FundsNetwork concerned over rising clean fee costs

Fidelity FundsNetwork has expressed surprise over fund managers opting to raise prices in newly-launched clean share classes.

In a presentation to advisers, regional sales manager Paul Hendrick warned against a wholesale move out of bundled share classes and into their clean counterparts. "Most of the bigger groups have now launched clean share classes, but look at how much providers are charging," he said. "It's an unfortunate consequence that charges seem to be drifting up." FundsNetwork would not be forcing advisers into clean share classes, though admittedly there was "a clear direction of travel," he added. "Your existing assets can stay as they are: bundled share classes are not banned. They can'...