iShares, the exchange-traded fund (ETF) business of BlackRock, is to close 15 equity and commodity ETFs citing low investor demand for the funds.
The funds concerned include eight iShares funds and seven legacy Credit Suisse ETFs.
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iShares said it has streamlined its European ETF range and significantly reduced fees on a range of funds following the acquisition of Credit Suisse’s ETF arm in July this year.
iShares is closing certain ETF products acquired from Credit Suisse, as well as harmonisation of pricing of others, following a strategic review.
After the deal, iShares has decided to close the ETFs from 24 October 2013. The combination of the two fund lines has resulted in 10 identical exposures.
iShares added that it has harmonised the pricing for these to ensure holders in each range are treated equally. Total expense ratios on 10 like-for-like products will be harmonised with the lower TER applying in each case.
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By GlobalDataiShares will also be decreasing the price on the iShares FTSE 100 Ucits ETF, iShares S&P 500 Ucits ETF and the iShares S&P 500 – B Ucits ETF at a total expense ratio of 15 basis points. The distribution share classes will see no changes.
Joe Linhares, head of iShares EMEA, said: "The review and streamlining of the product range has resulted in a small number of fund closures. Today’s changes mean that where there has been overlap between funds, our investors will benefit from consistent, and in many cases lower TERs as a result of the acquisition."
"Traditional buy-and-hold investors tell us they want access to the broadest market exposure in a way that enables them to keep more of what they earn over long holding periods. Accumulating funds also provide greater efficiency for buy and hold investors as they reinvest their dividends in line with the benchmark.
"By offering a lower expense ratio for our accumulating funds on two of the most in-demand exposures in Europe, giving access to leading UK and US exposures at a lower price, we are providing clients with choice to match their unique investment objectives and strategy," Linhares added.
