iShares shuts certain acquired Credit Suisse ETFs

iShares, the ETF platform of BlackRock, has announced the closure of certain ETF products acquired from Credit Suisse, as well as harmonisation of pricing of others, following a strategic review.

The key changes include:

• 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, said: “We completed the acquisition of Credit Suisse’s ETF business in July, and the ongoing integration process has given us a great opportunity to look across our funds and ensure we’re providing investors with the range and exposures they need today.”

“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. As the largest ETF provider in Europe, with over 250 products, we’re committed to launching new and innovative funds, such as our minimum volatility range, and also to maintaining an efficient and relevant fund offering across the region. 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. They deserve low-cost funds that provide deep access to markets. 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.”


Funds closing as of 24 October 2013    
· iShares MSCI Russia Capped Swap    
· iShares S&P CNX Nifty India Swap    
· iShares S&P GSCI Dynamic Roll Commodity Swap    
· iShares S&P GSCI Dynamic Roll Agriculture Swap    
· iShares S&P GSCI Dynamic Roll Energy Swap    
· iShares S&P GSCI Dynamic Roll Industrial Metals Swap    
· iShares Developed World ex-UK UCITS ETF    
· iShares MSCI Europe ex-EMU UCITS ETF    
· iShares CSI 300 UCITS ETF (Swap)    
· iShares MSCI India UCITS ETF (Swap)    
· iShares EONIA UCITS ETF (Swap)    
· iShares MSCI Taiwan UCITS ETF (Swap)    
· iShares MSCI EM EMEA UCITS ETF (Swap)    
· iShares FED Funds Effective Rate UCITS ETF (Swap)    
· iShares Global Alternative Energy UCITS ETF    
Funds affected by the TER harmonisation and repositioning    
Fund Current TER New TER
iShares EURO STOXX 50 UCITS ETF (Acc) 0.35% 0.20%
iShares MSCI Australia UCITS ETF 0.59% 0.50%
iShares MSCI Canada UCITS ETF 0.59% 0.48%
iShares MSCI Emerging Markets UCITS ETF (Acc) 0.75% 0.68%
iShares MSCI Europe UCITS ETF (Acc) 0.35% 0.33%
iShares MSCI Japan UCITS ETF (Acc) 0.59% 0.48%
iShares MSCI South Africa UCITS ETF 0.74% 0.65%
iShares MSCI USA UCITS ETF 0.40% 0.33%
iShares MSCI World UCITS ETF (Acc) 0.50% 0.40%
iShares FTSE 100 UCITS ETF (Acc) 0.33% 0.15%
iShares S&P 500 UCITS ETF (Acc) 0.40% 0.15%
iShares S&P 500 – B UCITS ETF (Acc) 0.20% 0.15%


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