Hargreaves Lansdown introduces tiered fee structure to utilise economies of scale

The changes, effective from Q2 2021, have been implemented to "improve these funds' potential to perform" and "achieve further economies of scale". Three multi-manager funds will initially benefit from the new tiered fee structure, which will see the annual management charge (AMC) fall by 6.6% per £1bn in assets under management (AUM) above the first, up to a maximum 20% AMC reduction. For example, a fund with an AMC of 0.75% will fall five basis points per £1bn AUM, to a minimum 0.6% AMC on a fund with an AUM in excess of £3bn. HL Multi-Manager Balanced Managed, Income & Growth an...