Tony Stenning, head of UK retail at BlackRock, said he was able to cut costs as the tracker funds have doubled in size in the last 10 years in terms of the assets under management.
It was back in August that BlackRock slashed the ongoing charges figure on five of its largest open-ended tracker funds.
On 11 August BlackRock reduced the fees on its UK, US and continental Europe tracker funds, which have combined assets of moe than £15bn.
Speaking to Money Management’s Julia Faurschou, Mr Stenning said: “They are now around 20 to 25 per cent of sales flows so we think we can use our scale here and bring ourselves and our products more competitively available to our clients and that is what we’ve done.”
During the latest FTAdviser video interview, Mr Stenning also talks about the pension freedoms.
He said: “We welcome the engagement from government and welcome the green paper we’ve seen. Clearly now it’s up to the government but also, more importantly, the industry to really step up.
“Let us help the really important people that this is ultimately designed to help – which is all of us as individuals and consumers – and let us get a pension system that has longevity and greater legs on it than just one, maybe two parliaments.
“Let us get this system sorted, let us get incentivisation working for people over the longer term because there is a huge number of people in society that just aren’t saving.
“I get it there’s a lot of challenges to purse strings, the personal balance sheet, but with less than one-third of the population with £250 of savings, one half with less than £1,500, this is a big problem that needs solving and we need to do it now.
“Otherwise, around 2035, we are going to hit a tipping-point where there is going to be a big challenge for this country as a generation retires worse off. That is going to have, potentially, catastrophic impacts on consumer spending and potentially social cohesion.
“That is a big issue and we need to address it and we really welcome the government being willing to step up and change.”
