From yahoo finance 28/07/15...
Tracker funds get cheaper as Blackrock cuts charges in half.
Investors looking to access the stock market on the cheapest terms possible have been handed more choice after BlackRock cut the price of its tracker fund range by as much as half.
The price of BlackRock funds tracking markets in the UK, US, continental Europe and North America have been cut by up to 0.09 percentage points, making them among the cheapest on the market.
BlackRock’s UK trackers now carry an estimated ongoing charge of 0.07pc a year, down from 0.16pc. This is beaten only by Legal & General (LSE: LGEN.L - news) funds offered to customers of Hargreaves Lansdown (LSE: HL.L - news) for 0.06pc.
The cost of BlackRock's US trackers will fall from 0.16pc to 0.08pc, while the continental Europe fund will cost 0.1pc a year, down from 0.17pc.
• New (KOSDAQ: 160550.KQ - news) research names Britain's best tracker funds
Tony Stenning of BlackRock said: “BlackRock’s heritage in index investing dates back to the early 1970s when we pioneered the first index strategy. Through our scale, we’re pleased to be able to offer investors five key index equity exposures at a competitive price.”
Rival fund groups Fidelity and Vanguard also provide UK tracker funds for core markets at less than 0.1pc. Many of the cheapest trackers, particularly for overseas markets, are exchange-traded funds.
Laith Khalaf of Hargreaves Lansdown said: “This takes the BlackRock funds to being, if not the very cheapest, among the cheapest and that competition is a good thing. If you look at the American market, where the scale of some funds is even greater, there could even be room for more price cuts."
• Tracker fund prices fall again but beware the big catch on 'low-cost' funds
He added: “The most important thing, though, is that there are still some trackers charging around 0.7pc. Investors should review what they hold to ensure they’re not overpaying.”
Tracker funds now represent 12pc of overall UK funds under management, almost double the size of 10 years ago. They have gained popularity with investors who are increasingly conscious of the effect that cost has on their returns.
As an example, an investor setting aside £200 a month into a portfolio that achieves growth of 7pc a year with an annual charge of 1pc would see their pot grow to £90,464 after 20 years. If the annual charge fell to 0.5pc the pot would grow by an extra £5,597 in that time.
• Calculator: How your investments might grow with monthly saving
Current market conditions have also led many investors towards passive rather than active funds.
Developed stock markets such as the UK and US have been bolstered by efforts to boost their economies through low interest rates and measures such as quantitative easing.
Passive funds have been able to capture these gains without the need to pay for an active manager.
I couldn't find the date this discount kicks in? Perhaps it already has ??
Tracker funds get cheaper as Blackrock cuts charges in half.
Investors looking to access the stock market on the cheapest terms possible have been handed more choice after BlackRock cut the price of its tracker fund range by as much as half.
The price of BlackRock funds tracking markets in the UK, US, continental Europe and North America have been cut by up to 0.09 percentage points, making them among the cheapest on the market.
BlackRock’s UK trackers now carry an estimated ongoing charge of 0.07pc a year, down from 0.16pc. This is beaten only by Legal & General (LSE: LGEN.L - news) funds offered to customers of Hargreaves Lansdown (LSE: HL.L - news) for 0.06pc.
The cost of BlackRock's US trackers will fall from 0.16pc to 0.08pc, while the continental Europe fund will cost 0.1pc a year, down from 0.17pc.
• New (KOSDAQ: 160550.KQ - news) research names Britain's best tracker funds
Tony Stenning of BlackRock said: “BlackRock’s heritage in index investing dates back to the early 1970s when we pioneered the first index strategy. Through our scale, we’re pleased to be able to offer investors five key index equity exposures at a competitive price.”
Rival fund groups Fidelity and Vanguard also provide UK tracker funds for core markets at less than 0.1pc. Many of the cheapest trackers, particularly for overseas markets, are exchange-traded funds.
Laith Khalaf of Hargreaves Lansdown said: “This takes the BlackRock funds to being, if not the very cheapest, among the cheapest and that competition is a good thing. If you look at the American market, where the scale of some funds is even greater, there could even be room for more price cuts."
• Tracker fund prices fall again but beware the big catch on 'low-cost' funds
He added: “The most important thing, though, is that there are still some trackers charging around 0.7pc. Investors should review what they hold to ensure they’re not overpaying.”
Tracker funds now represent 12pc of overall UK funds under management, almost double the size of 10 years ago. They have gained popularity with investors who are increasingly conscious of the effect that cost has on their returns.
As an example, an investor setting aside £200 a month into a portfolio that achieves growth of 7pc a year with an annual charge of 1pc would see their pot grow to £90,464 after 20 years. If the annual charge fell to 0.5pc the pot would grow by an extra £5,597 in that time.
• Calculator: How your investments might grow with monthly saving
Current market conditions have also led many investors towards passive rather than active funds.
Developed stock markets such as the UK and US have been bolstered by efforts to boost their economies through low interest rates and measures such as quantitative easing.
Passive funds have been able to capture these gains without the need to pay for an active manager.
I couldn't find the date this discount kicks in? Perhaps it already has ??