The Boston-based investment firm began managing six of Fidelity’s fund portfolios on Monday, according to a Dow Jones report. The $26.4 billion aggregate of funds includes:
- Spartan 500 Index Fund
- Spartan Extended Market Index Fund
- Spartan International Index Fund
- Spartan US Equity Index Fund
- Spartan Total Market Index Fund
- Fidelity Four-In-One Index Fund.
For its services, Securities and Exchange Commission (SEC) filings revealed Fidelity will pay Geode fees at an annual rate of:
- 0.01% of average net assets of Spartan US Equity and Spartan 500 Index.
- 0.05% of average net assets for managing the Spartan Total Market Index and Spartan Extended Market Index.
- 0.065% of average net assets for managing the Spartan International Index.
Not included in the SEC filings was any arrangement to pay Geode for run the Four-In-One portfolio. This fund is a fund-of-funds with holdings consisting of the Spartan 500 Index, Spartan International Index, Spartan Extended Market Index and Fidelity US Bond Index Fund.Fidelity began to manage its index funds in house in January (See Fidelity to Retake index Fund Management from DeAM/TNT ) after the funds’ previous subadviser, Deutsche Asset Management, sold its passive asset management business to Northern Trust Corp. (See Deutsche Bank Takes Passive “Action” ).
« Regulators Pull Back Some Cash Balance Conversion Rules