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Fidelity brings in variable management fee on OEIC funds

Fidelity has brought in its variable management fee for five active equity funds in its UK OEIC range.

The variable management fee clean share class applies to the Fidelity Special Situations, Fidelity European, Fidelity Asian Dividend, Fidelity Global Special Situations and Fidelity American Funds.

The new share classes will have a 0.1 per cent lower base annual management charge of 0.65 per cent.

The variable part of the fee slides up or down depending on how the fund performs relative to its pre-defined market index on an annualised three-year rolling period, after all fees and charges.

The scale will reach a maximum of 0.2 per cent above the annual management charge and go as low as 0.2 per cent below. The maximum and minimum fee levied would be 0.85 per cent and 0.45 per cent, respectively.

Europe equities chief investment officer Paras Anand says there are plans to extend the fee structure to Fidelity’s wider fund range.

Anand says: “The new structure clearly aligns Fidelity’s interests to that of our clients and, unlike other performance fees out there, we will give back during periods of relative underperformance.”

Earlier this month, Fidelity announced that investment trust Fidelity Special Values is dropping its fixed annual administration fee by £500,000 and reducing its annual charge.

From 1 September, the annual charge will reduce from 0.875 per cent to 0.85 per cent on the first £700m of net assets under management and 0.75 per cent for the remainder.

The fixed annual administration fee for non-portfolio management services of £600,000 a year will drop to £100,000.



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