Fidelity Investments lowered the fee for entry-level share classes for its Fidelity Freedom index funds and Fidelity Institutional Asset Management's Index Target Date commingled pools, the money manager said Wednesday in a news release.
Effective June 1, the fees for entry-level shares dropped to 12 basis points from 14 basis points for the Freedom funds, as well as for commingled pools of less than $100 million. The institutional premium for Freedom index funds remains at 8 basis points, and the fee schedules for ranges above $100 million for commingled pools also remains the same: 8 basis points for $100 million to $200 million, 7 basis points for $200 million to $1 billion, 6 basis points for $1 billion to $2 billion and 5 basis points for $2 billion and above.
It is the latest volley in a price war with Vanguard Group, BlackRock and Charles Schwab that saw its most dramatic development last August, when Fidelity introduced two index funds to individual investors with a zero expense ratio.
