Fidelity Opens Online U.K. Supermarket
June 12, 2000
Fidelity Investments of Boston last week launched FundsNetwork, an online fund supermarket in the U.K., said Joanne Roddan, a spokesperson for Funds Network, Fidelity's online supermarket in London.
The site offers 250 funds from 14 firms, making Funds Network the largest online supermarket in the U.K., Roddan said. Funds Network's biggest competitor, Egg, an online supermarket offered by Prudential Plc, offers 160 funds from 12 providers, she said.
Funds Network will carry an initial fee of 1.25 percent in addition to a 50 basis point fee on each fund. The service will also include a 105 basis point annual fee, she said. It will offer services to both retail and institutional clients, Roddan said.
Fidelity plans to increase the funds available in the supermarket and will begin to offer similar services in Germany and France by the end of the year, she said.
Fidelity has spent nearly $10 million on systems for the supermarket and on marketing its name in the U.K., said Richard Wastcoat, managing director of Fidelity Investment Services, Ltd., in a statement.