Press release from Marketwire
BlackRock Canada Announces Certain Changes to XHY
Friday, July 05, 2013
BlackRock Canada Announces Certain Changes to XHY17:05 EDT Friday, July 05, 2013
TORONTO, ONTARIO--(Marketwired - July 5, 2013) - BlackRock Asset Management Canada Limited ("BlackRock Canada"), an indirect, wholly owned subsidiary of BlackRock, Inc. (NYSE:BLK), has determined to make certain changes to the investment strategy of the iShares U.S. High Yield Bond Index Fund (CAD-Hedged) (TSX:XHY).
The new investment strategy of XHY will be to invest primarily in a regularly rebalanced portfolio of U.S. dollar-denominated high yield corporate bonds, selected by BlackRock Canada from time to time, that in aggregate closely match the characteristics of the Markit iBoxx USD Liquid High Yield Total Return Index hedged in CAD (the "XHY Index"), and hedge any resulting U.S. dollar currency exposure back to Canadian dollars. This will be a change from the current investment strategy of XHY, which involves investing in the iShares iBoxx $ High Yield Corporate Bond ETF, a U.S. iShares Fund that itself invests in a portfolio of U.S. dollar-denominated high yield corporate bonds included in the XHY Index. The investment objective of XHY and the XHY Index will remain unchanged.
BlackRock Canada expects that the changes in XHY's portfolio to implement this new investment strategy will take place during the three month period starting on July 22, 2013 and will be completed by October 22, 2013.
As a result of this new investment strategy, the potential expiration of U.S. tax rules exempting qualified interest income from U.S. withholding tax will no longer affect XHY, as interest income arising from direct investments in U.S. fixed income securities is generally not subject to U.S. withholding taxes.
Further information on iShares funds can be found at www.iShares.ca.
BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At March 31, 2013, BlackRock's AUM was US$3.936 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, 2013, the firm has approximately 10,600 employees in 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
About iShares ® ETFs
The iShares business is a global product leader in ETFs with over 600 funds globally across equities, fixed income and commodities, which trade on 20 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 and individual investors.
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.
© 2013 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.
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