View the article online at http://citywire.co.uk/wealth-manager/article/a741322
Fidelity cuts China Special Sits fee ahead of Bolton departure
by Robert St George on Mar 19, 2014 at 09:25
The annual management charge (AMC) has fallen from 1.2% to 1% on Bolton's £815 million China Special Situations trust, while the performance fee cap has dropped from 1.5% to 1%. It follows Fidelity's decision last year to bring the AMC down from 1.5% to 1.2%.
The fees on the £104 million Japanese Values trust have been cut from 1% to 0.85%, with the new level backdated to 1 January 2014.
‘We have seen significant changes to pricing following the introduction of the retail distribution review,’ commented John Owen, chairman of Fidelity China Special Situations. ‘As a result, we felt this was the right time to review the fees to ensure Fidelity China Special Situations remains competitive.’
After a difficult start, Bolton (pictured) has revived the trust’s fortunes, setting it on course for its first performance fee this year. Over the past year it has returned 19.6% on a net asset value basis compared with the MSCI China index’s fall of 12.2%.
David Robins, chairman of Fidelity Japanese Values, commented: ‘Over the course of the last year, the company has grown significantly in terms of assets under management, both as a result of improved market sentiment in Japan, and as a result of shareholders exercising their subscription rights prior to their expiry in February 2013.
‘This, coupled with increasing competition following the Retail Distribution Review, has meant that the board and Fidelity felt this was the right time to review the company’s fees to ensure they remain competitive.’
Over the past three years it has returned 27.4% on a net asset value basis, compared with 25.9% by its MSCI Japan Small Cap benchmark.
News sponsored by:
As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.
Today's top headlines
The Citywire guide to investment trusts
Investment trusts have proved to be a highly effective way to invest in the market. Citywire has interviewed the experts to find out more.
With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop
More about this:
Look up the investment trusts
Look up the fund managers
More from us
- Dale Nicholls: why I'm excited to replace Anthony Bolton
- What Bolton learnt from his 40-year career
- Anthony Bolton on course for first performance fee in China – just in time for his retirement
On the road
J.P. Morgan Elect on investment growth, income and cash. More information on J.P. Morgan investment trusts.
by James Phillipps on Jul 23, 2014 at 14:34