Click here to close now.

SYS-CON MEDIA Authors: Carmen Gonzalez, Peter Silva, Liz McMillan, Pat Romanski, Greg Wind

News Feed Item

iShares Offers Canadian Investors Exposure to the S&P/TSX Capped Composite Index at 5 BPS

iShares Launches Core Series: A Suite of Low-Cost Funds Designed for the Foundation of Canadian Investors' Portfolios

TORONTO, ONTARIO -- (Marketwired) -- 03/24/14 -- (TSX:XIC)(TSX:XEI)(TSX:XSH)(TSX:CAB)(TSX:CAB.A)(TSX:XLB)(TSX:XSP)(TSX:XUS)(TSX:XEF)(TSX:XEC)

iShares, the industry-leading exchange-traded fund (ETF) business at BlackRock Asset Management Canada Limited (BlackRock Canada), an indirect, wholly-owned subsidiary of BlackRock, Inc. (BlackRock), today announced the launch of the iShares Core Series for Canadian investors. As part of this launch the annual management fee on its iShares S&P/TSX Capped Composite Index ETF(i) (XIC) will be lowered to 0.05%, making Canada's benchmark-of-choice available at a very attractive low price. With $1.37 billion in assets under management (as of 03/21/14) and a 13-year track record of reliably delivering Canadian equity exposure, XIC is the low-cost flagship among a total of nine existing iShares funds in the iShares Core Series. BlackRock Canada has announced reductions to the annual management fees payable as a percentage of net asset value for all of the funds in the iShares Core Series, now ranging from 0.05% - 0.25% depending on the fund, effective as of March 25, 2014, described in the table below.

As the ETF market leader, with a 15 year history in ETFs in Canada and over $42 billion in AUM, the launch of the iShares Core Series signals another great step in our commitment to serving the needs of investors. The iShares Core Series is a suite of low-cost funds specifically designed for the long-term needs of today's investors by combining competitive pricing with diversified products using established index providers. The suite of funds cover key asset classes used by Canadian investors in their portfolios today, including Canadian equities, dividends and bonds, as well as U.S. and international equities.

"As we look to build on BlackRock's leadership position in Canada, we are taking another step to bolster our value proposition for investors," said Noel Archard, Managing Director, Head of BlackRock Canada. "We have brought the benefits of our global scale to an iShares Core Series in Canada, a low-cost range of key investment exposures for long-term investors."

iShares Core Series: Low-Cost, Core Exposures for Canadian Investors' Asset Allocation Needs

"iShares funds are used by individual investors, advisors, and institutions to express their views," said Mary Anne Wiley, Managing Director, Head of iShares Canada. "Our iShares Core Series provides all of these investors with the opportunity to efficiently create the core of their portfolio and execute their investment strategies."

With greater choice and diversity of products in the evolving ETF marketplace, Canadian investors are becoming increasingly savvy at using ETFs to meet their asset allocation strategies. Especially when it comes to their long-term core holdings, they are looking for any advantage to grow their wealth over time. Now, with new pricing on the iShares Core Series of nine iShares funds, BlackRock Canada is providing retail investors and their advisors with significant price flexibility as they implement their core asset allocation strategies more affordably - all backed by the quality, liquidity and transparency that has made iShares the Canadian ETF market leader.

At BlackRock, we believe investors should strengthen the core of their portfolios with low-cost, efficient products such as the iShares Core Series and complement their asset allocation strategies with outcome-based solutions designed to address more specific needs, from earning income in retirement to capitalizing on short-term market opportunities.

A growing number of institutional investors are already adopting this approach as they realize the benefits of ETFs as efficient, liquid building blocks to execute their investment strategies. A recent Greenwich Associates survey1 found that ETFs, while still popular for short-term tactical allocations such as cash equitization and manager transitions, are increasingly being used by institutions for strategic applications such as building liquidity overlays to core holdings. In fact, according to the Greenwich survey, the percentage of institutions using ETFs in this way has risen from just 3% in 2010 to 31% in 2013 - a dramatic 1,000% increase. Institutions are also using ETFs more and more as part of their "active beta" strategies, in which the funds allow them to execute highly targeted, outcome-based allocations.

Now, with the launch of the iShares Core Series, BlackRock is making this approach to ETF investing more broadly and more efficiently available to all investors - from institutions to retail investors.

