TORONTO, ONTARIO--(Marketwire - Oct. 9, 2012) - BlackRock Asset Management Canada Limited (BlackRock Canada), an indirect, wholly-owned subsidiary of BlackRock, Inc., announced that, effective today, all iShares products traded on the Toronto Stock Exchange will feature Dividend Reinvestment Plans (DRIPs) for clients who wish to efficiently and automatically reinvest their distributions. The move affects the entire product line of 88 iShares exchange traded funds (ETFs).
"There continues to be a thirst for income but many investors also want the flexibility to simply and swiftly redirect yield back into their ETF investments. DRIPs will give them exactly that flexibility," said Mary Anne Wiley, Managing Director, Head of iShares, BlackRock Canada. "When we acquired Claymore earlier this year, we committed to build on our record of innovation and client responsiveness. Today's announcement is just one example of ways in which we're making good on that promise."
Today, the Canadian iShares business remains the market leader in ETFs with 76 per cent market share and $41 billion in assets under management. Since the close of the Claymore acquisition, flows for most of the former Claymore funds have also increased. Under BlackRock management, and carrying the iShares brand, aggregate sales inflows across all former Claymore funds have increased by 25% from March - September 2012 when compared to aggregate sales inflows during the same time period last year ($795 million in 2011 versus $1,061 million in 2012).
"Roughly 70 per cent of corporate mergers fail after announcement.2 We have beaten those odds and succeeded in our vision to bring these two great Canadian ETF providers together under one roof, to best service the needs of investors," continued Wiley.
"We knew the strength of the Claymore products under the iShares brand was going to be a success. The results to date have exceeded even my expectation."
With a commitment to meeting the needs of Canadian investors, in addition to the recent delivery of DRIPs, iShares has also launched six new ETFs and extended its range of tools to help investors manage and overcome current market uncertainties:
- Launched a suite of minimum volatility ETFs to offer risk-averse investors access to equities across domestic, international, developed and emerging markets to capture potential market upside while seeking to minimize the risk they take on.
- Introduced the iShares U.S. High Dividend Equity Index Fund (CAD-Hedged) (XHD) to help investors access higher yield equities. XHD offers investors potentially higher yield and lower risk by focusing on companies that are likely to pay higher than average dividends for the foreseeable future. The response to XHD was so overwhelming, this product gathered over $2 million in AUM within the first two weeks of coming to market this past August.
- Embarked on a cross-Canada tour speaking with advisors and conducted proprietary research of high-net worth investors to better understand, and service, client needs.
- Fully integrated all products into iShares.ca this month to align product information details - delivering greater transparency and insights to the market across the entire product set.
These actions are in addition to the successful integration of the Claymore products and team members as well as the appointment of a new Head of iShares Canada earlier this year.
"Currently, ETFs only make up seven per cent of the overall fund assets in Canada but they are growing at an explosive rate and are set to continue to grow in popularity. Given the market conditions, and our ambition, I see no reason why ETFs can't grow to the point where the iShares business stands alongside the largest mutual fund providers in the country," concluded Wiley.
1Claymore Investments, Inc.
2"Beyond Risk Avoidance: A McKinsey Perspective on creating transformational value from mergers." By James McCletchy and Andy West. Perspectives on Merger Integration. June 2010. Published by McKinsey and Company. Pg. 1
BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At June 30, 2012, BlackRock's AUM was US $3.560 trillion. BlackRock offers products that span the risk spectrum to meet clients' needs, including active, enhanced and index strategies across markets and asset classes. Products are offered in a variety of structures including separate accounts, mutual funds, iShares® (exchange traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. Headquartered in New York City, as of June 30, 2012, the firm has approximately 9,900 employees in 27 countries and a major presence in key global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company's website at www.blackrock.com.
About iShares ETFs
iShares is the global product leader in exchange traded funds with over 500 funds globally across equities, fixed income and commodities, which trade on 20 exchanges worldwide. The iShares Funds are bought and sold like common stocks on securities exchanges. The iShares Funds are attractive to many individual and institutional investors and financial intermediaries because of their relative low cost, tax efficiency and trading flexibility. Investors can purchase and sell shares through any brokerage firm, financial advisor, or online broker, and hold the funds in any type of brokerage account. The iShares customer base consists of the institutional segment of pension plans and fund managers, as well as the retail segment of financial advisors and high net worth individuals.
iShares® Funds are managed by BlackRock Asset Management Canada Limited and BlackRock Investments Canada Inc. Commissions, management fees and expenses all may be associated with investing in iShares Funds. Please read the relevant prospectus before investing. The ETFs are not guaranteed, their values change frequently and past performance may not be repeated. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. iSC-0081-1012