Fidelity continues fees shake-up as China fund adopts variable charge

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.

Leap of faith: Will performance fees restore trust in active managers?

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
MSCI China -6.91 39.26 -16.17 37.57 23.83

Source: Fidelity International, as at 31 March 2018, cumulative performance (NAV) in UK Sterling. Index = MSCI China.


AFH Alan Hudson 700

Consolidator snaps up Yorkshire IFA

Consolidator AFH has bought York-based advice firm Corville Financial Services for up to £2.9m. The acquisition is AFH’s eighth so far for the financial year. AFH has already paid £1.47m with the rest of the projected purchase price to be paid in two lots over 26 months, subject to performance. Debbie and Nick Burchall will […]


Lloyds sells rest of Standard Life Aberdeen stake

Lloyds Banking Group has sold its remaining stake in Standard Life Aberdeen as the two investment giants continue their fight over the future of a key mandate. Lloyds and Standard Life Aberdeen remain in dispute resolution proceedings after Lloyds terminated its £109bn Scottish Widows Investment Partnership management deal with Standard Life Abderdeen in February. Aberdeen […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm