Reduced fees on mutual funds from Fidelity Investments Canada Limited take effect today.

Fidelity announced on Nov. 24, 2004 that it is reducing management fees and operating expenses on all of its funds purchased with a front end load (initial sales charge or ISC).

The fund company says it is taking this step to reflect the lower distribution and fund operating costs associated with units purchased with ISC. Fund units purchased with ISC have been automatically converted effective today to a new series of lower cost units called ‘Series B’. Units purchased with deferred sales charge option (DSC) will continue to be called “Series A”.

For equity, asset allocation and balanced funds, the management fee for ISC/Series B units is being reduced by 15 basis points, with the total MER falling by 20 bps.

For he Fidelity American High Yield Fund, the management fee is being reduced by 15 basis points, with the MER falling by 20 bps.

For the fixed income and money market funds, the management fee is being reduced by 25 bps, with the MER falling by 30 bps.

As soon as possible, Fidelity will convert existing DSC units that have been held seven or more years to the lower cost Series B units. Fidelity has received regulatory approval to do so and is working with financial advisory firms to ensure those DSC units are converted for investors over the next several months. In future, all DSC units will be automatically converted to lower cost Series B units after seven years.

Fidelity is the first fund organization in Canada to automatically convert investors’ units out of DSC and into a lower fee structure one year after they have met the terms of their purchase agreement.

Financial professionals should contact their Fidelity wholesaler or Fidelity Client Services at 1-800-263-4077.

Also today, Fidelity announced it is now offering Canadian investors a low load sales option on all of its mutual funds. Low load is a DSC option with a shorter redemption schedule (two years) and a lower redemption charge.

According to Fidelity, low load offers investors and advisors more choice and flexibility in their long-term financial planning and the opportunity to lower their investing costs.

Investors who choose the low load option will also benefit from Fidelity’s new auto-conversion of DSC units to lower fee Series B units. For investors with low load units, this auto-conversion happens three years after purchase.

For investors seeking solutions for more tax-efficient investing, Fidelity’s new low load option will also be available on fund units purchased with the T-SWP feature (Tax-Efficient Systematic Withdrawal Plan) as well as Fidelity Capital Structure Corp.