What are the best alternatives to BlackRock in the UK?
We explore the best BlackRock UK alternatives that are suitable for a variety of investment styles and goals.
BlackRock is one of the most well-known investment management firms globally, renowned for its extensive range of products and considerable assets under management.
However, investors in the UK have numerous alternatives worth considering, each with distinct advantages depending on individual financial goals, values, and preferences.
- Blackrock was founded in 1988 and has since become one of the largest global asset managers
- Despite its popularity, some investors seek alternatives to diversify risk, reduce costs, or align with different investment philosophies
- Trusted alternatives to Blackrock include: Vanguard, Fidelity, Legal & General, HSBC and Schroders
Who is BlackRock?
Founded in 1988, BlackRock has become the largest asset manager globally, managing trillions of pounds in assets.
The company offers a diverse array of investment options including ETFs, mutual funds, pension management, and alternative investments.
BlackRock is particularly famous for its iShares ETF products, passive investment strategies, and sophisticated risk management tools like Aladdin, their proprietary risk analytics platform.
Despite its popularity, some investors seek alternatives to diversify risk, reduce costs, or align with different investment philosophies or ethical criteria.
What are the best alternatives to BlackRock?
When searching for alternatives to BlackRock, UK investors will find many platforms that cater to different needs.
To identify the best options, we’ve considered factors like fee structure, investment selection, account types, user experience, and additional features.
Here’s a breakdown of the alternatives:
| Company | Founded | Headquarters (UK) | Assets under management (Global) |
|---|---|---|---|
| Blackrock | 1988 | London | £8.1 trillion |
| Vanguard | 1975 | London | £8 trillion |
| Fidelity International | 1969 | London | £690 billion |
| Legal & General Investment Management | 1970 | London | £93 billion |
| HSBC Asset Management | 1985 | London | £591 billion |
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Vanguard is known for pioneering low-cost investing, offering competitively priced index funds and ETFs.
It operates as a mutual structure, meaning it’s owned by its fund investors, aligning company incentives closely with investor interests.
Global assets under management
- £8 trillion
Fees
- 0.15% annually (capped at £375 per year on portfolios above £32,000), with a £4 monthly account fee on portfolios under £32,000.
Key features
- Extensive range of low-cost ETFs and index funds
- Mutual ownership structure
- Strong focus on passive investment strategies
Pros
- Lower fees than most competitors
- Transparent fee structure
- Ideal for long-term investors
Cons
- Limited actively managed fund offerings
- Customer support is generally online-focused
Best for
- Investors prioritising cost-efficiency and simplicity.
Fidelity International offers a blend of active and passive investment solutions, alongside robust research and investment tools.
It's highly regarded for customer service and comprehensive investor education.
Global assets under management
- £690 billion
Fees
- Fees typically range between 0.20% and 0.35%, depending on fund choice
Key features
- Wide range of actively managed funds
- Excellent customer service
- Advanced online research tools
Pros
- Strong active management performance
- Comprehensive investment platform
- Extensive investor education resources
Cons
- Higher fees for active funds
- May overwhelm beginners due to complexity
Best for
- Investors seeking both active and passive solutions with strong customer support.
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"Experience matters, so check the firm’s track record in handling clients with similar needs.
Transparency is also key, so ensure they clearly explain their fees and services. Choose a firm or individual who aligns with your financial goals and communicates effectively, as a strong client-adviser relationship is essential for long-term success.
Lastly, a good financial adviser relationship is ideally a long-term one, so try to find one you'll be comfortable working with through the most important periods of your life."
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Legal & General Investment Management (LGIM) is one of the UK's largest asset managers, providing a wide array of products including index tracking funds, ESG (Environmental, Social, Governance) investing, and pension fund management.
Global assets under management
- £93 billion
Fees
- Typically charges a service charge of 0.25% of your fund value
Key features
- Leader in responsible and ESG investing
- Strong presence in pension funds
- Broad selection of passive and actively managed funds
Pros
- Strong ESG credentials
- Competitive pricing
- Good performance in long-term pension management
Cons
- Active funds can carry slightly higher fees
- Online platform less intuitive than competitors
Best for
- Investors prioritising ESG considerations and pension investments.
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HSBC Asset Management offers a global reach with local expertise.
Known for both passive and active fund management, it benefits investors who prefer exposure to international markets alongside strong risk management.
Global assets under management
- £591 billion
Fees
- Account fee is typically 0.25% of the value of the investments
Key features
- Global and regional investment products
- Robust risk management frameworks
- Offers both active and passive strategies
Pros
- Strong global reach and international market access
- Excellent risk management practices
- Comprehensive product range
Cons
- Some products have higher management fees
- Complex fee structure on certain funds
Best for
- Investors who desire international diversification and robust risk management.
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Schroders is one of the UK's oldest and most respected investment firms, known for its innovative approach to active fund management.
It offers specialist products including thematic and alternative investments.
Global assets under management
- £600 billion
Fees
- Platform fee typical starts at 0.20% and ranges depending on your choice of fund
Key features
- Extensive active fund options
- Specialist thematic and alternative investments
- Strong heritage and reputation in the UK
Pros
- Expertise in active management
- Innovative and thematic investment offerings
- Strong UK presence and trustworthiness
Cons
- Generally higher fees due to active management
- Not ideal for passive investors
Best for
- Investors seeking specialist, actively managed solutions and thematic exposure.
All AUM totals have been converted from USD to GBP for the purpose of this article.
Get expert financial advice
While exploring alternatives to BlackRock can open up opportunities for better alignment with your investment philosophy or financial goals, it's important to recognise that choosing the right investment provider depends on your personal circumstances.
Expert financial advice can help clarify your objectives, navigate complexities, manage risks effectively, and ensure you select the most suitable investment options for your long-term success.
Engaging with a qualified financial adviser is particularly beneficial when making significant investment decisions or planning complex financial goals.
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