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Fidelity Investments® Introduces New Investment Choices, Lowers Fees for 529 College Savings Plans
[October 08, 2019]

Fidelity Investments® Introduces New Investment Choices, Lowers Fees for 529 College Savings Plans


Fidelity Investments, one of the largest and most diversified global financial services firms with $7.8 trillion in total client assets and $2.8 trillion in managed assets, continues to deliver greater choice and value for investors in its 529 college savings plans with the launch of eight 529 Blend portfolios. Available to investors on October 3, 2019, the new portfolios combine active and index investments. Fidelity also announced it is trimming fees on 15 of its 22 college savings plan portfolios.

"Saving for education costs is one of the largest financial challenges many families face. At Fidelity, we continue to look for new ways to provide investors with a broad range of innovative investment choices and exceptional value to help them meet their financial goals," said Eric Kaplan, head of Target (News - Alert)-Date and 529 Product at Fidelity Investments. "We designed the Fidelity Blend 529 portfolios to combine the advantages of active management with the lower cost of index investing. Additionally, we're lowering fees on the majority of our 529 portfolios because we're committed to do even more to help those who choose to invest their college savings with us."

Fidelity 529 Blend Age-Based Portfolios
The Fidelity 529 Blend age-based portfolios will invest assets in a combination of underlying index and active funds with similar investment objectives, glide path, and composite benchmark components as the existing Fidelity actively-managed and Fidelity index 529 age-based portfolios. Pricing for the new Blend portfolios is shown in the table below.





FIDELITY BLEND

2036

2033

2030

2027

2024

2021

2018

College

Program & State Fee

E (%)

0.47

0.44

0.42

0.39

0.36

0.32

0.28

0.28

0.14


Fees Lowered on Majority of Fidelity 529 Plan Portfolios
Effective October 1, 2019, Fidelity is reducing fees for the majority of its Fidelity 529 Plan portfolios, which is expected to save current Fidelity 529 plan investors more than $4 million annually (calculated based on Fidelity 529 account assets as of 8/31/19).* Current Fidelity 529 plan investors do not need to take any action to receive the new pricing.

The pricing changes are shown in the tables below (in percentages).

Fidelity's Age-Based 529 Portfolios:

FIDELITY FUNDS (active)

2036

2033

2030

2027

2024

2021

2018

College

Program & State Fee

Previous Pricing

0.77

0.72

0.68

0.63

0.57

0.51

0.44

0.44

0.20

NEW Pricing

0.75

0.70

0.66

0.61

0.56

0.50

0.43

0.43

0.20

FIDELITY INDEX

 

 

2036

 

 

2033

 

 

2030

 

 

2027

 

 

2024

 

 

2021

 

 

2018

 

 

College

 

 

Program & State Fee

Previous Pricing

0.04

0.04

0.04

0.05

0.05

0.06

0.07

0.07

0.09

NEW Pricing

 

 

0.05

 

 

0.05

 

 

0.05

 

 

0.05

 

 

0.05

 

 

0.05

 

 

0.05

 

 

0.05

 

 

0.09

Static Portfolios:

FIDELITY FUNDS (active)

Aggressive Growth

Moderate Growth

Conservative

Program & State Fee

Previous Pricing

0.79

 

 

0.68

 

 

0.31

 

 

0.20

NEW Pricing

0.78

 

 

0.67

 

 

0.30

 

 

0.20

FIDELITY INDEX

Aggressive Growth

 

 

Moderate Growth

 

 

Conservative

 

 

Program & State Fee

Previous Pricing

0.04

 

 

0.04

 

 

0.09

 

 

0.09

NEW Pricing

0.04

 

 

0.04

 

 

0.04

 

 

0.09

[Note: Previous pricing indicates pricing before October 1, 2019. New pricing takes effect October 1, 2019.]

______________________

*Expected savings is calculated by applying the lower expense ratios to the affected portfolios and totaling the difference based on assets of those portfolios as of 8/31/19.

Ongoing Commitment to Choice and Value
Today's announcement caps a year in which Fidelity launched Freedom Blend Funds, introduced Fidelity ZERO funds, cut fees on its Index target-date funds and other index mutual funds, and eliminated many of its account fees. Fidelity continues to look for new and different ways to leverage its exceptional scale to offer even more value to its tens of millions of customers.

About Fidelity 529 Plan Portfolios
The Fidelity 529 Plan portfolios are co-managed by Andrew Dierdorf, Brett Sumsion, and Finola McGuire Foley, who are supported by Fidelity's global investment and research teams. "We apply a disciplined investment process when managing our customers' 529 assets, grounded in ongoing research to help grow their college savings while balancing multiple risks over time," said Andrew Dierdorf, portfolio manager, Fidelity Investments.

Fidelity is dedicated to remaining at the forefront of 529 plan design and innovation with new investment choices that benefit from the firm's extraordinary breadth and depth of investment experience and expertise. In aggregate, Fidelity manages over $25 billion in 529 plan assets sponsored by the states of Arizona, Delaware, Massachusetts, and New Hampshire.

About Fidelity Investments

Fidelity's mission is to inspire better futures and deliver better outcomes for the customers and businesses we serve. With assets under administration of $7.7 trillion, including managed assets of $2.8 trillion as of August 31, 2019, we focus on meeting the unique needs of a diverse set of customers: helping more than 30 million people invest their own life savings, 22,000 businesses manage employee benefit programs, as well as providing more than 13,500 financial advisory firms with investment and technology solutions to invest their own clients' money. Privately held for more than 70 years, Fidelity employs more than 40,000 associates who are focused on the long-term success of our customers. For more information about Fidelity Investments, visit https://www.fidelity.com/about.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

Past performance is no guarantee of future results.

The UNIQUE College Investing Plan, U.Fund College Investing Plan, Delaware College Investment Plan, and Fidelity Arizona College Savings Plan are offered by the state of New Hampshire, MEFA, the state of Delaware, and the Arizona Commission for Postsecondary Education, respectively, and managed by Fidelity Investments. If you or the designated beneficiary is not a New Hampshire, Massachusetts, Delaware, or Arizona resident, you may want to consider, before investing, whether your state or the beneficiary's home state offers its residents a plan with alternate state tax advantages or other state benefits such as financial aid, scholarship funds and protection from creditors.

Units of the portfolios are municipal securities and may be subject to market volatility and fluctuation.

Please carefully consider the plan's investment objectives, risks, charges, and expenses before investing. For this and other information on any 529 college savings plan managed by Fidelity, contact Fidelity for a free Fact Kit, or view one online. Read it carefully before you invest or send money.

Fidelity Brokerage Services LLC, Member NYSE, SIPC
900 Salem Street, Smithfield, RI 02917

Fidelity Investments Institutional Services Company, Inc.,
500 Salem Street, Smithfield, RI 02917

National Financial Services LLC, Member NYSE, SIPC,
200 Seaport Boulevard, Boston, MA 02110

901481.1.0
© 2019 FMR LLC. All rights reserved.


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