iShares announces changes to EMEA product range

Following the acquisition of Credit Suisse ETF business, BlackRock’s ETF platform expands the range of products both locally and globally.

As part of its plan, iShares said that it will close 15 ETFs as well as align fees on duplicate funds in order to address the growing interest from long term investors for ETFs.

As a result of a strategic review, and planning for the integration process to be conducted following this acquisition, iShares is making the following three changes to its product range in Europe:

• iShares will be closing 15 equity and commodity ETFs as of October 24th 2013 due to a variety of factors, principally low investor demand for the funds. The funds concerned include eight iShares funds and seven legacy Credit Suisse ETFs.

• The combination of the two fund lines has resulted in 10 identical exposures. iShares has harmonised the pricing for these to ensure holders in each range are treated equally.

• Repositioning the accumulating versions of 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 (TER) of 15 basis points to meet the growing needs of long term investors turning to low cost and transparent ETFs at the core of their portfolios. There are no changes to the distributing versions of these exposures, which continue to meet the needs of investors who put a premium on greater liquidity and capital markets depth for their shorter-term needs.

Joe Linhares, head of iShares EMEA commented: “Credit Suisse’s ETF business was highly complementary to iShares’ offering in Europe. The review and streamlining of the product range has resulted in a small number of fund closures.”

Linhares also said that traditional buy-and-hold investors demand for access to the broadest market exposure in order to be able 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 also said.

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