BlackRock Asset Management Canada Limited ("BlackRock Canada"), an indirect, wholly owned subsidiary of BlackRock, Inc. (BLK), today announced the estimated annual capital gains distributions for the iShares® Funds listed below for the 2013 tax year. Please note that these are estimated amounts only as of November 6, 2013 and reflect forward-looking information which may cause the estimates to change before the Funds' December 15, 2013 tax year-end.
These estimates are for the year-end capital gains distributions only, which are typically reinvested in additional units of the respective funds rather than paid in cash, and do not include estimates of ongoing monthly, quarterly, or semi-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 year-end distribution amounts, as well as the monthly, quarterly, and semi-annual cash distribution amounts, on or about December 18, 2013. The ex-dividend date for the 2013 annual distributions will be December 27, 2013. The record date for the 2013 annual distributions will be December 31, 2013, payable on January 6, 2014. The actual taxable amounts of reinvested and cash distributions for 2013, including the tax characteristics of the distributions, will be reported to brokers (through CDS Clearing and Depository Services Inc. or "CDS") in early 2014.
|Fund Name||Fund Ticker||Net asset value (NAV) per unit at Nov 6, 2013||Estimated annual capital gain as % of NAV at Nov 6, 2013|
|iShares Advantaged Canadian Bond Index Fund||CAB||20.04476||0.00*||%|
|iShares Balanced Income CorePortfolio™ Fund||CBD||20.41551||4.84||%|
|iShares 1-10 Year Laddered Corporate Bond Index Fund||CBH||19.67521||0.00||%|
|iShares Balanced Growth CorePortfolio™ Fund||CBN||17.09755||0.73||%|
|iShares 1-5 Year Laddered Corporate Bond Index Fund||CBO||19.76598||0.00||%|
|iShares BRIC Index Fund||CBQ||24.21572||0.00||%|
|iShares Broad Commodity Index ETF (CAD-Hedged)||CBR||21.1857||0.00||%|
|iShares S&P®/TSX® Canadian Dividend Aristocrats Index Fund||CDZ||24.06353||0.00||%|
|iShares Equal Weight Banc & Lifeco ETF||CEW||9.411844||0.00||%|
|iShares Global Real Estate Index Fund||CGR||21.0553||0.00||%|
|iShares Gold Bullion ETF||CGL||11.74916||0.00||%|
|iShares Advantaged U.S. High Yield Bond Index Fund (CAD-Hedged)||CHB||21.08602||0.00||%|
|iShares China All-Cap Index Fund||CHI||20.40538||0.00||%|
|iShares International Fundamental Index Fund||CIE||15.94095||0.00||%|
|iShares Global Infrastructure Index Fund||CIF||21.74975||2.66||%|
|iShares Japan Fundamental Index Fund (CAD-Hedged)||CJP||11.15991||0.00||%|
|iShares 1-5 Year Laddered Government Bond Index Fund||CLF||19.46551||0.00||%|
|iShares 1-10 Year Laddered Government Bond Index Fund||CLG||19.3468||0.00||%|
|iShares Oil Sands Index Fund||CLO||12.60716||0.00||%|
|iShares US Fundamental Index Fund||CLU||24.25808||1.84||%|
|iShares Managed Futures Index ETF||CMF||20.38996||0.00||%|
|iShares Premium Money Market ETF||CMR||50.01004||0.00||%|
|iShares S&P/TSX Global Mining Index Fund||CMW||14.88458||0.00||%|
|iShares Global Agriculture Index Fund||COW||26.24971||0.00||%|
|iShares S&P/TSX Canadian Preferred Share Index Fund||CPD||16.18272||0.00||%|
|iShares Canadian Fundamental Index Fund||CRQ||13.23491||3.01||%|
|iShares Advantaged Short Duration High Income ETF||CSD||20.2522||0.00||%|
|iShares S&P US Dividend Growers Index Fund (CAD-Hedged)||CUD||29.13678||1.01||%|
|iShares Advantaged Convertible Bond Index Fund||CVD||19.20124||0.00||%|
|iShares Emerging Markets Fundamental Index ETF||CWO||29.73267||0.00||%|
|iShares S&P Global Water Index Fund||CWW||20.86683||0.00||%|
|iShares Global Monthly Advantaged Dividend Index Fund||CYH||16.95068||0.00*||%|
|iShares Canadian Financial Monthly Income ETF||FIE||7.069559||0.00||%|
|iShares Silver Bullion ETF||SVR||12.74602||0.00||%|
|iShares Alternatives Completion Portfolio Builder Fund||XAL||26.61613||0.00||%|
|iShares DEX Universe Bond Index Fund||XBB||30.17465||0.13||%|
|iShares S&P/TSX Global Base Metals Index Fund||XBM||13.09284||0.00||%|
|iShares MSCI® Brazil Index Fund||XBZ||13.99258||0.00||%|
