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.