BlackRock simplifies iShares for Aussie investors
BlackRock has announced that, subject to investor approval, 14 US-domiciled iShares exchange-traded funds (ETFs) would be converted to new Australian-domiciled iShares ETFs in order to improve ease of use for Australian investors and advisers.
The change was slated to begin in July, after the Australian financial year end.
The iShares ETFs to be converted would be:
- IAA - iShares Asia 50 ETF
- IEM - iShares MSCI Emerging Markets ETF
- IEU - iShares Europe ETF
- IJH - iShares S&P Mid-Cap ETF
- IJP - iShares MSCI Japan ETF
- IJR - iShares S&P Small-Cap ETF
- IKO - iShares MSCI South Korea ETF
- IOO - iShares Global 100 ETF
- ITW - iShares MSCI Taiwan ETF
- IVE - iShares MSCI EAFE ETF
- IVV - iShares S&P 500 ETF
- IXI - iShares Global Consumer Staples ETF
- IXJ - iShares Global Healthcare ETF
- IZZ - iShares China Large-Cap ETF
According to BlackRock, the iShares ETFs to be converted had combined Australian assets under management (AUM) of over $7 billion, as of 31 March, 2018.
Head of BlackRock’s iShares business in Australia, Jon Howie, said the Australian ETF market had substantially grown, leading to improved ETF liquidity and trading infrastructure and allowing ETFs to attract assets and liquidity on the Australian Securities Exchange (ASX).
“We are investing in our business to enhance our offering and provide more efficient portfolio construction tools for Australian investors and advisers,” he said.
“Today’s changes will make investing in iShares, and building globally diversified portfolios, easier for Australian investors and advisers by reducing administration – investors will no longer require filling W-8BEN forms when investing in iShares.”
At the same time, the firm announced that the five remaining US-domiciled iShares ETFs currently offered on ASX would be delisted. They would include the following:
- IRU - iShares Russell 2000 ETF
- ISG - iShares MSCI Singapore ETF
- IXP - iShares Global Telecom ETF
- IHK - iShares MSCI Hong Kong ETF
- IBK - iShares MSCI BRIC ETF
AUTHOR
Oksana Patron
Recommended for you
Ten Cap has announced it will launch its first active ETF on the ASX later this month, expanding retail access to its flagship Australian equities strategy.
Flows into cash and fixed income ETFs rose by 46 per cent in October with investors particularly demonstrating a preference for Australian credit ETFs as they move away from AT1 bank hybrids.
Having identified Australia as a growth market, J.P. Morgan Asset Management has collaborated with Betashares to offer two multi-asset managed portfolios on its Direct platform, the first funds on the platform from an external manager.
First Sentier has announced it will transition the Stewart Investors investment management responsibilities to its affiliate investment team in light of three senior portfolio manager exits.