|iShares DEX All Corporate Bond Index Fund||XCB||20.85793||0.27||%|
|iShares S&P Global Consumer Discretionary Index Fund (CAD-Hedged)||XCD||23.95832||0.00||%|
|iShares Dow Jones Canada Select Growth Index Fund||XCG||23.10894||0.00||%|
|iShares China Index Fund||XCH||18.7555||0.00||%|
|iShares Conservative Core Portfolio Builder Fund||XCR||22.5206||0.00||%|
|iShares S&P/TSX SmallCap Index Fund||XCS||14.92018||0.00||%|
|iShares Dow Jones Canada Select Value Index Fund||XCV||22.51473||3.33||%|
|iShares Dow Jones Canada Select Dividend Index Fund||XDV||23.96644||0.55||%|
|iShares J.P. Morgan USD Emerging Markets Bond Index Fund (CAD-Hedged)||XEB||20.77843||0.00||%|
|iShares MSCI Emerging Markets IMI ETF||XEC||20.41357||0.00||%|
|iShares MSCI EAFE IMI Index ETF||XEF||22.71046||0.00||%|
|iShares S&P/TSX Capped Energy Index Fund||XEG||16.70281||0.00||%|
|iShares S&P/TSX Equity Income Index Fund||XEI||21.35112||4.11||%|
|iShares MSCI Emerging Markets Index Fund||XEM||24.7932||0.00||%|
|iShares Jantzi Social Index® Fund||XEN||19.64554||0.00||%|
|iShares S&P/TSX Capped Financials Index Fund||XFN||28.34129||0.00||%|
|iShares DEX Floating Rate Note Index Fund||XFR||20.14382||0.03||%|
|iShares DEX All Government Bond Index Fund||XGB||20.8775||0.39||%|
|iShares Global Completion Portfolio Builder Fund||XGC||27.26373||0.38||%|
|iShares S&P/TSX Global Gold Index Fund||XGD||11.05946||0.00||%|
|iShares S&P Global Industrials Index Fund (CAD-Hedged)||XGI||22.98575||0.00||%|
|iShares Growth Core Portfolio Builder Fund||XGR||25.36794||0.47||%|
|iShares DEX HYBrid Bond Index Fund||XHB||20.61368||0.00||%|
|iShares S&P Global Healthcare Index Fund (CAD-Hedged)||XHC||30.94391||0.00||%|
|iShares U.S. High Dividend Equity Index Fund (CAD-Hedged)||XHD||23.15289||0.50||%|
|iShares U.S. High Yield Bond Index Fund (CAD-Hedged)||XHY||21.57569||0.00||%|
|iShares S&P/TSX Capped Composite Index Fund||XIC||21.11969||0.25||%|
|iShares CNX Nifty India Index ETF||XID||18.29399||0.00||%|
|iShares U.S. IG Corporate Bond Index Fund (CAD-Hedged)||XIG||22.18756||0.00||%|
|iShares MSCI EAFE Index Fund (CAD-Hedged)||XIN||21.48243||0.00||%|
|iShares S&P/TSX Capped Information Technology Index Fund||XIT||7.87778||0.00||%|
|iShares S&P/TSX 60 Index Fund||XIU||19.33832||0.00||%|
|iShares S&P Latin America 40 Index Fund||XLA||17.27734||0.00||%|
|iShares DEX Long Term Bond Index Fund||XLB||21.3383||0.00||%|
|iShares S&P/TSX Capped Materials Index Fund||XMA||12.83494||0.00||%|
|iShares S&P/TSX Completion Index Fund||XMD||22.8333||0.00||%|
|iShares MSCI EAFE Minimum Volatility Index Fund||XMI||25.03457||0.04||%|
|iShares MSCI Emerging Markets Minimum Volatility Index Fund||XMM||22.84329||0.21||%|
|iShares MSCI USA Minimum Volatility Index Fund||XMU||24.93268||0.89||%|
|iShares MSCI Canada Minimum Volatility Index Fund||XMV||23.23846||0.08||%|
|iShares MSCI All Country World Minimum Volatility Index Fund||XMW||24.23479||0.00||%|
|iShares S&P/TSX North American Preferred Stock Index Fund (CAD-Hedged)||XPF||19.17173||0.00||%|
|iShares NASDAQ 100 Index Fund (CAD-Hedged)||XQQ||28.1269||0.00||%|
|iShares DEX Real Return Bond Index Fund||XRB||22.65048||3.51||%|
|iShares S&P/TSX Capped REIT Index Fund||XRE||15.23496||5.73||%|
|iShares DEX Short Term Bond Index Fund||XSB||28.60864||0.00||%|
|iShares DEX Short Term Corporate Universe + Maple Bond Index Fund||XSH||19.82266||0.00||%|
|iShares S&P 500 Index Fund (CAD-Hedged)||XSP||20.37986||0.00||%|
|iShares S&P/TSX Capped Consumer Staples Index Fund||XST||30.94612||0.38||%|
|iShares Russell 2000® Index Fund (CAD-Hedged)||XSU||23.63482||0.00||%|
|iShares Diversified Monthly Income Fund||XTR||12.01752||0.00||%|
|iShares S&P 500 Index ETF||XUS||23.04065||0.00||%|
|iShares S&P/TSX Capped Utilities Index Fund||XUT||19.39598||0.25||%|
|iShares S&P/TSX Venture Index Fund||XVX||12.00968||0.00||%|
|iShares MSCI World Index Fund||XWD||30.88266||0.00||%|
*Additional capital gains distributions will be made on the CAB, CAB.A, CYH and CYH.A units, as discussed below.
