BlackRock Asset Management Canada Limited (iShares)

BlackRock Asset Management Canada Limited (iShares)

September 28, 2015 07:30 ET

BlackRock Canada Expands Its Smart Beta Offering with New iShares FactorSelect™ ETFs

New Funds Provide Exposure to Four Historic Drivers of Return: Value, Quality, Momentum, Low Size

TORONTO, ONTARIO--(Marketwired - Sept. 28, 2015) - (TSX:XFI)(TSX:XFS)(TSX:XFC)(TSX:XFA)(TSX:XFF) - iShares, the industry-leading exchange traded fund (ETF) business1 at BlackRock Asset Management Canada Limited (BlackRock Canada), an indirect, wholly-owned subsidiary of BlackRock, Inc. (BlackRock), has expanded its Smart Beta ETF product offering with the launch of a new suite of iShares FactorSelect™ ETFs. XFI, XFS, and XFC will be listed on the TSX when the market opens today, XFA and XFF are expected to be listed on the TSX when the markets open on October 2, 2015.

The iShares FactorSelect suite of ETFs track indices designed to outperform the market benchmark index over the long term by constructing portfolios based on four historic drivers of return -- value, quality, momentum and low size2. The strategy aims to provide targeted exposure to these four factors while maintaining a risk level similar to their respective market benchmark indices. The suite covers Canadian, US and international equities, enabling investors to use the funds as a strategic core allocation tool, while increasing exposure to factors that have historically earned a return premium. Each fund will have a management fee of 0.45%.

"In the evolving investment landscape, investors are increasingly looking for ETF strategies to help them achieve performance in a low-cost, transparent way," said Pat Chiefalo, Managing Director, Head of Product for BlackRock Canada's iShares business. "The iShares FactorSelect suite provides investors with access to strategies commonly reached through traditional mutual funds, but in a more cost-effective way3."

"The iShares FactorSelect ETFs complement our series of iShares Minimum Volatility ETFs that have been designed to provide investors access to comparable returns to the market but with reduced risk levels. Together this family of products provides investors the optionality to access strategies that best match their desired need to either enhance market return or to minimize for market risk," added Chiefalo.

Both the FactorSelect and Minimum Volatility series of ETFs are product sets within iShares' Smart Beta suite of funds. iShares' Smart Beta suite includes products designed to improve investment returns, reduce risks, generate income and enhance diversification for investors more generally. Globally, iShares Smart Beta products have US $50bn3 in AUM, as investors seek transparent, low cost ways to manage risk and capture return potential.

The five new iShares FactorSelect ETFs are noted below, including their management fees and initial listing dates:

Ticker Fund Name Management Fee Listing Date
XFI iShares FactorSelect™ MSCI EAFE Index ETF 0.45% September 28, 2015
XFS iShares FactorSelect™ MSCI USA Index ETF 0.45% September 28, 2015
XFC iShares FactorSelect™ MSCI Canada Index ETF 0.45% September 28, 2015
XFA iShares FactorSelect™ MSCI USA Index ETF (CAD-Hedged) 0.45% October 2, 2015*
XFF iShares FactorSelect™ MSCI EAFE Index ETF (CAD-Hedged) 0.45% October 2, 2015*

*Listing dates are subject to regulatory approvals.

Further information on the iShares Funds can be found at www.blackrock.com/ca.

About BlackRock

BlackRock is a global leader in investment management, risk management and advisory services for institutional and retail clients. At June 30, 2015, BlackRock's AUM was US$4.721 trillion. BlackRock helps clients around the world 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®. As of June 30, 2015, the firm had approximately 12,400 employees in more than 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/ca - Twitter: @BlackRockCA - Blog: www.blackrockblog.com/can

About iShares

iShares is a global leader in exchange-traded funds (ETFs), with more than a decade of expertise and commitment to individual and institutional investors of all sizes. With over 700 funds globally across multiple asset classes and strategies and more than US$1 trillion in assets under management as of June 30, 2015, iShares helps clients around the world build the core of their portfolios, meet specific investment goals and implement market views. iShares funds are powered by the expert portfolio and risk management of BlackRock, trusted to manage more money than any other investment firm4.

Commissions, management fees and expenses all may be associated with investing in iShares Funds. Please read the relevant prospectus before investing. Fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There can be no assurances that the fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in the fund will be returned to you. The fund is not guaranteed, its 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.

(1) Based on assets under management ("AUM") CAD $44.6bn, as of August 31, 2015.

(2) The MSCI Diversified Multi-Factor Indexes, May, 2015.

(3) Based on a comparison of (i) the average mutual fund industry asset-weighted MER of 2.01% at the end of 2014 (Source: Investor Economics Insight Monthly Update, July 2015) and (ii) expected MERS of 0.50% for XFI, XFS, XFC, XFA and XFF, which include an estimated blended HST rate of 11% of the management fee of each fund.

(4) Based on US $4.721 trillion in AUM as of 6/30/15.

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