timing policies of Fidelity and Third Party Funds. Short term or excessive trading into and out of a fund may harm performance by disrupting portfolio management strategies and by increasing expenses. Fidelity will monitor and review deals in order to make an assessment where investments are held for less than 90 days and generally takes the view that investments that are held for less than 30 days are active trades. In case investors engage or is suspected to be engaging in excessive trading or market timing in contravention of such applicable laws, regulations or policies of the relevant fund provider, an additional fee may be imposed and Fidelity reserves its rights to reject the transaction of shares and/or terminate such account. For more information on each fund’s frequent trading and market timing policies, please refer to the respective relevant offering documents.

2 Other fees and charges still apply, please refer to the relevant offering documents.

3 Monthly account fee (asset balance-based)

SmartFund average

holding balance (USD)

Account fee (p.a.)

Cash funds

Bond, equity and other funds

$1,000,000 or above

0%

0.30%

$500,000 - below $1,000,000

0%

0.50%

$250,000 - below $500,000

0%

0.60%

$100,000 - below $250,000

0%

0.75%

$50,000 - below $100,000

0%

1.00%

Remarks:
i) The minimum initial average holding balance is US$50,000 for Fidelity SmartFund account, which covers lump sum subscription and investment under a monthly investment plan. If the average daily holding balance falls below US$50,000, there will be an account fee of 1.5% p.a. for bond, equity and other funds.
ii) The monthly account fee is calculated based on the average holding balance of open-end funds (bond, equity and other funds, but excluding cash funds) and has no minimum charge.

– Ends –

 

About Fidelity Worldwide Investment
Fidelity Worldwide Investment is one of the global leaders in asset management, providing investment products and services to individuals and institutions in the UK, continental Europe, the Middle East and Asia Pacific. Established in 1969, the company has over 6,000 staff in 24 countries and manages or administers client assets of US$305.5 billion. It has over five million customer holdings and manages more than 660 equity, fixed income, property and asset allocation funds. The company’s fund managers receive research from one of the largest proprietary research teams, based in 12 countries around the world. Fidelity Worldwide Investment is an independent asset management company which is privately owned.
Data as at 30 June 2013

About Fidelity Personal Investing
Fidelity aims to help retail investors to understand of their need to make the most of their wealth. With a Fidelity personal investment account, investor can access over 380 fund choices from Fidelity and distinguished global asset managers on Fidelity’s open fund platform, FundsNetwork. Fidelity also offers a quarterly fund list, Select List, to help its personal investing customers to construct their investment portfolio. The Select List is produced by Fidelity’s investment team based on detailed analysis and in-depth understanding of managers’ processes and investment philosophies combined with advanced mathematical techniques to analyse each fund manager’s past performance and their portfolio. Fidelity’s personal investing clients can also generate a portfolio report using Portfolio X-Ray, a powerful tool that gives detailed analysis and breakdowns on their portfolio or individual accounts. Fidelity Wealth customers (with an asset balance of US$100,000 or more) will have a Private Client Manager to guide you through the process of identifying the right funds for your portfolio, and help you make informed decisions on your investment.

Media Contact:

Patricia Chua

Kate Cheung

Head of Corporate Communications

Manager, Corporate Communications

Tel: +852 2629 2468

Tel: +852 2629 2641

Email: patricia.chua@fil.com

Email: kate.cheung@fil.com