Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Fidelity cuts China Special Sits fee ahead of Bolton departure

Fidelity cuts China Special Sits fee ahead of Bolton departure

Fidelity has reduced the charges on its China Special Situations and Japanese Values investment trusts.

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.’

On 1 April 2014 manager Anthony Bolton will hand the trust’s reins over to Citywire AA-rated Dale Nicholls.

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.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Volatility is back, Europe's future & Ethical's key moment

Volatility is back, Europe's future & Ethical's key moment

This week’s episode of Investment Pulse takes a look at European prospects, FTSE volatility and whether public pressure is about to provide a push for ethical investment

Play Volatility spike: How ETFs can soften the blow

Volatility spike: How ETFs can soften the blow

ETFGI’s Deborah Fuhr discusses the role of ETFs in client portfolios during volatile market conditions

Play Winter market warmers, the post QE world and timing the Fed

Winter market warmers, the post QE world and timing the Fed

This week’s episode of Investment Pulse looks at the winding down of quantitative easing, whether to try and time a US Federal Reserve rate rise and if strong seasonal performers can reverse recent market slumps

Wealth Manager on Twitter