Fidelity Asian Values board to implement variable management fee

Effective from 1 August

The board of the £286m Fidelity Asian Values investment trust has announced plans to introduce a new variable management fee, to "align shareholder interests with the investment style of the portfolio manager".

The new model, which will be effective from 1 August 2018, will replace the trust's current tiered fee structure, where a fee of 0.90% of gross assets is charged on funds up to £200m and 0.85% for any funds above that. The new fee will reduce the headline base management fee from 0.90% of gross assets to 0.70% of net assets per annum with a +/- 0.20% variation based on performance relative to the comparative index. The maximum fee paid by shareholders will be 0.90% of net assets, but if the trust underperforms against the comparative index, the overall fee could fall as low as 0.50% o...