Skip to Content
Fund Times

Fidelity Fund Proposes Fee Hike

Plus, Wasatch to launch India fund, and more.

Mentioned: , , , , , , , , ,

Fidelity proposed to raise   Fidelity Fund's (FFIDX) expense ratio to 0.80% from 0.60%. In a proxy statement filed April 15, 2011, Fidelity proposed to increase the fund's management fee to 0.30% from its current level of 0.09%, as well as to adopt a performance adjustment. Under the performance adjustment, the expense ratio would increase 0.02% with every percentage point of outperformance in a three-year period, and decrease the same amount with every percentage point of underperformance.

Fidelity justified the fee increase by saying it "charges a management fee that is 0.21% below Fidelity's standard fee for similarly managed funds," and that the adoption of the increase "will fairly compensate FMR for the management services provided to the fund."

Kailin Liu does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.