BlackRock tiered fund pricing structure divides opinion

Described as 'mere window dressing'

Cristian Angeloni
clock • 3 min read

BlackRock’s introduction of tiered pricing for 41 of its UK retail funds has been met with mixed reactions from analysts, due to its complicated structure.

The model is based on specific assets under management thresholds relative to each fund, with investors receiving discounts only after the AUM surpasses those limits. When the pricing was revealed last week, none of the 41 funds qualified for tiered pricing. Analysts told Investment Week the move to share economies of scale and value with investors was a welcome one, given the recent implementation of the Consumer Duty and the warning from the Financial Conduct Authority on issues with assessment of value reports and the setting of fees. BlackRock to introduce tiered pricing for UK re...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Companies

FE fundinfo expands regulatory reporting offering with European acquisition

FE fundinfo expands regulatory reporting offering with European acquisition

Matterhorn Reporting Services

Cristian Angeloni
clock 06 November 2024 • 1 min read
Schroders shares nosedive 14% on £10bn outflow warning

Schroders shares nosedive 14% on £10bn outflow warning

Net outflows of £2.3bn in the quarter

Valeria Martinez
clock 05 November 2024 • 2 min read
Warren Buffett slashes Apple stake as Berkshire cash soars to record high

Warren Buffett slashes Apple stake as Berkshire cash soars to record high

Cash hits $325.2bn

Linus Uhlig
clock 04 November 2024 • 2 min read
Trustpilot