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Fidelity Investments Introduces Tiered Levels of Pricing to Reward Loyalty

Fidelity Investments®, one of the industry’s largest and most diversified financial services firms, announced the launch of a time-based pricing feature on its six new disruptive funds that provides pricing discounts for shareholders who invest in one of the disruptive funds through a Fidelity account and remain in the fund for extended periods.

Fidelity Investments Rewards Customers for Long-term Investments

“We designed this new time-based pricing structure to encourage long-term investing aligned with the disruptive funds’ strategies,” said Penzone. “Often investors think of disruption as a short-term event, but the impacts and duration of disruptive technologies and businesses tend to be underestimated. The disruptive funds are designed to capture long-term opportunities and we want to reward our customers for taking a similarly long-term view in their accounts.”

Tiered Loyalty Time-Based Pricing

Shareholders who purchase one of the disruptive funds in a Fidelity retail account and remain invested for one year will be automatically transferred to Loyalty Class 1, in which the expense ratio decreases by 25% (from 1.00% to 0.75%). Shareholders who remain in the fund for three years will be automatically transferred to Loyalty Class 2, in which the expense ratio decreases again to 0.50%. Loyalty Class 2 is a 50% decrease from the initial purchase or a 33% discount from Loyalty Class 1. (See chart below.)

Tiered Time-Based Pricing for Loyalty
Example: Tiered Pricing to Reward Customer Loyalty

Related Article: What are the Different Types of Loyalty Programs?


Sallie Burnett