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BlackRock to ease flow restrictions on Hibbert’s star European fund

BlackRock to ease flow restrictions on Hibbert’s star European fund

BlackRock is to remove the measures taken to manage the capacity of its highly performing European Dynamic fund.

In September last year BlackRock told investors that the fund was facing capacity constraints, and so it would close its main share classes to subscriptions while launching new classes carrying a 1% preliminary charge for intermediaries.

‘This preliminary charge was intended to slow the rate of inflows and ensure we could manage the fund in accordance with its investment mandate,’ BlackRock explained. At the same time the group set a capacity limit of £2.5 billion for the fund, which then contained £1.96 billion.

‘Following a review by our risk management and portfolio management teams, we now believe that we have achieved this objective,’ BlackRock stated.

‘The fund’s AUM is below the August 2013 level of £1.96 billion, and we have therefore approved a proposal to fully waive the preliminary charge for intermediated investors with effect from 20 August 2014.’

The firm added that the capacity limit of £2.5 billion remains in place, as does a 5% initial charge for direct investors.

Managed by Citywire A-rated Alister Hibbert (pictured), the fund has returned 27.8% over the past three years. That is top quartile in its sector, where the average fund has generated 23.6% through the period.

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