TORONTO, ONTARIO–(Marketwired – May 18, 2016) – For the first time, Canadian bond buyers will have access to a market standard methodology that is used to calculate key metrics for fixed income ETFs on the Bloomberg trading platform. This innovation will serve to enhance investors’ ability to conduct intra-day analysis of different ETFs and between ETFs and other fixed income instruments across multiple trading platforms. This function will now allow fixed income investors to analyze Canadian-listed fixed income ETFs using the same metrics that are used for other bond and derivative products, and leverages BlackRock’s and Bloomberg’s joint global efforts, which delivered this same capability to the UK and US markets in 2015.
“The introduction of a market standard for fixed income ETFs is an important step forward in evolving the fixed income ETF ecosystem,” said Warren Collier, Head of iShares, BlackRock Canada(1). “We’re thrilled to be at the forefront of this innovation in Canada, as this development will help to simplify the institutional investor experience around fixed income ETFs, and deliver more transparency to market participants.”
Since 2000, fixed income ETFs have been on positive growth trajectory, as investors increasingly recognize the inherent benefits of accessing their fixed income exposures through an ETF structure. In Canada, assets under management (AUM) of fixed income ETFs have grown 152x from less than C$200 million in 2000, to nearly C$28 billion at the end of 2015(2). Fixed income ETFs globally now have close to US$600 billion in AUM(3).
“As the appetite for fixed income ETFs continues to grow among institutional investors, standardization of yield and spread calculation is becoming critical to increasing participation,” said Ben Macdonald, Bloomberg’s Global Head of Product. “We are proud to partner with BlackRock in bringing this offering to the Canadian market.”
“As fixed income ETFs have become an indispensable portfolio management tool through their ability to provide efficient access to the global bond markets, this is an important – and long overdue – development.” said Alan Green, iShares Capital Markets, BlackRock Canada. “The establishment of a standard fixed income ETF methodology for the calculation of yields, spreads and durations, will help investors make more accurate product comparisons and improve portfolio construction.”
| 1 BlackRock Asset Management Canada Limited (“BlackRock Canada”). |
| 2 BlackRock Internal Data, as Of December 31, 2015. |
| 3 Source: BlackRock and Bloomberg, as of April 29, 2016. |
Upon launch, fund information for iShares fixed income ETFs will be available using this new standard, with Bloomberg and BlackRock’s risk and enterprise investment system Aladdin®, each displaying risk metrics through their analytics, trading, and investment platforms. The risk metrics will also be accessible from www.blackrock.com/ca and https://www.spdrs.com/.
About BlackRock
BlackRock is a global leader in investment management, risk management and advisory services for institutional and retail clients. At March 31, 2016, BlackRock’s AUM was US$4.737 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 March 31, 2016, the firm had approximately 13,000 employees in more than 30 countries and a major presence in 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 March 31, 2016, 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.1
1 Based on US$4.737 trillion in AUM as of 3/31/16.
About Bloomberg
Bloomberg, the global business and financial information and news leader, gives influential decision makers a critical edge by connecting them to a dynamic network of information, people and ideas. The company’s strength – delivering data, news and analytics through innovative technology, quickly and accurately – is at the core of the Bloomberg Professional service, which provides real time financial information to more than 327,000 subscribers globally. For more information, visit www.bloomberg.com.
The Bloomberg Professional service is owned and distributed by Bloomberg Finance L.P. and its affiliates.
BlackRock Asset Management Canada Limited and its affiliates (collectively, “BlackRock”) are not affiliated with Bloomberg Finance L.P. or its affiliates.
iShares® ETFs are managed by BlackRock Asset Management Canada Limited.
Commissions, trailing commissions, management fees and expenses all may be associated with investing in iShares ETFs. Please read the relevant prospectus before investing. The funds 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.
Maeve Hannigan
416-643-4058
Maeve.Hannigan@blackrock.com