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Fidelity makes landmark change to charging model

The new fee structure means clients will pay lower charges when their investment fund underperforms

Fidelity makes landmark change to charging model
Photo: Company Photograph

Fidelity International, the influential asset manager, is to overhaul its charging structure by cutting ongoing fees and introducing a performance charge so that investors only pay for the returns they receive.

The $303bn investment manager announced this morning that the new variable management fee is to be applied globally across its active equity funds. Fidelity said it had taken action in response to "the growing debate around the value of active fund management".

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