BlackRock Asset Management Canada and RBC Global Asset Management (RBC GAM) have formed an alliance to provide comprehensive exchange-traded funds (ETFs) in the Canadian marketplace.
Image: Black Rock HQ before moving to 55E 52nd Street. Photo: Courtesy of Americasroof/Wikipedia.org
As part of the alliance, the ETF families offered by BlackRock Canada and RBC GAM will now be brought under one brand, RBC iShares.
The combined $60bn RBC iShares ETF suite is claimed to be the country’s largest and comprehensive ETF offering, including index, factor, quantitative and active strategies.
The RBC iShares suite has a total of 150 ETFs, including 106 liquid, cost-competitive index solutions managed by BlackRock Canada, and 44 index, smart beta and actively managed solutions managed by RBC GAM.
RBC Global Asset Management CEO Damon Williams said: “This alliance is a win for Canadian investors and reflects our unwavering focus on the interests of clients. Canadian investors deserve a level of choice, quality and cost competitiveness that is second to none – and that is what RBC iShares delivers.
“This exciting step forward in the ETF space complements our continued focus on expanding our industry-leading Canadian mutual fund business.”
The new ETFs can be accessed by Canadian investors and advisors through trusted channels and full-service advisors, discount brokerages, and robo-advice platforms.
RBC GAM and BlackRock Canada will offer a unified distribution support and service model for RBC iShares in support of investors and advisors and will work together for the development of new strategies to further expand and refine the solution set.
The two companies will continue to maintain separate fund management and portfolio advisory responsibilities for their specific core capabilities, drawing on their respective strengths and expertise.
BlackRock US & Canada head iShares Martin Small said: “Around the world, iShares is known for the breadth of its ETF offerings, technology operating expertise, and investor education, while RBC Global Asset Management is the leader in Canadian mutual funds and has built a leading franchise developing innovative solutions.
“Our aspiration is to champion a new standard for the Canadian ETF market by providing the best solutions and service and help grow the industry through innovative tools and technology for existing and new managers.”
RBC GAM has made changes to several of its index ETFs and index mutual funds, leveraging the opportunities offered by the alliance with BlackRock Canada. The changes have been designed to serve the interests of investors by capturing economies to scale and in simplifying the RBC iShares ETF lineup.