"As more and more investors turn to ETFs for the diversification and exposures they seek in the core of their portfolios, we saw the opportunity to offer a cost-effective suite of funds that provide the professional quality you expect from iShares," added Wiley. "We believe that every investor is unique, and with this focused suite of funds, investors have the opportunity to match their long-term core holdings to their individual needs and still have the flexibility to complement them with more specialized ETFs that suit their specific objectives."

TABLE: Led by XIC, the iShares Core Series, a suite of newly priced ETFs is designed to meet the long-term needs of investors as they build the core positions of their portfolios and execute their asset allocation strategies.


----------------------------------------------------------------------------
iShares Fund                     Ticker        Current       Management Fee 
                                        Management Fee  (Effective 03/25/14)
----------------------------------------------------------------------------
Canadian Equity:                                                            
----------------------------------------------------------------------------
iShares S&P/TSX Capped                                                      
Composite Index ETF(i)              XIC          0.25%                 0.05%
----------------------------------------------------------------------------
iShares S&P/TSX Equity                                                      
Income Index ETF(i)                 XEI          0.55%                 0.20%
----------------------------------------------------------------------------
Canadian Fixed Income:                                                      
----------------------------------------------------------------------------
iShares Canadian Short Term                                                 
Corporate + Maple Bond                                                      
Index ETF(i)                        XSH          0.25%                 0.12%
----------------------------------------------------------------------------
iShares High Quality                                                        
Canadian Bond Index ETF+/-          CAB          0.30%                 0.12%
----------------------------------------------------------------------------
iShares Canadian Long Term                                                  
Bond Index ETF(i)                   XLB          0.35%                 0.18%
----------------------------------------------------------------------------
International Equity:                                                       
----------------------------------------------------------------------------
iShares S&P 500 Index ETF                                                   
(CAD-Hedged)(i)beta                 XSP    up to 0.22%                 0.10%
----------------------------------------------------------------------------
iShares S&P 500 Index ETF           XUS          0.14%                 0.10%
----------------------------------------------------------------------------
iShares MSCI EAFE IMI Index                                                 
ETF                                 XEF          0.30%                 0.20%
----------------------------------------------------------------------------
iShares MSCI Emerging                                                       
Markets IMI Index ETF               XEC          0.35%                 0.25%
----------------------------------------------------------------------------

(i) In addition, the iShares funds changed their names effective March 25, 2014 in order to replace the word "Fund" with "ETF" and/or to reflect changes to the name of their underlying index.

+/- The advisor class of the iShares High Quality Canadian Bond Index ETF with the ticker CAB.A has also changed its annual management fee to 0.12% from its current annual management fee of 0.30%.

beta In connection with the significant reduction of its annual management fee, the fee structure of the iShares S&P 500 Index ETF (CAD-Hedged) (XSP) will be changed effective March 25, 2014 from its current fee structure to a total annual fee structure, such that the total annual fees paid directly to BlackRock Canada and indirectly to any of its affiliates in connection with any underlying funds in which XSP may invest, will not exceed the annual management fee set out in the table above. Previously, the annual management fee payable in relation to XSP represented the sum of a variable underlying product fee paid to an affiliate of BlackRock Canada and a fixed management fee payable to BlackRock Canada.

1. Greenwich Report, "Versatility Fuels ETF Growth in Canadian Institutional Portfolio", Q2 2013

About BlackRock

BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At December 31, 2013, BlackRock's AUM was US$4.324 trillion. BlackRock helps clients meet their goals and overcome challenges with a range of products that include 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 December 31, 2013, the firm has approximately 11,400 employees in 30 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

The iShares business is a global product leader in exchange traded funds with over 600 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 securities 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 individual investors.

iShares Funds are managed by BlackRock Asset Management Canada Limited. Commissions, trailing commissions, management fees and expenses all may be associated with investing in iShares Funds. Please read the relevant prospectus before investing. The funds 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.

