Fidelity is continuing to overhaul fees across the firm, with its China Special Situations fund the latest to switch structure.
The company is removing its performance fee and current fixed annual charge in favour of a new variable management fee, effective from 1 July.
Fidelity says this will reduce the current headline annual fee of 1 per cent of net assets to 0.9 per cent.
The performance fee of up to 1 per cent is being replaced with a variable fee which moves symmetrically by up to 0.20 per cent relative to the MSCI China benchmark index.
This means with a headline annual fee of 0.90 per cent charges can fluctuate between 0.70 per cent and 1.10 per cent.
Chairman of the Fidelity China Special Situations fund Nicholas Bull says: “Fund fees have come under increased scrutiny in recent years as investment managers seek to prove their worth in the face of rising demand for low cost passive funds. I am pleased we can today announce a new and innovative charging structure.
“The new arrangement provides an overall reduction from the current management fee structure, especially in those years where the performance fee was payable.”
Rolling 12-month returns net of fees, GBP (%)
|31/03/2013 – 31/03/2014||31/3/2014 – 31/3/2015||31/3/2015 – 31/3/2016||31/3/2016 – 31/3/2017||31/3/2017 – 31/3/2018|
|Fidelity China Special Situations PLC (NAV)||19.50||45.34||0.02||38.80||20.89|
Source: Fidelity International, as at 31 March 2018, cumulative performance (NAV) in UK Sterling. Index = MSCI China.