Fidelity Special Values lowers its fees – The board of Fidelity Special Values (FSV) has followed other companies in the Fidelity Investment trust stable by arranging with Fidelity, the investment manager, a lower new tiered fee structure.
Fidelity European Values was the first to announce its lower fee in March 2018. Fidelity Japanese Values and Fidelity China Special Situations announced the same in April and June respectively.
New management fee arrangements
With effect from 1st September 2018, the annual management fee will reduce from 0.875% of NAV, tiered as follows:
- 0.85% on the first £700m of NAV
- 0.75% on the assets greater than £700m of NAV
- The fixed fee for non-portfolio management services will reduce from £600,000 per annum to £100,000
More on Fidelity Special Values (FSV)
Fidelity Special Values aims to achieve long-term capital growth predominantly through investment in UK listed companies. The company will have a blend of investments in larger, medium and smaller-sized companies and be guided by a contrarian philosophy. The company may invest directly in the shares of companies or indirectly through equity-related instruments (such as derivative contracts, warrants or convertible bonds) and in debt instruments.
Fidelity Special Values invests mainly in companies listed on the London Stock Exchange (although up to 20% can be invested in overseas stock markets). The manager looks for companies where there is limited downside risk. In other words, he wants to invest in companies that have exceptionally cheap valuations or some kind of asset that should stop their share prices falling below a certain level. This can be anything from inventory to intellectual property.
The manager also looks for unrecognised growth potential and events that could significantly improve a company’s earning power, but are not currently reflected in the company’s share price. These include changes in the company’s competitors or market, a new product line or an expansion into new business areas.
FSV : Fidelity Special Values lowers its fees