BlackRock Asset Management Canada Limited (iShares)

BlackRock Asset Management Canada Limited (iShares)

July 07, 2011 07:30 ET

Income Generation Continues to Be Front of Mind With ETF Users

Fixed Income ETFs Led All Other Asset Classes in Q2 With $633 Million in Net New Assets

TORONTO, ONTARIO--(Marketwire - July 7, 2011) - Canadian fixed income exchange-traded funds (ETF) experienced 8 per cent growth in assets under management (AUM) in the second quarter of 2011, including $633 million in net new assets. Conversely, Canadian equity ETFs experienced a -8 per cent retraction in AUM and $691 million in net outflows, according to information compiled by the iShares® ETF business at BlackRock Asset Management Canada Limited (BlackRock® Canada), an indirect, wholly-owned subsidiary of BlackRock, Inc.

"In these uncertain economic times, investors have made income generation a priority and sought the safe harbour of fixed income investments," said Mary Anne Wiley, head of iShares distribution, BlackRock Canada.

ETF AUM overall dropped in the second quarter, partly resulting from significant weakness in the equity markets (the S&P®/TSX® Composite Index returned -5.1 per cent in the second quarter). Total AUM of Canadian ETFs was $39.7 billion in Q2, compared to $41.4 billion AUM in Q1, representing a drop of 4 per cent. iShares ETFs continue to be the market leader amongst all the providers with 70.5 per cent of market share and $28 billion AUM followed by Claymore Investments, Inc. with 15.8 per cent and $6.3 billion AUM.

"In addition to the outflows we've seen for Canadian equities we have seen significant outflows for inverse ETFs in the second quarter," said Wiley.

Other highlights include:

  • The latter part of the second quarter saw the entrance of two new providers of ETFs: First Asset Investment Management Inc. (XTF Capital eXchange Traded Funds) and Invesco Trimark Ltd. (PowerShares ETFs). Both providers introduced their first Toronto Stock Exchange listed ETF products in the marketplace in June.
  • Twenty-four new ETFs have been introduced in the second quarter bringing the total number of ETFs introduced in Canada since the beginning of 2011 to 41.

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.

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.

Contact Information

  • Contact for Media:
    Veritas Communications
    Lisa An
    T - 416-955-4587
    C - 647-292-2478
    an@veritascanada.com