Hargreaves ditches BlackRock tracker as price war intensifies

BlackRock’s European stockmarket tracker has been ditched from the Hargreaves Lansdown Core Tracker list in favour of L&G’s freshly discounted offering.

It is the first change of Hargreaves’ list since it was created in March last year.

The £2.66bn BlackRock Continental European Equity Tracker fund, which has an on-going charge figure of 0.2 per cent, was removed from the fund supermarket’s list of recommended passive funds. Hargreaves investors had a special offer at 13 basis points.

It was bumped by the £2.04bn Legal & General European Index fund, which recently cut its fees to 12 basis points from 0.2 per cent. It is being offered to Hargreaves customers at 9 basis points. 

The Core Tracker list consists 12 passive funds that cover all major equity and fixed income markets that offer the best value, according to Hargreaves.

They are judged on the index replicated and the manager’s processes to follow the benchmark accurately. Also, whether the funds lend stock and charges.

Hargreaves tracker fund analyst Adam Laird says L&G has a quarter-century of strong performance in trackers.

The firm sports eight funds in the 12-strong Core Tracker list. The remaining funds are BlackRock’s.

“We still believe that BlackRock is a good quality manager; their European tracker fund is offered at a competitive price to our clients,” Laird says.

When the list was launched 10 months ago, BlackRock’s European equity tracker was the cheapest and “best quality” passive, he adds.

“However, in the last nine months the tracker fund price war has forced down charges on other European tracker funds and we intend to be ruthless when it comes to presenting the very best deals on the market to our clients.” 

He says the list is not just about fees.

Hargreaves Lansdown Core Tracker list