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Fidelity’s fees on low-cost funds eyed in government probe

Boston-based firm characterises so-called infrastructure fee as solution to ‘broken’ business model

The Labor Department is investigating Fidelity Investments over an obscure and confidential fee it imposes on some mutual funds, according to a person familiar with the inquiry.

The annual charge, which Fidelity calls an infrastructure fee, is aimed at companies selling shares on the asset manager’s fund platform, and was described in a 2017 internal Fidelity document reviewed by The Wall Street Journal.

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