Fidelity China Special Sits is third trust to implement 'fulcrum' fee

Canaccord upgrades recommendation to 'buy'

Jayna Rana
clock • 2 min read

The board of the £1.4bn Fidelity China Special Situations investment trust has announced plans to overhaul its fee structure with the changes to become effective from 1 July.

The company has decided to remove its performance fee and fixed annual charge and replace it with a new variable fee. The current headline annual fee of 1% of net assets will be reduced to 0.9% of net assets per annum while the performance fee, which is currently up to 1%, will be removed and replaced with a variable fee. This will move symmetrically by +/- 0.2% relative to the company's benchmark. As a result, the maximum fee the company could pay is 1.1% of net assets, but this could be as low as 0.7% if the trust underperforms. Nicholas Bull, chairman of the trust, said: "Fund f...

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