iShares announces new fee structures for 13 MSCI index funds

By Toni Weeks

San Diego, Oct. 25 - iShares, Inc. adjusted the management fees for 13 of its MSCI index funds, according to a 497 filing with the Securities and Exchange Commission.

The fees are now calculated based on the level of net assets. Previously they were flat fees of either 0.35% or 0.69%, depending on the fund.

Effective immediately, the management fees for five of the funds will be calculated as follows: 35% per year of the aggregate net assets less than or equal to $30 billion, plus 0.32% per year of the aggregate net assets over $30 billion up to and including $60 billion, plus 0.28% per year of the aggregate net assets in excess of $60 billion.

Formerly, the management fee for those funds was a flat 0.35% per year.

Affected are the following funds:

• iShares MSCI ACWI ex U.S. index fund;

• iShares MSCI ACWI index fund;

• iShares MSCI All Country World Minimum Volatility index fund;

• iShares MSCI EAFE index fund; and

• iShares MSCI EAFE Minimum Volatility index fund.

The management fees for an additional eight funds were also restructured and are now calculated as follows: 0.75% per year of the aggregate net assets less than or equal to $14 billion, plus 0.68% per year of the aggregate net assets over $14 billion up to and including $28 billion, plus 0.61% per year of the aggregate net assets over $28 billion up to and including $42 billion, plus 0.56% per year of the aggregate net assets over $42 billion up to and including $56 billion, plus 0.5% per year of the aggregate net assets over $56 billion up to and including $70 billion, plus 0.45% of the aggregate net assets over $70 billion up to and including $84 billion, plus 0.4% per year of the aggregate net assets in excess of $84 billion.

Affected are the following funds:

• iShares MSCI All Country Asia ex Japan index fund;

• iShares MSCI BRIC index fund;

• iShares MSCI Emerging Markets Eastern Europe index fund;

• iShares MSCI Emerging Markets Financials Sector index fund;

• iShares MSCI Emerging Markets index fund;

• iShares MSCI Emerging Markets Materials Sector index fund;

• iShares MSCI Emerging Markets Minimum Volatility index fund; and

• iShares MSCI Emerging Markets Small Cap index fund.

The management fee for these eight funds was previously a flat 0.69%.

iShares exchange-traded funds are managed by San Francisco's BlackRock Fund Advisors.

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