BlackRock to introduce tiered pricing for UK retail funds with at least £1bn AUM

Assessment of Value commitment

Cristian Angeloni
clock • 4 min read

BlackRock will implement tiered pricing for 41 of its UK actively managed funds targeted to retail investors across seven ranges, the firm said in a shareholder letter.

The move, which the company committed to in its assessment of value report in October 2022, will be effective from 6 October 2023, but will only apply to strategies with at least £1bn in assets under management. BlackRock provided an hypothetical example where the base annual management charge (AMC) for a fund under the £1bn threshold is 75bps, with a discount applied progressively as AUM grows. In the example, a 5% discount would be applied to funds with AUM between £1bn and £3bn, bringing the AMC to 71.25bps. Consequently, funds with AUM between £3bn and £5bn will see a 7% discount ...

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