BlackRock® Canada calls Unitholder Meetings of Certain iShares ETFs to Approve Proposed Mergers and Announces Fee Reduction
December 16 2022 - 5:04PM
BlackRock Asset Management Canada Limited (“
BlackRock
Canada”), an indirect, wholly-owned subsidiary of
BlackRock, Inc. (“
BlackRock”) (NYSE: BLK) today
announced that it has called special meetings of unitholders of the
iShares exchange-traded funds (“
Merging ETFs”)
listed below (the “
Meetings”), to be held on or
about March 1, 2023, solely as a virtual (online) meeting by way of
live audio webcast, to approve the merger of each of the Merging
ETFs into the applicable continuing iShares exchange-traded funds
(“
Continuing ETFs”), as set forth in the table
below (the “
Mergers”).
Merging ETF |
Continuing ETF |
iShares U.S. High Yield Fixed Income Index ETF (CAD-Hedged)
(CHB) |
iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY) |
iShares Short Term High Quality Canadian Bond Index ETF (XSQ) |
iShares Core Canadian Short Term Bond Index ETF (XSB) |
iShares High Quality Canadian Bond Index ETF (XQB) |
iShares Core Canadian Universe Bond Index ETF (XBB) |
BlackRock Canada continually reviews its product
range to ensure it meets the evolving needs of our clients. The
proposed changes aim to simplify product offering and provide
better diversification opportunities for investors. The Merging
ETFs and Continuing ETFs have substantially similar underlying
investment exposure. In addition, the Continuing ETFs have greater
secondary market liquidity, measured by average spreads and
volumes, to that of the Merging ETFs.
If the Mergers are approved, the Merging ETFs
would be wound down following completion of the Mergers.
Unitholders of each Merging ETF will receive full units of the
respective Continuing ETF based on the Continuing ETF’s net asset
value per unit and cash in lieu of fractional units. The proposed
Mergers are expected to take place on a taxable basis, and for tax
purposes, will generally be treated as a disposition of the
property and units of the Merging ETF.
BlackRock Canada is holding the Meetings solely
as virtual (online) meetings which will be conducted by way of live
audio webcast. Unitholders of record of the Merging ETFs at the
close of business on January 12, 2023 will be entitled to receive
notice of, and vote at, the applicable Meeting. In accordance with
applicable securities laws, a joint management information circular
relating to the Mergers (the “Circular”) will be
made available to unitholders in advance of the
Meetings. The Circular will also be made available on
www.sedar.com and will include additional details regarding the
Mergers.
Implementation of the Mergers is subject to
applicable stock exchange and unitholder approvals. If the Mergers
are approved, BlackRock Canada expects that the Mergers will be
implemented on or about March 30, 2023. The Merging ETFs and
Continuing ETFs will not bear any costs or expenses related to the
Mergers.
The independent review committee of the Merging
ETFs has reviewed and issued a positive recommendation in respect
of the Mergers on the basis that each Merger achieves a fair and
reasonable result for each Merging ETF.
For more information about the Merging ETFs and
Continuing ETFs, please visit www.blackrock.com/ca.
Fee Reduction for XHY
Effective on or about January 12, 2023, the
annual management fee of the iShares U.S. High Yield Bond Index ETF
(CAD-Hedged) (“XHY”) will change as follows:
Name |
Ticker |
Current Management Fee(1) |
New Management Fee(1) |
iShares U.S. High Yield Bond Index ETF (CAD-Hedged) |
XHY |
0.60% |
0.50% |
(1) As an annualized percentage of XHY’s daily
net asset value.
There is no change to the investment objectives
or trading symbol of XHY. Current unitholders in XHY are not
required to take any actions as a result of this change.
About BlackRock
BlackRock’s purpose is to help more and more
people experience financial well-being. As a fiduciary to investors
and a leading provider of financial technology, we help millions of
people build savings that serve them throughout their lives by
making investing easier and more affordable. For additional
information on BlackRock, please
visit www.blackrock.com/corporate.
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 900+ exchange-traded funds and
US$2.62 trillion in assets under management as of September 30,
2022, iShares continues to drive progress for the financial
industry. iShares funds are powered by the expert portfolio and
risk management of BlackRock.
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.
Contact for Media: Reem Jazar
Email: reem.jazar@blackrock.com
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