Fidelity reveals further details of 'fulcrum fee'

In particular, there will be a 0.10% reduction to the annual management charge and the variable fee will move 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". It added: "It is a demonstration of commitment to the value of strong active management; challenges that our industry has faced and can no longer ignore."  The variabl...