Standard & Poor’s Fund Services today stated that its ratings on a range of BlackRock index funds are unaffected by the manager’s announcement that it would lower its management fees to a new rate of 0.2 per cent.
From Oct. 1, BlackRock Asset Management has lowered its management fees on six BlackRock index funds. Depending on the strategy, the fees are being reduced by between 0.06% per year and 0.15% per year.
Fees are a key detractor from returns, and BlackRock’s move to reduce its fees across the index strategies is viewed as positive for investors.
All six funds are rated four stars and represent domestic equity, listed property, international equity (hedged and unhedged), domestic bond, and global bond funds.
