BlackRock Asset Management Canada Limited (iShares)

BlackRock Asset Management Canada Limited (iShares)

April 07, 2011 14:13 ET

A Banner First Quarter as Canadians Continue to Embrace ETFs

ETF Assets Under Management Increased 8.4 Per Cent in Q1 With iShares ETFs Gathering $1.4 Billion in Net Inflows

TORONTO, ONTARIO--(Marketwire - April 7, 2011) - Total assets under management (AUM) of Canadian ETFs are now $41.4 billion, increasing by $3.2 billion in the first quarter of 2011, according to information compiled by the iShares® exchange-traded fund (ETF) business at BlackRock Asset Management Canada Limited (BlackRock Canada), an indirect, wholly-owned subsidiary of BlackRock, Inc. (NYSE:BLK).

According to a recent Investor Economics report, at the end of February 2011, assets in ETFs have more than doubled since December 2008. For every $1 invested in ETFs, $21 is invested in mutual funds, down from $1 to $43 three years ago.1

iShares ETFs alone experienced its best first quarter on record with $1.4 billion in net new assets bringing its total AUM to $30.6 billion, remaining the undisputed leader with 73.8 per cent of the Canadian market share. Claymore Investments, Inc. follows with $6.0 billion in AUM or 14.3 per cent of total ETF AUM. And BMO Financial Group recently released information stating that it has reached $2 billion in ETF AUM in fewer than two years.

"Interest and investment in ETFs continues to grow in Canada as investors of all types embrace ETFs as an effective and precise way to gain access to all markets," said Mary Anne Wiley, head of iShares distribution, BlackRock Canada.

"In particular we have seen strong flows into broad Canadian equity, sectors and international equity funds."

Other highlights:
  • Canadian equity ETFs led all other asset classes, with $1.8 billion in net inflows.

  • The iShares Dow Jones Select Dividend Index Fund (XDV) and the iShares S&P®/TSX® Capped Energy Index Fund (XEG) reached $1 billion in assets under management (AUM). XDV is particularly notable for being the largest dividend ETF in Canada.

  • Commodity ETFs experienced the greatest market retraction, with $435 million in net outflows.

Global AUM in ETFs and exchange-traded products (ETP) is expected to increase by 20–30 per cent annually over the next three years, taking the global ETF/ETP industry to approximately US$2 trillion in AUM by early 2012. Considering ETFs separately, AUM should reach US$2 trillion globally by the end of 2012, US$1 trillion in the United States in 2011 and US$500 billion in Europe in 2013.2

For more information about the new iShares funds, please visit www.iShares.ca. All other inquiries: 1-866-iShares (1-866-474-2737) or email iSharesCanada@blackrock.com.

Sources:
  (1) Investor Economics, Insight Monthly Update, March 2011, page 18.
  (2) ETF Landscape Industry Review, End February 2011. Global ETF Research and Implementation Team, BlackRock Advisors (UK) Limited.

About BlackRock®

BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At December 31, 2010, BlackRock's AUM was US$3.561 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 December 31, 2010, the firm has approximately 9,100 employees in 25 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 ETFs with over 410 funds globally across equities, fixed income and commodities, which trade on 16 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.

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