Fund management Fidelity has launched an unbundled share class purely for its discretionary clients, insisting IFAs prefer to pay 1% for funds through platforms, a claim that has been disputed by other fund houses.

The 0.75% ‘clean fee’ share class is to launch later this year on a limited range of Fidelity funds, but may be rolled out further in due course.

Ben Waterhouse, head of UK retail sales at Fidelity Worldwide Investment, said demand had driven the decision to offer discretionaries an unbundled share class.

“The platform-using community are still seeing the need for a rebate share class,” Waterhouse added, and for this reason Fidelity will continue to offer its 1% share class on platforms until there is final guidance on rebates from the FSA.

It is assumed this will be the share class most IFAs will buy because the 0.75% share class will have a £500,000 minimum investment level.

Source: Portfolio Adviser.  Read full article here.