BlackRock® Canada calls Unitholder Meetings of Certain iShares ETFs to Approve Proposed Mergers and Announces Fee Reduction
TORONTO, Dec. 16, 2022 (GLOBE NEWSWIRE) -- 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: [email protected]
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