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18th August 2014

BlackRock

BlackRock to scrap the 1% initial charge on their Elite Rated European Dynamic fund

Fans of the Elite Rated BlackRock European Dynamic fund had some good news last week: the company announced they would scrap the 1% initial charge on the fund, which had been in place for investors using an intermediary (adviser or fund platform).

BlackRock put the charges in place in November 2013, to stem flows into the fund, after it reached £2bn in assets under management, and had plans to close the fund to new investments when it reached £2.5bn.

However, the fund has not grown significantly in size over the past six months and, following a review by its risk management and portfolio management teams, the company has now decided that, from 20th August 2014, it will scrap the initial charge for investors using an intermediary. However, investors going directly to BlackRock to buy the fund will continue to pay an initial charge of 5%.

In a statement, BlackRock confirmed that the fund would be closed entirely to new investments if/when and when, it reaches £2.5bn in assets under management.

Read more about why funds close to new investments

Commenting on the move, Juliet Schooling Latter, director of FundCalibre said: “This is good news for people wanting to invest in the fund, but it does show that it is important to think about how you go about investing as you can incur unnecessary costs.

“We believe this fund to be a strong proposition for investors wanting European exposure. The European team at BlackRock has delivered very impressive performance across their European equity fund range and Alister Hibbert's successful bottom-up research process on the European Dynamic fund reflects this.”


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