View more on these topics

BlackRock cuts passive fund fees

Money-Cash-Coins-GBP-Pounds-UK-700x450.jpg

BlackRock has cut the charges on five of its tracker funds, slashing fees by half for many of its products.

The asset manager has reduced the fees on funds within the BlackRock Collective Investment Funds, selecting the core funds for the charges cut.

A BlackRock spokesman says: “We picked key exposures that have the most client interest and that people want in their portfolio.”

The ongoing charge figure for the BlackRock 100 UK Equity Tracker Fund and the BlackRock UK Equity Tracker Fund has been cut from 0.16 per cent to 0.07 per cent, while the BlackRock US Equity Tracker Fund and BlackRock North American Equity Tracker Fund saw a rate cut from 0.16 per cent to 0.08 per cent.

The BlackRock Continental European Equity Tracker Fund saw the smallest cut, from 0.17 per cent to 0.1 per cent.

The cost cutting was part of a regular review of fees and the “value proposition” of the funds, which BlackRock was able to achieve through its size.

BlackRock head of UK retail Tony Stenning says: “Through our scale, we’re pleased to be able to offer investors five key index equity exposures at a competitive price.

“We know that UK wealth managers are increasingly combining both index and active strategies alongside each other in their client’s portfolios and we see this trend continuing to grow.”

BlackRock says it has no immediate plans to reduce the charges on any of the other funds in the BlackRock Collective Investment Funds range.

Earlier this year BlackRock was criticised for the fees on its Continental European Equity Tracker fund, which at the time were 0.2 per cent. Hargreaves Lansdown ditched the fund from its Core Tracker list, replacing it with the cheaper Legal & General European Index fund.

Recommended

Stephanie Flanders 700 x 450
2

Stephanie Flanders: Hold tight for further volatility

Volatility is here to stay, so investors should get used to it. Events in Greece and China have given us plenty to think about in the near term and, beyond that, there is the momentous prospect of the first rise in US policy rates since 2006. When we consider some of the key issues for […]

3

Malcolm McLean: Pension tax relief consultation is a dangerous game

Could the green paper on the reform of pension tax relief lead, in George Osborne’s words, to the “strengthening of incentives to save and offer savers greater simplicity and transparency”? Well, it might. But it obviously depends on exactly what is decided at the end of the day and how it is viewed by those […]

Handshake-Business-Finance-Deal-Corporate-700.jpg

Chinese firm in £357m Kleinwort Benson takeover bid

Chinese firm Fosun has launched a takeover bid for BHF Kleinwort Benson worth €500m (£357m). The Chinese investment group is an existing shareholder of merchant bank Kleinwort Benson, holding 19 per cent of the firm. Kleinwort Benson was told of the takeover bid via a regulator notification from the Financial Services and Markets Authority, with Fosun offering €5.10 […]

Powerful estate planning tools ignored or forgotten by wealthy Brits

Canada Life IHT Survey 2016 Only a quarter of wealthy Brits have sought professional estate planning advice to ensure their families don’t pay more tax than required More than a quarter don’t even have a will and just one in five have gifted money Many say they do not need these tools but families would […]

Singapore cover image - thumbnail

White paper — Singapore International Insights

Jelf Employee Benefits assesses key trends within the international private medical insurance provision of organisations with employees in Singapore. Benefit structure, cost management and healthcare facilities are examined and key considerations are highlighted. This edition will be of particular interest to global human resource directors and benefit managers with local and expatriate populations in Singapore.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. So is that a cut in fees for any new money, existing investors or both??

Leave a comment