© 2014 BlackRock Asset Management Canada Limited. All rights reserved. iSHARES® and BLACKROCK® are registered trademarks of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. Used with permission.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial C...
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In his General Session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, discussed how to take advantage of a multitude of compute options and platform features to make cloud the cornerstone of your onlin...
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @Things...
JFrog on Thursday announced that it has added Docker support to Bintray, its distribution-as-a-service (DaaS) platform. When combined with JFrog’s Artifactory binary repository management system, organizations can now manage Docker images with an end-to-end solution that supports all technologies. The new version of Bintray allows organizations to create an unlimited number of private Docker repositories, and through the use of fast Akamai content delivery networks (CDNs), it decreases the dow...
Platform-as-a-Service (PaaS) is a technology designed to make DevOps easier and allow developers to focus on application development. The PaaS takes care of provisioning, scaling, HA, and other cloud management aspects. Apache Stratos is a PaaS codebase developed in Apache and designed to create a highly productive developer environment while also supporting powerful deployment options. Integration with the Docker platform, CoreOS Linux distribution, and Kubernetes container management system ...
Even as cloud and managed services grow increasingly central to business strategy and performance, challenges remain. The biggest sticking point for companies seeking to capitalize on the cloud is data security. Keeping data safe is an issue in any computing environment, and it has been a focus since the earliest days of the cloud revolution. Understandably so: a lot can go wrong when you allow valuable information to live outside the firewall. Recent revelations about government snooping, along...
SYS-CON Media announced that IBM, which offers the world’s deepest portfolio of technologies and expertise that are transforming the future of work, has launched ad campaigns on SYS-CON’s numerous online magazines such as Cloud Computing Journal, Virtualization Journal, SOA World Magazine, and IoT Journal. IBM’s campaigns focus on vendors in the technology marketplace, the future of testing, Big Data and analytics, and mobile platforms.
It’s been proven time and time again that in tech, diversity drives greater innovation, better team productivity and greater profits and market share. So what can we do in our DevOps teams to embrace diversity and help transform the culture of development and operations into a true “DevOps” team? In her session at DevOps Summit, Stefana Muller, Director, Product Management – Continuous Delivery at CA Technologies, will answer that question citing examples, showing how to create opportunities f...
IBM has announced that SoftLayer will offer OpenPOWER-based servers as part of its portfolio of cloud-based services. With the new offering, clients will be able to select OpenPOWER-based “bare metal” servers when configuring their cloud-based IT infrastructure from SoftLayer, an IBM company. Leveraging the OpenPOWER Foundation design concept, the servers were developed to help clients better manage data-intensive workloads on public and private clouds. Increasingly cloud technologies, bot...
Red Hat has launched the Red Hat Cloud Innovation Practice, a new global team of experts that will assist companies with more quickly on-ramping to the cloud. They will do this by providing solutions and services such as validated designs with reference architectures and agile methodology consulting, training, and support. The Red Hat Cloud Innovation Practice is born out of the integration of technology and engineering expertise gained through the company’s 2014 acquisitions of leading Ceph s...
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @Things...
Docker is an excellent platform for organizations interested in running microservices. It offers portability and consistency between development and production environments, quick provisioning times, and a simple way to isolate services. In his session at DevOps Summit at 16th Cloud Expo, Shannon Williams, co-founder of Rancher Labs, will walk through these and other benefits of using Docker to run microservices, and provide an overview of RancherOS, a minimalist distribution of Linux designed...
PubNub on Monday has announced that it is partnering with IBM to bring its sophisticated real-time data streaming and messaging capabilities to Bluemix, IBM’s cloud development platform. “Today’s app and connected devices require an always-on connection, but building a secure, scalable solution from the ground up is time consuming, resource intensive, and error-prone,” said Todd Greene, CEO of PubNub. “PubNub enables web, mobile and IoT developers building apps on IBM Bluemix to quickly add sc...
Business and IT leaders today need better application delivery capabilities to support critical new innovation. But how often do you hear objections to improving application delivery like, “I can harden it against attack, but not on this timeline”; “I can make it better, but it will cost more”; “I can deliver faster, but not with these specs”; or “I can stay strong on cost control, but quality will suffer”? In the new application economy, these tradeoffs are no longer acceptable. Customers will ...
Data-intensive companies that strive to gain insights from data using Big Data analytics tools can gain tremendous competitive advantage by deploying data-centric storage. Organizations generate large volumes of data, the vast majority of which is unstructured. As the volume and velocity of this unstructured data increases, the costs, risks and usability challenges associated with managing the unstructured data (regardless of file type, size or device) increases simultaneously, including end-to-...