MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Thursday, May 5, 2011 Fidelity is About to Raise the Price of its Oldest Fund Fidelity [see profile] wants to raise the price of its oldest mutual fund. Last month the Boston-based mutual fund giant told shareholders of the Fidelity Fund that it plans to increase the management fee for the three-star, $6.1-billion fund while also adding a performance component [see filing]. "Fidelity is FMR's oldest fund [launched April 30, 1930], and for historical reasons it has a management fee that is 0.21 percent below FMR's standard fee for similarly managed funds," Fidelity spokeswoman Sophie Launay told The MFWire in an e-mailed statement. "FMR [Fidelity's parent[ has a long history with performance fees dating back to the early 1970s. Seventy two Fidelity equity funds currently have a performance adjustment." The Fidelity Fund currently charges shareholders about 61 basis points all-told, including about 35 bps for management. Under the new proposal, the base management fee would jump to 56 bps, and then Fidelity would add or subtract a performance-based fee (up to 21 bps in either direction) based on the fund's over- or under-performance compared to the S&P 500. Shareholders will vote on the proposals (already approved by the fund's board of trustees) on July 12. Printed from: MFWire.com/story.asp?s=36731 Copyright 2011, InvestmentWires, Inc. All Rights Reserved |