BlackRock Asset Management Canada Limited (iShares)

BlackRock Asset Management Canada Limited (iShares)

January 22, 2010 09:17 ET

ETF Assets in Canada Grow by 30% With iShares Leading the Charge

iShares® ETFs beats competition in bull and bear markets in Canada

TORONTO, ONTARIO--(Marketwire - Jan. 22, 2010) - iShares, a global leader in Exchange Traded Funds (ETFs), announced today that investors in Canada continue to embrace ETFs as assets under management (AUM) surpassed $30 billion in Canada in 2009. This leap forward contributed to a worldwide trend that saw global ETF assets hit an unprecedented US$1 trillion at the end of December 2009, according to the latest data from BlackRock, Inc. ("BlackRock").

Latest data from BlackRock for the Canadian ETF landscape in 2009 also indicates that:

- Canadian ETFs raised $8.5 billion in net new assets in 2009 when the S&P®/TSX® Composite Index rose by 30.9% (the index's best year since 1979).

- Canadian ETFs raised $7.1 billion in 2008, when the S&P®/TSX® Composite Index fell by 35.03% (its worst year ever).

- Canadian ETF assets have grown by 29.6% over the past five years compared to mutual fund assets which have only grown 5.6% over the same period.

- ETFs now represent 4.6% of all mutual fund assets in Canada which is approximately $686 billion, compared to 3.4% a year ago.

- ETF trading now represents approximately 16% of all equity volume in Canada.

- With 80.7% of the total ETF assets under management in Canada, iShares, a division of BlackRock, remains the undisputed leader as it achieved $25 billion in AUM and raised $4.9 billion in net new assets in 2009, representing an AUM increase of 55% from 2008.

- iShares had the most net new long term assets of any mutual fund complex in Canada for the second consecutive year. In 2009, iShares was number one in overall net new assets including both long term and money market assets.

"ETFs have grown consistently by 30% per year over the past five years demonstrating their appeal to investors in market conditions of all kinds - from the bull to bear to recovery," said Heather Pelant, managing director, head of iShares Canada at BlackRock Asset Management Canada Limited.

"Without question, ETFs have become a popular and widely accepted tool that has fundamentally changed how institutional and retail investment advisors view the markets."

This growth complements a worldwide trend as global ETF assets hit an all time high of US$1 trillion at the end of December 2009 - 45.2% above $US710.9 billion at the end of 2008. The global ETF industry had 1,939 ETFs with 3,775 listings, assets of US$1,032 billion from 109 providers on 40 exchanges at the end of December 2009. Year-to-date (YTD) assets have risen by 45.2% which is more than the 27.0% rise in the MSCI World Index in US dollar terms.

Capital flows this year within ETFs also demonstrate how these innovative investment products have become important bellwethers to gauge shifts in investor sentiment between asset classes. During the year, fixed income, equity and commodity-based ETFs enjoyed heavy inflows as some investors adjusted their risk profiles.

U.S. data

Assets for the ETF industry in the United States hit an all time high of US$705.5 billion at the end of 2009 - a 41.9% increase from US$497.1 billion at the end of 2008. The U.S. ETF industry had 772 ETFs, with assets of US$705.5 billion, from 28 providers on two exchanges at the end of December 2009. YTD assets have risen by 41.9% which is more than the 24.2% rise in the MSCI U.S. Index in US dollar terms.

Europe data

European listed ETF assets hit an all time high of US$223.5 billion at the end of December - a 56.8% increase from US$142.58 billion at the end of 2008. The European ETF industry had 821 ETFs with 2,359 listings and assets of US$223 billion, from 32 providers on 18 exchanges at the end of December 2009. YTD assets have risen by 56.8% which is more than the 30.6% rise in the MSCI Europe Index in U.S. dollar terms.

All figures are in Canadian dollars unless otherwise noted.

About iShares

iShares is the global product leader in exchange traded funds with over 410 funds globally across equities, fixed income and commodities, which trade on 19 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.

About BlackRock

BlackRock (NYSE:BLK) is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. With approximately US$3.2 trillion under management as of September 30, 2009 (pro forma), 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 systems services to a broad base of institutional investors through BlackRock Solutions. Headquartered in New York City, has over 8,500 employees in 24 countries. For additional information, please visit BlackRock's website at www.blackrock.com.

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