The new charging structure will come into force next year, a Fidelity spokesperson told Portfolio Adviser’s sister-title Expert Investor.
Brian Conroy, president, Fidelity International, said: “We want to demonstrate real commitment to our active management capability. We will move away from a flat fee model and get paid according to how well we do for our clients.”
He added: “These changes will more closely align the performance of our business with the performance of our clients’ portfolios and deliver what we believe clients and regulators are looking for. Our fee structure will give back for underperformance of the benchmark, whereas others do not.”
The move comes just weeks after Morningstar urged asset managers to switch to a performance-based charging structure.
"Our fee structure will give back for underperformance of the benchmark"