iShares inflows driven by two global product lines
January 21 2015, Sydney – BlackRock, Inc. (NYSE: BLK) has announced that its iShares business led the global industry by capturing $102.8bn in new flows in 2014, 31% of the record-breaking $330.7bn global exchange traded fund (ETF) market flows.
Growth was driven by the iShares U.S. and European product lines, which continue to be adopted by investors across the globe. The iShares U.S. product line led the way with a record $82.8bn of new assets in 2014, surpassing the previous record for U.S. iShares ETFs of $62.0bn in 2012. In Europe, the business captured $20.3bn in net new flows.
Mark Wiedman, Global Head of iShares at BlackRock commented:
“iShares growth this year was driven by two global product lines. Clients from Asia and Latin America continue to use both our U.S. and European ETF suite in record numbers, contributing $19.8bn in net new assets through November 30th.”
“We’re seeing ETFs truly come of age, as more investors around the world recognize and embrace the versatility of these vehicles – whether it’s for their strategic buy-and-hold investments or precision exposures to express a view on virtually any market.
“ETFs have also been discovered by capital market participants, who are using them as efficient substitutes for futures and swaps.”
“Fixed income was a key driver of flows globally, as investors of all kinds increasingly adopt ETFs as an essential instrument for accessing the bond markets. iShares captured $40.3bn globally or 48% of all new flows into fixed income ETFs.”
Australia’s ETF market also experienced record inflows
In Australia, the local ETF industry continued its rapid expansion, growing to $15bn in terms of onshore assets by the end of 2014, up from $10bn at the end of 2013.
“Australian investors are rapidly incorporating ETFs into the core of their portfolios” noted Jonathan Howie – Head of iShares Australia. “They’re utilizing ETFs for the same reasons as investors globally – simple, low-cost access to the worlds markets”.
iShares cemented its position as the number 1 issuer in Australia, with over 36% market share.
Globally iShares AUM exceeded $1 trillion as of December 31, 2014.
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About BlackRock BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At December 31, 2014, BlackRock’s AUM was $4.652 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 December 31, 2014, the firm had approximately 12,200 employees in more than 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.
iShares is a global leader in exchange-traded funds (ETFs), with more than a decade of expertise and commitment to individual and institutional investors of all sizes. With over 700 funds globally across multiple asset classes and strategies and more than $1 trillion in assets under management as of December 31, 2014, iShares helps clients around the world build the core of their portfolios, meet specific investment goals and implement market views. iShares funds are powered by the expert portfolio and risk management of BlackRock, trusted to manage more money than any other investment firm.
Before investing in an iShares exchange traded fund, you should carefully consider whether such products are appropriate for you, read the applicable prospectus or product disclosure statement (“PDS”) available at iShares.com.au and consult an investment adviser.
Issued by BlackRock Investment Management (Australia) Limited ABN 13 006 165 975, AFSL 230523 (“BIMAL”). BIMAL is a wholly-owned subsidiary of BlackRock, Inc. (collectively “BlackRock”).
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This information is general in nature, and has been prepared without taking into account any individual’s objectives, financial situation, or needs.
Transaction costs are incurred when buying or selling shares or units (as the case may be) of an iShares fund (“iShares securities”) on a market of the Australian Securities Exchange (“ASX”) and brokerage commissions may be charged if such trades are done through a broker.
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iShares securities trade on ASX at market price (not, net asset value (“NAV”)). iShares securities may only be redeemed directly by persons called “Authorised Participants”.
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Australian iShares funds: BIMAL is the Responsible Entity for the managed investment scheme Australian iShares funds quoted on ASX, and is the issuer of units in those iShares funds. Each fund constitution provides that the liability of each unit holder is limited to its investment in the fund. In addition to the normal risks associated with investing, there may be risks associated with investments made by iShares funds in smaller companies and those whose activities are narrowly focused.
International iShares funds: BIMAL is the local agent and intermediary for international iShares funds issued by iShares (iShares, Inc. ARBN 125632 279 formed in Maryland, USA; iShares Trust ARBN 125 632 411 organised in Delaware, USA. The liability of shareholders is limited). BlackRock Fund Advisors (“BFA”) serves as an advisor to the iShares funds that are registered with the United States Securities and Exchange Commission under the Investment Company Act of 1940. BFA is a subsidiary of BlackRock Institutional Trust Company, N.A (“BTC”). BTC is a wholly-owned subsidiary of BlackRock, Trades on ASX in the shares of an international iShares fund are settled using CHESS Depositary Interests (or “CDIs”). An investment in an international iShares fund has different risk, performance and return factors compared to investments in other listed securities that do not have international exposure.
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