Update: Fidelity's Anand - New fee structure puts firm's revenues at short-term risk

Reveals details of new pricing structure

Fidelity International's CIO of equities for Europe Paras Anand has said it "remains to be seen" what the take-up will be for the group's new variable management fee model, with revenues at risk in the short term while the group tries to build market share.

The group unveiled further details of its new charging structure today, which include a 0.10% reduction to the annual management charge and the variable fee moving between -0.2% and +0.2% of the AMC depending on performance. The new model will operate as a sliding scale and act as a two-way sharing of risk and return, the group said. It believes the new fee structure is a "truly innovative approach to creating a much fairer alignment between the client and the manager". But Anand admitted the new pricing structure means the firm is putting its own revenues at risk.  "We have done m...