In October, Fidelity International announced it was shaking up its fee structure to ensure investors would be charged a variable fee, based on fund performance.
Last month, the firm confirmed Fidelity Japanese Values was the first trust to adopt the fee model and today, the asset manager announced Asian Values as the second.
The board said Fidelity Asian Values’ fee model will reduce the headline base management fee from 0.90% of gross assets to 0.70% of net assets per annum, with a plus or minus 0.20% variation based on performance relative to the comparative index.
This will replace the company’s current tiered fee structure of 0.90% of gross assets up to £200m and 0.85% on gross assets of more than £200m.
The maximum fee will be 0.90% of net assets, but if the trust underperforms the overall fee could fall as low as 0.50% of net assets, the group said.
Kate Bolsover, chairman of Fidelity Asian Values, said: “The board continues to be focused on improving the future prospects of the company and I am pleased that we can offer a new and innovative fee structure that aligns shareholder interests with the investment style of the portfolio manager.”
Fidelity Asian Values, run by Nitin Bajaj (pictured), has underperformed against the IT Asia Pacific excl. Japan benchmark on a one-year basis with returns of 3.1% against 12.4%, according to FE.
However, on a three and five-year period, the trust has outperformed the benchmark with returns of 47.6% and 103.9%, compared to 34.4% and 53.6%, respectively.
Fidelity confirmed there will be no change in the investment process with the variable fee arrangement. The new model will take effect from 1 August.