Reasons for some of the larger estimated capital gains distributions are as follows:
The iShares S&P/TSX Capped REIT Index Fund's ("XRE") capital gains are largely the result of the acquisition of Primaris Real Estate Investment Trust by H&R Real Estate Investment Trust during the year, which led to the realization of capital gains embedded in the Primaris position held by the fund.
The iShares S&P/TSX Equity Income Index Fund ("XEI") experienced capital gains in 2013 primarily due to the appreciation of securities held in its portfolio, and realized on the sale of securities in connection with the quarterly index rebalances. Some of the larger contributors to the gain were realized on the disposition of shares in Thomson Reuters Corp., Shaw Communications Inc. B, Husky Energy Inc., Cineplex Inc., and Bank of Nova Scotia.
The iShares Balanced Income CorePortfolio™ Fund ("CBD") experienced capital gains in 2013 in part due to the appreciation of securities held in its portfolio. Gains were also realized on the fund's holding of the iShares Global Monthly Advantaged Dividend Index Fund ("CYH"). See below for further details on CYH's distributions.
The iShares DEX Real Return Bond Index Fund ("XRB") realized capital gains in 2013 on the disposition of securities held as part of the normal course of operations for which there were embedded gains based on strong past performance.
Forward-using iShares ETFs:
CYH, CAB, CBR, CHB, CMF, CSD and CVD
On September 17, 2013, BlackRock Canada announced changes to seven forward-using iShares Funds in response to proposed new federal taxation rules that would deem gains on the settlement of certain forward agreements to be included in ordinary income rather than treated as capital gains.
As disclosed in a press release issued earlier today, each of the iShares Global Monthly Advantaged Dividend Index Fund ("CYH") and the iShares Advantaged Canadian Bond Index Fund ("CAB") experienced significant capital gains in 2013 due primarily to the appreciation in value of their respective reference portfolios that were realized upon the termination of the respective funds' forward agreements, which occurred in the fourth quarter of 2013 as part of the changes to the funds. As a result, CYH and CAB will make special capital gains distributions to unitholders on record as-of November 28, 2013.
BlackRock Canada does not expect that there will be year-end capital gain distributions for iShares Broad Commodity Index Fund (CAD-Hedged) ("CBR"), iShares Advantaged U.S. High Yield Bond Index Fund ("CHB"), iShares Managed Futures Index Fund ("CMF"), iShares Advantaged Short Duration High Income ETF ("CSD") and iShares Advantaged Convertible Bond Index Fund ("CVD") as a result of the changes to the funds. BlackRock Canada does expect, however, that for the forward-using iShares ETFs, regular cash distributions made during 2013 will be characterized as capital gains.
Certain considerations pertaining to the tax treatment of each of the forward-using iShares ETFs and its forward agreement(s) are set out in the fund's prospectus. As described above, the termination of a fund's forward agreement, will have the effect of realizing certain of these tax consequences. Unitholders should consult their own tax advisors about the consequences in their particular circumstances.
This notice contains forward-looking statements with respect to the annual 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 annual distributions set forth in this notice. Factors that could cause the actual distributions to differ from the estimated distributions between now and December 15, 2013 (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.
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 September 30, 2013, BlackRock's AUM was US$4.096 trillion. BlackRock offers products that span the risk spectrum to meet clients' needs, including active, enhanced and index strategies across markets and asset classes. Products are offered in a variety of structures including 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 September 30, 2013, the firm has approximately 11,200 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
iShares is the global product leader in exchange traded funds 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 shares 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 high net worth individuals.
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.