View more on these topics

Fidelity adds provisos to China performance fees

Advisers have welcomed the decision by Fidelity to introduce caveats on the performance fee for Anthony Bolton’s impending China special situations trust.

It will have a performance fee of 15 per cent for any increase of the net asset value which outperforms MSCI China index plus 2 per cent. The maximum fee payable in any year will be equal to 1.5 per cent of NAV.

But any underperformance must be made up for before performance fees are payable.

Skerritt Consultants head of investments Andy Merricks says: “I think the performance fee is fair as it does not ignore poor performance while rewarding good.”

Hargreaves Lansdown head of research Mark Dampier says: “It has a hurdle rate of 2 per cent above the index as well as a high watermark to ensure underperformance is addressed before performance fees become applicable again.”

Recommended

1

Hub of the matter

Financial Relationships joint founder Alex Morris describes how the firm is taking a hub and spoke approach to service by building professional connections and making advice the product

FSA returns £270k to fraud victims

The FSA is to return £270,000 to victims of a share fraud, which it has recovered after taking action against companies involved in the scam.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. Looking forward to seeing Mr. Bolton get his backside kicked in China. It simply does not follow that because he was enormously successful in the UK for 23 years, that he will replicate that sort of performance in China. He doesn’t have the contacts, and won’t get the ‘nod and wink’ that he did in the UK equity market.

Leave a comment