TORONTO, ONTARIO--(Marketwired - June 11, 2015) - BlackRock Asset Management Canada Limited ("BlackRock Canada") (TSX:CBO), an indirect, wholly-owned subsidiary of BlackRock, Inc. ("BlackRock") (NYSE:BLK) and manager of iShares Canadian Financial Monthly Income ETF ("FIE") (TSX:FIE), announced today that it has called a special meeting of the holders of Common Units and Advisor Class Units of FIE (the "Meeting"), to be held on or about August 13, 2015, to approve a proposal (the "Proposal") to extend the term of FIE on an indefinite basis by removing its scheduled termination date of September 30, 2015 (the "Current Termination Date"). BlackRock Canada is proposing to replace the Current Termination Date with a provision that will allow FIE to continue indefinitely, unless terminated by BlackRock Canada (upon providing not less than 60 days' notice to unitholders of FIE).
"FIE has experienced significant growth over the past three years, with assets under management more than doubling, to over $440 million today," says Pat Chiefalo, Managing Director, Head of iShares Product, BlackRock Canada. "This Proposal, if approved, will allow investors to continue to benefit from FIE's unique income generation strategy, which addresses a key investor need in today's low-yield environment."
Details of the Proposal will be provided in a management information circular (the "Circular") to be delivered to holders of units of record on July 2, 2015, in connection with the Meeting and will be available on www.sedar.com. Implementation of the Proposal is also subject to applicable regulatory approvals, including the approval of the Toronto Stock Exchange. If the Proposal is approved, unitholders of FIE who vote against the Proposal will be permitted, on a one-time basis, to redeem all (but not less than all) of their Units at their respective net asset value per unit on September 30, 2015 (the "Redemption"). Further information regarding how to participate in the Redemption will be provided in the Circular. If all necessary approvals are not obtained and the Proposal is not implemented, it is the current intention of BlackRock Canada that FIE will automatically terminate on the Current Termination Date in accordance with the declaration of trust governing FIE and applicable securities laws.
In addition, BlackRock Canada intends to amend FIE's existing credit facility with a Canadian financial institution to increase the amount available to FIE for borrowing. In connection with this change, FIE's borrowing will be limited to 15% of its net asset value ("NAV"). Previously, FIE's borrowing was limited to the lesser of (i) $15,000,000; and (ii) 15% of its NAV. The amendment of FIE's credit facility does not require approval by unitholders of FIE, and is expected to be implemented following the Meeting if the Proposal receives all necessary approvals.
"The change to FIE's permitted leverage will enable it to increase the size of its income-generating investment portfolio to better reflect both its recent asset growth and growth into the future," said Chiefalo.
About BlackRock
BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At March 31, 2015, BlackRock's AUM was $4.774 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 March 31, 2015, the firm had approximately 12,300 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 $1 trillion in assets under management as of March 31, 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 firm.
iShares® Funds are managed by BlackRock Asset Management Canada Limited. 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.
© 2015 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.
Contact Information:
416-643-4058
Maeve.Hannigan@blackrock.com