Fidelity lowers expense ratios and minimums for Spartan funds
Posted: Tue Dec 11, 2012 6:46 pm
A really nice email in my inbox today:
Upcoming changes to Spartan® Index Funds
Dear X,
We would like to inform you of several improvements to one or more of the Spartan® index mutual funds1 that you currently own.
Summary of changes
Effective December 11, 2012
The minimum initial investment for the Investor share class of all Spartan index funds will be reduced from $10,000 to $2,500; for the Fidelity Advantage® share class of all Spartan index funds, it will be reduced from $100,000 to $10,000.2,3
For clients who will now qualify for the Fidelity Advantage® share class, the funds will automatically convert to the appropriate share class during our monthly updating process in January.
Effective January 1, 2013
The expense ratios for several Spartan index funds will be reduced. Please see the chart below for more details on the new fund expense ratios.
The low balance "annual index fund fee" of $10 will be replaced by a new "small balance maintenance fee" of $12, and will only be applied to accounts whose positions fall below the reduced minimum balance amount.
The minimum balance to avoid the "small balance maintenance fee" will be reduced from $10,000 to $2,000.
Why these changes?
The reduction of the expense ratio allows Fidelity to offer our customers some of the best priced index funds in the industry.
Lowering the investment minimums on the Investor and Fidelity Advantage® share classes, as well as changing the low balance fee, makes the funds accessible to more of our valued customers.
Additional information regarding the funds, including their investment objectives, investment policies, fees, and expenses, can be found in the funds' prospectuses on Fidelity.com.
If you have questions regarding these changes, contact your representative or call 800-544-6666. Representatives are available 24 hours a day, 7 days a week.
As always, thank you for investing with Fidelity.
Sincerely,
Fidelity Investments
Fidelity Product Share Class Current Expense Ratio (net) Expense Ratio Drop New Expense Ratio (net)
Spartan 500 Index Fid Adv 0.06% 0.01% 0.05%
Spartan Total Market Index Fid Adv 0.07% 0.01% 0.06%
Spartan Mid-Cap Index Investor 0.28% 0.04% 0.24%
Spartan Mid-Cap Index Fid Adv 0.14% 0.04% 0.10%
Spartan Small-Cap Index Investor 0.38% 0.08% 0.30%
Spartan Small-Cap Index Fid Adv 0.24% 0.08% 0.16%
Spartan Global ex U.S. Index Investor 0.24% 0.02% 0.22%
Spartan Emerging Markets Index Investor 0.33% 0.02% 0.31%
Spartan Emerging Markets Index Fid Adv 0.22% 0.02% 0.20%
Spartan Real Estate Index Investor 0.27% 0.03% 0.24%
Spartan Real Estate Index Fid Adv 0.13% 0.03% 0.10%
Spartan U.S. Bond Index Fid Adv 0.11% 0.01% 0.10%
Upcoming changes to Spartan® Index Funds
Dear X,
We would like to inform you of several improvements to one or more of the Spartan® index mutual funds1 that you currently own.
Summary of changes
Effective December 11, 2012
The minimum initial investment for the Investor share class of all Spartan index funds will be reduced from $10,000 to $2,500; for the Fidelity Advantage® share class of all Spartan index funds, it will be reduced from $100,000 to $10,000.2,3
For clients who will now qualify for the Fidelity Advantage® share class, the funds will automatically convert to the appropriate share class during our monthly updating process in January.
Effective January 1, 2013
The expense ratios for several Spartan index funds will be reduced. Please see the chart below for more details on the new fund expense ratios.
The low balance "annual index fund fee" of $10 will be replaced by a new "small balance maintenance fee" of $12, and will only be applied to accounts whose positions fall below the reduced minimum balance amount.
The minimum balance to avoid the "small balance maintenance fee" will be reduced from $10,000 to $2,000.
Why these changes?
The reduction of the expense ratio allows Fidelity to offer our customers some of the best priced index funds in the industry.
Lowering the investment minimums on the Investor and Fidelity Advantage® share classes, as well as changing the low balance fee, makes the funds accessible to more of our valued customers.
Additional information regarding the funds, including their investment objectives, investment policies, fees, and expenses, can be found in the funds' prospectuses on Fidelity.com.
If you have questions regarding these changes, contact your representative or call 800-544-6666. Representatives are available 24 hours a day, 7 days a week.
As always, thank you for investing with Fidelity.
Sincerely,
Fidelity Investments
Fidelity Product Share Class Current Expense Ratio (net) Expense Ratio Drop New Expense Ratio (net)
Spartan 500 Index Fid Adv 0.06% 0.01% 0.05%
Spartan Total Market Index Fid Adv 0.07% 0.01% 0.06%
Spartan Mid-Cap Index Investor 0.28% 0.04% 0.24%
Spartan Mid-Cap Index Fid Adv 0.14% 0.04% 0.10%
Spartan Small-Cap Index Investor 0.38% 0.08% 0.30%
Spartan Small-Cap Index Fid Adv 0.24% 0.08% 0.16%
Spartan Global ex U.S. Index Investor 0.24% 0.02% 0.22%
Spartan Emerging Markets Index Investor 0.33% 0.02% 0.31%
Spartan Emerging Markets Index Fid Adv 0.22% 0.02% 0.20%
Spartan Real Estate Index Investor 0.27% 0.03% 0.24%
Spartan Real Estate Index Fid Adv 0.13% 0.03% 0.10%
Spartan U.S. Bond Index Fid Adv 0.11% 0.01% 0.10%