Investments  

iShares to close 15 funds following Credit Suisse buyout

iShares, Blackrock’s exchange-traded funds platform, is closing 15 funds and lowering the total expense ratio on 12 others following its acquisition of Credit Suisse’s ETF business in July of this year.

According to a statement from iShares, the funds will close due in large part to low investor demand.

The combination of the two fund lines has also resulted in 10 identical exposures, the firm said, adding that it has adjusted the pricing for these to ensure holders in each range are treated “equally”.

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The company will also reposition the accumulating versions of three funds to a TER of 15 basis points, meaning that a total of 12 funds will now have lower annual charges.

iShares said the changes are designed “to meet the growing needs of long term investors turning to low cost and transparent ETFs at the core of their portfolios”.

Joe Linhares, head of iShares EMEA, said: “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.”

Funds closing include:

• 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

BlackRock completed its acquisition of Credit Suisse’s exchange-traded fund (ETF) business after the move was given the green light by the Office of Fair Trading in July of this year.

The Credit Suisse business, which comprised 59 ETFs managing $17.8bn in assets across equities, fixed income and gold, was fully absorbed into iShares, with all of the funds trading under the iShares name.