BlackRock plans to close 15 European exchange traded funds due to low demand after a strategic review.
The closures affect eight iShares and seven ETFs that BlackRock took over when it acquired Credit Suisse’s ETF business earlier this year. The funds will close on Oct. 24.
“The world’s largest fund manager is also harmonizing charges where its existing iShares range and Credit Suisse ETFs overlap to ensure investors are treated consistently. Total expense ratios on 10 like-for-like products will be harmonized with the lower TER applying in each case,” reports Chris Flood for the Financial Times.
BlackRock is also cutting fees on two ETFs designed for long-term investors, according to the report.
“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,” said Joe Linhares, head of iShares EMEA
“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,” Linhares added. “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.”
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