About BlackRock | Investment FAQs

Published on
July 12, 2022
3 min read
Head of Commercial
Join our newsletter
Sign up to hear exclusive news and product updates.
By subscribing you agree to with our Privacy Policy
Thanks! You're added to the list.
Oops! Something went wrong while submitting the form.

We're working with BlackRock to bring the first funds to our Investment Platform, read more about who they are.

Who are BlackRock?

BlackRock is the world’s largest investment manager, and looks after more than $8.67 trillion assets worldwide.

You can read more about them here: https://www.blackrock.com/uk/individual/about-us/about-blackrock 

What are the BlackRock Consensus Funds?

The first funds we’re listing are from BlackRock’s consensus range of funds available through ChipAI.

These are multi-asset funds, which means BlackRock invests the money in these funds across a wide range of asset classes, industries, government bonds and geographic markets.

Additional funds available through our ChipX membership plan include the MyMap range, which are more actively managed multi-asset funds and specialist funds made up of iShares exchange traded funds and index funds, providing access to a wide investment universe of stocks, bonds, commodities and cash specific to Healthcare Innovation, Clean Energy and Emerging Markets.

Who manages the funds?

The funds are managed by the Index Asset Allocation team at BlackRock.

How actively does BlackRock manage them?

The management of the BlackRock funds varies from fund to fund.

The BlackRock Consensus funds for example are classed as ‘passive’ which helps to keep costs low while gaining exposure to a number of different asset classes through investing in smaller index funds and tracking the market.

‘Passive’ refers to the management style of the fund and the Index Allocation team at BlackRock still monitors the funds on a daily basis.

The MyMap range and Emerging Market funds are actively managed meaning a management team actively invests and makes decisions about how to invest the fund's money more closely.

Analysts and stock pickers actively research and make decisions about what the fund will invest in. Active investment management aims to outperform the market index which could mean higher returns, but with that comes increased risk.

How does BlackRock mitigate risk?

Multi asset funds help mitigate risk by diversification.

When a fund invests in different sectors or asset classes, it’s considered to be ‘diversified’. The key benefits of diversification are:

  • Investments are spread over a broad range of strategies, styles, sectors and geographic regions
  • Diversification can help cushion the impact of market moves which can be more severe when investing in a single asset class, and
  • To enhance the potential for investing in the best-performing asset class, while reducing the impact of the worst-performing asset class.
  • Investors should note that a diversified portfolio is still exposed to the risk of capital loss.

What is BlackRock’s fund management fee?

BlackRock charges a small annual percentage to manage the funds that they offer, this will vary depending on the type of fund and how actively the fund is managed. This is normally a fraction of a percent (for example they charge 0.22% for the Balanced Consensus Fund). They take this percentage from the value of your investment.

It is already taken into account when you see your returns, or the advertised average annual return (see ‘average annual return’ below). For example, if you see an 8% return, the fund will have actually grown by 8.22%, but BlackRock takes 0.22% of that growth to manage the fund, so you get an 8% return in total. It’s also true if your fund decreases in value.

For transparency, any fees taken by the fund manager will be made visible to you in your Quarterly Valuation report.

The fund management fees for the MyMap range (Expert Managed) of funds offered through ChipX are 0.17% and for the specialist funds are as follows:

  • Clean Energy (iShares Global Clean Energy UCITS ETF): 0.65%
  • Healthcare Innovation (iShares Healthcare Innovation UCITS ETF): 0.40%
  • Emerging Markets (BlackRock Emerging Markets Fund): 0.97%

Read more about investments

Tax wrappers: General Investment Account
Build your long-term wealth, free of charge. For those who want great savings accounts, and access to basic investment funds.
Access to leading saving accounts
General Investment Account with a selection of funds
FTSE 100, S&P 500 and BlackRock Mixed Investment Funds (annual platform fee of 0.5%)
Investment Funds managed by BlackRock (annual platform fee of 0.5%)
Prize Savings Account 
Save without feeling it with our award winning AI-powered automatic saving (45p per autosave)
Build wealth yourself and program recurring saves into any account in our new Savings Plans (25p per save)
Get started
Either £4.99 every 28 days (paid annually at £65.05) or £5.99 every 28 days (paid monthly)
Tax wrappers: General Investment Account, Stocks & Shares ISA
One of the most comprehensive wealth management tools on the market. Adds full access to our range of investment funds, with no platform fees in either a GIA or ISA, as well as exclusive access to our Alternative Assets platform.
Zero platform fees
Zero trading fees
Zero withdrawal fees
Additional entries into our Prize Savings Account (TBC)
Stocks & Shares ISA
General investment account with a selection of funds
Access to leading saving accounts
All the investment funds from the basic plan plus: Ethical funds, Commodity funds, thematic funds, Crypto Companies Fund and BlackRock actively managed funds
Unlimited free usage of our AI-powered autosaving and recurring saves
Unlimited withdrawals
Unlimited access to Alternative Assets like whisky, wine and classic car investing
Get started
Chip Wealth
Tax wrappers: General Investment Account, Stocks & Shares ISA, Junior ISA
Build your long-term wealth, at every stage of your life. Access to everything from the previous tiers, we will be looking to add JISAs, managed portfolios and more in the future.
Everything from previous tiers +
More complex investment products, more tax wrappers, managed portfolios, Income Funds and much more
Early access to Alternative Assets like whisky, wine and classic car investing.
For these plans we’ll be working closely with our communities to iron out the details. Get involved in the discussion on the community forum here
The ChipX savings account
Coming 2023
Chip Private Banking
Tax wrappers: Everything from the previous tiers
We’re building an invitation-only Private Banking experience. Supercharge your experience with professional account managers, wealth coaching services, and elite rewards programs for our most exclusive tier.
Everything from previous tiers +
Access to an account manager who helps you get the most out of your accounts
Full, unlimited and premier access to every product, tax wrapper and feature Chip offers
Access to exclusive events and talks with high profile investment experts
Metal membership card that unlocks airport lounges, queue jumps at every UK airport, free Uber upgrades… and much more
Coming 2023