While Fidelity International’s plans remain short on specifics, AllianceBernstein’s fee structures have been laid out in detail. The all-in expense ratio will vary between 0.10% and 1.1%, but fees don’t climb to that higher range until there is substantial outperformance. The Large Cap Growth fund for instance will have an expense ratio of 0.6% only if it outperforms its benchmark by two full percentage points, with higher fees after that. This kind of pricing could help alleviate the feeling among average investors that they are getting poor value for money from fund managers. Active managers are having an unusually good year, but some 57% of U.S. large cap mutual funds still have underperformed the S&P 500 over the last year, according to S&P Dow Jones Indices. Over the last five years, 83% have underperformed.

https://www.wsj.com/articles/fund-managers-put-their-money-where-their-mouths-are-1507109401?tesla=y