MILAN, Feb 22 (Reuters) - Italian asset manager Banca Mediolanum said on Wednesday the expected drop in performance fees on its Irish domiciled funds will be largely offset by an increase in the recurring fees it charges to customers.
In a statement that followed a sharp drop in its share price on concerns that a review of its fee structure would put its 2018 profit and dividend at risk, the company said the review concerned only its Irish-based funds and would most likely result in a 35 basis points decrease in performance fees.
That would be partly offset by a simultaneous increase of 20 basis points of other recurring fees, it added in the statement released by its investor relations office.
Mediolanum said the overall re-pricing of the Ireland-based funds will be done in accordance with the Central Bank of Ireland. Shares in the company were last down more than 3 percent, having lost 6.7 percent in the previous session.
Last year, Mediolanum CEO Massimo Doris told Reuters that Mediolanum would review the fee structure of its Irish-domiciled funds, bringing them in line with the guidelines of the Central Bank of Ireland and other international standards. (Reporting by Danilo Masoni; editing by Agnieszka Flak)