To sell more mutual funds through banks, brokerage firms, and insurance companies, Fidelity Investments created another class of no-load shares in its Advisor family.
The Advisor funds have been available in A, B, or T share classes, which charge customers either when shares are bought or at the time of redemption.
The new C shares pay the intermediary an up-front commission of 1% and continue to pay the same amount annually. These shares are subject to a back-end charge if redeemed within 12 months.
This pricing structure creates "a very attractive investment alternative for investors who choose to buy Fidelity funds through a financial adviser," said Kevin Kelly, president of Fidelity Investments Institutional Services Co.
Though no-load funds appeal to many investors, the new price structure will also be "fairly compensating investment professionals for the advice and support they provide to shareholders," he said.
The C share price structure is available for 25 of the 31 Advisor funds managed by the Boston-based mutual fund giant, including a new portfolio, the Fidelity Advisor International Capital Appreciation Fund.
The fund invests primarily in foreign securities and is managed by Kevin McCarey, a 12-year Fidelity veteran who also manages its Europe Capital Appreciation Fund.
"Investors generally think of Fidelity as a domestic investment manager," Mr. Kelly said. "The fact is, we have more analysts around the world researching foreign companies than domestic companies."
Fidelity has 86 research professionals in three overseas offices and 80 in Boston.