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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.”



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  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.

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