Fidelity has removed the higher initial fee on its UK Special Situations fund following the splittin...
Fidelity has removed the higher initial fee on its UK Special Situations fund following the splitting of the vehicle last month.
The initial charge was increased from 3.5% to 5.25% on unwrapped lump-sum investments in September 2005 to stem flows into Anthony Bolton's fund.
However, the charge was reduced on 1 November, bringing the initial fees back into line with standard charges across Fidelity's range.
Last month, the split of the £6bn portfolio saw one half of the original Special Situations fund continue to concentrate on the UK equity market with the other half restructured as the Global Special Situations fund.
Both products, which are now approximately £3bn in size, will be managed by Bolton until the end of this year, when he hands over the Global portfolio to Jorma Korhonen.
Meanwhile, despite the soft closing of George Luckraft's Axa Framlington Equity Income fund in February 2005, fund flows still continue at a rapid pace. The fund has attracted £150m since it was decided to abolish discounts and commissions and charge the full initial fee.
At the time of the closure, Framlington said the move was to enable Luckraft to maintain his strong performance.
Over the same period, Luckraft's Monthly Income portfolio has seen a sevenfold increase in assets. Monthly Income was around £70m in size at the time but has now grown to £533m, since Equity Income looked to stem inflows.
While the funds are at the top of the peer group, both have had an average year to 9 October, with growth of 18.8% from Equity Income and 16.3% from Monthly Income against an 18.7% sector average.key points
Fidelity reduces initial charge on Special Situations fund
Fund has now split and includes a Global Special Situations version
George Luckraft's Equity Income fund attracts assets despite soft closure
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£80bn funds under calculation