HL introduces tiered fee structure to utilise economies of scale

Cuts fees across multi-manager range

Hargreaves Lansdown has introduced a tiered fee structure along with a range of fee cuts on its multi-manager funds, according to its latest Assessment of Value report.

The changes, effective from Q2 2021, have been implemented to "improve these funds' potential to perform" and "achieve further economies of scale". Three multi-manager funds will initially benefit from the new tiered fee structure, which will see the annual management charge (AMC) fall by 6.6% per £1bn in assets under management (AUM) above the first, up to a maximum 20% AMC reduction. Board determines 'good value' on all HL multi-manager funds For example, a fund with an AMC of 0.75% will fall five basis points per £1bn AUM, to a minimum 0.6% AMC on a fund with an AUM in excess of...