Fidelity has implemented a variable management fee option on five of its equity funds, which will mean fees are dependent on performance relative to a benchmark. Announced last year, the firm had expected to launch the new share classes in Q1 but was delayed while it waited for regulatory approval from the Financial Conduct Authority (FCA). It has now implemented...
the European Union's is introducing fulcrum fees on its equity funds. The new pricing structure will do away with flat management fees and employ a fee schedule that charges investors more if the funds outperform. The pricing will be available via an additional share class and has not been extended to Fidelity's fixed-income or multi-asset offerings. The firm also announced it is planning to adopt a model charging clients for third party research as Fidelity International Mifid II regulations come into play. Costs passed on to clients will be offset by lower management fees, the firm said.