Press reports earlier this week that BlackRock’s (NYSE: BLK) iShares unit was raising fees on 40 of its ETFs are incorrect and have been retracted.
IndexUniverse in a Dec. 30 article originally reported iShares was increasing the expense ratios on dozens of funds. In an update, the website said the report was not accurate. BlackRock officials said the regulatory filings sourced in the original story “reflected conditions in the 12 months ended Aug. 31, 2012, and that current fund economics had changed, obviating a need to raise fees on the funds,” according to the update.
A BlackRock spokeswoman told Benzinga that all mutual fund and ETF sponsors are required by the SEC to submit filings within 120 days after the end of their fiscal years. The fiscal year for the 40 iShares funds ended Aug. 31, according to the Benzinga report.
“Those filings outline the actual fees incurred as a percentage of net assets during the funds’ fiscal year. These fees do not reflect what investors may have paid and current fees. Expense ratios could increase if certain assets under management thresholds are not met,” the article said. “However, the SEC filings do not acknowledge asset growth or shrinkage in ETFs after August 31 until the filing for the next fiscal year is made.”
BlackRock confirmed it is not raising or lowering fees on any of its ETFs, according to the Benzinga report.
(Entire story updated. An earlier version of this article erroneously stated BlackRock’s iShares was lifting fees on 40 ETFs.)
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