Jason Collins
BlackRock Australia has announced it is reducing fees on two of its popular core iShares ETFs – iShares Core S&P / ASX200 ETF (IOZ) to 0.05% or 5bps and iShares Core Composite Bond ETF (IAF) to 0.10% or 10bps – as part of its commitment to share the benefits of its scale with investors. This is a reduction of 44 percent and 33 percent respectively, and will see iShares have the most cost-efficient ETF options in comparable asset classes in the Australian market.
iShares core ETFs serve as building blocks within a portfolio to reflect investors’ asset allocation views. Designed to be long-term portfolios holdings, they are efficient index exposures that enable advisers and investors to keep more of what they earn within their portfolios. The fee savings from indexing the core may be allocated to alpha-generating strategies like active or alternatives that can help investors reach their long-term financial goals sooner.
Jason Collins, Deputy Head of Australasia, BlackRock said, “As both the largest investment manager and the largest ETF issuer by assets in the world, BlackRock is committed to passing on scale benefits to Australian advisers and investors.
“As more Australian investors move beyond individual security selection to holistic portfolio construction, indexing core exposures can simplify how advisers and investors build their portfolios. The additional fee savings can also be used for broader tailoring – which may include other specific ETFs for diversification or tactical purposes, or bespoke active management or alternatives exposures.
“BlackRock has benefited from a 30 year-plus history in the Australian market and during that time has developed a diversified business with partner advice and institutional firms. To be able to deliver a meaningful fee reduction, particularly in a time of heightened inflation and volatile markets, is very pleasing.”
Chantal Giles, Head of Wealth, BlackRock Australasia, said “The best outcomes for building wealth are achieved over decades of steady long-term investing. iShares core ETFs play a critical role because they offer advisers a low-cost way to build well-diversified portfolios for their end clients.
“By reducing the fee of IOZ and IAF, we share the cost savings achieved through our scale with advisers to enable them to build better tailored portfolios to meet their clients’ individual needs. Ultimately, clients keep more of what they earn within their portfolios to help them reach their long-term financial goals sooner.”
Peter Loehnert, Asia-Pacific Head of iShares and Index Investments, BlackRock said, “Reflecting on our continued growth in the Asia-Pacific region, it’s gratifying to see the broad spectrum of Australian wealth clients use iShares ETFs as core portfolio building blocks and whole portfolio solutions.
“We continually work to offer increased affordability to all types of investors. Our decision to cut the fees on two Australian core iShares ETFs is another example of how we are consistently focused on finding ways to pass on the benefits of our scale to investors to support them in achieving their individual financial goals.”
iShares strives to make investing more affordable and accessible to a broader base of Australian investors to help them experience financial well-being. In an inflationary and volatile year, iShares continues to focus on all aspects of affordability – lower fees, lower minimum investments, and fewer commission barriers – so investors can keep more of what they earn and have a better opportunity to achieve their long-term financial goals. Since 2015, iShares has helped investors save nearly USD$600 million globally.
