BlackRock is planning to cut 250 funds from its range to focus on products that account for a higher proportion of revenues.
Rich Kushel, deputy COO at BlackRock, said that the cull is meant to remedy the fact that the top 50% of BlackRock’s funds currently account for 99% of fund revenues, according to Financial Times.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Kushel said: "If you look at that bottom 50%, we concluded there were a lot of things that we could rationalize and really focus on."
BlackRock has closed 250 funds over the past year, leaving 3,000 vehicles on offer. The product overhaul, which also follows the announcement of 300 redundancies last March, should enable the company to create extra capacity and reduce complexity, Kushel said.
The fund group has been particularly "aggressive" in consolidating its Australian fund range, where it has closed more than 90 portfolios representing more than 50% of its domestic funds, Kushel added.
He said: "I don’t think we’ve ever been as well positioned in Australia to drive growth than we are today."
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataKushel became COO of BlackRock last summer to lead strategic product development as part of a reorganisation of the business.
