Fidelity has launched low-cost versions of its Multi Asset fund range, run by Trevor Greetham, following moves by peers including Schroders to offer similar investment products.
The Multi Asset Allocator Funds, scheduled for launch next month, have two lower cost share classes, with the A shares having a 1% AMC and 0.5% trail commission, and the N shares charging 0.5% AMC with no trail.
This compares with higher AMC's on the existing range of Multi-Asset funds which are between 1.15% and 1.4%.
The funds will use the same active asset allocation and investment process as the existing Multi-Asset Funds but will use index funds to implement asset allocation decisions, therefore allowing for lower costs.
The portfolios - which mirror the existing Multi-Asset fund - are diversified across a range of assets including cash, bonds, property shares, equities and commodities.
There are three options for investors, with Defensive, Balanced and Growth portfolios available.
Ben Waterhouse (pictured), head of retail sales at Fidelity, said: "In response to rising demand for low cost solutions, we are launching three new funds with an identical approach to active tactical asset allocation but using low cost index components to bring the total cost to the investor down.
"For cost sensitive investors and those perhaps wishing to avoid stock selection risk, the Multi Asset Allocator funds are an alternative solution."
The launch follows J.P. Morgan's move earlier this year to rebrand its UK Active 350 fund. It converted the fund into the UK Active Index Plus fund, cutting the AMC to 0.25%, with fixed expenses of 0.15%.
Schroders also launched a range of low cost offerings based on existing funds it runs.
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