BlackRock Canada Announces Estimated 2018 Annual Reinvested Capital Gains Distributions for the iShares ETFs

Globe Newswire 19-Nov-2018 5:00 PM

TORONTO, Nov. 19, 2018 (GLOBE NEWSWIRE) -- BlackRock Asset Management Canada Limited ("BlackRock Canada"), an indirect, wholly-owned subsidiary of BlackRock, Inc. (NYSE:BLK), today announced the estimated 2018 annual reinvested capital gains distributions for the iShares ETFs listed on the TSX or NEO. Please note that these are estimated capital gains amounts only, as of October 12, 2018.  As these are estimated amounts, the final capital gains distributions may change by the Funds' December 15, 2018 tax year-end.

These estimates are for the annual non-cash capital gains distributions, which are typically reinvested in additional units of the respective funds at the year-end, and do not include estimates of ongoing periodical (e.g. monthly, quarterly, semi-annually or annual) cash distribution amounts. The additional units will be immediately consolidated with the previously outstanding units such that the number of outstanding units following the distribution will equal the number of units outstanding prior to the distribution.

We expect to announce the final annual reinvested distribution amounts, as well as the ongoing cash distribution amounts, as applicable, for 2018, on or about December 20, 2018. The record date for the 2018 annual distributions will be December 31, 2018, payable on January 4, 2019. The actual taxable amounts of reinvested and cash distributions for 2018, including the tax characteristics of the distributions, will be reported to brokers (through CDS Clearing and Depository Services Inc. or "CDS") in early 2019.

Reasons for some of the larger estimated annual reinvested capital gains distributions are as follows:

CLU, CLU.C
The iShares US Fundamental Index ETF experienced capital gains in 2018 as a result of the appreciation of securities held in its portfolio, which were sold in connection with portfolio rebalancing.  Some of the larger components of the gains were realized on the disposition of shares in Microsoft Corporation, JPMorgan Chase & Co., Bank of America Corporation, The Boeing Company, and Apple Inc.

COW
The iShares Global Agriculture Index ETF realized capital gains in 2018 on the disposition of securities held in its portfolio, in connection with portfolio rebalancing, for which there were embedded gains earned through strong past performance.  Some of the larger components of the gains were realized on the disposition of shares in Monsanto Company (which was acquired by Bayer AG during the current year), Deere & Company, and AGCO Corporation.

CWO
The iShares Emerging Markets Fundamental Index ETF realized capital gains in 2018 on the disposition of securities held in its portfolio, in connection with portfolio rebalancing, for which there were embedded gains earned through strong past performance.  Some of the larger components of the gains were realized on the disposition of shares in Vale S.A., China Evergrande Group, and Ping An Insurance Group Company of China Ltd.

XFF, XFI
The iShares Edge MSCI Multifactor EAFE Index ETF (CAD-Hedged) and iShares Edge MSCI Multifactor EAFE Index ETF realized capital gains in 2018 on the disposition of securities held within their respective portfolios, in connection with portfolio rebalancing, for which there were embedded gains earned through strong past performance.  Some of the larger components of the gains were realized on the disposition of shares in Wirecard AG, Aristocrat Leisure Limited, GKN plc, and Sika AG.  These securities were removed from the funds' respective underlying indices.

CBD, CBN – Estimated Special Cash Capital Gains Distribution Pending Approval to Change the Fundamental Investment Objectives

BlackRock Canada has called a meeting of the unitholders of the iShares Balanced Income CorePortfolio Index ETF™ and iShares Balanced Growth CorePortfolio Index ETF™ to be held on December 3, 2018 to consider and approve changes to the fundamental investment objective of each fund.  If approved, BlackRock Canada expects that implementing the new fundamental investment objectives may result in the realization of net capital gains for each fund, and that each fund would pay such realized net capital gains, if any, to unitholders in cash as a special distribution on or before December 31, 2018.  This special cash distribution would be incremental to the normal year-end distributions of each fund as described in the Prospectus under "Distribution Policy—Year-end Distributions".  Based on BlackRock Canada's estimates as of October 12, 2018 (without forward looking forecast), such special cash distribution by CBN would be approximately 6.84% of its net asset value per unit and no such special cash distribution is currently expected for CBD.  These estimates are subject to change, including based on market conditions and fluctuations, and a fund's portfolio activity, up to the date of disposition of the portfolio securities in December as planned.

Further information on the iShares Funds can be found at http://www.blackrock.com/ca.

Forward-looking information

This notice contains forward-looking statements with respect to the annual reinvested capital gains distributions for the iShares Funds. By their nature, these forward-looking statements involve risks and uncertainties that could cause the actual distributions to differ materially from the estimated distributions set forth in this notice.  Factors that could cause the actual distributions to differ from the estimated distributions between now and December 15, 2018 (the iShares Funds' tax year end) include, but are not limited to: the actual amounts of distributions received by the iShares Funds; the actual amounts of capital gains generated from sales of securities; trading activity within the iShares Funds, including buying and selling of securities; index changes which cause rebalancing within the iShares Funds; and subscription and redemption activity.

About BlackRock
BlackRock helps investors build better financial futures. As a fiduciary to our clients, we provide the investment and technology 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/ca | Twitter: @BlackRockCA | Blog: www.blackrockblog.com/can

About iShares ETFs
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 firm¹.

¹ Based on US$6.44 trillion in AUM as of 9/30/18

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:               
Julia Koene                                                                                        
T – 416-643-4010                               
Email: Julia.Koene@blackrock.com