Fidelity International’s move to change its charging structure to a performance-linked fee has been welcomed but is seen as a risky move which may not be sustainable, according to fund selectors around Europe.

Fidelity International’s move to change its charging structure to a performance-linked fee has been welcomed but is seen as a risky move which may not be sustainable, according to fund selectors around Europe.
Fund selectors applaud the “courageous” step by Fidelity to introduce performance-related management fees across all its funds by next year. But will the move really improve long-term performance after fees, and is the new model sustainable with most active funds failing to beat their benchmark?
It has been a consensus trade for yield hunters this year: buying emerging market debt. A net €54bn has already flown into the asset class this year. This contrasts with recent outflows from high-yield bond funds.
Is accepting a bit more volatility enough to sustain long-term fixed income returns, or should investors also make concessions on liquidity?
Everywhere in Europe, investors are having to rethink their strategic fixed income allocation as bond yields keep hitting new lows. When Expert Investor visited Amsterdam recently, we brought together three local wealth managers and an industry consultant to discuss how they take on this challenge.
Part of the Mark Allen Group.