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...

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Cristian Angeloni
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Cristian Angeloni

Senior Reporter at Investment Week

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