Combined $60 billion RBC
iShares ETF suite will be the most comprehensive in
Canada
Investors benefit from expanded access to iShares' funds
and operating expertise and RBC's capabilities and
solutions
TORONTO, Jan. 8, 2019 /CNW/ - RBC Global Asset Management
Inc. ("RBC GAM Inc.") and BlackRock Asset Management Canada Limited
("BlackRock Canada") today announced a strategic alliance that will
deliver the most comprehensive ETF offering in the Canadian
marketplace.
This transformational alliance brings together two market
leaders: the world's largest ETF manager, and Canada's largest asset
manager.1
Sets new standard for Canada's ETF industry
The ETF families
offered in Canada by BlackRock
Canada and RBC GAM Inc. are being brought together under one new
brand – RBC iShares. Combined, this $60
billion solution suite represents Canada's largest and most comprehensive ETF
offering, including index, factor, quantitative and active
strategies. The RBC iShares suite includes a total of 150 ETFs: 106
high-quality, liquid, cost-competitive index solutions managed by
BlackRock Canada, and 44 index, smart beta and actively managed
solutions managed by RBC GAM Inc.
"This alliance is a win for Canadian investors and reflects our
unwavering focus on the interests of clients," said Damon Williams, CEO of RBC Global Asset
Management. "Canadian investors deserve a level of choice, quality
and cost competitiveness that is second to none – and that is what
RBC iShares delivers. This exciting step forward in the ETF space
complements our continued focus on expanding our industry-leading
Canadian mutual fund business."
There is no change to the names or ticker symbols of RBC ETFs or
BlackRock Canada's iShares ETFs as a result of the alliance.
Expanded access to Canada's
most comprehensive range of ETFs
Canadian investors and
advisors will be able to access RBC iShares ETFs through the
channels they know and trust, including through full-service
advisors, discount brokerages, and robo-advice platforms.
"Around the world, iShares is known for the breadth of its ETF
offerings, technology operating expertise, and investor education,
while RBC Global Asset Management is the leader in Canadian mutual
funds and has built a leading franchise developing innovative
solutions," said Martin Small,
BlackRock's Head of US & Canada iShares. "Our aspiration is to champion
a new standard for the Canadian ETF market by providing the best
solutions and service and help grow the industry through innovative
tools and technology for existing and new managers."
Pat Chiefalo, Head of iShares
Canada, added, "This
transformational ETF alliance is dedicated to delivering to
Canadian investors the ETF products they trust, the world class
investment talent they want, and the service they deserve."
Unified distribution model
RBC GAM Inc. and BlackRock
Canada will offer a unified distribution support and service model
for RBC iShares in support of investors and advisors, and will work
together to jointly develop new and innovative strategies to
further expand and refine the solution set. The two firms remain
separate legal entities. They will continue to maintain separate
fund management and portfolio advisory responsibilities for their
specific core capabilities, drawing on both firms' complementary
strengths and expertise.
Specialized services will also be provided to third-party
discretionary portfolio managers, advisors and institutions,
including capital markets support, portfolio construction
resources, and dedicated ETF strategists.
Changes planned to enhance and streamline the RBC iShares ETF
suite
Leveraging the opportunities offered by the strategic
alliance, RBC GAM Inc. announced changes to a number of RBC index
ETFs and index mutual funds. These changes are designed to serve
the best interests of investors by capturing economies of scale and
simplifying the RBC iShares ETF lineup. The changes to RBC ETFs
offer greater efficiency and liquidity, as well as slightly lower
management fees in some cases. The proposed changes are subject to
regulatory and/or unitholder approval.
Under the alliance framework, RBC GAM Inc. and BlackRock Canada
will work together to pursue further opportunities to enhance the
RBC iShares suite over time.
For more information about the RBC iShares ETF suite, investors
and advisors are invited to visit rbcishares.com.
Commissions, management fees and expenses all may be associated
with investments in exchange-traded funds (ETF). Please read the
relevant prospectus or ETF Facts document before investing. ETFs
are not guaranteed, their values change frequently and past
performance may not be repeated. ETF units are bought and sold at
market price on a stock exchange and brokerage commissions will
reduce returns. RBC iShares ETFs include iShares ETFs managed by
BlackRock Asset Management Canada Limited and RBC ETFs managed by
RBC Global Asset Management Inc., a member of the RBC GAM group of
companies and an indirect wholly owned subsidiary of Royal Bank of
Canada.
About RBC Global Asset Management
RBC Global Asset
Management (RBC GAM) is the asset management division of Royal
Bank of Canada (RBC) and includes
institutional money managers BlueBay Asset Management and Phillips,
Hager & North Investment Management. RBC GAM is a provider of
global investment management services and solutions to
institutional, high-net-worth and individual investors through
separate accounts, pooled funds, mutual funds, hedge funds,
exchange-traded funds and specialty investment strategies. The RBC
GAM group of companies manage approximately $425 billion in assets and have approximately
1,400 employees located across Canada, the United
States, Europe and
Asia.
About BlackRock
BlackRock helps investors build better
financial futures. As a fiduciary to our clients, we provide the
solutions they need when planning for their most important goals.
As of September 30, 2018, the firm
managed approximately US$6.44
trillion in assets on behalf of investors worldwide. For
additional information on BlackRock, please visit
www.blackrock.com.
About iShares
iShares unlocks opportunity across
markets to meet the evolving needs of investors. With more than
twenty years of experience, a global line-up of 800+ exchange
traded funds (ETFs) and US$1.8
trillion in assets under management as of September 30, 2018, iShares continues to drive
progress for the financial industry. iShares funds are powered by
the expert portfolio and risk management of BlackRock, trusted to
manage more money than any other investment firm.
______________________________
1 As of 9/30/18, RBC Global Asset Management Inc. is
Canada's largest fund company by
assets under management (Source: IFIC) and BlackRock, Inc.,
together with its worldwide affiliates, is the world's largest ETF
manager by assets under management (Source: BlackRock, Inc.).
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SOURCE RBC Global Asset Management Inc.